An urgent need for renewable energy investments

Capital is not the constraint – grid is. This is a once-in-a-generation industrial wave, and it must be captured, not observed. That requires more power, more flexibility and a grid built ahead of demand

Lars Ove Skorpen
Investment Banking at Pareto Securities 

Electricity demand is rising rapidly across industry, transport and digital infrastructure, driven by AI, data centres, electrification and new industrial growth. At the same time, the pace of new power generation and grid development in the Nordics has fallen back sharply – creating a growing gap between what is being built and what is needed.

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 2025, 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 2026 expected to see even more public-to-private deals.