Centralisation and decentralisation of Norwegian utilities

Kjersti Aarrestad and Jørgen Bjørndalen

Chapter 17 in Are Low-Carbon Futures Decentralised?, 2025, pp 211-223 from Edward Elgar Publishing

Abstract: In this chapter we ask: What characterises the trends in utility size and structure in the Norwegian electricity sector, and how can these developments explain innovativeness? Focusing on network companies, we investigate the developments from the pre-liberalisation vertically integrated companies to the current sector with clearer separation between electricity production, distribution and retail. Network operators’ need for advanced know-how to utilize new technologies implies advantages for larger companies. Frontrunners’ ICT (information and communications technology) investments are significant, partly independent of network size. However, small, entrepreneurial companies with enthusiastic, local expertise may still prove effective. There is not yet a final answer to the question of what the most efficient organisation will be. Economies of scale and efficient organisation pull a lot of weight towards meeting new demands and fostering innovation, but current experience also indicates that dedicated companies and individuals may still have significant impact on the technical and financial performance of a modern utility.

Keywords: Decentralisation; Economies of Scale; Efficient Organisation; Innovation; Grid Companies (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035355181
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