An urgent need for renewable energy investments

The best Norway can do to deliver on its ambitious climate goals is to give more permits for more renewable power. In the short term, that means hydro, wind and solar – but also nuclear. We need it all.

Lars Ove Skorpen
Investment Banking at Pareto Securities 

With expectations for interest rate cuts and lower cost of capital, we believe energy will continue to play an important role in capital markets also in 2025.

Some of the key industry trends that we addressed at our conference was:

• China's dominance: Once led by the West, China is now the global leader in solar, wind, and battery production.

• AI's growing power needs: AI and Big Tech are consuming more energy than entire nations, and grid constraints are already slowing AI development.

• Norway's renewables stagnation: In 2024, new power production in Norway hit a decade low, with permitting nearly at a standstill.

• The urgent need for investments: With Norway's power balance expected to diminish towards 2029, more renewable energy investment is crucial to avoid a power deficit.

• Public-to-private shift: Large private investors are seizing opportunities in the sector, with 2025 expected to see even more public-to-private deals.