Higher electricity prices or slower grid expansion

Either electricity prices will have to go up or the planned expansion of the national electricity grid will slow down.

This is the message from SEV to the fincance committee in response to the government’s plan to increase duties on crude oil.

According to SEV, the government’s reason for wanting a higher duty on crude oil is that this would further encourage the use of renewable energy sources.

SEV disagrees, saying the proposal would simply serve to further complicate the green energy transition.

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To prevent higher electricity prices, SEV says it needs to cut up to DKK 6 million out of its budget because the oil price will increase by DKK 16 million annually if the duty on crude oil increases.

If electricity prices go up, this would slow down the plan to reach 100 percent sustainable energy use by 2030, says SEV, because higher electricity prices will not encourage households to switch to renewable energy sources such as heat pumps or electric cars.

Read the Faroese version of this article here.

More Faroese News in English.