The Norwegian government is facing a political crisis over the adoption of three European Union (EU) energy directives under the European Economic Area (EEA) agreement. The dispute has exposed deep divisions between the Labour Party (Arbeiderpartiet, Ap) and the Centre Party (Senterpartiet, Sp), threatening the stability of Prime Minister Jonas Gahr Støre’s coalition government.
This center-left wing coalition took office after the 2021 elections. Recently, its popularity has declined due to economic difficulties and several scandals. In his New Year’s speech, the Prime Minister acknowledged these challenges but pointed to some encouraging economic indicators. The next elections are expected to take place in September 2025.
The core of the crisis
At the heart of the conflict is Norway’s participation in the EU’s Fourth Energy Package. This package, aimed at strengthening the European energy market, includes measures that regulate electricity trading and enhance cooperation between national energy regulators. Ap supports adopting the directives, arguing that they align with Norway’s commitments under the EEA agreement and will help maintain strong ties with European markets. In contrast, Sp strongly opposes them, fearing they will increase Norway’s dependence on the EU and potentially lead to higher electricity prices.
Sp’s leader, Trygve Slagsvold Vedum, has made it clear that his party rejects the three directives:
“We do not want these three directives. Our position is that we must dare to challenge the EU system.”
Ap, on the other hand, insists on their necessity. Støre stated:
“There is broad support for the three directives within our party. I believe they are well-researched and important for Norway.”
Despite the tensions, Støre (Ap) has downplayed the idea that Sp has issued an ultimatum, while Sp remains steadfast in its opposition.
The content of the EU energy directives
The three controversial EU directives from 2018 are:
- Renewable Energy Directive: This directive mandates that at least 32% of the EU’s total energy consumption must come from renewable sources by 2030.
- Energy Efficiency Directive: This directive aims to promote more efficient energy use to lower energy costs, enhance supply security, and reduce greenhouse gas emissions.
- Building Energy Performance Directive: This directive sets new requirements for improving energy efficiency in buildings.
These directives are key components of the EU’s Clean Energy Package, designed to help member states transition towards a greener and more sustainable energy system.
ACER (Agency for the Cooperation of Energy Regulators) was established to coordinate energy regulations across Europe. Norway joined the EU’s energy package in 2018, integrating ACER into its national framework. The agency ensures fair energy trading practices and market stability, but its authority remains controversial in Norway.
The wider implications: EEA agreement at risk?
Beyond the immediate political crisis, Sp’s opposition to the EU’s energy policies could have broader consequences for Norway’s relationship with the EU. Sp and other opposition parties, including the Progress Party (Fremskrittspartiet, Frp), advocate withdrawing from the EU’s energy cooperation framework, particularly the Agency for the Cooperation of Energy Regulators (ACER).
However, legal experts warn that pulling out of ACER could jeopardize Norway’s entire EEA membership.
Professor Halvard Haukeland Fredriksen from the University of Bergen cautioned that “there is no unilateral withdrawal clause in the EEA agreement, and it is unlikely that the EU would allow selective opt-outs without consequences.”
Similarly, Professor Cathrine Banet from the University of Oslo added:
“The EU has been clear that removing a single part of the agreement is not possible. The EEA framework must remain coherent, and ‘cherry-picking’ is not an option.”
Crisis possible outcomes
The political standoff presents three possible scenarios:
- Sp leaves the Government
If Sp decides to exit the coalition, the current government will collapse. Ap would then have to govern alone, but without a parliamentary majority, it would struggle to pass legislation, forcing it to negotiate with multiple parties on a case-by-case basis. - A compromise is reached
A less dramatic outcome would involve a negotiated agreement allowing both parties to save face. For this to happen, either Ap or Sp would need to make significant concessions, which has proven difficult given the entrenched positions on both sides. - Continued deadlock
If neither party backs down, the crisis will persist, overshadowing other government priorities. The ongoing energy dispute is already consuming much of the political agenda, with ministers facing daily questions on the issue.
A political drama
The crisis over the EU energy directives has put the Norwegian government at a crossroads. If Sp withdraws from the coalition, the country could face political instability and weaker governance. On the other hand, rejecting the directives could strain Norway’s relationship with the EU and put its EEA membership at risk.
As the political drama unfolds, one thing is clear: the energy dispute is not just about policy, it is about the future direction of Norway’s relationship with Europe. Whether through compromise, confrontation, or continued gridlock, the resolution of this crisis will shape the country’s energy policy and European engagement for years to come.
