Norway is heading for a power shortfall as electricity demand grows six times faster than new generation, according to a new report from DNV.
“Geopolitics, national priorities, and lack of public support are slowing down Norway’s renewable energy efforts,” said Remi Eriksen (pictured), group president and chief executive of DNV.
Grid buildout must accelerate to relieve bottlenecks and integrate variable output, Eriksen added.
DNV forecasts demand will rise by 18 terawatt-hours over the next five years while new power projects will add only three terawatt-hours.
The report stated that this will leave the country with a deficit around 2030 and an expected annual net import of up to five terawatt-hours in the early 2030s.
Data centres will use 15 terawatt-hours by 2040, equivalent to seven percent of Norway’s consumption, according to DNV.
“Demand for electricity from data centers, energy-intensive industry, electrification of oil and gas operations, and transport is increasing much faster than new power production,” stated Sverre Alvik, research director for energy transition at DNV.
With strong demand for Norwegian gas locking in capital and political focus, the report warns that prospects for wider industry could weaken.
“Data centers, industry, and other power users can be strategically important, but not everything can have the same priority,” said Alvik.
He added that green industrial opportunities risk moving to faster-building countries if renewable power and grid development do not accelerate.