EU's emissions cut to increase power prices in Norway: report

The European Union's move to cut greenhouse gas emissions will lead to more expensive electricity in Norway in future, Norway's largest newspaper Aftenposten reported on Wednesday.

EU climate policy offers more expensive emission and more expensive electricity in Europe. This will spill over to Norway and contribute to further increased prices, according to a report by the Norwegian Water Resources and Energy Directorate (NVE).

As the EU will work on meeting its climate goals by Paris agreement, power prices are expected to increase by 30 percent in Norway by 2030.

NVE's assumptions showed power prices in Norway could rise from around 23 ore per kWh in 2016 to around 30 ore in 2030.

In order to export Norway's power to other European countries, a few new power cables are under construction and planning and will contribute to increased Norwegian power prices.

In 2021 there will be two new, large power cables linking Norway to Germany and England, which will double the capacity of Norwegian power cables.

NVE director Per Sanderud told Aftenposten that the cables will make it possible to replace "dirty" electrical power in Europe with Norway's clean one, as nearly all electric energy generated in the country derives from hydroelectric power.

"In addition, the cables mean that we can import more electricity in dry years with low water levels in the reservoirs in Norway," Sanderud said.

Leif Sande, chairman of the trade union Industri Energi, is strongly against the new power cables.

"The cables mean higher electricity prices for people and the industry. The cable connected to England is particularly serious. It will also compete out Norwegian gas there," he told Aftenposten.

Sande also dismissed Sanderud's argument about replacement of dirty electrical power.

"Production in Norway is equally high as consumption. When we sell more power abroad, import will over time also increase. The imported power is dirty electrical power," he said. Endit