Norway is contemplating cutting some of its electricity ties with Europe after surging electricity prices, driven largely by German imports, triggered widespread frustration across northern Europe.
Norwegian Energy Minister Terje Aasland didn’t mince words, calling the situation “absolutely terrible” and empathizing with the public’s anger.
In southern Norway, electricity costs spiked to over 13 kroner (€1.12) per kWh during peak hours on December 12. To put that into perspective, a quick five-minute shower could rack up around €4 in electricity costs—an expense higher than during the Ukraine crisis, an energy analyst told NRK, the state broadcaster.
The root of the problem lies in Western Europe’s struggle with renewable energy shortages during windless, sunless days. Without adequate power from wind turbines and solar panels, many countries typically rely on baseload power sources like nuclear, hydropower, or gas plants. However, Germany’s 2023 decision to fully phase out nuclear energy has left it with limited baseload capacity.
To fill the gap, Germany has leaned heavily on coal and imports, accounting for nearly a quarter of its peak consumption on December 12. These increased imports drove up energy prices in neighboring nations, including Norway and Sweden, sparking resentment.
Norway’s government, led by the Labour and Centre parties, is now debating whether to sever or renegotiate electricity connections with Denmark, Germany, and the UK. The Skagerrak HVDC cables, which link Norway and Denmark with a 1.7GW capacity, are under review ahead of planned refurbishment in 2026. The Centre Party and the right-wing Reform Party, expected to win the 2025 election, are advocating for similar measures to protect Norway’s energy market.
Sweden, too, is expressing frustration over the fallout from Germany’s energy policies. Swedish Energy Minister Ebba Busch blamed Germany’s nuclear exit for price surges in Sweden, adding that the “failed electricity system” makes high prices inevitable when the wind doesn’t blow.
Sweden, still operating three nuclear plants, has decided to expand its nuclear fleet significantly by 2045, signaling a commitment to long-term energy stability. Meanwhile, Norway and its Nordic neighbors are left grappling with the fallout of interconnected energy markets amidst shifting European policies.
