Translated from Norwegian with help from AI.
Water-rich Norway has a large capacity for power production. Today, Norway produces 140 TWh per year. Of this, the country’s 2.5 million households use 38 TWh annually. If all the electricity were used for private consumption, we could supply nearly 10 million households. The power is primarily used for heating homes and buildings. Industry and transport are also major consumers.
If every single waterfall could be harnessed for power production, the output would be 600 TWh per year. Such development is entirely unrealistic, but it illustrates that Norway is a powerful energy nation.
The electricity produced must also be transmitted to where it is needed. Power is transported via transmission lines, cables, and substations. This happens daily without us thinking about it. If we sum up the entire network of power lines across Norway, it totals 130,000 km—more than three times around the Earth’s equator.
Exporting electricity from Norway is not a new idea. Plans for power exchange between Nordic countries were already being made a century ago.
Norwegian hydropower in demand
Excitement was high at the world’s first hydropower conference in London in 1924. World War I was over, and optimism was strong. Norway was well represented at the conference, with both government officials from the Norwegian Water Resources and Energy Directorate (NVE) and industry leaders in attendance.
Norway received a lot of attention and was portrayed as an almost inexhaustible source of hydropower. Sigurd Kloumann, a well-known engineer and industrial entrepreneur, stated:
«Norway is «undoubtedly the only country in Europe with such a large hydropower surplus that it can supply part of its excess to other countries for a long time to come.» Sigurd Kloumann, 1924
Kloumann presented this scenario in his lecture to the international audience in London.
At the time, Norwegian hydropower experts concluded that 12% of the usable hydropower in Norway had been developed and had a potential far exceeding domestic consumption. In other words, Norway had more than enough power for both general supply and heavy industry.
Kloumann believed that if Norway were to use all its power domestically, it would require a massive development of heavy electrochemical industry, which would need to be built near ice-free ports in the west. He also argued that such large-scale industrialization would cause significant social unrest and dissatisfaction, making it politically difficult.
He concluded that Norway was not ready for such development. In his view, the most beneficial path for Norway was to export surplus power to the northern parts of Europe.
Here we sense great enthusiasm for the future of hydropower development in Norway—a development that could meet the needs of heavy industry, households, and neighboring countries for a long time.
Norwegian hydropower for industrial purposes was considered extremely cheap globally. Even today, industrial power remains relatively inexpensive, but it is now also highlighted as “green”.
It would take 40 years before nearly all Norwegian households were supplied with electricity. But what happened to power exports to neighboring countries? Were these just grand ideas, or did the visions become reality?
Power exchange with neighbouring countries - three examples
Transferring Norwegian power to neighboring countries began in the 1960s. The largest transmission supplied Stockholm. Since 1976, there has been power export and import between Norway and Denmark. And we must not forget that Norway has been dependent on Russian electricity supply.
These historical examples are small compared to today’s power exchange (export and import). But they illustrate that power exchange is not only a technical matter—it is also political.
Norwegian electricity to the swedes finances development in Trøndelag
The power line between Nea Power Station in Trøndelag and Järpströmmen Power Station in Sweden from 1960 was Norway’s first regular power exchange with a foreign country. The route is 100 km long, with 25 km on the Norwegian side. It runs through mountainous areas and along an old travel route.
Post-war times were marked by a weak economy and a great need for power development. When Nea was to be built, Norway turned to unconventional methods. In 1953, the Norwegian Minister of Trade proposed involving the Swedes in the development, which was a major investment. The investment came in the form of a loan. As repayment, the Swedes would receive half of the power from Nea for 15 years, securing electricity all the way to Stockholm.
Power export was new and controversial, and the matter was debated in the Norwegian Parliament. Many believed the power was too valuable to be sent abroad. In 1960, the matter was decided by a narrow parliamentary majority. The contract was signed by the Swedish and Norwegian prime ministers. The opening of the line was a landmark event for Norway as a power nation.
From 1960 to 1975, half of the power produced at Nea went to Sweden, and the construction loan was repaid. Interestingly, the spring of 1960 was exceptionally dry in Trøndelag, which led to power being sent from Sweden to Norway for a period.
In 2010, the power line was fully upgraded to the highest voltage level (420 kV), and power now flows both ways. Since 1975, there has been more export than import to Norway.
Russian power - cooperation during the cold war
Almost at the border between Norway and Russia in the Pasvik River stood the Russian power station Boris Gleb, completed in 1962. Norwegian contractors were responsible for the construction, and Norwegian electricity was used. How was this possible?
After World War II, the front between East and West was ice-cold. The Cold War made international cooperation difficult. Under these conditions, Norway and the Soviet Union entered into a unique agreement in 1957 for power cooperation in the Pasvik River, which originates in Lake Inari in Finland.
The need for electricity in Eastern Finnmark was great after the Germans destroyed most of the power supply during their retreat in 1944–45. Despite the construction of some small power stations, there was too little electricity, and the grid was in poor condition.
Several dry years and a weak grid led to an acute power crisis on the Norwegian side in 1971. NVE entered into an agreement to purchase Soviet power and was allowed to build a 10 km power line from Boris Gleb to Kirkenes. The construction was completed in record time—just under three months.
The electricity from Boris Gleb caused problems because Norway has stricter requirements for frequency and time deviations in its power supply. People experienced issues with electrical appliances when the “Russian power” entered the grid. In 1986, the switching station at Boris Gleb was rebuilt with Norwegian assistance, resolving the issues.
This import of “Russian power” continued until the year 2000. In 2022, Statnett decommissioned the Boris Gleb power line.
First subsea cable abroad - a technical triumph
Power exchange with Denmark was only possible by laying cables under the sea. The idea of interconnection between Denmark and Norway dates back to 1918 but was not realized until 1976.
That year, Norway’s first subsea cable to a foreign country was completed—from Kristiansand to Hirtshals. Skagerrak 1 was a pioneering technological project, and at 127 km, it was the longest cable in the world at the time. It was surpassed in 2021 by the North Sea Link between Suldal and Blyth in the UK, which spans 720 km.
The newspaper VG referred to Skagerrak 1 as the world’s most expensive “electric eel” in its coverage of the connection between the two countries at a depth of 550 meters. Skagerrak 1 and 2 marked the beginning of the Cross-Skagerrak system, with Kristiansand transformer station as the endpoint on the Norwegian side. The transmission system to Denmark was completed in 2014 and includes four subsea cables.
Skagerrak 1 and 2 are now nearing the end of their technical lifespan, and Statnett and Energinet in Denmark have jointly decided to consider reinvestment in these cables.
From power surplus to power deficit
Electricity consumption has increased significantly since 1924. Norway has reached limits that were unimaginable 100 years ago. Already in 2001, Prime Minister Jens Stoltenberg stated that “the hydropower era is over.”
By 2024, 64% of the hydropower potential has been developed, and 23% of Norwegian waterways are protected. This has led to a more strained power situation. Today, supply security and the possibility of domestic power shortages are key issues.
Over the past century, Norway has transitioned from being a hydropower nation to being recognized as an environmental nation. Hydropower has gained renewed relevance and importance since the onset of the “green transition.”
Many believe that Norway, with its renewable energy, is well-positioned to meet climate commitments that involve phasing out fossil energy (coal, oil, gas) and investing heavily in various types of renewable energy (wind, water, solar). This large-scale transformation is shaping the European power market.
Norway has also changed its legislation. The Energy Act of 1991 introduced a free power market. Power production and sales were opened to competition. This means electricity became a commodity, less governed by political decisions. Additionally, power transmission was separated from power production. Supply security is no longer the responsibility of local energy companies but a national responsibility.
How does today's power system work?
Norway is interconnected with Sweden, Finland, and Denmark in a shared power grid. This means that production and consumption must always be balanced across the entire region. The Nordic grid is further connected to the rest of Europe, forming what can be called the world’s largest machine.
The increase in electricity use must be seen in light of the fact that hydropower is renewable. It is based on nature’s own cycle. Its production does not pollute the environment like other energy sources do.
Hydropower has in many places replaced fossil energy sources that are non-renewable and produce large CO₂ emissions. Energy experts today believe that Norway’s water reservoirs could become Europe’s “green battery” by 2050. This will require major upgrades to hydropower and increased power exchange with other countries.
Norwegian hydropower has gone from being extremely cheap industrial energy 100 years ago to highly sought-after energy in Europe’s climate and energy transition. To meet its climate commitments, Norway must produce 30% more renewable energy than it does today. The current Energy Commission writes:
«... it is time-critical to increase the pace of development to get as close to the climate goals for 2030 as possible. This requires extraordinary measures in the short term […] Without new initiatives, we will not succeed in reaching the climate goals, we will not succeed in facilitating new green industry, and we will not succeed in ensuring competitive prices.» Energikommisjonen, 2023
A hundred years ago, the export of Norwegian surplus power to Nordic neighbors was on the drawing board. Importing power to Norway was not part of the equation. Today, Norway is a major player in both exporting and importing electricity in the Nordic and European power markets.
Several experts and politicians now envision Norway as Europe’s major renewable energy supplier—just as Sigurd Kloumann did in 1924.