‘The new Norwegian government wants to invest in hydrogen, batteries and offshore wind power’
2021-10-11
Three quick questions to Ketil Lindseth, Partner at First House and former state secretary for the Norwegian Labour Party, with a particular focus on the energy sector. Asked before our upcoming webinar on the Norwegian general election and what a new government means for Swedish companies.
The climate issue featured prominently in the Norwegian election campaign. What climate policy changes will the Støre government make?
– The policy changes will not be that dramatic. Many, including the media, have had an interest in portraying the general election as a climate election for Norway. Even though undoubtedly high on the agenda of most parties, and important to many voters, the climate issue has often been overshadowed by inequality and centralisation issues. We can anticipate a continuation of the oil policy, but with a greater element of government measures that are believed can restructure the industry. It is also expected that the new government will invest in hydrogen, batteries and offshore wind power.
Areas in the north of Sweden are on their way to becoming the hub for establishing traditional and new industry sectors moving to areas with a strong electricity balance. Are you seeing a similar trend in Norway?
– Yes, new industries are moving to areas in Norway that can guarantee stable access to electricity. One such example is the company Freyr, which will be producing batteries in the city of Mo i Rana in the county of Nordland. It is also expected that the incoming government will keep a special eye on northern Norway and the counties in the north, which are of defence and foreign policy importance. The parties in the incoming government have long accused Erna Solberg’s government of neglecting northern Norway. It will be symbolically important to have concrete policies that benefit the region, especially regarding employment and economic policy.
What are currently the most important areas for Norwegian-Swedish energy cooperation? And which ones could gain importance in the future?
– The energy debate has been reignited in Norway. Controversial wind power projects, increasing energy prices and new power cables to the outside world have given rise to widespread general scepticism about exporting electricity, and we are seeing growing protectionist tendencies. The Labour Party’s partner in government, the Centre Party, is one of the leading critics of Norway exporting electricity, and it could be a problematic issue if electricity prices continue to rise. The debate will hopefully help raise awareness of Norway’s need to produce more electricity and to supplement with imports. Sweden will thus be an important partner in the coming years.
Ketil Lindseth was interviewed by Maria Eklöf, Nordic Coordinator and Associate Partner at New Republic. ‘Three Quick Questions…’ is a series of interviews conducted by New Republic.