June 8, 2023


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Few projects by 2030 – E24

The Minister of Industry promised large-scale energy development and cheap electricity during this decade. But NVE CEO Kjetil Lund’s inbox is nearly empty of applications for new energy projects.

The director of Norway’s Department of Water Resources and Energy (NVE), Kjetil Lund, says there are few applicants for energy development at the moment.
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According to the report, Norway needs “extraordinary” measures to develop sufficient power to achieve industrial and climate policy goals energy authority. If the energy balance is not strengthened, electricity prices will follow and possibly even exceed the European price level.

Therefore, the majority of the committee believes that a target of at least 40 TWh of renewable energy production should be set by 2030.

NVE believes this is an unrealistic goal.

– We do not criticize the authority itself, but it is ambitious to develop this a lot by 2030. We have few applications for the development of hydropower, wind energy and solar energy. And many of the cases we have are controversial, NVE chief Kjetil Lund tells E24.

It also indicates that the projects you have applied for will take time to be realized. This is due to the comprehensive processes with local docking, environmental investigations and network development.

– It seems difficult to reach the goal by 2030, says Lund.

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What do you think of Vestre’s promise of cheaper electricity this decade? Is this realistic?

In Norway, electricity prices are lower in most years than most countries in Europe. We’ve had an excess of energy, but it’s on the way down, says Lund.

He points out that the more energy surplus Norway has, the lower the prices for electricity we get.

Energy surpluses will vary from year to year, but over time we pretty much decide that for ourselves. It’s about how much energy we build, how energy efficient we make it and how much electricity we build, he says.

It’s also important to have some energy import and export, Lund stresses, since Norway has a weather-dependent system.

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More energy means cheaper electricity

The NVE boss also wants to correct what he believes is a common mistake mentioned in the press. It is related to the i clause Energy Authority report Norwegian electricity prices are separate from those in Europe if the energy surplus exceeds 40 TWh.

– There’s the idea that you have to have 40 TWh in surplus capacity growing for it to have an impact on prices. this is not true. Every kilowatt-hour saved or increased is produced constribte To lower electricity prices in Norway, he says.

He also notes that the price of energy is determined by more factors than Norwegian production and consumption. Energy prices will be affected by gas and coal prices and carbon dioxide quotas.

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– But the more surplus energy we get, the lower prices will be, and the less we will be affected by what is happening in other countries. This also applies to a power system like the one in Norway, which is again linked to Europe.

– What do you think about the claim that we get cheaper electricity if we cut off communication with neighboring countries?

– I do not want to go into political controversy, but we have had foreign relations in Norway for several decades, says Lund.

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