Nordic TSOs expect total power demand to grow by 35% over the next ten years; and a 67% increase in demand by 2040 – from the current levels of annual 389 TWh. This is a significant change considering that the levels have kept quite stable since 2010 – with a small decrease in demand secured by efficiency gains in industry.
Stringent decarbonisation policies, and effective taxation and incentive schemes have put the Nordics ahead of other European markets by electrifying their transport and industry. However, what is notable is that an even larger part of the foreseen increase in demand is accounted for by new, energy intensive sectors emerging – namely green hydrogen electrolysers, data centres and battery factories – activities for which the Nordics offer beneficial conditions beyond low power prices and emission intensity.
The reasons for this predicted high demand scenario are worth examining more closely. To understand the changing demand in the Nordics in more depth, it is necessary to not only analyse the detailed demand projection by sector, but also take the effects of energy efficiency gains and regional differences in price, transmission capacity, urbanisation and deployment of district heating into careful consideration. From this approach, we have conducted a bottom-up analysis that bears out the expected increase, but yields a slightly more conservative view on the rising demand, forecasting a 50% increase by 2050.
Watch our webinar recording, where took a closer look at the drivers and potential of the rising demand in the Nordics, and answered the following questions:
- What makes the Nordics a pioneer in electrification?
- How will the boom in data centres, battery factories and green hydrogen change the power consumption?
- How will electric vehicles’ power use develop with regard to demographic density by price area?
- What is the potential of the direct electrification of industry?
- What are the key uncertainties around deman