The main opposition party in Norway is this week likely to support the Oslo
government’s plan to adopt European Union energy rules, enabling Norway to
remain a full member of EU markets.
But Labour’s support may come on condition that all power cables should be
state-owned – raising questions about the future of North Connect, a
planned 2 billion-euro power cable between Norway and Scotland.
Norway is working on three cables, two of which are under construction by
state-owned grid Statnett and will export electricity to Britain and Germany.
Plans for a third cable to Scotland, called North Connect, could come
under scrutiny as it is backed by a private consortium consisting of
Norway’s Agder Energim Lyse, E-CO and Sweden’s Vattenfall.
“If this goes through, North Connect must be taken over by Statnett or it
will be very difficult to realise the project,” said Leiv Ingve Oerke,
Lyse’s head of energy business.
Cancelling the 1.4 gigawatt cable will mean all subsidies that European
Union so far spent on it will be lost, he added.
Labour is also asking that any decision on a cable built after the first
two should be made after they are completed and have been assessed.
Statnett, which in January said North Connect should be delayed as it may
overburden the existing power infrastructure in the Nordics, declined to
comment.
For the past 24 years, Norwegian companies have enjoyed market access on
equal terms with companies in the EU via the European Economic Area treaty,
in return for the country’s adoption of EU common market regulations.
The centre-right minority government feared that rejecting the EU’s Third
Energy Package, designed to enhance energy flows and improve regulatory
oversight, would put Norway on a slippery slope to a Brexit-like ending of
its close EU relations.
Norway’s parliament is expected to vote on the package on March 22, said a
spokesman for the oil and energy ministry.
Also this week, Energy MPs are set to quiz junior British energy minister
Claire Perry, MP, on the effect of Brexit on the UK’s action on climate change.
Powers over this area are at the centre of a bitter Scottish devolution
battle between the Scot- and Brit-governments over where these powers
should return to Holyrood or Westminster after Brexit.
According to the Committee on Climate Change, EU-level policies would have
covered approximately 55% of the emissions reductions required for the UK
to meet its 2030 climate targets.
MPs on the Westminster parliament’s Energy Committee will ask Perry what
steps the Government is taking to ensure that Brexit does not undermine the
UK’s climate ambitions.
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