Energy prices are a matter of debate in many countries and places. Longyearbyen is no exception.
A new energy solution to replace the old coal-fired power plant has been discussed in Longyearbyen for many years. In October, the coal plant was finally taken out of service and replaced with diesel generators. These are, on the long term, to be replaced with more environmentally friendly, renewable energy sources – that is, at least, the idea.
Longyearbyen’s old coal power plant was taken out of service in October 2023.
That is an expensive process for a small town. Energy has always been expensive in Longyearbyen, and a significant price rise is to come soon.
In order to save smaller customers from increasing costs, the community council Longyearbyen Lokalstyre has decided to pass the price rise on to the four largest energy buyers. These are Avinor (airport), KSAT (satellite antennas on Platåberg), Store Norske Spitsbergen Kulkompani (mining, the housing section is not concerned) and Forskningsparken/UNIS (science). Next to size and high energy consumption, these four have in common that they are all state-controlled.
As could be expected, the idea of being the only payers for higher energy prices is not met with great enthusiasm by these four. KSAT CEO Ole Kokvik has said that KSAT may have to consider other locations in the future, a solution that is unlikely to work for the airport. Store Norske may reconsider the operation of mine 7. Currently, it is planned to remain in production until the summer of 2025.
The discussion is clearly not over yet.