Norwegian government collapses amid renewable energy spat

Proposed implementation of renewable energy and other EU directives has been source of friction between ruling coalition

Norway's Prime Minister Jonas Gahr Støre
Norway's Prime Minister Jonas Gahr StørePhoto: European Union

The Norwegian government collapsed today after its ruling coalition split over the proposed adoption of EU renewables and energy efficiency directives.

A push from Prime Minister Jonas Gahr Støre and his Labour Party to implement EU energy directives despite opposition from Eurosceptic coalition partner the Centre Party triggered the collapse, according to local media.

Støre has been pushing to implement three EU energy directives: the Renewable Energy Directive, the Energy Efficiency Directive and a directive for energy saving in buildings.

“We must not give away more power to the EU,” Trygve Slagsvold Vedum, Centre Party leader and Norway’s finance minister, is quoted as saying in the FT.

The Labour Party can reportedly keep running government despite the split with its coalition partner until an election due in September.

The directives at the centre of the split between the governing parties are three of eight parts of the Clean Energy Package that was adopted by the EU in 2019. Norway is not part of the EU but adopts many of the bloc’s laws as it is a member of the European Economic Area.

Norway boasts enviable oil and gas resources and extensive hydropower infrastructure from which it generates most of its power – often exporting excess green electricity to the EU through interconnectors with Denmark.

The two governing parties had united in recent weeks in vowing to oppose the renewal of these interconnectors when they come up for renewal in 2026.

This came after day-ahead power prices in Germany exploded last month due to a ‘Dunkelflaute’ – a simultaneous sustained lull in wind and solar generation. Due to Norway’s interconnection to the EU, the country saw its prices driven up to similar levels, sparking outcry from politicians.
“It’s an absolutely shit situation,” Norway’s energy minister Terje Aasland was quoted as saying. Norwegian tabloid newspaper Dagbladet, meanwhile, quoted hardline investor Øystein Stray Spetalen who urged the government to “cut the fucking cables”.

The situation has reportedly caused friction with the EU, which has railed against what it sees as energy nationalism from its Nordic neighbour.

(Copyright)
Published 30 January 2025, 15:56Updated 30 January 2025, 16:02
NorwayEuropeEuropean Union