Norway Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Norway Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewable energy sources deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of establishments primarily engaged in operating renewable electric power generation facilities. Power generation can be from various sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electricity produced from these establishments is supplied to electric power transmission systems or to electric power distribution systems.

Norway Renewable Energy Market Scenario

In Norway, about 98% of the electricity production is from renewable sources. The majority of this is sourced from hydropower. Hydropower in Norway has become a highly important part of Norwegian society since the 1800s. Electricity consumption has risen in tandem with Norway's modernization and economic growth.

Though Norway's electricity production is primarily based on flexible hydropower, wind and thermal energy also contribute to Norwegian electricity production.

Solar Energy in Norway

Norway, unlike many other European countries, does not have fossil power plants that must be replaced by renewable electricity production. Norwegian hydropower is currently so cheap that power companies are not interested in constructing solar power plants in Norway. However, in recent years, companies in Norway have begun selling or leasing solar systems to private customers and businesses.

Despite its remote location, Norway is capable of producing solar energy, as a small town south of Oslo receives 1000 kWh per square meter per year. This is comparable to many parts of Germany, where solar power has grown dramatically over the last decade.

By the end of 2021, the solar energy installed capacity was 225 MW, an increase of 40.6 percent relative to the installed capacity in 2020.

Wind Energy in Norway

Wind power is the largest source of renewable electricity in Norway after hydropower. According to IRENA (International Renewable Energy Agency), the installed capacity of wind energy in Norway was 4,650 MW by the end of 2021. An increase of 15.4 percent from the 2020 level.

The annual energy consumption of Norway is expected to increase from 140 TWh in 2021 to 220 TWh by 2050. In order to meet its future energy demand, the country is increasing its wind power production.

However, due to the perceived impact on landscapes and ecology, Norway has faced local opposition to onshore wind power projects. Following a moratorium on new onshore wind licenses in 2019, the government announced in April 2022 that it would resume licensing for new projects in areas where local municipalities are supportive.

Most of the wind installations in Norway are onshore, but the country is expected to increase its investment in offshore projects. In 2021, the government announced plans for 4.5 GW of offshore projects, 3 GW bottom-fixed, and 1.5GW floating, with a target completion date of around 2030.

In the last decade (2010-2020), globally, the electricity generation from all sources has increased by 2.2% from 21,570 terawatt hours to 26,823 terawatt hours. During the same period, the power generation from renewables increased by 15.25%. Regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy subsidies and tax credits, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2030.

In 2020, wind was the largest renewable electricity source worldwide, while solar photovoltaics was the fastest-growing renewable electricity source. Electricity generated from wind was 1591.2 terawatt-hours and from Solar photovoltaics was 855.7 terawatt-hours. The electricity generated from solar photovoltaics grew by 20.5%, while wind grew by 11.9%.

Norway Renewable Energy Policy

Norway has set a goal of reducing greenhouse gas (GHG) emissions by 40% below 1990 levels by 2030. Meeting the 2030 target will be difficult because, while the country's electricity supply and energy use in buildings are already essentially carbon-free, decarbonization in transport and industry is required.

Norway is a member of the EU's internal energy market and thus works closely with the EU on energy and climate issues. Norway has a national emissions reduction target for non-ETS emissions of 40% below 2005 levels under the current EU agreement. The EU's Fit for 55 packages will update all three regulations, and the Norwegian government's political platform expresses a desire to continue climate cooperation with the EU.

Norway has adopted a number of EU climate and energy directives into domestic regulation because its climate strategies are aligned with the EU's. Norway has also adopted the EU Renewable Energy Directive, the Energy Performance of Buildings Directive, the CHP Directive on combined heat and power, as well as the Ecodesign and Energy Labelling Directives, in addition to climate legislation.

Recent Developments

In May 2022, the Norwegian government launched a large-scale investment plan to allocate sea areas for the development of 30 GW of offshore wind capacity by 2040.

What Do We Cover in the Report?

Blackridge Research’s Norway Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Norway.

Furthermore, the report will contain the drivers and restraints within Norway Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), and country-specific regulations.

Finally, the presentation would enable one to identify market opportunities and plan for long-term growth.

The impact of COVID - 19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.