Europe’s energy policies have stirred political turmoil in Norway, which is now threatening to disrupt European energy markets. This turmoil comes at a critical time for Europe, as the continent’s energy security remains shaky three years after Russia’s invasion of Ukraine.
In recent years, Europe has rapidly accelerated its shift to renewable energy to boost independence and security. Before Russia’s invasion in February 2022, Europe was heavily dependent on Russian energy, with 20% of its energy needs supplied by Russia. Germany, Europe’s largest economy, relied on Russia for more than half of its natural gas and a third of its oil.
“The energy appeared cheap, but it exposed us to blackmail,” said Ursula von der Leyen, president of the European Commission, at the World Economic Forum in January 2025.
In an effort to reduce Russian influence and meet climate goals, EU countries massively increased their renewable energy capacities, setting records for solar and wind power. However, the rapid expansion of these markets now risks destabilizing European energy systems.
While renewable energy is good for the climate, it can create challenges for grid stability. As Germany depends more on wind and solar energy, it faces difficulties in ensuring a stable power supply, especially during periods of low wind and sunlight. This has led to Germany relying on energy imports from neighboring countries, including Norway, during dark and windless stretches of winter.
Norway’s energy markets have been affected as it exports more power to Germany. The country has abundant and cheap hydropower, but as energy prices rise for locals, there is growing frustration. Many Norwegians feel that they are bearing the cost of a German energy policy that they had no say in.
“Nordic countries increasingly feel they are paying the cost of a failed German energy policy — one they weren’t consulted on,” wrote Javier Blas for Bloomberg.
This dissatisfaction has caused a rift in the Norwegian government. Norway, which is not part of the EU, has seen its coalition government collapse over how to handle EU energy policies. The Eurosceptic Centre Party withdrew from the government, leaving Prime Minister Jonas Gahr Støre to lead a minority government.
“The price contagion through the last two cables gives us high and unstable prices, and the EU prevents us from implementing effective measures to control electricity exports out of Norway,” said Trygve Slagsvold Vedum, leader of the Centre Party, calling for Norway to regain control of its electricity prices.
Norway is now considering measures to limit energy exports. If Norway chooses to reduce or halt its energy flow to the EU, it would have serious consequences for Europe. Last year, Norway was the continent’s third-largest energy exporter.
Prime Minister Støre has acknowledged the tensions, saying, “Every country has to consider what is their share of such a possibility, and no one is going to act against their own interests.”
The current energy shifts in Europe are leading to conflicts and uncertainty, which is expected in a major transition. While challenging, this is part of the learning process toward decarbonization. How European leaders handle these tensions, adjust regulations, and pursue their energy goals will provide valuable lessons for other nations navigating the shift to cleaner energy.
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