Energy use in the manufacturing sector, 2006

The decline in energy consumption is due to the closing down of several energy-intensive companies in 2006. The largest decline in energy consumption occurred within the pulp and paper industry and basic iron, steel and ferro-alloys. However, all energy products experienced an increase in prices. A higher price of electricity was the main contributor to the increase in the total energy price. The price of electricity was 16.7 per cent higher in 2006 than in 2005. This is due to higher spot prices for electricity in 2006 and the fact that several energy-intensive companies had to pay market price for purchased electricity.

Decrease in consumption of electricity

The consumption of electricity declined by 2 505 GWh in 2006, a decrease of 4.7 per cent from the previous year. The closing down of several power-intensive companies and reduced activity in other power-intensive companies resulted in a considerable decrease in the consumption of electricity in the pulp and paper industry and energy-intensive manufacturing. Nevertheless, electricity is still the dominating energy source in manufacturing, mining and quarrying and accounted for 58.4 per cent of the total energy consumption in 2006.

Some companies switched from electricity to gas and solid biomass. The consumption of LPG rose by 11.4 per cent from 2005 and the consumption of purchased solid biomass rose by 28.7 per cent. There were only small changes in the consumption of other energy products.

Considerable increase in energy prices

The average price of electricity has increased considerably in recent years. This is due to a higher increase in consumption than production of electricity, higher production costs for electricity and the introduction of carbon quotes. In addition, the power-intensive industries have to pay market price for purchased electricity in 2011 at the latest. Many power-intensive companies already pay market price, with the consequence of large increases in their energy costs.

The price of petroleum and gas products has also increased considerably. The average price of fuel oil and gas products has increased by 20 per cent and 53 per cent respectively since 2000.

Tables:

• Table 1 Energy consumption in establishments in maufacturing, mining and quarrying. Overview. 2006. Preliminary figures
• Table 2 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Physical units. 2006. Preliminary figures
• Table 3 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Preliminary figures. 2006. GWh
• Table 4 Energy costs in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Preliminary figures. 2006. NOK million
• Table 5 Energy prices by industry subclass and energy type. Preliminary figures. 2006
• Table 6 Energy consumption in establishments in maufacturing, mining and quarrying. Overview. Final figures. 2005
• Table 7 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Physical units. Final figures. 2005
• Table 8 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Final figures. 2005. GWh
• Table 9 Energy costs in establishments in manufacturing, mining and quarrying, by industry subclass and energy type. Final figures. 2005. NOK million
• Table 10 Energy prices by industry subclass and energy type. Final figures. 2005