Norway generates as much as 90 percent of its electricity from hydropower, placing it among the most sustainable and energy-independent countries in Europe. Thanks to this model, the country plays a key role in Europe’s fight against climate change.
The importance of Norway for the rest of the continent was the focus of the HydroConnect research project, conducted by the Fraunhofer Institute for Energy Economics and Energy System Technology (IEE).
Norway is connected to the Netherlands, Denmark, Germany, and the United Kingdom via subsea cables, enabling it to leverage its flexible hydropower system.
Philipp Hertel, senior scientist at Fraunhofer IEE, explains that reliance on renewable energy sources increases the need for flexibility and energy storage within the power system — an area where Norway excels.
“Norwegian hydropower can respond rapidly to fluctuations in demand by exporting large amounts of electricity when wind and solar output in Europe is low, and importing electricity when there is surplus generation and prices are low. This ability to balance supply and demand makes Norway a key player in building a climate-neutral, interconnected European energy market,” said Hertel.
The analysis covered greenhouse gas emissions across Europe, electricity prices in Norway and other countries, and the environmental impacts of Norwegian reservoirs and river systems. Several scenarios were considered, including a sudden increase in electricity demand in Norway, the development of more offshore wind farms, the establishment of offshore energy hubs, and changes in the prices of energy carriers such as hydrogen.
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Extensive Database
Fraunhofer IEE utilizes a comprehensive database that includes hydropower plants and reservoirs across Europe. It contains data on more than 850 hydropower systems, over 2,800 individual plants, and around 3,600 reservoirs.
“In addition to technical system details, the database includes complex information on hydraulic interconnections and participation in cross-border markets, which is crucial for realistic simulation of hydropower behavior in our models — especially in terms of storage capacity and operational flexibility,” Hertel noted.
Benefits for the European Energy System
The analysis showed that adding 11 gigawatts of hydropower capacity in Norway, along with expanding interconnectors, could significantly reduce the need for additional investments across Europe. It could replace the need for about 70 gigawatts of additional capacity in solar power plants, electrolyzers, and batteries.
Furthermore, expanding hydropower in Norway would reduce overall system costs and help equalize electricity prices between Norway, continental Europe, and the UK.
Flexible hydropower is especially effective in mitigating price spikes during periods of low wind and solar generation.
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