How much does a kilowatt-hour of electricity cost in Norway?

While one kilowatt-hour of electricity cost on average NOK 0.61 in February of 2021 (USD $0.06), it had jumped to NOK 5.43 in August of 2022 (USD $0.55). That’s an almost tenfold increase. Yes, the cost of living is high in Norway, but electricity was always an exception. So, what is happening? Why are the prices so high?

Why is electricity so cheap in Norway?

Generally, Norway has had comparatively low electricity prices until recently. There have been a few spikes here and there (2003 was an exceptional year), but as a rule, electricity in Norway has been cheap. This is explained by the fact that historically, electricity in the country has been plentiful, and almost entirely coming from hydropower.

Why does Norway have a high electricity consumption?

High electricity consumption in Norway is not just down to low prices, but also to the fact that the country has a cold climate and that most houses are heated with electricity. Read more: Paying for Power: Electricity Bills in Norway Explained

What is the power bill support scheme in Norway?

The government launched a power bill support scheme which covers 80% of the portion of the electricity price that exceeds NOK 0.70 per kWh. From October to December of this year, that percentage will jump to 90%. Sometimes, more than one person in the Life in Norway team works on a story.

What projects are under development in Norway?

Another project under development in Norway is a new power plant at Torolmen, in the Årdal municipality, with an estimated annual production of around 30 GWh. The total investment for this project could reach NOK290 million (US$27.4 million), with potential construction starting as early as 2027.

Is Yane a viable project in Norway?

The company noted that the profitability of the Øyane project is more challenging, and it is currently evaluating its viability. Another project under development in Norway is a new power plant at Torolmen, in the Årdal municipality, with an estimated annual production of around 30 GWh.