Norwegian industry leaders are proposing a novel solution to address growing concerns over energy grid capacity: a “power bank” system designed to incentivize energy conservation and prevent wasted capacity. The concept, spearheaded by industrial parks in Herøya and Raufoss, would allow companies to deposit excess energy generated through efficiency measures for later use, rather than seeing it perhaps diverted to power-intensive operations like data centers. Executives hope the proposal gains traction with lawmakers as demand for electricity continues to rise across the country.
Norwegian industry leaders are proposing a novel solution to address energy grid challenges: a system to bank excess power generated through efficiency improvements for later use. The idea, they say, could incentivize businesses to conserve energy and prevent wasted capacity.
The Bottom Line
Table of Contents
- Industry executives are proposing a “power bank” system where companies can store capacity freed up through energy-saving measures, preventing its use by other entities in the interim.
- The idea is intended to motivate energy conservation and ensure energy isn’t lost to data centers, they say.
- Industrial parks in Herøya and Raufoss are seeking political support to implement the concept.
- Energy Minister Terje Aasland has indicated a willingness to explore the idea further.
Summary created by AI tool ChatGPT and quality-checked by E24 journalists
Executives at two major Norwegian industrial parks are calling for the creation of an “energy bank” where companies can deposit power saved through efficiency measures.
Sverre Gotaas, CEO of Herøya industrial park, and Øivind Hansebråten, CEO of Raufoss industrial park, believe the system would incentivize energy conservation and prevent wasted capacity.
“It’s very important that when industry sees great potential to save energy, they don’t feel like the energy they free up just disappears into a black hole in the form of data centers,” Hansebråten said. “That doesn’t motivate energy efficiency.”
“If you could put this energy into a bank and then take the power out later for use in the industrial park, that would be very motivating for businesses.”
The idea originated through Planet 2030, a collaborative project between companies in the Raufoss industrial park. The industry leaders are now hoping to persuade lawmakers to support the concept.
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“Can React Quickly”
Currently, when a company implements energy-saving measures, it doesn’t typically retain the right to use the freed-up power at a later date.
If capacity becomes available on the grid, it goes to other entities already in line for power.
That queue is increasingly dominated by data centers, as previously reported.
“Data centers have a lot of money and can react quickly. Then much of the power that could be available to others is quickly used up,” Gotaas said.
Herøya industrial park is located in Porsgrunn and hosts companies like Yara and Vianode. Raufoss is home to defense companies like Nammo and automotive parts manufacturer Benteler.
Gotaas believes the ability to deposit freed energy into an energy bank would increase companies’ willingness to collaborate on energy savings.
“If you can contribute to a neighboring company reducing its consumption in exchange for being able to use the energy, that will create strong incentives to take action to improve energy efficiency,” he said.
“Standing in Line”
Increased power demand from data centers has raised concerns within traditional industry, which needs power for expansions and climate initiatives.
“For Raufoss industrial park, access to power at competitive prices is important for remaining competitive in the global market. We have defense industries and automotive parts production, which is one of the toughest competitions in the world where you compete on price with China and Europe,” Hansebråten said.
“We have companies like Nammo and Benteler waiting to start building and commissioning new production lines at Raufoss,” he said.
Even when local actors at Raufoss have applied for relatively limited capacity, such as 2 or 5 megawatts, access has been denied.
“The situation became acutely worse after a new data center was approved, absorbing much of the available power surplus in Innlandet,” Hansebråten said. “We are waiting for new power lines that are expected to be ready around 2035.”
The data center in Hamar stores data for TikTok’s 175 million European users and has a capacity of 90 megawatts (MW), which can be increased to 150 MW.
Would the situation have been different without this data center?
“Then there probably would have been another data center that came along, so we shouldn’t single them out. But that was the triggering factor in our area,” Hansebråten said.
Industry at Raufoss sees great opportunities to use energy more efficiently. It should be possible to recover 25 megawatts of waste heat, enough to heat both the buildings in the industrial park and the town of Raufoss.
