Powerful increase in energy costs

Manufacturing and mining, energy consumed in TWh by industry divisions 1990-2008

Manufacturing and mining, energy consumed in TWh by industry divisions 1990-2008

In 2008, total energy use in manufacturing, mining and quarrying was 80 082 GWh, a small decrease from the previous year. However, total energy costs increased by 17.2 percent in the same period

Record high oil prices during the first half of 2008 and high electricity prices throughout the entire year lead to a powerful increase in energy costs from 2007 to 2008. Termination of government stated electricity contracts within power-intensive industries also contributed to the increase in electricity price. In the course of the last ten years energy costs have doubled, while energy use has remained the same.

Because of the high oil prices, firms used less heating oil and more electricity in 2008, This led to a decrease in greenhouse gas emissions compared to 2007. Temporary data indicate a small decrease in total energy use in manufacturing from 2007 to 2008. But because final data on energy use usually are somewhat higher than temporary data, we can assume that final data on energy use in 2008 will be approximately the same as for 2007.

2008, a year with large contrasts

Until the autumn of 2008, the industrial sector had larger production of goods and services than they had ever had but the financial crisis lead to stagnation on sales for many power- intensive firms which had an impact on energy use. Low sales during the last quarter of 2008 was the main reason as to why energy use for manufacturing, mining and quarrying did not increase in 2008.

Decrease in energy use per production unit

Despite an increase in production of 27 percent, modification in production technology, changes within industrial composition and prioritization of energy efficient production method all led to unaltered total energy use since 1998. Higher energy prices most likely also made it more interesting to proceed with energy efficient measurement. Average energy price for the power- intensive industry have double the last ten years. This is partly because some power-intensive industries have to pay market price for purchased electricity and partly because of general high energy prices in Norway. In 2011 all government stated electricity contracts will be terminated.

The fact that several energy- intensive firms have partly or entirely closed down during the past years is also a contributing factor for unchanged energy use in the industry.

Source: Statistics Norway

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