Northern Norway investments frozen as Statnett halts power reservations
Nord-Norge faces a mounting economic standstill as 150 billion Norwegian kroner in industrial investments remain on hold following Statnett’s decision to halt power reservations for larger consumers.
The 150 Billion Kroner Investment Standstill
Economic projections by Menon indicate that approximately 150 billion kroner in planned industrial investments are currently frozen across northern Norway due to the regional power shortage. Statnett paused power reservations for large consumers earlier in the year. Bård Ludvig Thorheim, a member of Parliament for the Conservative Party (Høyre), described the situation as untenable, noting that new industrial and commercial development has stopped with no resolution in sight from the government.
The energy debate centers heavily on Equinor’s facility in Hammerfest. In approximately three years, Melkøya will take into use a power capacity of 350 megawatts, equating to a maximum annual consumption of three terawatt-hours. In 2023, Energy Minister Terje Aasland pledged that an equivalent amount of new power generation would be built by 2030 to offset the industrial demand. Thorheim argues that this pledge is broken because the Ministry of Energy failed to intervene when the Norwegian Water Resources and Energy Directorate (NVE) rejected the Davvi wind power project in Finnmark.
Political Clash Over Renewable Delays and the Davvi Project
The Davvi wind power project could have potentially generated more electricity than Melkøya consumes and was initially slated for completion by 2030. NVE previously rejected the development over nature conservation concerns. However, the Ministry of Energy recently instructed NVE to resume processing the application. While Thorheim welcomed the reversal, he criticized the administration for lost time, asserting that earlier intervention could have contributed to solving some of the problems in Finnmark.
Energy Minister Terje Aasland countered that the previous Conservative and Progress Party government spent eight years in power doing nothing to advance wind power while halting concession processing altogether. Aasland stated that the current administration inherited a standstill and has since introduced a package of measures designed to ensure faster processes, less regulation, and less bureaucracy in the power sector. Despite the freeze on large reservations, Aasland emphasized that Statnett and regional network operators continue facilitating consumption growth equivalent to roughly a 60 percent increase in maximum load.
Wind Power Projects May Not Meet Melkøya Power Needs
Ten wind power projects are currently being worked on in Finnmark alongside the construction of a new power line scheduled for completion by 2032 to facilitate wind power in East Finnmark. The deadline for wind power developers to apply for concessions in Finnmark was recently extended to January 2027. Thorheim warned that realization timelines could stretch toward 2035, leaving a gap where Melkøya begins with land power around 2030 without a matching regional power surplus.
Amid concerns that the Melkøya gas power plant might remain operational past 2030 due to insufficient grid capacity, Thorheim suggested investigating the use of gas turbines as a strategic reserve, similar to past arrangements at Tjeldbergodden. Aasland responded that the government is prepared to enter a dialogue with plant owners regarding periodic operation of the Hammerfest LNG energy facility if the power and/or capacity balance requires it. The ministry plans to evaluate the necessity of periodic operation by 2028 at the latest, while the plant holds operating concessions valid until 2033. NVE must also deliver a formal assessment of the power and capacity balance in Finnmark and the NO4 price zone by the end of 2026.