Across the Arctic, communities are navigating a complex set of challenges. In addition to the intensifying impacts of climate change, reliance on imported fuels can expose communities to supply disruptions and geopolitical uncertainty. Long distances and limited infrastructure also mean many remote areas are not connected to larger power grids and thereby depend on reliable local energy solutions.

These challenges are shared across the transatlantic North. While governance structures, geography, and history differ, the Nordic and Canadian Arctic face comparable energy needs. The regions are also linked by shared values and common ambitions: to advance long-term solutions that support local livelihoods, strengthen essential services, and ensure a secure supply of clean and reliable energy.

Building energy cooperation in a changing world

For Nordic Energy Research, closer cooperation with Canada on renewable energy solutions for resilient Arctic communities has been a long-standing ambition.

“Over the past few years, we have worked systematically to build stronger relationships with Canadian partners. Formalising our cooperation with Polar Knowledge Canada is therefore a natural next step, providing a framework for developing a joint knowledge base on how to build sustainable energy solutions in the high North,” says Klaus Skytte, CEO of Nordic Energy Research.

The Memorandum of Understanding is signed at a time of growing Nordic–Canadian cooperation at the highest political level. In a joint statement (Oslo, 15 March 2026), the Prime Ministers of the Nordic countries and Canada reaffirmed their commitment to Arctic security and to ensuring that people in the region can prosper in peace. The statement also emphasised working in partnership with Indigenous and northern communities to unlock the Arctic’s potential, mitigate the effects of climate change, and promote security.

“Strong Nordic-Canadian cooperation reflects our shared commitment to a safe, sustainable, and prosperous Arctic. By working together on energy solutions for Northern regions, we strengthen our ability to meet local needs while ensuring that solutions are informed by science, respect local knowledge, and support long-term resilience for Arctic communities. Collaboration between Polar Knowledge Canada and Nordic Energy Research, support the exchange of proven approaches, aligns research priorities, and advances resilient practical solutions for Arctic communities,” says Sue Kerr, Acting President and Chief Executive Officer for Polar Knowledge Canada.

Establishing a long-term collaboration

As an initial step, Nordic Energy Research and Polar Knowledge Canada are jointly funding the first phase of a scoping project to map and describe renewable energy initiatives across the Nordic and Canadian Arctic. Subsequently, the aim is to develop a case-based best-practices report with recommendations to support research and policy decisions at both national and community levels.

Throughout the work, Nordic Energy Research and Polar Knowledge Canada will engage energy actors across the polar region to ensure that the resulting knowledge base and policy guidance reflect local experience and established practice.

More information

Klaus Skytte, CEO, Nordic Energy Research

klaus.skytte@nordicenergy.org

Sue Kerr, Acting President and CEO, Polar Knowledge Canada

suzanne.kerr@polar-polaire.gc.ca

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The report Integrated Power Markets: How European Market Design Reforms Could Shape Nordic Electricity Markets Towards 2035, commissioned by Nordic Energy Research and carried out by THEMA Consulting Group, shows that reforms to capacity mechanisms, rapid renewable expansion, and changes to cross-border trade will have significant impacts on both price levels and volatility towards 2035. 

The region’s electricity system is tightly integrated with continental Europe through interconnectors to Germany, the Netherlands, Great Britain, Poland and the Baltics. As a result, policy decisions beyond its borders directly influence market outcomes. 

Prices could shift sharply 

One of the key findings is the scale of potential price changes. In some scenarios, electricity prices could fall by more than 50% compared to a baseline, driven largely by rapid growth in solar and wind power across Europe. 

At the same time, insufficient firm capacity on the continent could increase the risk of price spikes, particularly during periods of high demand. 

“Shortfalls in continental firm capacity could increase peak price risk in the Nordics, while ambitious renewable expansion could significantly lower Nordic prices. Restrictions on cross-border trade could also leave the region worse off overall. The Nordic power market simply cannot be analysed in isolation from its neighbours,” says Arndt von Schemde, Partner at THEMA Consulting Group. 

Four trends driving the changes 

The report identifies four key developments: expansion of capacity mechanisms, rapid growth in renewable generation and battery storage, changes in cross-border trade and interconnector availability, and potential reconfiguration of bidding zones, particularly in Germany.  

Together, these factors will reshape how electricity prices are formed across Europe. 

Uneven impacts on consumers and producers 

Changes to cross-border trade could have uneven effects. Restrictions on interconnectors may lower prices for consumers, but at the cost of reduced revenues for producers. 

Because the region exports more electricity than it consumes, producer losses may outweigh consumer gains, resulting in a net economic loss. 

Battery storage is expected to play a growing role in stabilising markets by reducing price volatility and extreme price events. 

Greater engagement needed in European energy policy 

The findings highlight how tightly linked European electricity markets have become and how multiple policy changes can reinforce each other. 

“Our findings show that developments in neighbouring countries can significantly influence Nordic prices and market conditions, highlighting the importance of cross-border coordination and engagement in European energy policy,” says Klaus Skytte, CEO of Nordic Energy Research. 

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The initiative will deliver a reusable analytical framework and a governance-oriented index that enables systematic comparison across countries and organisations, supporting future monitoring and more targeted action by policymakers, industry leaders, and educational institutions.

“While the Nordic countries are often seen as leaders in gender equality, the energy sector lags behind. If we are to succeed with the energy transition, we need to address this imbalance, understand the underlying structures, and ensure that the sector draws on the full range of talent,” says Klaus Skytte, CEO of Nordic Energy Research.

The work is being carried out by the Directorate of Equality in Iceland, and the index is expected to be launched in the first quarter of 2027.

Addressing gender imbalances in the energy sector

The aim is to provide a clearer understanding of gender balance in the Nordic energy sector. By combining new data, analysis, and stakeholder input, this will help identify where progress is being made and where inequalities remain pronounced.

“Gender equality in the Nordic energy sector cannot be assessed through statistics alone; it requires an understanding of how legal and policy frameworks, organisational capacity, and everyday practices shape outcomes in energy sector institutions,” says Tryggvi Hallgrímsson, project manager and lead analyst at the Directorate of Equality.

The work will include:

• Developing an overview of statistics and key indicators on gender equality across all eight Nordic countries, complemented by examples of best practice
• Designing an Energy Equality Index that combines quantitative indicators with governance and practice-based measures informed by qualitative evidence
• Organising workshops to engage key stakeholders and ensure broad involvement

The work will result in a Nordic gender equality index, a report with comparable statistics and case studies, and concrete policy recommendations to promote equality at both national and Nordic levels.

A well-documented challenge

A 2021 report from Nordic Energy Research showed that in most surveyed organisations, there were few or no women in leadership positions, with women also underrepresented across authorities, research environments, and universities.

The issue has remained high on the agenda. In 2025, gender equality in the energy sector was also the focus of Nordic Energy Research’s annual Nordic Energy Challenge, where teams from across the Nordics submitted ideas on how equality can be advanced in the sector.

Building on this previous work, the focus is now on the institutional and organisational factors shaping gender equality in the energy sector, in line with the objectives of a just and socially sustainable energy transition.

Supporting Nordic energy policy goals

Gender equality is a fundamental principle in Nordic societies and a key condition for a well-functioning labour market. The initiative contributes to ongoing Nordic cooperation aimed at building a green, competitive, and socially sustainable energy system.

It builds on the Nordic Energy Policy Cooperation Programme 2025–2030 and Vision 2030, as well as Nordic Energy Research’s strategy, which emphasises the importance of a just and inclusive energy transition.

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The competition invites solutions that explore how AI can help manage increasing energy demand while supporting the green transition. This year’s strong response reflects a growing recognition of AI’s potential to play a key role in shaping the future Nordic energy system.

“Receiving a record number of qualified proposals reflects a strong level of engagement across the Nordics. The submissions show both breadth and depth in how AI can be applied to current energy challenges”, says Ingrid Garmann Johnsen, senior advisor and project leader for the Nordic Energy Challenge at Nordic Energy Research.

“This year’s strong response reflects a growing recognition of AI’s potential to play a key role in shaping the future Nordic energy system”

Next phase of the competition

Applicants have until 24 April to finalise their proposals, after which they will be assessed by a Nordic jury with expertise in energy policy, digitalisation and international cooperation:

• Klaus Skytte, Director of Nordic Energy Research (Chair)
• Cecilia Leveaux, Senior Adviser, Digitalisation, Nordic Council of Ministers
• Kajsa Paludan, International & Nordic Coordinator, Swedish Energy Agency

On 4 May, the jury will announce the three finalists that will move forward to the final round. The jury will select the finalists based on the relevance and quality of the proposals, as well as their potential contribution to Nordic energy cooperation.

The winner will be announced during Almedalsveckan

The winner will be announced at the event “Energi för nordiskt AI – vägen mot ett smartare och mer inkluderande energisystem”, held during Almedalsveckan on Gotland, Sweden, on 25 June and receive a prize of NOK 50,000. The event will bring together representatives from across the Nordic energy sector, public authorities and industry.

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Most recently, Eriksson served as Advisor at Greater Copenhagen, a political cooperation organisation working to strengthen the competitiveness of the metropolitan region across eastern Denmark and southern Sweden. There, she worked with communications, analysis, and public affairs to support an integrated labour market and cross-border mobility.

Previously, she was responsible for external communications and impact measurement at Innovation Skåne, a regional innovation company advancing solutions in areas such as healthcare and mobility.

Turning insights into impact

Eriksson has worked across the full communication process — from developing analysis-based insights and strategic narratives to translating complex findings into clear and compelling messages. Her experience also includes public affairs and policy engagement, with a focus on turning insights into concrete impact in decision-making.

She holds a Bachelor of Science in Political Science with a specialisation in Economics, as well as a degree in Journalism from Lund University — a combination that strengthens her ability to bridge analysis and storytelling.

A Nordic perspective on the energy transition

At Nordic Energy Research, Eriksson will now apply her experience to the energy sector — an area she describes as both urgent and fundamental.

“The energy transition is a prerequisite for our societies to continue developing and for us to leave our planet in a better condition for future generations. Having the opportunity to contribute to positive progress in this area is truly inspiring.”

With professional experience from Copenhagen, a Swedish background, and close ties to Norway, she brings a strong Nordic perspective to the role.

“Both professionally and personally, I have experienced the added value of collaboration across Nordic borders — and how much stronger we become when we work together.”

This perspective aligns closely with Nordic Energy Research’s mission to advance the energy transition through collaboration across countries, institutions, and disciplines.

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Conducted by the Economic Security Forum, the project will deliver a structured assessment of how Nordic cooperation can be enhanced in response to rising geopolitical, economic, and climate-related risks.

A strategic priority for the Nordic energy cooperation 

Energy security remains a central priority within Nordic energy cooperation. The project is funded by the Nordic Council of Ministers and aligns closely with the Finnish and Ålandic presidency in 2025, which emphasised comprehensive security, resilience, and preparedness. It also supports the strategic direction set by Nordic energy ministers for the 2025–2030 period.

“This project is a strategic step for Nordic energy cooperation. Energy security cuts across preparedness, resilience, and the green transition, and we need a shared Nordic understanding of where cooperation adds the most value,” says Klaus Skytte, director of Nordic Energy Research.

“By launching this mapping now, we are building a solid knowledge base for future policy decisions and more targeted Nordic action,” he adds.

Energy security has moved to the centre of policy discussions across the Nordic region. Recent years have highlighted how exposed energy systems are to external shocks, including geopolitical tensions, threats to critical energy infrastructure, cyberattacks, supply-chain disruptions, and volatility in global energy markets.

“Energy security has become a front-line policy issue. With geopolitical tension, hybrid threats, rapid electrification, and climate disruptions converging, this is the right moment to reassess Nordic energy resilience and cooperation,” says Mikael Wigell, CEO of the Economic Security Forum and project leader. 

Mapping Energy Security in the Nordics 

The mapping will complement existing frameworks such as Vision 2030 and the Nordic Council of Ministers for Energy’s Cooperation Programme 2025–2030. 

The project covers all eight Nordic countries: Denmark, Finland, Iceland, Norway, Sweden, the Faroe Islands, Greenland and Åland. It focuses on energy security within a civilian mandate.

Key areas of analysis include:

• Protection and maintenance of critical onshore and subsea energy infrastructure
• Resilience of fuel and spare-parts supply chains
• Increasing dependence on secure and stable electricity systems
• The evolving role of gas and fuels within Nordic and European energy systems

“Energy security today is about exposure and dependence, not just reliability and price. In a geoeconomic environment, resilience depends on how dependencies are understood and managed,” Wigell notes. 

A central question for the project is how the energy transition can strengthen, rather than weaken, energy security. 

“The key challenge is ensuring that electrification and decarbonisation go hand in hand with resilience, preparedness, and coordinated Nordic action,” Wigell concludes. 

The project will result in a publicly available report, including policy recommendations, to be published in June 2026.

Building on regional and international insights 

The initiative builds on discussions from a Nordic seminar on energy security held in Helsinki on 30 September 2025 and the subsequent meeting of the Nordic energy ministers. The seminar, organised by Nordic Energy Research together with the Finnish and Ålandic presidency, brought together policymakers and experts from across the region.

A keynote address by Ukraine’s minister for energy, Svitlana Hrynchuk, highlighted lessons from Ukraine’s efforts to maintain energy system resilience during wartime – offering important perspectives for Nordic preparedness and cooperation.

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The conference takes place in a year marking the 35th anniversary of the Nordic Council of Ministers’ offices in the Baltic countries, highlighting the long-standing partnership between the Nordic and Baltic regions.

Amid growing geopolitical tensions and the recent synchronisation of Nordic-Baltic energy systems, strengthening regional energy cooperation has become increasingly important. Building resilient energy systems capable of withstanding crises, hybrid threats and disruptions is now a shared priority across the region.

In a joint statement, the organisers emphasise the importance of strengthening collaboration across the region regarding both energy securtity and climate goals:

“The Nordic-Baltic Energy Conference connects government, industry and researchers on the topic of energy. By uniting key regional stakeholders to address shared challenges in civil energy security through a focus on clean energy technology and sustainable actions, the conference serves as a framework for strengthening cooperation in the Nordic-Baltic region on energy matters.”

The statement is signed by:

Klaus Skytte, CEO, Nordic Energy Research
Nina Hvid Enevoldsen, Director, Nordic Council of Ministers’ Office in Latvia
Maria Gratschew, Director, Nordic Council of Ministers’ Office in Estonia
Ole Andreas Lindeman, Director, Nordic Council of Ministers’ Office in Lithuania

More information about the programme and how to register is available here.

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The go-to place for everything on Nordic energy cooperation

Nordic Energy Research has worked on advancing Nordic energy cooperation for more than four decades, with work spanning many areas, from research cooperation to intergovernmental cooperation. There is a lot of information and knowledge available for everyone interested in the Nordic region’s unique progress and journey towards climate neutrality.

Do you want to know everything we do on hydrogen involving Denmark? No problem.

With our improved search function, you can now filter our publications, news, events, and more by both topics and countries involved. That way you can easily see everything we do and have done on, for example, hydrogen many years back, whether it’s research, analyses, or events.

“Our new user-friendly website offers visitors new ways to engage with our work and with us. By highlighting both the Nordic energy cooperation and the people who make it happen, we bring to life the Nordic added value we provide,” says Maria Eklöf, Head of Communications, at Nordic Energy Research.

Do you have feedback?

Do you like the new website, or maybe you’ve found a broken link? Don’t hesitate to contact us with feedback at webmaster@nordicenergy.org.

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Energy insecurity hits hardest in the Arctic’s most isolated communities 

“Energy security in the Arctic is a daily reality with real consequences for people’s safety, health, and livelihoods,” said Patti Bruns, Secretary General of the Arctic Mayors’ Forum. Her remark captures the heart of the Arctic energy debate. 

Despite its diversity, also in terms of energy, the role of local communities remains the common denominator across the region. Often weakly connected or entirely isolated from national grids, they stand at the frontline of both energy security challenges and resilience efforts. 

A power outage at –35°C. Weather shifts interrupt renewable energy production. Decisions about who gets access to limited energy during a shortage or during a hybrid attack or sabotage. Such scenarios quickly escalate from energy problems to community safety concerns and are high on the list of local leaders’ nightmare scenarios. 

The green transition as a turning point for Arctic energy security 

Many Arctic communities still rely on diesel and propane for primary energy production or as backup systems. This dependence on external supply chains exposes local vulnerabilities, as seen earlier this year in Inuvik, Canada’s Northwest Territories, when bad weather delayed a propane delivery and the mayor urged residents to reduce energy use. 

“The green transition can help communities, especially isolated communities, build a tool to prevent this vulnerability,” argued Ole Gunnar Håland, Head of Section for Civil Protection and Emergency Planning at Tromsø municipality. To him, the green transition and contingency planning go hand in hand. “We need systematic approaches to improve security while also working towards more sustainable communities.” 

Investing in energy security is a cornerstone for sustainable development in Arctic communities. As Klaus Skytte, CEO of Nordic Energy Research, noted, approaches differ across the circumpolar North, but one principle holds: “Access to reliable and sustainable energy is essential for communities to thrive, meet societal needs, and support economic development and competitiveness.”  

Local perspectives remain central to making this happen. 

Trustful relationships as an enabler for the Arctic energy transition 

Luleå, a northern Swedish port city long accustomed to energy abundance, now faces potential shortages due to the green shift and new investments. Mayor Carina Sammeli highlighted the importance of getting things right from the start – from building new grids to ensuring fast distribution. But every new project can also spark conflict: a grid cutting across backyards, a port expansion forcing people to sell their homes. 

“Our solution is to get everyone in the same room to understand the same issue. People are smart and want to help each other, but they need to understand differing perspectives,” Sammeli said.  

In this context, one principle stands out: “nothing about us without us.” As Patti Bruns emphasised, free, prior, and informed consent is essential for any successful energy project. Without community buy-in –  and, where needed, appropriate compensation for Indigenous Peoples and local communities – the energy transition will not succeed. 

Municipalities, however, cannot secure local energy needs alone. Tromsø municipality, therefore, is developing a proof of concept for collaboration between different actors to keep critical infrastructure running during emergencies. 

Håland offered an illustrative example: local transport. With increased electrification and no rail infrastructure, society comes to a standstill if transport fails. So how can power be redirected during crises? “We found that cruise ships can be a possible energy source. They are basically floating cities that, when docked, can supply electricity to local infrastructure,” he noted.  

Partnerships with private companies can increase preparedness and offer business opportunities. Cities like Luleå and Oulu already buy excess heat from local industries to warm homes. 

At the same time, Kimmo Alatulkkila, director of development of energy systems at Oulun Energia, warned to enter relationships with care to not end up in another cycle of dependencies. New technologies often depend on external suppliers and materials, potentially creating new dependency cycles. “We need to reflect on the dependencies we are creating through new investments and consider which partners are truly trustworthy,” he said. 

Arctic energy security is a package of solutions 

The discussions made clear that dependence on external supplies remains a major driver of energy insecurity in the Arctic. It undermines resilience and slows the shift toward sustainable Arctic societies. The green transition can help communities reduce risks and build thriving futures, but only if it is shaped on their terms and includes all affected stakeholders. 

At the same time, the Arctic’s environment will remain harsh, and infrastructure investments will stay expensive. “The resilience package is not just renewables,” noted Klaus Skytte. It must also include: 

• hybrid systems centred on renewables but with firm backup solutions 
• storage designed for realistic risk scenarios, not just daily balancing 
• fuel and parts inventories adapted to Arctic logisticsparts inventories adapted to Arctic logistics 
• robust contingency plans that assume interconnectors may fail 

Ultimately, the strength lies in treating the green transition as a comprehensive resilience strategy. 

The post At the frontline of Arctic energy security: lessons from local communities appeared first on Nordic Energy Research.

What, then, can we learn from our northernmost regions? And how might these approaches inspire greater resilience in other parts of the world facing emerging and complex challenges? 

To explore the potential of Arctic case studies for cross-sector and regional learning and collaboration, Nordic Energy Research hosted a side event at last week’s Arctic Frontiers conference, together with Tromsø municipality and Troms County.  

During the event, three concrete Arctic solutions were presented, each showcasing regional leadership in resilience and energy security. 

Tapping into the potential of solar energy in the Arctic 

It is easy to assume that solar energy is ineffective in a region known for its cold, dark winters. Yet, as Clara Good, associate professor at UiT – The Arctic University of Norway, highlighted, the other half of the year offers long, bright days – and solar cells perform better in cold conditions. “A cold sunny day with snow on the ground is a really good condition for solar energy,” she explained. 

UiT has therefore launched the Northern Homes project, integrating solar technologies into the refurbishment of special types of postwar houses found throughout Northern Norway. “During the Second World War, 90 percent of buildings and infrastructure in large parts of Northern Norway were burned to the ground by occupying forces. In the following decades, the Norwegian government led a major reconstruction phase. In this period, 13,000 new homes were built, based on a limited number of preapproved designs,” Good noted. 

These reconstruction houses continue to shape the built environment across many northern towns. However, built during a time of scarcity, they now require refurbishment and energy upgrades. Clara and her colleagues therefore want to find a solution that could make these reconstruction houses an integral part of building more sustainable communities in the North. 

“With their simple, steep roofs, these houses are well suited for solar installations. If we find solutions that work technically, economically, and socially, solar could be viable for many of them.”  

To date, low energy prices and an abundant power supply have given homeowners little incentive to consider energy-related refurbishments. This has created a cycle of barriers, including limited financial motivation, misconceptions about solar in the North, scarce local expertise, and few existing examples.  

The UiT project addresses these challenges by working closely with homeowners, municipalities, and construction companies, providing hands-on learning that can serve as a best-practice model for energy-efficient, self-sufficient Northern homes. 

Building thriving communities through sustainable energy systems 

Building secure energy systems is not only about meeting immediate needs; it’s also about generating long-term, sustainable economic opportunities, argued Greg Poelzer, professor at the University of Saskatchewan. He introduced the concept of gross community product, underscoring that energy interventions must be part of a holistic approach to sustainable development that accounts for both market and nonmarket values. 

In the CASES project, Poelzer and colleagues overlay data on energy transmission and distribution with economic information, giving communities a comprehensive basis for informed decision-making. 

Another key enabler of sustainable and secure Arctic energy systems, Poelzer emphasised, is collaboration across communities and borders. “Cooperation allows us to overcome capacity challenges. Many communities have limited fiscal and human resources. By learning from one another, they can avoid repeating mistakes and build on best practices, which saves time and resources. Cooperation, in addition, reduces transaction costs, as templates for contracts and other resources can be shared.” 

Poelzer also highlighted the growing opportunities for collaboration between the Nordic Region and Canada. By working from shared values, the regions can pool strengths, achieve economies of scale, and build thriving communities supported by sustainable energy systems. 

Clearing ice from power lines while strengthening national security 

Snow and ice accumulation can damage power lines and, in severe cases, disrupt electricity transmission. Manually clearing snow across the wide landscapes of Northern Norway and other Arctic regions, however, would be an enormous task. 

Magnus Haugen, co-founder and Chief Marketing Officer at AVJU, and his colleagues therefore began exploring technological solutions for the electrical power industry. Along the way, they realised that the extensive network of aboveground power lines, while challenging for winter maintenance, could also be an asset. “What if,” they wondered, “the unit could be equipped with cameras and sensors that use the grid as a platform to deliver real-time data?”  

Today, Avju’s units collect information on a wide range of conditions – from wildfires to sabotage – thereby not only protecting power lines but also supplying critical data for national security. 

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