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Norway wants to sever energy ties with the EU due to record prices


December, 13 2024
watermark Economic news

Norway's ruling Labour Party and the opposition Progress Party, which is leading in polls ahead of the 2025 elections, plan to abandon the electric interconnector with Denmark and renegotiate electricity exchange agreements with the EU and the UK. 


This decision is due to a record increase in electricity prices in Norway, despite full reservoirs and mild weather.


Although Norway is not a member of the EU, it is actively involved in single energy market initiatives, including interconnectors. However, 90% of its electricity is provided by hydropower, which makes the country independent of gas imports. Nevertheless, the export of electricity to the EU, especially to Germany and Denmark, leads to higher domestic prices, which causes criticism among consumers and politicians.


Labor advocates disconnecting the interconnector with Denmark in 2026. The Progress Party, which can win the elections, also proposes to renegotiate energy agreements with the UK and Germany in order to reduce the impact of rising EU prices on Norway. Politicians call the current situation, when Norwegian electricity is in demand abroad amid high prices, «absolutely terrible.»


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