According to analysts, Norway's current economic strategy is causing a deepening energy crisis in the EU.
On Monday, September 5, the Norwegian government announced that it was considering limiting power exports to Europe due to a shortage of energy supply and depletion of its reserves. Amid this backdrop, EU energy prices soared to all-time highs. The present deteriorating situation may lead to a severe crisis in Europe, Business Insider noted.
Norwegian Minister of Petroleum and Energy Terje Aasland supposes the government is voicing concern over further energy production within the country. Norway needs energy for the coming winter, Assland stressed. The Norwegian authorities place a focus on filling the reservoirs of hydroelectric power plants to boost production. If Norway's gas storage facilities are not filled sufficiently, the country will not export natural gas, the official said.
Experts note that prolonged drought in Europe led to the depletion of hydropower reservoirs. Therefore, the Norwegian authorities are now facing public protests due to rising energy prices.
Currently, gas costs have increased significantly in Europe, reaching €415 ($425) per 1 MWh. However, the situation has subsequently stabilized, with gas prices dropping slightly.
According to experts, Norway's refusal to supply gas to Europe will cancel the plans of many EU governments. They expected Norway to increase power exports to the EU to compensate for the reduction of Russian gas supplies after the shutdown of Russian energy giant Gazprom. Notably, Gazprom suspended LNG supplies to Europe via the Nord Stream pipeline.
The decision of the Norwegian authorities was unexpected for many EU countries. They considered Norway to be the key energy exporter to Europe. At the same time, demand for natural gas is growing along with its prices, experts emphasize.
