By Chris Jones - 14th September 2006
Norway should not be tempted to dip into its gas reserves to overcome its current energy crisis, the EU’s energy commissioner urged on Friday.
Speaking to journalists after the annual energy dialogue between Europe and Norway, Andris Piebalgs praised Oslo for its determination to focus on non-polluting energy supplies.
“Climate change is the biggest challenge facing mankind, and I praise Norway for making the right choice in opting for hydroelectric power,” he said.
“This might be more expensive, but it does not produce any CO2. I hope, and believe, that the EU will be able to reduce its dependence on fossil fuels in the future in a similar way.”
A hot summer with very little rain has left Norway with an energy “challenge”, according to the country’s energy minister, Odd Roger Enoksen.
“Ninety-nine per cent of our electricity is generated from hydro power, so low rainfall is a problem,” he said.
“This has been compounded by connectivity problems with Denmark and reduced output from Swedish nuclear reactors because of the hot weather, so we have not been able to count on imports as we did in the past.”
But he stressed that there was no suggestion that Norway would turn to its own reserves of oil and gas to solve the problem.
“We and the EU both believe that renewable sources should be the main focus for future electricity generation,” he said.
But he admitted that a new electricity cable linking Norway to the EU via the Netherlands, due to come on stream next year, would be a welcome source of additional energy.
Norway is the second-largest supplier of oil and gas to the EU after Russia, piping 100 per cent of its gas reserves to the EU.
Current gas supplies from Norway to the EU are around 82.5 billion cubic metres, but this figure should increase to 130 billion by 2010 as a result of improvements to existing pipes and the addition of two new lines through the UK from 2007/08.
Enoksen confirmed that Norway’s oil reserves were expected to decline after 2010, based on current data, but that recent discoveries in the Barings Sea could help slow the rate of decline.
Both Piebalgs and Enoksen stressed the need for greater liberalisation in the European electricity market, in particular in downstream activities.
“A fully functioning EU energy market, regulated by competition, would lead to cheaper electricity for everyone, including Norway,” said Piebalgs.
He added that the Nordic internal energy market, linking Sweden, Norway and Denmark, was a good example of how the whole EU market should function.
“I expect there to be many elements of the Nordic market included in the recommendations of the commission on how to remove the barriers in the EU energy market, which will be published by the end of the year,” Piebalgs said.
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