Energy and Energy Security in the Nordics

Most countries were already focusing on the green transition and a move towards renewable energy, but another trend caused by the Russia/Ukraine conflict is the concern over energy security. While other industries such as real estate struggled to secure financing and maintain activity levels, the energy sector remained a growing area of development that thrived as a result of the geopolitical circumstances.

Finland, which became a member of NATO on 4^th April 2023, saw significant activity in a whole host of renewable energy sources during the review period. 

Renewable energy projects remained similarly attractive in Sweden despite the macroeconomic situation. In addition to wind farms and solar parks, lawyers also noted the significance of battery storage as well as a growing conversation regarding nuclear power. 

Denmark has also demonstrated an ambitious desire to fully embrace renewable energy, specifically wind power; however, the government’s ‘open door’ scheme, which aimed to expedite the development of offshore wind projects, had to be suspended due to concerns it may breach state aid law.

An additional setback to the country’s wind power plans arose when the tender for Denmark’s North Sea energy island was postponed due to fears that the project would be too expensive. Nevertheless, the Danish market continues to focus on and recognise the importance of renewable energy. 

Norway’s energy sector continued to prosper despite the macroeconomic environment, and partly due to the geopolitical events regarding Russia and the world’s continued reliance on oil and gas. Market commentators explain that Norway enjoys a unique position in the global energy market, making notable strides in the green transition whilst also continuing to be a world leader in oil and gas exploration. Lawyers state that whilst there is a recognised need for renewable energy, fossil fuels still have an important part to play, whether we like it or not. 

While such sentiment can be uncomfortable in the current climate, lawyers also recognise the oil and gas industry’s desire to be part of the green transition and its strong appetite for the development of renewable energy.