Norway Provides An Object Lesson On How Not To Make Energy Policy

Norway Provides An Object Lesson On How Not To Make Energy Policy

By David Blackmon |

“It’s an absolutely sh*t situation.” That is the assessment of Norway’s energy minister, Terje Aasland, about his country’s electricity costs rising to record levels due to its exports of power to the United Kingdom, Germany, Denmark and other European countries.

It is an outcome that many warned the Norwegian government would come about as the decisions were made to build the interconnects to export power into the European Union and the UK. Those critics were of course ignored as those in charge of Norway’s fortunes at the time felt compelled to genuflect to the demands of the EU and other globalist organizations.

Norway derives the vast majority of its electricity from hydropower, which currently provides 90% of the country’s power generation. Most of the remainder comes from wind power, and the nation enjoys a large excess of generating capacity on most days. Thus, all other factors being equal, it made some financial sense to establish those interconnects to sell the surplus into other countries.

But it only made sense when those other countries were taking care to ensure the continuing health and adequacy of their own electric grids. That certainly has not been the case in either the UK or Germany, whose governments have in recent years chosen to discard a former wealth of reliable baseload capacity provided by coal and nuclear plants in favor of relying too heavily on intermittent, weather-dependent wind and solar.

Now, when the wind stops blowing and the sun isn’t shining, those customers of Norwegian power exports drain the host country’s surplus, causing the extremely high energy costs to flow back upstream, hitting Norwegians with abnormally high utility bills. It all came to a head this week when low wind speeds, combined with abnormally cold temperatures on the European mainland, caused power rates in Norway to spike to as high as €1.12 ($1.18) per kilowatt hour (kwh).

By comparison, the average electricity rate per kwh in New York is around 22 cents, while Texans typically pay around 15 cents per kwh. What that price spike meant for Norwegians on December 12 is that taking a 5-minute warm shower would have cost them $5. Doing the same in Texas would have cost around 16 cents.

Naturally, public outrage in Norway over these needlessly high electricity rates is now causing policymakers there to run for political cover. The Financial Times reports that both the ruling leftwing Labour Party and conservative Progress Party are now making plans to campaign next year on platforms to limit or end the export of electricity via these international interconnections.

That is a prospect that no doubt sparks fear in the hearts of the central planners in both Germany and the UK, where electricity imports from Norway play a central role in their own emissions reduction plans. Those plans involve the willful destruction of reliable baseload power stations and forcing power costs to dramatically increase, which in turn results in heavy industries like steelmaking and other manufacturing to leave the country. In that way, these governments are essentially exporting their emissions to China, whose own government is only too happy to serve as home to these heavy industries and power them with the hundreds of coal-fired power plants they build each year.

California Gov. Gavin Newsom and his fellow Democrats have pursued essentially the same strategies in California in this century, with predictable results: Californians pay among the highest power rates in the United States as their power grid has become overloaded with intermittent generation and increasingly reliant on imports from other states. Rather than exporting its emissions to China, California exports them to Nevada and Utah and other U.S. states.

The Biden administration has attempted to take the entire country down this same economically ruinous path for the past four years. Fortunately, voters awakened just in time this year to head off the most damaging impacts now being seen in Germany and the UK.

For Norway, is this an example of the law of unintended consequences setting in? Sure, to some extent. But it is also a clear example of entirely foreseeable consequences stemming from poor policymaking by multiple national governments flowing across borders. This “sh*t situation” was all avoidable, and frankly should have been.

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Originally published by the Daily Caller News Foundation.

David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

The Climate Lobby Is Openly Plotting To Steal Our Freedom

The Climate Lobby Is Openly Plotting To Steal Our Freedom

By David Blackmon |

During her May 15 speech to The Beyond Growth Conference held by the European Parliament, European Commission President Ursula Von Der Leyen, citing a 1970s de-growth plan published by the Club of Rome, made reference to the European Union’s “social market economy” five times in a span of less than 150 words.

A “social market economy,” of course, is a reference to the sort of central economic planning engaged in by authoritarian socialist governments throughout history. “And this is exactly why we put forward our European Green Deal,” Von Der Leyen told the conference. “Building a 21st century clean-energy circular economy is one of the most significant economic challenges of our times.”

The agenda of the Beyond Growth Conference focused on devising plans to manage the destruction of economic growth that is a centerpiece of the real agenda of the energy transition. Limitations on energy minerals and other resources required by wind, solar and electric vehicles, and on the ability to continue printing trillions of debt-funded dollars and Euros in a vain attempt to subsidize them to the scale required to displace fossil fuels inevitably means the forcing of common citizens in the Western world to scale down their standards of living and limit their mobility to meet the net-zero by 2050 goals being dictated at the global level. Thus, the need for the EU to move “beyond growth” and back to a more primitive mode of living.

Rising recognition and acceptance of these limitations, along with the success by Western governments in enforcing authoritarian edicts on their populations during the COVID-19 pandemic, is now leading to a rapid evolution in the overarching narrative and talking points related to the energy transition. The former energy transition narrative of “we will scale up renewables and EVs and you won’t even notice the difference in your daily lives” has been transformed to “we will scale everything down and you will just have to live with it” with stunning speed during 2023.

report titled “The Urban Mobility Scorecard Tool: Benchmarking the Transition to Sustainable Urban Mobility” issued by the World Economic Forum in May is another great example. Based largely upon a 2017 UC Davis report titled “3 Revolutions in Urban Transportation,” the WEF report advocates for authoritarian governments to force the reduction of the numbers of vehicles on the road from the current global estimate of 1.45 billion to just 500 million. The UC Davis report went largely unnoticed in 2017 because the climate alarmist lobby had not been sufficiently emboldened at that time to publicly discuss its real goals. But that mask is now coming off.

The authors of the WEF report claim citizens who can no longer own cars would still be allowed to move away from their planned cities of the future, but only via “shared transport,” i.e. electric buses and a new network of thousands of miles of high-speed rail. But California has clearly shown that thoughts of building a huge network of tens of thousands of miles of new high-speed rail in the western world in the next 27 years is a complete fantasy. California’s own high-speed rail boondoggle, originally proposed 27 years ago in 1996, has seen its budget blossom from $8 billion to over $130 billion, and still hasn’t managed to lay a single mile of rail.

The real world simply does not conform itself to fantasies like this plan, and everyone at the WEF is fully aware of that reality. Thus, what this plan really amounts to is a scheme to enable the speeding-up of implementation of socialist/authoritarian governments in the West to enforce the new restrictions on the lives of common citizens, an effort that began to accelerate during the COVID pandemic. Authoritarian governments always endeavor to restrict the free flow of information outside of approved propaganda, and restricting mobility is a key means of achieving that goal.

As we see the EU and the WEF now freely admitting, economic de-growth and forcing citizens of Western nations to live smaller, less prosperous lives are the real end goals of this energy transition. The narrative has officially shifted, and we would do well to take them at their word.

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Originally published by the Daily Caller News Foundation.

David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.