Norway Drops ‘Green Battery’ Vision, Vows Arctic Drilling Regardless of EU

Norway will continue developing oil and gas resources in the Arctic regardless of the European Union’s position on new drilling, Energy Minister Terje Aasland said, as Oslo also distances itself from its former ambition to act as Europe’s “green battery.”

The shift underlines a broader recalibration of Norway’s energy relationship with Europe. Oslo wants to sustain petroleum production and exports while limiting deeper electricity-market integration.

Arctic Development Remains Central

Aasland said production from the Barents Sea would be necessary if Norway is to keep oil and gas output near current levels until at least 2035.

“In today’s geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests,” he said.

Norway became Europe’s largest natural gas supplier after Russia’s 2022 invasion of Ukraine and now meets about 30 percent of gas demand in both the EU and Britain.

Gas production neared record levels last year, while oil output reached its highest point since 2009. Official projections nevertheless indicate a steep decline after 2030 unless additional resources are found and brought into production.

“If Norway is to remain a long-term supplier of oil and gas to Europe..., then the Arctic must be part of that discussion,” Aasland said.

Oslo Says EU Position Will Not Decide Development

The EU supports a ban on new Arctic drilling on environmental grounds, but it is considering whether energy-security concerns warrant a policy shift.

Norway has argued in discussions with Brussels that areas of the Barents Sea already opened to petroleum activity are ice-free, similar to the North Sea, reducing some environmental risks associated with Arctic operations.

Oslo also views petroleum activity in the north as important for employment and settlement in regions bordering Russia.

Aasland said Norway would proceed even if the EU retained its moratorium.

“We would develop these areas, and then it will be up to the EU whether they should have a moratorium on buying that gas or oil,” he said.

Oil produced in the Arctic could be sold globally. Gas could also reach international markets as liquefied natural gas through Equinor’s Melkoeya LNG plant near Hammerfest.

Equinor chief executive Anders Opedal said Barents Sea oil and LNG could be redirected if Europe declined to purchase them.

“The only thing that will suffer from this is actually European security. We have the flexibility,” Opedal said.

International Energy Agency executive director Fatih Birol has also urged the EU to reconsider its opposition to new Arctic production, arguing that future energy security will require additional supplies.

Opponents argue that Arctic projects would require years to develop and would offer little relief for Europe’s immediate energy challenges.

‘Green Battery’ Concept Abandoned

Norway is also reassessing the role its renewable power system can play in Europe.

The country generates a surplus of renewable electricity in most years through its extensive hydroelectric system and has exported power to neighboring markets through cross-border cables.

Norway had previously promoted itself as Europe’s “green battery,” with its reservoirs potentially helping balance fluctuating electricity supply elsewhere on the continent.

Aasland now rejects that concept. “It was a flawed idea,” he said.

The approach helped spur additional interconnectors, including links with Britain and Germany.

But those connections have faced opposition inside Norway as European electricity prices rose and domestic consumers became more exposed to continental price movements.

No New Power Interconnectors

Aasland said Norway does not intend to construct additional interconnectors, although it will maintain close cooperation with Europe’s electricity system.

He argued that European countries should strengthen their own stable power generation after coal and nuclear plant closures and insufficient investment in new gas-fired capacity.

Greater availability of reliable generation, he said, would reduce prices and create a more balanced system of cross-border power flows.

“The future lies in having a very strong and integrated system,” Aasland said.

Norway’s emerging position therefore separates two elements of its European energy policy: continued cooperation with the continent, but without accepting either an end to Arctic petroleum development or a role as the system’s primary renewable balancing mechanism.