Norway’s battery storage market is currently experiencing a mix of regulatory advancements and significant challenges, particularly in terms of grid access and project economics. This analysis comes from Multiconsult, a Norwegian consultancy, which highlights the complexities of the evolving landscape.
Regulatory Developments
According to Hassan Gholami, a senior consultant at Multiconsult, the battery storage market in Norway has seen some positive regulatory attention this year. In March, the Norwegian Water Resources and Energy Directorate (NVE) published its first dedicated assessment of batteries within the power system, along with a new application guide for battery projects. Following this, the Ministry of Energy has tasked the NVE with reviewing the licensing requirements for battery installations and identifying areas where energy regulations need clarification, with a deadline set for October. Concurrently, the Norwegian Energy Regulatory Authority (RME) is conducting a parallel review of regulations related to batteries.
Gholami noted, “This is the first coordinated regulatory work on storage in Norway and it is the thing to watch this autumn.” This coordinated effort could potentially streamline the regulatory process for battery projects, which has been a significant barrier to growth in the sector.
Grid Access and Economic Viability
Despite these positive developments, challenges remain. In April, Statnett, the state-owned transmission system operator, imposed a volume cap on the prequalification of regulating objects connected to the grid at voltages below 110 kV. This cap, which affects areas defined for Frequency Containment Reserves (FCR) and Frequency Restoration Reserves (FRR), including automatic Frequency Restoration Reserves (aFRR), is intended to address issues of observability. Gholami explained that much of the sub-110 kV network is not included in Statnett’s network model, making it difficult to monitor and manage congestion effectively.
As a result, this regulatory change impacts the segment where a viable business case for battery storage was beginning to emerge, particularly for distribution-connected standalone batteries and hybrid solar-plus-storage systems. Furthermore, the issue of double grid tariff exposure remains unresolved. This means that batteries incur grid tariffs as consumers when charging and again as producers when discharging, further complicating the economic viability of battery projects.
Capacity and Market Size
Gholami pointed out that Norway lacks a comprehensive public register of installed battery energy storage capacity. The closest available data comes from the prequalified capacity in Statnett’s reserve markets, which only accounts for batteries that actively trade. This data does not include behind-the-meter installations, such as those used for peak shaving or backup, nor does it account for ferry-charging batteries, which represent a significant portion of Norway’s established storage use cases.
Current estimates suggest that Norway’s installed battery capacity is considerably lower than that of its Nordic neighbours. A report prepared for RME in 2025 indicated that Norway’s prequalified battery capacity stood at 13.2 MW for Frequency Restoration Reserve (FRR) and 2 MW each for Frequency Containment Reserve (FCR) as of June 1, 2025. In contrast, Sweden had over 600 MW prequalified for FCR, highlighting the disparity in battery deployment across the region.
Structural Factors Influencing Battery Adoption
The dominance of Norway’s hydropower fleet, which provides around 90% of the country’s electricity, is a key factor in the limited adoption of battery storage. Gholami explained that regulated hydropower effectively delivers the balancing services that batteries typically provide in other European markets. This has historically suppressed day-ahead and intraday price volatility, keeping balancing costs low for Statnett. As a result, the economic case for battery storage in Norway has been weak, primarily due to structural rather than policy-related factors.
However, this situation is gradually changing as balancing costs rise, particularly in the mFRR market. Gholami noted that while the fundamentals for battery storage are improving, they still lag behind those in other Nordic countries.
Emerging Projects and Future Prospects
On the project front, Gholami mentioned that Norway’s largest industrial battery project is set to be delivered this autumn, with commissioning scheduled for October. This 4.9 MW/12.2 MWh system is being supplied by Hitachi Energy to the regional utility group Ren Røros, which made an investment decision of approximately NOK 60 million (around $6.4 million) for the project in February.
Additionally, a more substantial pipeline of projects is emerging, particularly those co-located with solar or wind installations. Norway’s largest solar project currently under development has received approval to integrate a 6 MW/12 MWh battery, while the operational 7 MW Furuseth solar plant has been approved to add a 5 MW/13.5 MWh battery. Other projects include a 12.2 MW/22.4 MWh battery for the 94.6 MW Måkaknuten onshore wind farm.
Interestingly, Norwegian companies are also expanding their expertise and investments into other Nordic countries. For instance, Hafslund and Cloudberry are developing a 48 MWh system in Sweden, while Statkraft is optimising large-scale batteries in Finland. Gholami highlighted that while the necessary expertise exists within Norwegian companies, they are currently deploying it in regions where the revenue potential is more favourable.
Looking Ahead
As the battery storage market in Norway continues to evolve, two key factors could significantly alter its trajectory: the outcome of NVE’s licensing review and the potential relaxation of volume caps by Statnett, contingent upon improved visibility of the sub-110 kV network. Gholami suggested that if these developments proceed positively, the landscape for battery storage in Norway could look markedly different by 2027-28. Conversely, if neither of these changes occurs, Norway may remain a market where the technical feasibility of battery storage exists, but the financial viability continues to be realised elsewhere.
Source: pv magazine Global
