🇳🇴 Norway
29 November 2025 at 14:06
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Business

Norwegian Firewood Sales Plummet After Electricity Price Guarantee

By Priya Sharma •

Norwegian firewood sales have dropped significantly following the national electricity price guarantee. Over 1.14 million households have secured fixed power rates through 2026, reducing demand for alternative heating. The market shift reflects Norway's ongoing energy transformation and changing consumer behavior.

Norwegian Firewood Sales Plummet After Electricity Price Guarantee

Norwegian firewood sales have dropped dramatically this season. The government's fixed electricity price scheme has changed consumer behavior significantly. Firewood sellers report substantial decreases in demand across the country.

Ole Aanestad, a professional firewood seller, confirms the challenging market conditions. His business has seen much lower turnover compared to previous years. Production continues steadily but customer demand has weakened.

Nearly 1.14 million households have ordered the national electricity price guarantee. The scheme offers fixed pricing at 50 øre per kWh through 2026. This security has reduced incentives for alternative heating investments.

Torgeir Pleim Iversen from Obs Bygg in Haugesund provides concrete numbers. His store has sold approximately 17,000 fewer bags of firewood this season. Customers feel secure about their electricity costs under the new system.

Several factors contribute to the firewood market decline. The electricity price guarantee provides financial predictability for homeowners. Many households also invested in energy-efficient solutions during recent years.

People are upgrading insulation and installing triple-glazed windows. Modern fireplace inserts provide better heat efficiency from less wood. These technological improvements reduce overall firewood consumption.

Firewood prices have dropped significantly from last year's levels. Birch wood bags now cost 66 kroner compared to 109 kroner previously. Despite lower prices, sales volume continues to disappoint sellers.

Regional differences affect the electricity price scheme's impact. Southern Norway residents benefit most from the fixed pricing. Average households could save 5,400 kroner annually according to calculations.

Mid-Norway residents receive mixed recommendations about the scheme. Experts suggest waiting to see how electricity prices develop. Northern Norway residents are advised against the fixed price entirely.

Øyvind Stranna Larsen from Norwegian Wood Forum offers broader perspective. He says firewood sales always experience market fluctuations. Mild autumn temperatures have also reduced immediate heating needs.

The electricity quota system creates challenges for cabin owners. The 1,000 kWh monthly limit proves insufficient for frost protection. Many continue using wood heating to maintain their properties safely.

Norwegian tech startups are monitoring these energy market changes closely. Oslo innovation districts show increased interest in smart heating solutions. The situation demonstrates Norway's ongoing digital transformation in energy consumption.

Professional firewood sellers remain optimistic about long-term prospects. They believe market conditions will normalize over coming years. Temporary hobbyists may exit the business while professionals continue serving core customers.

The energy market transformation reflects broader Nordic technology trends. Scandinavian tech hubs increasingly focus on sustainable energy solutions. This aligns with Norway's commitment to environmental innovation and digital advancement.

Published: November 29, 2025

Tags: Norwegian tech startupsOslo innovation newsNordic technology trendsNorway digital transformationScandinavian tech hub