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Arctic Towns in Transition: Norway's commitment towards a new energy solution on Svalbard

By | Article
May 10, 2022
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The Skæringa area in Longyearbyen featuring the abandoned coal mining cableway used for transportation of coal

The “Skjaeringa” area in Longyearbyen in 2011. Photo: Bjoertvedt

Infrastructure is a critical way for humans to engage with the natural environment in the Arctic region, as it facilitates access, connection, inhabitation, and productivity. The Arctic Institute’s 2022 series on Infrastructure in the Arctic investigates infrastructure as a critical point of analysis for considering human impacts and needs in the Arctic, especially in its role as a mediator, or as an interface, between politics, government, people and the natural environment.​

The Arctic Institute Infrastructure Series 2022

Located deep within the Arctic Circle, Svalbard is an archipelago governed by the 1920 Svalbard Treaty that establishes Norway’s sovereignty over the region. At 78° North, it is the northernmost inhabited place in the world with a year-round population of about 2400 residents.1) While Svalbard’s human history dates back to over 400 years ago, it was only in the beginning of the twentieth century that permanent settlement was established on the archipelago. During this period, towns were built around commercial coal mining activity.Although coal mining is still present, activity is dwindling and Norway has reinvented Svalbard’s economy by transitioning towards three main industries: scientific research, education and tourism.2)

Per capita, Svalbard produces more than five times the amount of CO2 than mainland Norway.3) However, that statistic is about to change as the Norwegian government makes a big shift towards its 2030 climate target to decrease greenhouse gas emissions by 50%.4) The State plans to close the coal power plant in Longyearbyen within the next 2-5 years, replacing the system with a more climate friendly energy solution.5) This situation presents an opportunity for Svalbard to reduce its carbon footprint by transitioning its energy supply, becoming an exemplar project for energy transitions within the Arctic.

Transitioning mining towns – the next step

Only two coal mines remain active in the region. One is located in the second largest settlement, Barentsburg and is operated by Russian state-owned company Arktikugol Trust. The company facilitates and supports the coal mining industry as well as the community. Situated in Longyearbyen, Svalbard’s administrative capital and largest settlement6) the other active coal mine is run by the Norwegian state-owned enterprise Store Norske. The announcement of the Norwegian government’s 2022 State Budget revealed the plan to close the last standing Norwegian owned coal-fired power plant and for it to be replaced with a more climate friendly energy solution. The implementation of a Combined Heat and Power (CHP) Plant will be completed within the next 2-5 years. The new CHP plant is an investment into increasing Svalbard’s energy efficiency through combining renewable energy and diesel/multi-fuel technologies.7)

Over the past two decades Store Norske and Arktikugol Trust have seen the closure of several mines8) mostly due to the drop in coal prices and lack of profitability in the industry.9) However, both Norway and Russia have made economic shifts towards tourism.10) Now used as tourist attractions, both Mine 3 in Longyearbyen, which was shut down in 1996 and abandoned in 1998, and the Soviet town of Pyramiden are two examples of this economic shift. Besides tourism, Norway has further diversified its activity on Svalbard by investing in high-level Arctic research. Norway has transformed the ex-mining town of Ny-Ålesund into an international Arctic research hub and established The University Centre in Svalbard (UNIS) in 1993.

As Article 3 of the treaty gives all industrial, maritime and commercial “absolute equality” over its resources and territory to any signatory nation, occupation and commercial activity on Svalbard are intrinsically linked. A measure that very well controls, determines and facilitates international activity.

While Norway begins to transition away from coal, a shift towards renewables on Svalbard appears to be a bigger challenge for the Russian mining town of Barentsburg. Due to the unique condition of the Svalbard Treaty, Russia’s ability to remain active on Svalbard is connected to its resource extractive activities. Unlike Norway, Russia’s occupancy on the archipelago is legitimised by its mining and commercial activities.11) As Alina Bykova presented, Russia’s desire to ‘have a foothold’ in the high Arctic region of Svalbard remains a motivation for Russia to continue its coal mining activity. As the Arctic ice continues to melt and accessibility to the territory increases, both Norway and Russia see the strategic importance of remaining on Svalbard.12) Therefore, this geopolitical challenge creates an obstacle for the island to form a holistic approach towards a renewable energy transition.

New CHP plant and safeguarding energy supplies

Transitioning the energy supply on Svalbard will not be easy, with the biggest concern being safeguarding the supply of energy during this process. The region is home to some of the harshest climatic conditions known to man and extreme seasonal shifts make access to renewable energy sources complex. While the details are yet to be defined, Norwegian Minister of Petroleum and Energy Tina Bru has outlined that the project will implement a new CHP plant system that will be a combination of diesel/multi-fuel technology and renewable energy sources.13) Bru further outlines that this solution was chosen as it provides the highest security in safeguarding the energy supply and ensures longevity of the project. The closure of the current coal-fueled power plant and transition to a CHP system will not be enough and it will need support in several ways. Bru emphasises that a focus on improving efficiency levels, integration of local renewable energy systems and the development of new technologies will support the functioning of the CHP plant.14) One of the biggest benefits of a CHP system is the ability to increase energy efficiency, which in turn increases efficiency levels — by 60-90 percent — in comparison with conventional systems.15)

Another key consideration to ensure success during the energy transition is the ability for Svalbard to provide a reliable back-up energy supply during the transition.16) A secure back-up supply requires a resource to be available on demand and easily stored when not in use. Using the existing infrastructure has its obvious advantages in relation to access and cost. Depending on existing coal supply and existing equipment, the current coal plant could provide a temporary solution during the transition. So the possibility of using existing coal supply or implementing another technology, such as bio-coal, shows potential.17) Bio-coal is a biofuel, a new technology that offers an alternative to coal. The main advantage of using bio-coal is that this resource uses the same infrastructure as the existing coal plant. The challenges around bio-coal is that the resource would need to be shipped and would also require additional storage facilities.18) However, its use could offer a short-term solution to secure the energy supply on Svalbard during the transition.

Further research and development from the local Longyearbyen Council, who are responsible for the project, will provide a more robust solution to the transition.19) However a recent announcement from UNIS shows that collaboration and research is well under way. A strategic operations agreement has been formed between three partners UNIS, Store Norske and one of Europe’s largest research institutes, SINTEF. The future collaboration is set to see “local energy production with a with a focus on solar, wind and geothermal heat, future energy storage where batteries, thermal and renewable energy carriers are the focus areas, and management of hybrid energy solution”.20) The energy transition in Longyearbyen has motivated the partners to accelerate their efforts and research within the area of Arctic energy transition, specifically focusing on Svalbard.21)

Early research for Longyearbyen – case studies

A study from the University of Bergen (2020) presented Longyearbyen as a case study, modelling the transition of remote Arctic settlements with renewable energy systems resulting in three critical conclusions.22) First, the study expresses the importance of adequate digital modelling studies in order to determine the variability of renewables in extreme climates, ensuring robustness of each renewable system. Its next point highlights how the detailed research and case study demonstrates Longyearbyen’s potential to be supplied by an energy system that is based primarily on renewables. This system would include the prospective use of complementary wind and solar systems. Finally, it suggests the potential to optimise an extended energy network going beyond Longyearbyen. It states that reaching out to industries like shipping and tourism could be feasible through the expansion of the modelling tool.23)

This approach is supported by an earlier case study prepared by The Nordic Council of Ministers (2018) titled ‘De-cabornising Svalbard’,24) which suggests that wind and solar power used in combination with both electric boilers and heat pumps would provide ample electrical supply. Furthermore, the case found that the best long-term solution for Svalbard to maintain a secure and sustainable supply would be to integrate a mix of renewable energy technologies. Some of these technologies include: solar panels (PV), wind turbines, heat pumps connected to geothermal and both heat and electricity storage. Solar panels provide the base load required during summer; however, Svalbard does not see the light of sun for more than 3 months of the year and cold winter temperatures result in higher energy consumption. Modelling shows that wind energy is most successful during the winter months, which could balance out the solar system. Wind energy capabilities highlight that wind energy is necessary if the island is to eliminate fossil fuels. Furthermore, a baseline level of heat could be supplied by heat pumps connected to geothermal energy. All systems would require some kind of battery and/or heat storage system. Implementing an isolated system is not preferred, safeguarding energy supplies encourage the use of several renewable technologies. Further investigation and research will need to be conducted in order to determine what the best technology mix is for Longyearbyen. The transition to a multi-technology system in an extreme climate such as Svalbard requires extensive testing, planning, investment and governmental support.25)

Policy recommendations and areas of focus – towards a decarbonized Arctic

To successfully achieve a high Arctic energy transition, several areas of focus should be addressed through policy. First, safeguarding the supply of energy is of uttermost importance to ensure a smooth and secure transition of the energy sector on Svalbard. As outlined by the Norwegian Minister of Petroleum and Energy26) one reason that the new CHP system has been selected is for its ability to safeguard energy supplies and ensure longevity of the project. Although implementing this system alone is not enough to secure the energy supply, the system requires a series of mixed renewable technologies to create an ideal solution for Svalbard. However, during the period of energy transition it is possible that a temporary solution would be to use existing and alternative biofuel technologies to assist with ensuring a secure supply. Through policy and digital modelling studies a framework should be put in place to ensure that the transition is completed in stages to minimise risk. Furthermore, it is critical that this framework establishes a readily available resource that can be accessed and used during this period. The collaboration between research institutes such as those with UNIS and SINTEF and the governing body could benefit the project through on site testing, further research and recommendation studies. 

Next, a focus on building efficiency and improving standards could alleviate energy demand, especially during peak periods. Improvements to existing building efficiency standards and increasing building performance standards for new builds is critical to support the new system. The same applies for operational and industry sectors through efficiency of production and storage.27) A direct effect of improving building energy efficiencies is the change in the cost of energy. Cost efficiency is another point outlined by the Norwegian government as a benefit and area of focus for the new energy system. The need for energy prices to be transparent and reflect the real cost and actual consumption of electricity and heat is outlined as a key priority.28) The government highlights that the financing of the CHP plant and new energy supply will be through energy prices according to the principle of cost. By regulating real cost prices the local Svalbard council could assist in protecting the consumer and assuring that any efficiencies and savings are being passed on directly to the consumer.29)

Finally, the utmost sensitivity towards the environment should be prioritised during the transition, reducing impact wherever possible. The Minister of Climate and Environment Sveinung Rotevatn outlines the necessity to protect Norway’s commitment to the 2030 and 2050 climate goals whilst ensuring that the project is constructed in a way that does not majorly intervene in the vulnerable natural landscape of Svalbard.30) This poses quite the challenge however, since 2001 Norway has had an environmental protection act in place on Svalbard31) which outlines the priority of environmental considerations over other interests.32) There is already significant policy and legislation around how to assess, manage and preserve the environment, however one additional policy implementation could see an independent environmental body put in place to act as an impartial moderator of decisions made in relation to the environment on Svalbard. This would assist in safeguarding the conservation of the natural environment. 

With such a strong history of coal mining on Svalbard, this new energy transition marks a huge shift in the high Arctic’s economic and industrial sectors, providing Longyearbyen with the opportunity to become an exemplar project for Arctic energy transitions. Through collaborations with established research institutions, such as UNIS and SINTEF, the focus on developing local renewable technologies to support the energy transition on Svalbard creates a strong foundation for the project. Ambitions remain high for digital infrastructure and new technologies to lead the way. This presents both a great opportunity for the collaboration of key renewable sector partners and, at the same time, a potential challenge for the necessary research and technologies to be realised within the timeframe of 2-5 years. It is of key importance for the project to begin with a strong foundation and support from the right networks. The announcement of partnerships with established research institutions such as UNIS and SINTEF is very promising, however a final agreement has yet to be made on their contributions to the transition on Svalbard.33) Furthermore, the need for a larger network of partners to get involved is required to ensure the success of this visionary high Arctic energy transition in Longyearbyen.34) The potential for the project to be optimised through digital modelling tools and extended out to other sectors such as tourism and shipping are some of the future possibilities that exist within the project.35) The provocation that this same tool could then be replicated and scaled up to develop other Arctic cities, such as Barentsburg, presents an exciting prospect for the future of the Arctic and the renewable energy sector. As the project sits in its early phases of development there are many factors to be defined, however, one thing is clear. In order to have a successful energy transition in an extreme climate such as Svalbard, it will take a combination of mixed renewable technologies, digital tools and a strong network of partnerships to build a robust and sustainable energy network for the future.

Emily Aquilina is an Architect and Spatial Practitioner who works across all scales. Her work sits at the intersection between architecture, urbanism, materiality, and the environment. Emily has worked in research, academia and practice, in both Melbourne, Australia and Delft, the Netherlands.

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