Overview

In 2017, the final energy consumption in Norway was 19 Mtoe. The largest consuming sector was industry with 6.1 Mtoe (-13 % since 2000). The second largest sector is transport, with a consumption of 5.1 Mtoe in 2017. Energy consumption in transport has increased by 19% since 2000. The fastest growing sector from 2000 to 2017 is the tertiary sector, with a consumption of 3.0 Mtoe in 2017 and an increase of 32%. This is considerably more than in 2000, but the last years the consumption has been constant. The energy consumption in residential sector, was 4.1 Mtoe in 2017, compared to 3.9 Mtoe in 2000.

Figure 1: Final energy consumption by sector (normal climate)

Source: ODYSSEE

Energy efficiency for final consumers, as measured by total ODEX, improved by 16 % from 2000 to 2017. The largest improvements are observed in the residential sector, but most of it occurred in early 2000's. The industry had a large improvement until 2010 but has been rather constant after that. The development is influenced by the change in the statistical classification in 2008 and this has a particularly high impact on the service sector. 

Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

The government’s goal for energy efficiency is defined as an improvement of the energy intensity of 30% from 2015 to 2030. This is about the same as the improvement the last 15 years and the new goal is an improvement compared to the calculated development in energy efficiency in the base line of 25% from 2015 to 2030. The report from the Committee of Energy and the Environment requested the government to appoint a goal of 10 TWh reduced energy consumption in existing buildings compared to the present level.  Use of oil for heating as base load in buildings is not allowed after 2020, and the committee wants to evaluate if also the use of oil for peak load and use in district heating shall be included. The purpose of Enova and the Climate and Energy Fund is to contribute to reduced greenhouse gas emissions and strengthened energy security of supply, as well as technology development that also contributes to reduced greenhouse gas emissions in the longer term. The income in the Climate and Energy Fund comes from the return on the deposits in the Fund for climate, renewable energy and energy restructuring, and from the parafiscal charge on the grid tariff (small additional charge on electricity bills). 

Table 1: Sample of cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
Energy policy (Energimeldingen)noWhite paper on energy policyMediumLink
Climate and Energy FundnoFinancial support to measures reducing greenhouse gas emissions and to increased energy efficiency.HighLink
Source: MURE

Buildings

The most important energy carrier in buildings is electricity; in 2017 80 % of the energy consumption in buildings was electricity. The electricity consumption increased from 2000 to 2017 by 17 % in the residential sector and by 18 % in the tertiary sector. The most fast-growing energy carrier was the district heating. In household, biomass, mainly in the form of fire logs, is still the second largest energy carrier, but it has decreased the last years. Energy consumption per dwelling area has decreased by 19% since 2000 and energy consumption per household with climatic corrections has decreased by 13%.

Figure 3: Energy consumption of residential per m2

Source: ODYSSEE

The final energy consumption of residential buildings increased from 3.8 Mtoe in 2000 to 4.1 Mtoe in 2017. Two main factors contributed to increase energy consumption over the period – more dwellings (by 0.8 Mtoe), and lifestyles (0.3 Mtoe for “larger homes”). Energy savings (1.0 Mtoe) more than offset the effect of the drivers of consumption growth. Climate only has a minor contribution to the increased energy consumption.

Figure 4: Main drivers of the energy consumption variation in households

Source: ODYSSEE

The energy consumption per employee increased in the first years of the period, but an important decrease is observed from 2002 to 2008. The large decrease in 2008 is probably due to the low activity during the economic recession, but it may be also influenced by the change in the statistical classification in 2008. The energy consumption per employee of the tertiary section shows a stabilization after 2009. The electricity consumption has decreased more than total energy consumption due to an increased use of district heating. Climate variations have an impact on both the indicators, since electricity is a major energy carrier used for space heating.

Figure 5: Energy and electricity consumption per employee (normal climate)

Source: ODYSSEE

Enova has several programs that support energy efficiency measures in buildings. Efficient use of energy in commercial buildings is supported, for example, by the programs "concept assessment support", "introduction of new technology and buildings", "commercial testing of innovative building technology", "best available technology in existing buildings", "heat plants based on renewable energy" and " comprehensive mapping of buildings ". Enova provides investment support for various types of energy efficiency measures in households such as liquid or air to water heat pumps, bioenergy boilers, accumulator tanks, water-borne heat, solar power, solar panels etc. In 2020, use of fossil oil for heating will be prohibited. Through the Enova Subsidy, homeowners can receive support for removing oil burners and oil tanks while switching over to a heating solution based on renewable energy sources.

Table 2: Sample of policies and measures implemented in the building sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Investment grants to energy efficiency in existing buildingsEnova support building owners investing in best available technology within energy saving solutions Link
Energy measures in households (Enova)Enova's support programs directed to households is provided for different measures such as: heat pumps, biomass boilers, solar collectors, central heating, production of electricityLink
Source: MURE

Transport

Cars account for 33 % of the sector's consumption and road freight for 30 % in 2017. Air and water transport represent 17% and 16%, respectively. The remaining is split among rail (1 %), bus (3 %) and motorcycles (1 %).  From 2000 to 2017 the share of road freight transport has increased the most, and the share of cars and water transport has decreased.

Figure 6: Split of the transport energy consumption by mode

Source: ODYSSEE

The share of car transport in passenger traffic show a small increase from 2000 to 2017 and the increased share is taken from the bus traffic. The observed share of traffic by rail is slightly increasing.

Figure 7: Share of transport in passenger traffic

Source: ODYSSEE

Freight is dominated by road traffic; it is transported 8 times more on roads than on rail. The share of modes in freight traffic shows a small increase in road traffic and decrease in rail transport. The share of rail traffic is reduced from 12.8 % in 2000 to 11.1 % in 2017. The rail traffic has increased by 26 % measured as transported ton-km and the road traffic by 49 %.

Figure 8: Share of modes in freight traffic

Source: ODYSSEE

Transport energy consumption has increased considerably due to a high growth in activity since 2000 (1.8 Mtoe from 2000 to 2017). More efficient transportation has made a major contribute to reducing energy consumption (0.5 Mtoe), as well as modal shifts to more efficient transport modes (0.5 Mtoe).

Figure 9: Main drivers of the energy consumption variation in transport

Source: ODYSSEE

Battery electric vehicles (BEV) have been introduced faster in Norway than in most other countries. This has been driven by several policies, introduced since 2001, such as the exemption from nonrecurring tax for vehicles, free parking and charging on public parking places, free drive in lanes for public transport and exemption from road toll. 

Enova supports both technology and innovation and market development in transport. Investment support is provided for infrastructure for area development of electric vehicle charging infrastructure, hydrogen infrastructure, zero emission vehicles and heavier biogas powered vehicles, such as trucks, excavators, wheel loaders and dumpers, but also electric vans and sea transport electrification.




Table 3: Policies and measures into force in the transport sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Zero Emission VehiclesZero emission vehicles have no purchase tax and a very low annual vehicle duty. In addition, other advantages exist, such as free parking, charging and free drive in bus lane.MediumLink
Enova's programs for the transport sectorInvestment support to energy and climate measuresMediumLink
Source: MURE

Industry

Final energy consumption of industry decreased significantly, by 0.7% per year on average from 2000 to 2017. Most of the energy is used in energy intensive branches such as production of metals, chemicals, pulp & paper and non-metallic minerals. Around 20 % of final energy consumption is used in other manufacturing.

Figure 10: Final energy consumption by branch

Source: ODYSSEE

The unit consumption of pulp and paper shows a major decrease the last years due to close down of a big pulp plant in 2013, following an increase unit consumption between 2000 and 2011. In 2017, this branch uses less than half of the energy used in 2000, due to several plant close downs in the period. The branch "steel" is in Norway mainly production of ferro-alloys, but this is also a part of chemical industry, which complicate the trend study.

Figure 11: Unit consumption of energy‐intensive products (toe/t)

Source: ODYSSEE, steel including blast furnaces

Since 2000, activity contributes to increase the industrial energy consumption by 0.7 Mtoe, while structure and energy savings contributed to decrease industrial energy consumption, by 1.2 Mtoe and 1.4 Mtoe respectively.

Figure 12: Main drivers of the energy consumption variation in industry

Source: ODYSSEE

Enova has a number of programs that support energy-efficient measures in industry, including "Full-scale innovative energy and climate technology", "Energy and climate initiatives in the industry" and "Piloting / demonstration of / full-scale new energy and climate technology". Enova’s technology programmes shall contribute to reducing technological risk and the technology cost of new innovative technology, so that the technology is assisted from the development stage and out into the commercial market.

Table 4: Policies and measures into force in industry

MeasuresDescriptionExpected savings, impact evaluationMore information available
Energy and climate initiatives in the industryInvestment support to projects within different thematically areas. Link
Full-scale innovative energy and climate technologyInvestment support for the realization of innovative projects in energy and climate technology.Link
Source: MURE