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NORWAY'S GREEN TARGETS THREATENED BY LOW ENERGY PRICES

11/12/2012

Norway's green energy and carbon emission reduction targets are at risk because of low electricity costs and an underfunded subsidy system, according to industry sources. Norway's ambitious plans to cut greenhouse emissions by 30% below 1990 levels by 2020 and to diversify power supplies are unlikely without increased subsidies, according to Andreas Aasheim, an advisor to Norway's wind energy association Norwea, who said that power prices would have to be around $100 per megawatt hour to fuel renewable energy growth. Norway's reliance on hydropower means that long periods of wet weather drive down prices, reducing desire for capital-intensive wind power investments. Currently, the cost of producing power in Norway is around $72 per megawatt hour, far below the $90-110 cost of wind power. For the full story, see http://www.reuters.com/article/2012/11/07/us-norway-windpower-idUSBRE8A618M20121107.