292 E. MOE ET AL.
to supply an entire continent with renewable power, although it can serve
as a balancer. Such expansion however requires political support.
Will Norway Become a Green Battery?
The crucial question is whether the expansion necessary for Norway to
become a green battery will occur. Gullberg in 2013 concluded that
most Norwegian politicians welcomed selling surplus energy at a profit,
but shied away from heavy, export-oriented investments in transmission
capacity not deemed socially profitable or cost-effective. Policy conformed
to regular Norwegian energy policy, market-based and aimed at costeffectiveness. The willingness to pursue a course of action that put
Norway on a trajectory to become a green battery was modest.
When it comes to exporting electricity, there are a few hurdles.
In principle, the building of interconnectors is determined by social
profit considerations. However, there are major conflicting vested interests in the Norwegian energy sector. Chief among these are the electricity producers and the electricity consumers. The electricity producers,
including the transmission system operator, Statnett, are in favor of electricity exports as the electricity price abroad typically is higher than in
Norway.
Energy consumers instead fear rising electricity prices at home. First,
the costs associated with building interconnectors and grid upgrades are
passed on to consumers. Second, exporting electricity abroad reduces the
supply at home, which drives the electricity price up. This concern is
shared by the Norwegian energy-intensive industries, which account for
as much as 7% of GDP. Their international competitiveness is based on
cheap, carbon-free energy derived from Norwegian hydropower (Szulecki
et al. 2016). Norwegian politicians know that higher electricity prices are
unpopular, and that it is hard to sell the idea that Norwegian electricity
prices need to increase to provide Europe with green electricity (Gullberg
et al. 2014). Cheap and abundant electricity is considered a Norwegian
birthright.
Environmentalists constitute another block of interests. While not
really a vested interest—this sector consists of unorganized or loosely
organized individuals as much as environmental organizations—Norway
has a strong conservationist strand that is generally against both
hydropower and wind power. Here, we find interests supporting energy
to supply an entire continent with renewable power, although it can serve
as a balancer. Such expansion however requires political support.
Will Norway Become a Green Battery?
The crucial question is whether the expansion necessary for Norway to
become a green battery will occur. Gullberg in 2013 concluded that
most Norwegian politicians welcomed selling surplus energy at a profit,
but shied away from heavy, export-oriented investments in transmission
capacity not deemed socially profitable or cost-effective. Policy conformed
to regular Norwegian energy policy, market-based and aimed at costeffectiveness. The willingness to pursue a course of action that put
Norway on a trajectory to become a green battery was modest.
When it comes to exporting electricity, there are a few hurdles.
In principle, the building of interconnectors is determined by social
profit considerations. However, there are major conflicting vested interests in the Norwegian energy sector. Chief among these are the electricity producers and the electricity consumers. The electricity producers,
including the transmission system operator, Statnett, are in favor of electricity exports as the electricity price abroad typically is higher than in
Norway.
Energy consumers instead fear rising electricity prices at home. First,
the costs associated with building interconnectors and grid upgrades are
passed on to consumers. Second, exporting electricity abroad reduces the
supply at home, which drives the electricity price up. This concern is
shared by the Norwegian energy-intensive industries, which account for
as much as 7% of GDP. Their international competitiveness is based on
cheap, carbon-free energy derived from Norwegian hydropower (Szulecki
et al. 2016). Norwegian politicians know that higher electricity prices are
unpopular, and that it is hard to sell the idea that Norwegian electricity
prices need to increase to provide Europe with green electricity (Gullberg
et al. 2014). Cheap and abundant electricity is considered a Norwegian
birthright.
Environmentalists constitute another block of interests. While not
really a vested interest—this sector consists of unorganized or loosely
organized individuals as much as environmental organizations—Norway
has a strong conservationist strand that is generally against both
hydropower and wind power. Here, we find interests supporting energy