Norway electricity production reached a record 161.9 TWh in 2025, according to new figures from transmission system operator Statnett, as high inflows in northern and central parts of the country pushed output above previous highs. Despite very strong demand, the country also posted a record power surplus of 22.7 TWh, underscoring how weather conditions still shape the Nordic energy system.
Record electricity output was driven by high inflows in the north and centre
Statnett’s review of the Norwegian power market in 2025 shows that annual electricity production rose by 4.7 TWh compared with 2024, reaching 161.9 TWh, the highest level ever recorded in the country. The main driver was high water inflows in Northern and Central Norway, which boosted hydropower generation during the year.
At the same time, electricity consumption reached 139.2 TWh, the second-highest level ever measured in Norway. Statnett said that, when adjusted for temperatures in what was a relatively mild year, consumption would have reached 141 TWh, making it the highest corrected level on record.
This combination of very high output and strong demand still resulted in a historic electricity surplus of 22.7 TWh, also a record. For a country that remains heavily reliant on hydropower, the figures show both the strength of the current system and its dependence on weather-related conditions.
Why the power surplus reached a record despite near-record demand
The 2025 figures stand out because record generation came alongside unusually strong consumption. In practice, that means Norway produced far more electricity than it used, even though domestic demand stayed elevated.
Statnett nevertheless warned that this situation may not define the years ahead. The company said its analysis points to strong structural drivers for higher electricity demand and a smaller power surplus in the future. That reflects a broader trend seen across the Nordic region, where electrification, industrial demand and grid constraints are increasingly shaping the market outlook.
For international readers, the Norwegian figures also matter because Norway plays a central role in the wider Nordic and European power market, including through cross-border interconnectors that link its hydropower-based system to neighbouring countries.
New market rules reshaped the Norwegian power market
Statnett said 2025 was also marked by two major changes in how the electricity market operates. One was the rollout of automated balancing and congestion management through mFRR EAM, designed to help manage a more complex and integrated power system with faster variations in supply and demand.
The other was the move from 60-minute to 15-minute time resolution in the day-ahead market across Europe, combined with a similar transition in the Nordic intraday market and in balancing arrangements. According to Statnett, the finer time resolution should improve planning precision, resource efficiency and frequency quality.
Peer Olav Østli, Statnett’s Executive Vice President for System Operation and Market, said these changes were fundamental for market participants and necessary to run the power system efficiently in the years ahead.
Reserve costs rose sharply as balancing became more expensive
The report also highlights a less positive development: the cost of keeping the system balanced increased sharply. Statnett’s reserve costs reached NOK 5.6 billion in 2025, or about €480 million, largely linked to the mFRR capacity market, which has driven higher volumes and costs in recent years.
Statnett said automated balancing is working well, but that the price of maintaining balance in a system with more volatility and heavier grid use has become more visible. The company added that improved tools and processes helped lower costs toward the end of 2025 and into 2026, and that it expects costs to stabilise at a lower level over time.
Why this record year may be hard to repeat
Norway’s record electricity production in 2025 reflects a year of exceptional hydrological conditions, strong demand and major market changes. The figures reinforce the country’s importance in the Nordic energy landscape, but they also suggest that the current surplus should not be taken for granted.
For Norway and its neighbours, the next question is whether rising demand, continued electrification and higher balancing costs will begin to erode the buffer that made 2025 a record year.
