Reflection Time for Energy Policy in Norway

The Norwegian Ministry for Petroleum and Energy has announced today the establishment of an Energy Committee (Energiutvalget) that will prepare a general review of the country's energy policy towards 2030 and 2050. The committee's work and the related consultations will result in a communication from the government to the Parliament (so-called Melding til Stortinget Meld.St.).

Energy challenges ahead

The setting up of the Energy Committee is motivated by a series of challenges as regards the national energy policy, and in particular the balance in the long-term development of the electric and energy system. The development and regulation of the different components of the energy chain will need to be assessed: production, transport capacity with the reinforcement and expansion of the grid, and consumption. This also includes the relation to neighouring countries, the development of EU energy policy having deep impoacts for Norway, and of the international energy markets.

Based on the different directions taken by the EU and Norwegian energy policy along 2010, a reflection time is timely. The European Commission proceeded lately to the same excercise, but at a lower scale, with the publication of the EU Energy 2020 Strategy and the Communication on the Energy Infrastructure Priorities for 2020 and Beyond. A national review is also timely to draw some conclusions for the country of the direction taken by the EU policy.

The mandate

The committee will receive the following tasks:

• evaluate the balance of the electric and energy system, including power generation conditions, size of the grid connection to Europe, electricity consumption reviewed by sector and including offshore petroleum activities and transport;
• assess national and regional grid capacity, as starting point for further investments;
• define the effects of the energy needs and further grid developments on the environment, including greenhouse gases emissions and environmental protection. On this particular point, an adaptation of the procedures for the construction of electric power lines might avoid a new Hardanger case. The regime application to hrydropower must also be assessed;
• evaluate the relationship to EU legislation implemented in Norway after negotiation via the EEA Agreement;
• adapt the development of the national energy policy to the proper development of economic activities, adaptation of knowledge and share of technological innovation at all levels of consumption;
• assess the different instruments to be applied in the implementation of the strategy to be defined;
• determine the best solution as regards electricity prices. The ministry already received in November this year a full report on this issue.
• focus on measures aimed to reduce energy consumption.

Timeframe

The Energy Committee should be ready with its assessment and recommendations for winter 2012.

Reference: Press release, OED, 13.12.2010.