Norway Reconsiders Energy Connections to Europe Due to Surge in Electricity Prices
Sweden’s energy minister expressed frustration with Germany for shutting down nuclear plants, attributing the rise in energy prices across Scandinavia to Germany’s reliance on renewables.
Norway is contemplating reducing its energy connections with Europe as domestic electricity prices climb to unprecedented levels. Minister of Petroleum and Energy Terje Aasland, from Norway’s ruling center-left Labour Party, stated to the Financial Times on Friday that the government is reconsidering its export agreements following the surge in electricity prices to their highest since 2009.
On Thursday, electricity prices in southern Norway spiked to NKr13.16 ($1.18) per kilowatt hour, almost 20 times higher than the previous week.
Norway’s interconnectors are high-voltage subsea cables that connect its grid to Denmark and neighboring countries, facilitating power exchange between markets through the export of hydropower and import when necessary.
The Labour government indicated it might deactivate the interconnectors when they undergo renewal in 2026.
The conservative Progress Party, currently leading the polls, argued that renewable energy exports from Germany and the UK are contributing to a price surge in Norway when wind and solar energy production is low.
The Epoch Times reached out to Aasland and the Norwegian government for comment but received no response at the time of publication.
Germany
Germany, as Europe’s largest economy, has been at the core of the energy discourse since shutting down its last three nuclear power plants in 2023.
Despite the potential for these plants to operate for many more years, Germany chose to increase its reliance on alternative sources like wind and solar power.
Critics, including Swedish Deputy Prime Minister and Energy Minister Ebba Busch, have voiced concerns about the repercussions of Germany’s choices.
“The fluctuation in electricity prices is concerning,” Busch mentioned in an interview last week.
“Sweden is currently encountering significant issues in its electricity system,” she stated on X on Dec. 16. “Electricity prices fluctuate unpredictably, hindering investments yet causing anxiety for families due to the uncertainty of their electricity bills.”
The Epoch Times contacted Busch for input but did not receive a response by the time of publication.
Energy Nationalism
Detractors argue that the growing dissatisfaction in Norway and Sweden is indicative of a broader trend of energy nationalism.
Harry Wilkinson, head of policy at the Global Warming Policy Foundation, stated in an email to The Epoch Times that Norway may be hesitant to subsidize Germany.
“High prices in one country can spread to others via electricity interconnectors, prompting the rise of energy nationalism,” Wilkinson remarked.
“Norway, with its inexpensive hydropower, may be unwilling to support Germany’s risky shift towards renewables and nuclear phase-out,” he added.
“The unsuccessful energy strategies of the UK and Germany resemble economic suicide, leading other countries to avoid similar pitfalls. Governments must reduce energy costs to maintain favorable relations with neighboring nations.”
‘Scandinavian Charity’
Andy Mayer, an energy analyst at the International Energy Agency, noted in an email to The Epoch Times that the EU’s single energy market theoretically ensures energy security through interconnectors, pipelines, and shipping, with surplus countries supplying those in need.
However, Mayer pointed out that exporting excess energy can inflate domestic energy prices, particularly amid the conflict in Ukraine and seasonal windless spells, fueling nationalist sentiments.
He emphasized that Germany’s shift to renewables with the Energiewende policy has left the country dependent on foreign resources like Polish coal, American gas, French nuclear power, and assistance from Scandinavian countries.
Mayer highlighted Sweden’s call for Germany to resume nuclear projects and implement location-based pricing to curb demand, especially in Northern Germany. On the other hand, Norway, facing strained hydropower reservoirs, has been contemplating reducing exports and potentially cutting ties with Denmark in 2026.
“If these policies are enacted, they are likely to spread as surplus countries aim to avoid being the most expensive energy source for others. Failure to act could lead to further discontent with rising prices until actions are taken,” Mayer explained.
“The EU’s rapid decarbonization efforts might inadvertently trigger a regional backlash against Net Zero, undermining the single market,” he added.
The Epoch Times sought comments from the German government but did not receive a response by the time of publication.
