The decision to keep investing in new oil and gas projects flies in the face of growing global pressure to shift away from fossil fuels and Norway's own reputation as a pro-green economy with more electric cars per capita than any other country and a reliance on renewable hydropower for virtually all of its electricity.
There's a practical problem with the plan. Norway's electricity grid is constrained at some junctures and the needs of other industries, particularly green economy players such as battery factories and hydrogen plants, have to be factored in. Statnett's recommendation was a rude awakening for the oil industry, which has made Norway one of the richest countries in the world. Without access to cheap, renewable energy some of its oil fields might have to be shut prematurely due to rising emissions costs, analysts say.
The measure would only address a fraction of total oil and gas emissions, while sucking power from shore that is essential to develop new, green industries, he added.
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