Norway is considering cutting its energy links with Europe due to skyrocketing electricity costs. The government’s frustration with the situation is fueling a political debate that could shape the country’s energy policy and upcoming elections.
High Prices Spark Outrage and Political Action
Norwegian Energy Minister Terje Aasland described the current electricity prices as an “absolutely sh*t situation,” according to the Financial Times. Electricity prices in Norway are now six times higher than the EU average, causing widespread frustration and calls for policy changes.
The ruling coalition parties are pushing to end the power interconnectors between Norway and Denmark when their renewal comes up in 2026. The Center Party, a junior coalition partner, is also advocating for revisiting similar energy agreements with the UK and Germany.
Why Have Norwegian Electricity Prices Skyrocketed?
Norway relies heavily on hydropower for its electricity supply, but about 10% of its electricity comes from wind power, primarily generated in Europe. Recently, low wind production in Germany and the North Sea, combined with cold temperatures in Norway, caused electricity prices to spike across the continent — and spill over into Norway.
At its peak, electricity prices in Norway’s southern regions reached over 13 kroner (€1.12) per kilowatt-hour, significantly above the EU average of €0.1867 per kilowatt-hour in the first half of 2024. In contrast, northern Norway, which benefits more from local hydropower, continues to enjoy lower electricity costs.
Growing Calls to Prioritize Domestic Supply
Critics argue that Norway should prioritize domestic electricity needs before exporting its surplus power, as was the practice for decades. The recent price surge has reignited debates over whether Norway should continue sharing its power capacity with Europe, especially when domestic prices are so high.
According to meteorology forecasts, increased wind production in Europe is expected to ease prices soon. However, the temporary price drop has not quelled public dissatisfaction.
Electricity Prices Dominating Political Discourse
Rising electricity costs are shaping political discussions ahead of next year’s elections. The Norwegian Labour Party has pledged to not renew the “Denmark cables”. Are Tomasgard, a member of the party’s program committee, declared, “We cannot continue this way. It has gotten out of control. And we are going to take that control back again.”
Norway’s hydropower is a critical energy source for Europe, and the country is also Western Europe’s largest petroleum and gas producer. Despite not being a member of the EU, Norway plays a key role in the European energy market.
Possible Changes to Energy Agreements with the UK and Germany
The Center Party is pushing for a renegotiation of energy export terms with the UK and Germany. The debate over scrapping or renegotiating these energy links will be a central issue at the Labour Party’s national convention in April.
Norway’s decision on its energy ties could have significant consequences for Europe’s electricity supply and the country’s energy independence.