Sparebank 1 Markets Energy Conference 2025

Ladies and gentlemen,

It is a great pleasure to be back at the SpareBank 1 Markets Energy Conference 2025, where we can exchange reflections and insights on the current energy landscape.

I want to use this opportunity to talk about:

• The global energy situation
• How Norway addresses this with our energy policies.
• And not least, what it takes in securing energy for the future.

First, a look at the bigger picture.

These are turbulent times.

It has now been three years since Russia’s invasion of Ukraine.

When I met the Ukrainian Energy minister in Poland this autumn, he pointed out just how critically important the energy sector is.

It is energy security that largely determines whether Ukraine can withstand the attacks from Russia.

Adding to this the climate challenge, and not least political and economic shifts that will affect global energy dynamics.

These dynamics present both challenges and opportunities for us in Norway.

And it is this balance of challenges and opportunities that I would like to discuss with you today.

 

Such uncertain times requires long-term political management, stable frameworks, and good cooperation with our allies.

Norway is ready to respond.

We are committed to ensuring that our energy system remains robust, while at the same time contributing to the global fight against climate change.

But it also requires that we understand the times we live in.

In recent years, everything has become more expensive, and there is more uncertainty surrounding energy and climate policy.

High electricity prices provide large revenues for power companies and the state, but they directly impact people’s personal finances and increase costs for businesses.

This is unsustainable, and people will never accept prices being too high or volatile.

To further develop the power system, we must first ensure that people have low and stable electricity prices.

The Norwegian government will let the electricity market work, but for the market to work, we must take measures to help households, ensuring they could meet their energy needs during difficult times.

That is why we are introducing a “Norway price” and cutting the VAT, or moms, on grid fees.

This is entirely in line with the advice the government has received—we let the electricity market function as before, but we are taking measures to ensure a better distribution in the end-user market.

 

So, looking further ahead, how can we secure energy in the longer run?

Norway is in a fortunate position.

We are Europe’s largest supplier of oil and gas. Last year, we achieved a record-high export of gas to Europe.

This is good for Europe, but it is also good for Norway.

By securing Europe’s energy supply, we are also securing our most important export market, which accounts for 70% of our exports.

Furthermore, we have nearly 100% renewable power production, mostly from hydropower.

In 2024, we had the second-highest power surplus ever at 18 terawatt hours—about half of Denmark’s power production.

This energy surplus has led to normalized electricity prices.

However, estimates show that this surplus may decline by 2030 as the growing demand for electricity from new sectors—puts additional pressure on the system.

This situation highlights the need for us to accelerate our transition to renewable energy.

First: Scaling up the production of wind, solar, and hydropower is not just important—it is critical. We are well on the way, with several new projects.

Second, we are strengthening our work on energy efficiency, having doubled the funding compared to the previous government.

And not least, by strengthening the grid.

We are now amending the law to make it easier to connect small-scale hydro and solar power to the grid.

We have increased staffing at the Energy Directorate.

We have simplified grid processes.

And we are introducing a system so we can say no to bad projects earlier and prioritize access to energy to good projects.

 

Still, the energy transition requires that we scale up what we have, but we also have to do something new.

Norway’s strong oil and gas sector, which has long been a cornerstone of our economy and makes us a predictable energy provider to Europe – It also provides us with the expertise and technological capability to lead in the development of new solutions.

Such as offshore wind, one of our top priorities.

In addition to clean energy, offshore wind represents a significant opportunity for Norway’s supply industry.

According to a report from Multiconsult, the offshore wind industry had a turnover of 44.6 billion NOK in 2023.

Exports and foreign turnover in offshore wind were 38 billion NOK in 2023, an increase of 41% from the previous year.

To strengthen our position in offshore wind, we need a strong domestic market. And we are taking big steps, awarding licenses for projects that will provide power to hundreds of thousands of homes.

In addition, floating wind technology, which is expected to transform the offshore wind industry, will soon be a major priority for the Norwegian energy sector.

Or CCS, where Norway is in the forefront of developing carbon capture and storage solutions, and a leading player for commercial CO2-storage on the Norwegian Continental Shelf.

This year we will see the launch of "Langskip" Europe’s first comprehensive CO₂ management value chain.

This project will be crucial in reducing emissions from heavy industry and other hard-to-abate sectors.

Finally, hydrogen, where the market is still in its early stages, and there are obstacles in the way.

The Norwegian government maintains its ambition to contribute to the development of hydrogen solutions to achieve long-term climate goals.

The goal remains to facilitate hydrogen value chains and to contribute to the European energy transition, but the industry needs to be in the driver’s seat.

 

So far, I have talked about the energy transition as a technological challenge. It is much more than that – it is also a social and political challenge.

Over the past three years as Minister of Energy, I have met what I call the "energy dilemmas":

• There is strong resistance against onshore wind.
• Hydropower and offshore wind also face their own challenges.
• And building new power lines often leads to local opposition.

Yet, at the same time, everyone wants cheap, reliable electricity.

The biggest barrier we face is social acceptance—whether we have people with us or against us.

To strengthen social acceptance, we have introduced municipal veto rights in wind power projects. Municipalities decide for themselves whether they say yes or no. We want to do this together with local communities.

We have increased the economic incentives so that when a local community provides land for power production, more of the value creation remains locally.

We have also proposed that municipalities be allowed to process solar power up to 10 Megawatt.

But the industry also has a responsibility.

It is the power companies that must invest in power production. It is the grid companies that must invest in the grid.

We will set the framework conditions, but it is up to the companies to invest.

And we must do it in a way that people accept, so that we have them with us and not against us.

In return what can we offer to our businesses and industries – or to answer the question: Why invest in Norway’s energy sector?

There are several reasons why Norway is one of the best places to invest in energy today:

First, Norway is a stable democracy with a long history of sound governance. Our political system provides a predictable framework for businesses, and we are committed to transparency and consistency in our policies.

Second, we are blessed with an abundance of renewable resources, including hydropower, offshore wind, and the potential for solar and hydrogen.

These resources position Norway as a key player in the future of global energy.

Third, Norway’s oil and gas sector has given us the expertise needed to innovate in offshore wind, carbon capture, and hydrogen technologies. This provides a strong foundation for future growth in the green energy economy.

Fourth, a supportive regulatory environment. The government has implemented measures to simplify the approval process for energy projects, making it easier and faster to develop renewable energy projects.

On oil and gas, where we will develop, not dismantle. Where access to new and attractive areas is the pillar of the government’s policy.

And finally, it is about investing in responsibility.

This government takes responsibility.

We defend the EEA Agreement, which is why we are introducing the Renewable Energy Directive, the Energy Efficiency Directive, and the Energy Performance of Buildings Directive.

In uncertain times, we will create security.

We do this with stable framework conditions, long-term planning, and good cooperation with our allies.

We will continue to be Europe’s leading energy nation in the future.

 

Dear friends,

To sum it all up.

Yes, we live in uncertainties.

And yes, we have significant tasks ahead of us.

But we also have enormous opportunities.

Three years as Minister of Energy has not taken its toll on me. In fact, it’s quite opposite. I am an optimist!

Norway is uniquely positioned to lead with our renewable resources, innovative industries, and collaborative spirit.

This transition is not just about energy or technology—it’s about people. Building trust, ensuring fairness, and creating opportunities for all are essential.

By working together—government, businesses, and communities—we can secure energy that is reliable, affordable, and sustainable, while driving innovation and growth.

Thank you for your attention, and I look forward to exciting discussions here today.