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Norwegian Offshore Wind Investment Faces Financial Strain, Government Promised Electricity for Export to Europe: Dagbladet.

The government’s offshore wind investment is under severe pressure after prices have skyrocketed. The estimates for how large subsidies the developments on Utsira Nord and Sørlige North Sea will need have increased from a maximum of 15 billion to an unknown amount.

It could be far more than 20 billion from the taxpayers’ and electricity customers’ pockets that will be needed to create what the government refers to as an industrial adventure on the continental shelf. And that’s just the first two projects.

The government’s argument for almost doubling Norwegian electricity production has been that the electricity is needed to electrify Norwegian society, build new Norwegian industry and achieve the Norwegian climate goals.

«Dear Ursula»

But in a letter from Prime Minister Jonas Gahr Støre to President Ursula von der Leyen of the European Commission last May, a different story is told.

In the letter, which Støre prefaces in handwriting with “Dear Ursula”, Støre boasts about the planned Norwegian offshore wind investment which will produce 30 GW by 2040 on the continental shelf.

Støre then makes the following promise to the EU president:

«(…) a large part (“a significant portion”) of the 30 GW will be available for export to Europe.”

Dagbladet has asked Støre several questions about the letter to Ursula von der Leyen, but Støre himself does not answer any of the questions.

– It makes sense to export

Instead, he refers to state secretary Andreas Bjelland Eriksen in the Ministry of Oil and Energy.

Bjelland Eriksen writes in an e-mail to Dagbladet that the offshore wind investment means that Norway will produce more power than we need ourselves.

– Then it makes sense to plan for some of this production to be exported to Europe, provided that it can be done in a way that safeguards Norwegian interests. This is what Støre has indicated to the president of the European Commission. The Prime Minister has not promised away electricity that is needed domestically, neither now nor in the future.

Bjelland Eriksen writes in his reply that “some” of the production “can” be exported to Europe, while Støre in his letter to EU-Ursula writes that “a large part” “will” be available.

In response to follow-up questions from Dagbladet about the difference in Bjelland Eriksen’s statement and Støre’s commitment to the EU, the state secretary writes the following:

– If we are to realize 30 GW, it will be natural that a significant proportion of this is available for exchange with Europe.

– Subsidizes power for export

The government has planned the development of Sørlige North Sea and Utsira Nord without so-called hybrid cables, which means that the offshore wind farms are both connected to the Norwegian grid and have the possibility of direct export.

All power is thus sent into Norway and then out of the established foreign cables for export – a major victory for the Center Party in government.

– The government has decided that all electricity from the first part of the offshore wind investment will go to Norway. This is important for us to be able to develop existing and new businesses, says Ole André Myhrvold, spokesperson for energy policy in the Center Party.

Terje Halleland, spokesperson for energy policy in the Progressive Party, agrees with Myhrvold that the first round of offshore wind development is not directly connected to export, but goes into Norway.

But Halleland says it is obvious that the power from offshore wind will end up as an export and far exceeds what Norwegian industry and households can use.

– Norway has neither the need nor the capacity to receive that much power in its own power system. This shows that Norway must export electricity if these production figures are to be met. We ask big questions about the economics of subsidizing a product intended for export, says Halleland.

Red: – Hole in the head

Rødt’s current peak Sofie Marhaug says that “the so-called offshore wind adventure is about to fail by itself”.

– It is not going to be profitable with the first, second or third, she says, and says the following about Støre’s letter to EU-Ursula.

– There are many reasons why there is a hole in Støre’s mind to promise anything. It doesn’t appear very democratic either, because it rhymes badly with the government’s promises about lower electricity prices and a better power balance here at home.

Marhaug and Rødt ask Ap and Høyre to end “an unrealistic offshore wind race”.

– They call themselves responsible governing parties, while at the same time they are building a castle in the air at sea. Or “the pyramids of our time” as Støre recently called it. It is perhaps not so stupid to compare the Norwegian offshore wind investment with burial chambers, because it has nothing to add to Norwegian energy policy.

2023-05-27 07:40:30


#Støre #letter #Promises #electricity

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