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Statnett halts new power reservations in northern Norway

Economy & businessEconomy
Statnett halts new power reservations in northern Norway
Key Points
  • Statnett imposes temporary halt on new electricity consumption reservations over 5 MW north of Svartisen and reduces limits in East Finnmark due to grid capacity constraints.
  • Local officials and businesses warn of severe economic consequences, including halted development and job losses in a region with population decline.
  • Opposition parties criticize the government's energy policy, while the government defends actions and blames previous administrations for grid neglect.

The state-owned grid operator announced the measures, which include lowering the limit for ordinary consumption from 5 to 1 MW in East Finnmark, except for customers with existing reservations. The restrictions apply to transmission grid stations at Lakselv, Adamselv, Tana bru, and Varangerbotn, following a similar reduction in Sør-Varanger municipality. This comes after a large and rapid increase in electricity consumption and reservations in the area since 2023, when Statnett raised the limit to 5 MW, with a total increase of 120 MW reported. The grid capacity is almost full, and with current and expected consumption growth, power lines lack sufficient capacity during deficit periods when the region must import electricity from surrounding areas.

Local officials and businesses have reacted with alarm. According to NRK Troms og Finnmark, Jens Roald Betsi, managing director of Barents Nett, noted that the new limit means his company must reject several projects seeking grid connection, and he described how industries like charging stations or aquaculture typically require more than 1 MW. Svein Eggesvik, a county councilor in Nordland, told media the halt will have dramatic consequences, calling it a complete stop for business development that hits real jobs and vulnerable communities. Wenche Pedersen, leader of the East Finnmark Council, told NRK Troms og Finnmark that reducing electricity access is a serious situation long warned against, hindering business expansion in a region struggling with population decline.

This is serious!

Aleksander Stokkebø, Conservative Party's energy and environmental policy spokesperson

Political criticism has emerged from opposition parties. Aleksander Stokkebø, the Conservative Party's energy spokesperson, called Statnett's decision a declaration of bankruptcy for the government's energy policy, fearing it could spread to other parts of the country. Sivertsen of the Progress Party questioned if the minister finds the halt acceptable and will intervene, stating the government lacks control over the power situation.

The government defended its actions, with Energy Minister Terje Aasland responding that Statnett's decision secures energy supply and prioritizing grid strengthening north of Svartisen. He blamed previous administrations for grid neglect, saying the grid in the north should have been upgraded 20 years ago, and highlighted initiatives like the power and industry boost for Finnmark.

The power boost for Finnmark fits into the series of the Labour Party's many broken promises. The follow-up has been a major fiasco and the consequences are now being felt for real.

Aleksander Stokkebø, Conservative Party's energy and environmental policy spokesperson

Statnett is working on grid improvements, including building a new 420 kV power line from Skaidi to Lebesby and installing a control unit on the connection to Finland, which could increase capacity by up to 100 MW. Once implemented, the current limits may be raised.

Statnett's decision to put power-intensive business activity on hold is a declaration of bankruptcy for the government's energy policy. The Conservative Party's fear is that this is just the beginning, and that we will see similar consequences of the government's energy policy in larger parts of the country.

Aleksander Stokkebø, Conservative Party's energy and environmental policy spokesperson

It is fine that the Progress Party and the Conservative Party have finally started to engage with the power grid. They had power for eight years and stood and watched consumption increase, without doing anything about it.

Terje Aasland, Energy Minister

The grid in the north should have been upgraded 20 years ago, but it has been a neglected area.

Terje Aasland, Energy Minister

We have launched the power and industry boost for Finnmark, we simplify and digitalize processes, and remove unnecessary and time-consuming requirements that lingered after the Conservative Party and Progress Party.

Terje Aasland, Energy Minister

Statnett's decision is taken to secure the energy supply in the north, and the government is clear that Statnett should prioritize work to strengthen supply capacity north of Svartisen.

Terje Aasland, Energy Minister

I will also emphasize that ordinary consumption up to 5 MW can still be connected to the grid in large parts of the area.

Terje Aasland, Energy Minister
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NRK Troms og Finnmark
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Statnett halts new power reservations in northern Norway | Reed News