Energy Policies of IEA Countries: Norway 2017
As one of the world’s largest energy exporters, Norway advances the energy security
of consuming countries. And at the same time, as a global advocate for climate change
mitigation, Norway is committed to environmental sustainability and climate policy.
The latest review of Norway’s energy policies by the International Energy Agency finds
that the country continues to manage its significant hydrocarbon resources and revenues
in a sustainable way, and remains a reliable supplier of oil and gas. But as the world
looks to cut its reliance on fossil fuels, Norway’s government should also consider
measures to prepare for a future with lower oil and gas revenues.
Norway’s large hydropower generation is another valuable energy asset particularly
at a time when European electricity markets are integrating and variable renewable
energy generation is growing. More cross-border connections are coming online and
will help realise the full potential of hydropower for balancing variations in demand
and supply in the regional market. This will also improve electricity security in
Norway in times of low hydropower availability. This review looks at how market-based
investments in low-carbon generating capacity can be encouraged by changes in taxation
and subsidy systems.
In order to meet its ambitious targets to reduce greenhouse gas emissions, this review
finds that Norway needs to step up efforts at home. The IEA encourages the government
to spell out more in detail how the emissions reduction targets will be met. There
is a major potential to do so in transportation, oil and gas production and manufacturing.
In this context, a high level of public spending on energy RD&D and strong efforts
to develop carbon capture and storage are very welcome.
Published on June 21, 2017
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