Norway, the Nordic Oil-Producing Country, Approaches an Era of 100% Electric New Cars

Most New Cars in Oil-Rich Norway Are Electric Vehicles
Support for Electric Cars Since the 1990s... Numerous Charging Stations

Norway, a wealthy Nordic country with the largest oil and gas industry in Europe, is soon expected to achieve a '100% electric vehicle society.' This means that all new cars sold in Norway will be electric vehicles. Although Norway's main export industry is oil and gas, the country is actually a powerhouse of clean energy such as wind and hydropower, and domestic energy consumption relies heavily on hydropower.

On the 13th (local time), the British BBC broadcast cited statistics from Norway's automotive industry, reporting that 90% of new cars sold in Norway last year were electric vehicles.

Norway currently has the highest proportion of electric vehicles in the world, and it is known that the achievement of a so-called '100% electric vehicle society,' where all new cars sold are electric, is not far off.

The North Sea oil fields responsible for Norway's export industry. Photo by Getty Images

An owner who imports and sells electric vehicles from Germany and other countries told BBC in an interview, "I do not recommend buying internal combustion engine cars in Norway today," adding, "The future lies in electric vehicles. Electric vehicles charge faster and travel farther than internal combustion engine cars. There is no reason for us to go back to the past."

Thanks to this, Norway, with a population of about 5.5 million, plans to gradually phase out the sale of internal combustion engine cars soon. It is said that last year, the number of electric vehicles in Norway surpassed the number of gasoline cars for the first time. Electric vehicles currently account for about 33% of all vehicles in Norway. The Norwegian Road Federation (OFV) compiles monthly car sales data, and at times, the proportion of electric vehicles among new car sales has reached as high as 98%.

Norway is far ahead of other developed countries in the transition to electric vehicles. Neighboring country the United Kingdom had only 20% of new cars registered last year as electric vehicles, and the United States was much lower at just 8%.

So why is Norway's transition to electric vehicles so fast? BBC points out that Norway has been preparing for an electric vehicle society since the 1990s.

Norway electric vehicle charging station. Photo by Getty Images

At that time, the Norwegian government gradually increased taxes on gasoline and diesel vehicles but provided tax exemption incentives for eco-friendly cars. Initially, the subsidy system was introduced for a domestic electric vehicle manufacturer called 'Buddy,' but although there are currently no domestic electric vehicle manufacturers in Norway, the subsidies themselves still remain.

Also, Norway's electric vehicle charging network is highly developed. More than 27,000 charging stations have been installed throughout Norway, which amounts to 447 stations per 100,000 people. This is an overwhelmingly higher concentration compared to the United Kingdom (89 stations per 100,000 people).

Norway, with its developed fjords, has an ideal location for hydroelectric power generation. Photo by Hoyt Energy X Capture

Meanwhile, Norway's level of electrification in national industry is also remarkable. Hydropower accounts for a whopping 96% of the total energy mix, allowing the country to meet domestic demand almost entirely with clean energy. Due to its geographical features, Norway has developed fjords since the early 20th century and focused on hydropower by building large dams.

However, ironically, one of Norway's main export products today is fossil fuels such as oil and gas. Sharing the North Sea oil fields with the United Kingdom, Norway has developed massive offshore oil fields, ranking 15th in the world in crude oil production and 4th to 5th in exports.

The huge resource revenue surplus earned by Norway flows into sovereign wealth fund investments, contributing to the development of the investment industry. Thanks to this, unlike other resource-rich countries such as those in the Middle East, Norway has been able to develop various advanced industries and become a wealthy country without relying solely on fossil fuels.