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ENERGY

Could sky-high energy prices force some ski resorts in Norway to remain closed?

High electricity prices and the prospect of power rationing could spell big trouble for Norway's smaller ski centres.

Pictured is a ski lift in the Hafjell ski resort.
High energy prices could force some ski resorts in Norway to remain closed this winter. Pictured is a ski lift in the Hafjell ski resort. Photo by Erik Odiin on Unsplash

Record high energy prices mean some ski resorts in Norway are facing the prospect of staying shut this winter, business and financial newspaper Dagens Næringsliv reports. 

“We constantly have to make an ongoing assessment of it, but in the worst case, we have to close the slope,” Knut Styrvold, chairman of the Kirkerudbakken ski centre in Bærum municipality, told the paper. 

Industry organisation Norwegian Alpine Resorts and Mountain Destinations sent a letter last week to the Prime Minister, Finance Minister and the Minister of Culture calling for measures from the state to help businesses struggling with energy costs. 

Some of the highest costs for an alpine resort are artificial snow production, which requires large amounts of power. 

“In our area, with the prices that are predicted now, we are looking at a tenfold increase in power costs, perhaps more for the coming winter,” Odd Stensrud, deputy chairman of the industry organisation and general manager of Alpinco, which owns and operates the alpine resorts at Hafjell and Kvitfjell, told the paper. 

Larger resorts and firms should be able to manage as they have agreements where they pre-pay for energy in bulk, meaning they may not necessarily have paid current high prices for the energy they will use in snow production. However, the general manager of Alpinco added that larger resorts could still end up paying double what they paid last year. 

Support for smaller resorts, and the business community in general, have yet to be announced by the government. According to Stensrud, this means many resorts may opt against running the lifts this winter. 

“If the electricity prices that are signalled for the coming winter become a reality, then it is absolutely certain that it will mean the hook on the door for several locations,” he said. 

“It is important to remember that the alpine resorts are often the core business in many mountain destinations and local communities. They keep the other tourism activities going in mountain municipalities in Norway and are crucial to ensure that districts and municipalities are not hit too hard by electricity prices,” Strensud added. 

Earlier this week, Oil and Energy Minister Terje Aasland said that the government and parliamentary leaders were “working closely to find a fair arrangement for business”. 

A plan for businesses is expected to be unveiled during the next month. 

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ENERGY

Norway accepts European military aid to secure oil sector

Norway's prime minister said Friday the country, which has become Europe's biggest supplier of natural gas, had accepted military contributions from France, Germany and Britain to secure its oil and gas sector.

Norway accepts European military aid to secure oil sector

“We are in discussions with our allies to increase the (military) presence in the Norwegian sector and have accepted German, French and British contributions,” Norwegian Prime Minister Jonas Gahr Store told a press conference, following the alleged sabotage of the Nord Stream pipelines in the Baltic Sea.

His comments came days after four leaks were discovered in the Nord Stream gas pipelines in the Baltic Sea, which bring Russian gas to Europe.

The leaks were caused by underwater explosions corresponding to hundreds of kilogrammes of explosives and look like a deliberate act, a Danish-Swedish report said Friday.

“I understand that people are worried about the consequences that the situation in the Baltic Sea may have and that something similar may happen to the oil installations,” Store said.

“We have no indication that there are any direct threats to the Norwegian oil sector,” the Norwegian leader added.

Following the Nord Stream explosions and leaks, Norway had already said it would beef up security around its oil installations, amid allegations of sabotage.

“The government has decided to put measures in place to increase security at infrastructure sites, land terminals and platforms on the Norwegian continental shelf,” Norwegian Energy Minister Terje Aasland said in a statement on Tuesday.

Norway has become Europe’s main gas supplier in the wake of the war in Ukraine, taking the place of Russia.

The Scandinavian country has a vast network of pipelines, stretching for almost 9,000 kilometres, linking it to the continent, which experts have said are at risk of sabotage.

On Friday, Støre said that two Norwegian Coast Guard vessels had been diverted to patrol near oil platforms and that the area was also being monitored by a maritime patrol aircraft.

The Norwegian prime minister met several European leaders and the head of NATO on Friday, and is expected to visit the Sleipner oil platform in the North Sea on Saturday.

Norway, as well as Britain, France, and Germany, are all members of the NATO military alliance.

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