Norway shows EU energy crisis preparation failed

(EurActiv, 26 Aug 2022) Recent plans by the Norwegian government to protect consumers at home by curbing electricity exports have been criticised by Nordic governments and grid operators.

Norway’s hydropower is key to the electricity market in the region. Yet, despite existing legislation meant to prepare EU countries for energy crises, Norway is nowhere to be seen in any of the affected countries’ documents or the EU executive’s comments.

Norway, a key exporter of electricity to the EU, is considering reducing electricity interconnector capacity after a dry summer hit its hydropower-reliant electricity production.

Oslo’s announcement was met with concern from transmission system operators (TSOs), in charge of energy transport in Sweden, Denmark and Finland.

“While we [understand] the need to ensure security of supply, we are at the same time deeply concerned that the proposed capacity reduction seems to disregard the benefits of keeping the borders open and seems not to acknowledge that it is through a well-functioning market that electricity security of supply is ensured in the most efficient way,”  the TSOs wrote in a recent joint statement.

If Norway were to restrict the export of electricity, it would harm the energy security in the Nordics and degrade trust in the market, Teppo Säkkinen, advisor for Industrial and Climate Policy at the Finnish Chamber of Commerce, told EURACTIV.

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EurActiv, 26 Aug 2022: Norway shows EU energy crisis preparation failed