The Nordics will only reach carbon-neutrality with competitive and clean Nordic electricity
Today, Nordenergi is presenting a study on the opportunities and barriers of electrification in the Nordics, to contribute to the discussion on how Europe can become carbon-neutral by 2050. The power sector and increased electrification have a crucial role in delivering a decarbonised society.
The four Nordic markets: Denmark, Finland, Norway, and Sweden, are included in the study. According to the study, the electricity demand will increase with more than 60 percent between 2020 – 2040. In addition, wind power is estimated to increase from 14 percent of the electricity mix in 2020 to 40 percent in 2050.
Nordenergi has developed three strategic recommendations to accompany the study. Adherence to the strategic recommendations is necessary for achieving increased electrification and decarbonisation in the Nordics. Broadly the strategic recommendations are:
1. Joint Nordic energy transition planning: Joint planning to ensure alignment between countries to coordinate power supply, grid, and flexibility development.
2. Identifying unique Nordic strongpoints: Low carbon firm capacity from hydropower and nuclear, coupled with cost-competitive onshore wind and rising scope for offshore wind can facilitate the creation of power-to-x hubs and continued expansion of energy intensive industry.
3. Facilitating the carbon neutral consumer: Consumers should be rewarded for choosing electric over fossil-fuelled solutions, and for adapting consumption to support the power system.
Following these strategic recommendations is necessary to ensure that the Nordic countries reach carbon-neutrality well before 2050 with the help of the Nordic power sector.
Nordenergi has always adhered to market principles with the idea to achieve decarbonisation in the most cost-efficient way.
”Nordenergi’s view is that strengthening and expanding carbon trading systems are key to delivering a meaningful reduction in emissions and decarbonisation”, says Åsa Pettersson CEO of Swedenergy and Chair of Nordenergi.
The Nordic power market remains a frontrunner for cross-border collaboration with the creation of Nordel in 1962, Nord Pool, the world’s first true cross-border power exchange, and with the creation of the Nordic Electricity Market Forum in 2017.
Nordenergi is the collaboration between the Nordic associations (Finnish Energy, Danish Energy, Swedenergy and Energy Norway) for electricity producers, suppliers, and distributors.