Germany tackles high energy dependence: Norway's role in the diversification strategy

The German economy is facing a critical energy challenge. The high reliance on American liquefied natural gas supplies poses significant risks to the continent’s economic stability. In response, Chancellor Olaf Scholz is charting a course toward the Middle East to explore new energy partnerships, aware that current dependence on the American system creates geopolitical and economic vulnerabilities.

Scholz on a mission: diplomatic tour in the Persian Gulf

Germany’s strategy is materializing in a diplomatic mission involving major energy-producing countries. Scholz, accompanied by a delegation of business leaders, will travel to Riyadh on Wednesday to meet with Saudi Arabia’s Crown Prince Mohammed bin Salman. On Thursday, he will continue to Qatar and the United Arab Emirates, returning to Berlin on Friday evening. This trip represents Germany’s attempt to diversify its energy risks and build an alternative supplier network, reducing the direct link with Washington.

Risks of high dependence on the United States

German energy policy experts warn of the dangers associated with excessive reliance on American supplies. Susanne Nies, an expert at the Helmholtz Research Center in Berlin, emphasizes how authoritarian developments in American governance and geopolitical blackmail pose concrete threats to price stability and supply security. Claudia Kemfert, head of the Energy Department at the German Institute for Economic Research, reiterates that high dependence creates security gaps and volatility in energy costs, turning procurement choices into global strategic issues.

Norway and other alternatives: a new direction

To address this situation, experts point to concrete alternative pathways. Norway emerges as a preferred option, with its reliable pipeline gas and established diplomatic relations with Europe. Simultaneously, Canada and Australia represent more stable sources of LNG compared to the United States, offering long-term contracts less subject to political pressures. These countries would allow Germany to maintain price control and avoid energy blackmail.

Beyond changing suppliers: a structural energy transformation

However, experts suggest that the real solution does not lie in simply switching supplier countries. Kemfert warns that Germany should use this crisis as a catalyst for a deeper transformation: reducing overall dependence on fossil fuels. Rather than just diversifying suppliers, the country should accelerate the transition to renewable energy, creating an independent and sustainable energy economy in the long term.