Norway will export 32TWh of electricity by 2030

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1 August 2014, Electricity, Nuclear, Solar, Wind

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In 2014, Norway, the leading hydro power generator in Europe, is projected to produce over 130TWh of electricity, nearly 96% of the country's total net production. The energy source is anticipated to remain the primary source for the country's electricity generation. By 2030, hydro power generation will reach 160TWh, equating to a compound annual growth rate (CAGR) of 1.3%. The forecasts take into account an additional 2.8GW of new hydro power coming online in the next 16 years. The number of rivers and fjords makes the country ideal for hydro power.

Norwegian energy providers are forecast to sell almost 420TWh of surplus electricity from 2014 to 2030. Presently, Norway exports its surplus electricity to five countries. Sweden has the largest interconnector capacity with Norway with an estimated 3,640MW. Second is Denmark with 1,000MW, followed by the Netherlands (700MW) and Finland and Russia (both with 100MW each). Norway plans to build three new interconnection points over the next six years. Later in 2014, a new energy interconnection will be constructed between Denmark and Norway, increasing the two countries' total capacity to 1,700MW. In addition, two 1,400MW interconnection points will become operational - one between Germany and Norway by 2018, and the second between the UK, Norway, and Denmark by 2020. By this time, Norway will have a total interconnection capacity of 9,040MW.

However, solar and bioenergy power have failed to take off. Solar is virtually non-existent, which is surprising considering the amount of solar-grade silicon and solar cells produced in the country; meanwhile only a small portion of Norway's electricity is generated via bioenergy.

Nevertheless, the country's expertise in wind power is starting to be realized. Over 2.2TWh of electricity will be generated in 2014, and wind power generation is projected to record a CAGR of 9.2% from 2013 to 2030.

Norway is already energy independent, and the current sanctions in place against Russia could lead to a backlash of Russia refusing to export its natural gas to Europe. With Norway's abundant hydro and wind power, the country could capitalize on this potential standoff. If Thor is the God of lightning in Norwegian folklore, maybe Nordic storytellers should consider writing sagas about the power of hydro in the future. / / @DatamonitorEN

Source: MarketLine

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