Nordic Energy Technology Perspectives 2016

Much has changed since the last edition of Nordic Energy Technology Perspectives (NETP) in 2013. Despite lower fossil fuel prices, the Nordic region has continued to reduce emissions. This decline is the result of efficiency improvements and strong renewables growth – evidence that energy policies suggested in the last report are producing results. Similar developments are evident across Europe, where the Energy Union has established a new framework for European energy policy. Globally, too, efforts to cut CO2 have gained momentum.

At the time of writing, 189 countries had pledged to reduce emissions under the framework of the Paris Agreement on climate change, which has already been signed by more than 170 country representatives. Policy makers around the world are now looking to fulfil these pledges. The experiences of the Nordic region in energy system transition can offer a valuable contribution as the world takes on this challenge. The highly interconnected regional electricity market is the cornerstone of the Nordic energy system, and it can serve as a key enabler for further emission reductions towards 2050.

This report provides a case study on how to go beyond the 2°C target, towards a carbonneutral energy system. For Nordic policy makers, the scenarios in this report identify both challenges and opportunities on the road towards the ambitious national climate targets of the region. Their success will depend on ensuring public acceptance of new power generation and grid investments, the continued competitiveness of energy-intensive industries amidst higher electricity prices, and the sustainable supply of biofuels for long-distance transport. In addition, there are significant opportunities to benefit from supplying and balancing the European electricity grid, and to harness urban leadership in the electrification of transport.