Norway Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Power Generation (Thermal, Hydropower, and Renewables) and Power Transmission & Distribution
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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Norway has the highest share of electricity produced from renewable sources in Europe, and the lowest emissions from the power sector. At the beginning of 2018, the installed capacity of the Norwegian power supply system was 33755 MW, and normal annual production was 147 TWh. Norway is developing more renewable power production capacity than it has for decades. Norway's power market is expected to grow at a CAGR of more than 2% during the forecast period. The growth is anticipated on account of a rising population, development of power generation systems, spurred by increasing demand for electricity in the country. The phasing out of coal-based power plants in the country, which had a major effect on demand for power plants, continues to promote the use of renewable power sources. However, stringent government regulations and project delays are expected to hinder the growth of the market studied in the coming years.
The hydropower sector is expected to dominate in the Norway power market owing to the country’s high hydro potential.
The rapidly increasing generation capacity, mostly from hydropower is expected to increase the grid connectivity. This, in turn, is expected to provide significant opportunities for power sector in the country in the coming future.
Scope of the report
The Norway power market report includes:
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Key Market Trends
Hydropower Is Expected To Dominate in the Market
Hydropower accounts for most of the Norwegian power generation. As of 2019, Norway has more than 1660 hydropower plants, which account for 32592 MW of total installed capacity.
Part of the reason that so much of Norway’s electricity can be generated from hydropower is due to the natural advantage of its topography, with abundant steep valleys and rivers.
Norway has more than 1000 hydropower storage reservoirs with a total capacity of more than 865 TWh. The 30 largest reservoirs provide about half the storage capacity. Total reservoir capacity corresponds to 70 % of annual Norwegian electricity consumption. Norway’s largest reservoir, Blåsjø, has a capacity of 7.8 TWh.
By the geographic factors and hydro potential, the hydropower sector is expected to continue its dominance in the market during the forecast period.
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Renewable Potential is Expected to Drive the Market
In Norway, most of the electricity production comes from renewable energy sources. Hydropower is the source of most of the electricity generation in the country. In addition, wind and solar energy also contribute to Norwegian electricity production.
The EU has committed to increasing the share of renewable energy from 16% to 27% by 2030. Together with the wind, solar energy will account for most of the replacement of fossil fuels. Norway is closely linked to the European energy market.
Production and consumption of energy from renewable sources has been steadily increasing. As of 2018, the generation of renewable in Norway was 4.1 TWh. There are considerable potential and growth in renewable power generation, and the government expects the total share of renewable power generation to rise in the coming years.
Wind energy has the greatest potential for exploitation in Norway. Wind power accounts for only a relatively modest share of production capacity, but is dominating investments and holds an installed capacity of 2444 MW in 2019. About 3.9 TWh of electricity was generated in 2018.
Factors like cheaper energy storage, reduced cost, smart grids and digitalization are drivers for solar power production. Norway is in development stage in solar power production. The installed capacity has reached 90.4 MW in 2019 with a growth rate of 30 % and produced 0.1 TWh of power in 2018.
Hence, a large renewable energy potential coupled with declining costs of renewable energy technologies and upcoming projects are expected to drive the market during the forecast period.
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Norway power market is consolidated. Some of the key players in this market include Statkraft AS, Agder Energi SA, Energi Teknikk AS, Rainpower Holding AS, and SN Power AS.