In contrast to the rest of Europe, Norwegian power generation gives off virtually no CO2 emissions.  Nevertheless, the climate goals pose important challenges for the Norwegian power sector:

Defensive
Avoid emissions caused by increasing power consumption. Without an active effort, the growth in power consumption in Norway will lead to an increase in CO2 emissions in Norway or from coal-fired power stations in our neighbouring countries. Consumption is expected to increase amongst ordinary consumers, in the petroleum industry and perhaps also in the processing industry. In order to prevent this increase in consumption leading to an increase in emissions, the increase in demand must be met by zero-emission power generation. Energy efficiency improvements and district heating based on biomass and waste also represent tools for make power available for other purposes and for limiting emissions.

Offensive 1
Contribute to lower emissions in other sectors in Norway. In some cases, electricity can replace fossil fuels, so reducing emissions if the additional electricity that is consumed is generated with sufficiently low emissions. Power for electric cars and plug-in hybrid cars can give substantial reductions in CO2 emissions, as electric motors are around four times as energy-efficient as petrol engines. Even with coal- and gas-based power, electric cars give emission reductions. The most important advantage of electric cars is, however, the possibility of renewable power being used to drive the vehicles. Other areas where an increase in the consumption of electricity can give lower emissions are heat pumps, as a replacement for oil heating, and electricity to offshore petroleum activities in order to replace inefficient gas turbines.

Offensive 2
Cooperation with neighbouring countries in Northern Europe in order to reduce emissions and secure a robust power system. As the power sector in Europe aims to reduce its emissions, so the need for trade between the countries increases. This is because most alternatives to coal- and gas-based power are more difficult to regulate. As power generation becomes less flexible, it becomes more difficult to adapt production to consumption. An enhanced transmission system then becomes necessary in order to equalise out temporary variations in wind power for example, and to utilise the regulation capacity that is available in different regions as efficiently as possible. Trade between power systems that are different (different types of power station, different consumption patterns) generally contributes to better utilisation of regulation capacity, because the scarcity of production capacity does not normally occur simultaneously in different places. Norwegian hydro power stations which have reservoirs and good regulation capacity can also contribute in a unique way to balancing the supply of power in Northern Europe. This is achieved through the hydro power stations producing more when the price of power is high and saving water when the price of power is low (typically during the night and when wind power generation is high). Such a balancing trade can give both added value for Norway and facilitate the integration of zero-emission power generation. The power balance in Norway and the Nordic region will determine whether there is a net import from or export to the continent. As it is cheaper to build renewable power generation plants in the Nordic region than on the continent, there may be a net export of renewable power to the continent in years where inflow is normal. During years with high inflow to the hydro power stations, exports will be higher, while there may be a net import during dry years.