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Electricity has been produced in Norway in hydropower plants since 1877. The first wind power plant was put into operation in 1986. The growth in wind power production was weak in the first years after the turn of the millennium, but after Norway joined the Swedish subsidy scheme Tradable Green Certificates in 2012, there was significant growth in the wind power industry. While most of the hydropower production in Norway is owned by the public sector, the majority of wind power production is owned by foreign investors. Since wind power has been very much discussed in Norway, a levelized cost of energy (LCOE) model that can be well suited for this type of discussion is presented. The point here is that one must include all the costs, including the externalities. The Norwegian electricity market is dominated by a single player: Nord Pool. Ninety-six percent of all the electricity produced in Norway is sold through the power exchange Nord Pool, and the prices set by Nord Pool affect the finances of all the electricity producers in Norway, as well as producers in Scandinavia and the Baltic countries. This paper is a survey of the growth, development of production and economic performance of the Norwegian wind power industry and some aspects of the electricity market in the Nordic countries.

Growth and Economic Performance of the Norwegian Wind Power Industry and Some Aspects of the Nordic Electricity Market