Statnett warns of rising costs and uncertainty for Norway's power grid projects

Statnett, which operates Norway's main high-voltage lines and oversees cross-border connections, warned that current geopolitical unrest and constrained supplier markets are increasing project costs and uncertainty. CEO Elisabeth Vike Vardheim explained that when multiple nations build grids at the same time, supplier competition intensifies and prices rise. The firm estimates that the bulk of cost increases stem from higher market prices, rising interest rates and general uncertainty.

Specific projects now facing higher cost forecasts include the Onarheim station on the west coast, the Eiker transformer station in the east, the Ofotfjorden subsea cable and a new cable for the Hålogalandsbrua in the north. While network expansions are funded through electricity tariffs, the regulator NVE has previously suggested that large-scale investments could lift consumer tariffs by about a quarter by 2030. Statnett supports the government's goal to halve construction time for new lines, expecting benefits to materialise over the longer term, and is pursuing standardized procurement to secure better pricing.