Norway energy report

• The country aims to achieve a reduction of at least 50% 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 around one third of generation, and Equinor and Petoro for hydrocarbons with more than 50% of production.
• Renewables accounts for 98% of power production (of which 92% hydro). Wind capacity has almost quadrupled since 2016 to 4 GW in 2020.
• Gas production has more than doubled since 2001, while oil production has halved.
• Motor fuel prices are amongst the highest in Europe.
• Electricity prices are 45% lower than in EU countries.
• Total energy consumption per capita is double the EU average.
• Hydroelectricity supplies around 42%of the 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 650 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 (2 165 bcm for natural gas and 1 176 Mt for oil, end of 2020), 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

  Electricity:

  Electricity prices are around 45% below the EU average. They are driven by hydropower generation levels which, in turn, influence the electricity wholesale price on Nord Pool.

  In 2020, VAT accounted for 20% of the power prices, while the electricity tax accounted for 22%.

  Graph: ELECTRICITY PRICES FOR INDUSTRY AND HOUSEHOLDS (€c/kWh)

• Energy Consumption

  Total energy consumption per capita reached 5 toe in 2020, 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 22 900 kWh.

• Issues & Prospects

  Gas:

  The NPD anticipates that natural gas output will increase by 0.5% in 2021 and by 5% over 2021-2025. Gas production should benefit from the Snorre development, one of the largest IOR projects on the Norwegian shelf in recent years, which came on stream in 2020; it will increase the recovery rate on Snorre from 46% to more than 51%.

• 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 (2020, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2020, %)
• 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 (2020, %)
• GRAPH 9: Final consumption market share by sector (2020, %)
• GRAPH 10: Oil consumption (Mt)
• GRAPH 11: Oil consumption breakdown by sector (2020, %)
• GRAPH 12: Electricity consumption (TWh)
• GRAPH 13: Electricity consumption breakdown by sector (2020, %)
• GRAPH 14: Natural gas consumption (bcm)
• GRAPH 15: Gas consumption breakdown by sector (2020, %)
• GRAPH 16: Coal consumption (Mt)
• GRAPH 17: Coal consumption breakdown by sector (2020, %)

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.