Expanding renewable energy is not necessarily at odds with the economic interests of countries that depend heavily on oil and gas exports. On the contrary, replacing fossil fuels in domestic energy consumption with renewable electricity could allow these countries to increase export revenues while developing cleaner and more efficient energy systems at home.

These are the findings of a new study conducted by researchers at LUT University in Finland, who identified Norway as a particularly successful example of this approach. The country has combined substantial oil and gas production with extensive renewable electricity generation, widespread electric vehicle adoption, and increasing electrification of heating.

“The most clever oil and gas producing countries do so, see Norway,” Christian Breyer, professor for Solar Economy at Finland’s LUT University, told pv magazine, referring to investments in renewable energy and electrification.

He explained that reducing domestic fossil fuel consumption allows exporting countries to retain more of their oil and gas production for international markets. At the same time, electrification can improve the efficiency of domestic energy use and reduce emissions. “This allows them to export more fossil fuels whereas domestically they have a highly efficient and clean energy system,” he said, describing the strategy as economically advantageous.

However, Breyer argued that Norway remains an exception rather than the rule. Many fossil fuel exporters have yet to fully exploit the economic opportunities associated with their energy resources, particularly when it comes to developing renewable electricity generation and electrifying domestic demand.

The development of renewable energy in fossil fuel-exporting economies does not necessarily send contradictory signals to importing countries, according to Breyer.

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