Norway energy report

• The country aims to achieve a reduction of 55% of its GHG emissions by 2030 and to be carbon neutral by 2050 through the purchase of CERs.
• State-owned companies dominate energy production: Statkraft for power, with over 30% of generation, and Equinor and Petoro for hydrocarbons with more than 50% of production.
• Renewables account for 98% of power production (of which 91% hydro). Wind capacity has almost quadrupled since 2016 to 4.5 GW in 2021.
• Gas production has recovered in 2021 after a 3.4%/year decline between 2017 and 2020.
• Oil production has increased by 20% since 2020.
• Motor fuel prices are amongst the highest in Europe.
• Electricity prices are 45% lower than in EU countries.
• Total energy consumption per capita is nearly double the EU average.
• Hydroelectricity supplies around 40% of total energy consumption.
• Oil and gas production is expected to increase significantly over the next 5 years.
• In 2021, the 1.5 MtCO₂/year Northern Lights CO₂ transport and storage project was approved.

• Institutions & Energy Policy

  The Ministry of Petroleum and Energy (MPE) is responsible for energy policy and controls the oil and gas activities through three key departments - namely the Oil and Gas Department, the Climate, Industry and Technology Department, and the Energy and Water Resources Department - and three agencies: NPD, NVE and Enova (energy efficiency).

• Energy Companies

  Electricity:

  All companies that trade physical power or operate electricity networks must have a trading license from NVE-RME. Currently, there are approximately 690 companies that hold such a license. The federation of electricity companies, Energi Norge, brings together around 330 of those companies, which provide approximately 90% of the country's electricity and grid customers.

• Energy Supply

  Resources:

  Norway has important hydrocarbon reserves (2 095 bcm for natural gas and 1 075 Mt for oil, end of 2021), which are mainly located in the North Sea.

  Hydroelectric resources are currently estimated at 206 TWh/year. Meanwhile, the offshore wind potential is between 6 GW and 30 GW (at depths of less than 20 m and distances to the coast of between 1 km and 10 km).

• Energy Prices

  Oil:

  Gasoline and diesel prices are heavily taxed: 60% for gasoline and 55% for diesel (2021). Excise tax rates are NOK 4.95/l (€48c/l) for gasoline and NOK 3.52/l (€34c/l) for diesel (2022). CO₂ tax rates are NOK 1.78/l (€17c/l) for gasoline and NOK 2.95/l (€28c/l) for diesel. Consequently, taxes on gasoline consumption are higher than for diesel.

• Energy Consumption

  Total energy consumption per capita reached 5.5 toe in 2021, almost double the EU average. This was driven by an electricity consumption per capita that is over four times the EU average and the highest in the world, at 23 500 kWh.

• Issues & Prospects

  Electricity:

  According to Statnett Grid Development Plan 2021, the electricity demand is forecast to rise by 1.3%/year until 2040 and by 0.5%/year between 2040 and 2050, spurred by industrial demand and more extensive electrification.

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the Norway energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed electric capacity by source (2021, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2021, %)
• GRAPH 5: Gasoline & diesel prices (€/l)
• GRAPH 6: Electricity prices for industry and households (€c/kWh)
• GRAPH 7: Consumption trends by energy source (Mtoe)
• GRAPH 8: Total consumption market share by energy (2021, %)
• GRAPH 9: Final consumption market share by sector (2021, %)
• GRAPH 10: Oil consumption (Mt)
• GRAPH 11: Oil consumption breakdown by sector (2021, %)
• GRAPH 12: Electricity consumption (TWh)
• GRAPH 13: Electricity consumption breakdown by sector (2021, %)
• GRAPH 14: Natural gas consumption (bcm)
• GRAPH 15: Gas consumption breakdown by sector (2021, %)
• GRAPH 16: Coal consumption (Mt)
• GRAPH 17: Coal consumption breakdown by sector (2021, %)

In the Norway energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator, gas plant projects by status and operator and LNG contracts.

The Norway country dashboards are complemented with country forecasts from EnerFuture (excel file) with scenario comparison.

Data included in the excelsheet:

• Demand: Primary energy consumption, final energy consumption, by fuel, by sector.
• Power: Electricity generation & capacities, by technology.
• CO₂: Total CO₂ emissions.
• Macro-economy: Main macro-economic assumptions.
• Key indicators: Energy intensity, share of renewables, CO₂ emissions per capita and per unit of GDP.