– I fear that prices will increase in the long term. That is why we are working on measures to reduce our electricity consumption and to become self-sufficient, says general manager of the concrete company Jaro in Alta, Ole Marius Thomassen. Instead of going to bed and crying that expenses could explode, he chooses to look at the situation positively. He believes that increased electricity prices will push companies to switch to more climate-friendly solutions. – Costs are a driver of how we can look at new solutions and develop further. With support schemes for solar cells, we will be able to start the work straight away, says Thomassen. Concrete workers at Jaro in Alta. They supply concrete for commercial buildings all over northern Norway. Photo: André Bendixen / news As of today, northern Norway is not connected to the southern Norwegian power grid. Therefore, the region has been spared the high electricity prices. But that doesn’t mean the price will stay low. A lack of grid capacity in northern Norway will lead to a shortage of electricity, which will mean increased prices in northern Norway as well, both power companies and businesses predict. Although a 420 kilovolt line has recently been erected through northern Norway, it is not enough. In the coming years, among other things, the petroleum industry will be electrified. This alone will lead to a shortage of electricity. – What has already happened is that they have reserved so much capacity in the network that there is not enough left for other green industries or other industrial development. They take all capacity, says director of Alta kraftlag, Per Erik Ramstad. As if that wasn’t enough. In northern Sweden, the mining industry is to be electrified, which will also affect prices in northern Norway. – We are part of the same price system. So what happens in Sweden affects us, says Ramstad. Director of Alta kraftlag, Per Erik Ramstad, believes that a new 420 kilovolt line must be in place sooner rather than later. Photo: EILIF ASLAKSEN / news He believes that the solution must be to ensure that the new 420 line, which has now stopped in the middle of Finnmark, is completed all the way to Eastern Finnmark. – In addition to that, we have to build another 420 kilovolt line through northern Norway, says Ramstad. From 1 øre to 4 kroner General manager of the concrete factory Jaro in Alta, Ole Marius Thomassen, has already had a taste of what may lie ahead. On Monday 12 September, the price was over NOK 4 per kilowatt hour, which sent shockwaves across northern Norway. Here, the prices have been at their lowest, down to a historic one øre per kilowatt hour this autumn. Thomassen told Altaposten that if a price of NOK 4 per kilowatt hour were to apply for a longer period of time, it would increase electricity costs from NOK 300,000 to NOK 4 million a year. – 4 million is what we spend on average on development in Jaro a year, so it will go beyond the totality of what we do and prevent further development in the company, says Thomassen to news. Now, however, the Thomassen government will meet. On 16 September, the government announced that it will help companies that get into trouble due to high electricity costs. Admittedly, the discussion is already raging here as to whether this is good enough. Both FRP and Venstre believe that it is not. Industry Minister Jan Christian Vestre has had enough to do with helping a stressed business community in the past year. Here on a visit to Kirkenes earlier this spring. Photo: Karen Gjetrang / news The most important measures presented at a press conference are: Direct support: Companies with electricity expenses of 3 per cent or more of turnover can have up to 25 per cent of the electricity price above 70 øre/kWh covered in October, November and December. Companies that simultaneously invest in energy saving measures will be able to have up to 45 per cent of expenses over 70 øre/kWh covered. Enøk support of up to 50 per cent of the investment cost is given. The maximum ceiling for support for each company is NOK 3.5 million. New loan guarantee scheme: The government guarantees 90 per cent of the amount in bank loans to companies with acute liquidity shortages as a result of the electricity price. The government will change the tax rules to improve access to fixed price agreements. Petroleum extraction and power-intensive activities (companies with electricity consumption exceeding 100 GWh/year) will not be able to receive subsidies under the scheme. Capital-poor country Head of the Energy and Environment Committee at the Storting, Marianne Sivertsen Næss, likes the forward-looking attitude towards the concrete factory in Alta. – It is a very good point to look at how you can contribute to local renewable energy production. And there solar cells are absolutely crucial, says Sivertsen Næss. Marianne Sivertsen Næss, leader of the energy and environment committee in conversation with director of Alta kraftlag, Per Erik Ramstad. Photo: Hanne Larsen / news She adds that the Storting has already started looking at how to reduce the barrier for companies to be able to produce local power. Leader of NHO Arctic, Sigrid Ina Simonsen, believes it is important that the northern Norwegian business community is a leader when it comes to the increase in electricity prices. The region is already struggling with challenges such as high shipping costs, expensive plane tickets, evictions and a lack of capital-strong companies. – Northern Norwegian companies basically have less capital than many other companies in the country. Then they are in a more difficult situation to cope with high electricity prices, says Simonsen. Sigrid Ina Simonsen is the new manager of NHO Arctic. She believes that companies in northern Norway are particularly vulnerable to increased electricity prices. Photo: Hanne Larsen / news She believes that we as a society have to accept that we must use our electricity more efficiently in the future. – At the same time, we need power to get over to climate-friendly solutions, so that we reach our climate targets, says Simonsen.
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New electricity support can save Northern Norway from shocking prices – news Troms and Finnmark
