Lowest power prices in Europe

Norway’s energy incentive scheme serves to make energy costs even more attractive, in a country where power prices are already at rock bottom.

A recent analysis by consulting firm Kinect Energy found that Norway has enjoyed the lowest average power prices of Europe for nearly two decades. That’s one of the main reasons why you should locate your HPC data center in Norway.

The report, commissioned by energy suppliers’ group Energi Norge, found that Norwegian prices were 47% lower than those in the UK, and 84% lower than those in Italy over the last 20 years.

Knut Kroepelien, a director at Energi Norge, explains Norway’s low energy prices over the years have been driven by abundant hydropower resources.

“Norway has 1,600 hydropower plants, which deliver cost‑effective energy during an average year.”

“We also see tough competition over clients, which helps to keep prices down. These conditions are not a given in the rest of Europe,” Kroepelien adds.

Read more: New report praises Nordic data center benefits
 

Attractive for HPC data centers

According to Tore Mong, Director at GreenByte, there is one category of data centers that will benefit most from Norway’s energy incentive scheme – HPC data centers.

These data facilities are designed to handle the toughest computing problems within science, engineering or business. High‑performance computing centres can carry out up to a trillion calculations a second, which means that these facilities often require large amounts of energy.

Mong explains: “Norway, and particularly the Bergen region, is excellently placed to welcome HPC data centers.”

“Greater Bergen can offer the low‑cost and sustainable power that these companies need, while also being home to a skilled workforce and business‑friendly local authorities.”


High-performance computers (like the one pictured above) require large amounts of energy. Photo © Argonne National Laboratory (CC BY-SA 2.0)


Low tax will boost the industry

Under Norwegian law, all consumers must pay an “electricity tax” for the power that they consume.

However, some companies are eligible to pay a much lower amount of tax – equal to just 3% of the usual charge.

The energy incentive scheme is open to a range of businesses, including most types of data centers.

For the most energy‑hungry facilities, such as High‑Performance Computing (HPC) data centers, this can help to significantly reduce operating costs.

These data centers will see their electricity tax fall from 15.83 øre/kWh ($0.019) to just 0.50 øre/kWh ($0.0006). The scheme applies to all facilities requiring over 0.5MW in power.

Tore Mong, Director at GreenByte, says: “This is a fantastic scheme, which is sure to provide a boost to Norway’s data center industry.”

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If you’d like to find out more about the benefits of western Norway as a data center location, visit our website or get in touch