Canada Can Follow Norway's Path to Electrification Success

Canada can learn from Norway's successful electrification of its economy, which has made it a global leader in this area. Unlike Canada, where electricity accounted for only 35% of industrial energy use and 48% of residential energy use in 2023, Norway's industry uses 65% of total final energy consumption from electricity, while households rely on it for 83%. This success was not accidental but the result of intentional policy choices by consecutive Norwegian governments over the past 50 years. By introducing a carbon tax, grants to pay for upfront costs of heat pumps, public information campaigns, and skills training for installers, Norway's government created an environment that encouraged the adoption of heat pumps and electric vehicles.

The electrification of home heating became a strategic priority for the Norwegian government in the early 1970s when oil prices spiked. The goal was to increase Norway's energy security and shield its economy from volatile global markets. Over time, heat pumps replaced electric resistance heaters in Norwegian homes, with more than two-thirds of all households relying on the technology.

Norway's electrification policies also focused on transportation, with a well-established charging network boasting the highest density of fast EV chargers globally. The country removed import taxes on zero-emissions vehicles and introduced perks for EV drivers, including free parking, ferry rides, and reduced road tolls. These supports have been phased out or reduced over time as EV uptake reached critical levels.