Norway's Labour Party warns gas power plants would cause 'shock' electricity prices

Norway's Labour Party has strongly criticized a proposal by the Progress Party to build new gas power plants, warning it would lead to exorbitant electricity prices for consumers. The Labour Party's energy and environment committee leader, Mani Hussaini, called the idea "the dumbest thing you can do" if one is concerned about low electricity costs.

“

The reason for the shutdown is the same reason why no one advocates for building gas power today: it is extremely expensive!

Hussaini dismissed the Progress Party's suggestion to use sites like Kårstø and Nord-Jæren for new gas plants. He pointed out the irony that the Progress Party, which was in government when the last gas power plant at Kårstø was shut down, is now advocating for new ones. The reason for the previous shutdown, Hussaini stated, was the prohibitive cost, a sentiment he believes still holds true today.

“

If the Progress Party means business with this and gets gas power plants built, it will rub off on everyone else. It will send a shock bill to households and businesses. We risk German electricity prices.

The Labour Party leader explained that electricity market mechanisms mean the most expensive power producers influence the overall price. Therefore, he argued, building gas power plants would inevitably raise prices for both households and businesses, potentially leading to "German electricity prices." Hussaini also highlighted the environmental concerns, calling gas power plants "extremely polluting." He questioned the timing of such a proposal given the recent extreme weather events, including widespread wildfires, suggesting a focus on solutions that do not worsen the climate situation.

“

Gas power plants are, after all, extremely polluting.

In response, the Progress Party's Kristoffer Sivertsen accused the Labour Party of hypocrisy and called their criticism "utterly baseless." Sivertsen argued that the current government is creating an energy crisis and accepting high import prices. He pointed to Equinor's investments in gas power abroad and the international demand for Norwegian gas, stating that it is better for Norway to capture the value and jobs associated with this energy rather than letting Europe do so with Norwegian gas. He also argued that moving industry abroad does not reduce emissions but merely relocates them.

“

The Labour Party has the audacity to criticize the Progress Party for wanting to open up for new energy solutions. The government is in the process of imposing a power crisis on Norway and accepts that we import both power deficits and German electricity prices.