Transition to green energy slower than expected

The government has set out to reach 100 percent sustainable energy use by 2030.

But if energy consumers do not switch from using oil to electricity, there is not much point for energy suppliers to invest in green energy.

This is the view of Hákun Djurhuus, CEO of national energy supplier SEV, who says that since consumers have been slow to adapt to green energy solutions, SEV has postponed its pump/storage project in Vestmanna by two years.

Slow transition

“To reach the 2030 target, we need to expand our green energy network considerably with solar, wind and water technology,” says Djurhuus.

The reason, he says, that SEV has delayed its pump/storage project is that the consumer transition to alternative energy technologies such as heat pumps and electric cars has been slower than expected.

“At the current rate, we see no need to expand our production capacity too early. Our calculations show that there will not be a real need for our new pump/storage system until 2026.”

Consumers hesitate

Djurhuus believes the main reason consumers are hesitating to switch to green energy solutions is a general worry about upfront costs.

He insists, however, that a transition to e.g. a heat pump or an electric car will pay for itself, and as this technology continues to improve, the pay-back period will continue to decrease.

Translated by prosa.fo