In the analysis, which summarises changes in the energy system, hydrogen and battery technologies distinguish themselves as potential new focus areas.
Hydrogen is a key technology for decarbonising sectors where electrification is challenging. The development of a European hydrogen market provides opportunities for the utilisation of Norwegian natural gas resources and renewable power. In addition, hydrogen’s potential use in the storage and transport of energy enables it to play a key role in the energy transition and support increased energy system flexibility.
Global demand for batteries is expected to increase sharply, driven by demand from the transport and power sectors. Industry is making significant investments in batteries through the EU’s European Battery Alliance and the innovation and industrial collaboration Important Projects of Common European Interest. Norway has a competitive advantage in the availability of affordable renewable electricity.
Digitalisation, decarbonisation and customer orientation are identified as important cross-cutting trends spanning value chains across the energy system. The analysis also observes more ambitious rates of investment in renewable energy technologies and infrastructure in Europe and globally. Recent political goals and strategies provide momentum for the development and use of climate-friendly energy technologies.
On the supply side, costs for solar power, offshore wind, hydrogen and carbon capture and storage continue to fall. Extensive global investments in grid infrastructure, climate-friendly transport and energy efficiency are also expected.
The analysis is based on several reports from internationally recognised institutions, as well as key public and private actors in Norway, among others. The report is available in Norwegian on Energi21’s website.
THEMA is also supporting Energi21 with its ongoing strategy process, to be completed in May 2022.
Energi21 was established by the Ministry of Petroleum and Energy to advise on support for research and innovation related to renewable energy and climate-friendly technologies. Energi21’s strategy helps guide the Ministry’s allocation of funds to support research, development, demonstration and commercialisation projects for new climate-friendly energy technologies. Energi21’s current strategy will be revised to prioritise support for research efforts that are consistent with Norway’s national policy goals.