In World Economic Forum?s 2013 Global Energy Architecture Performance Index (EAPI), Norway ranks first because of its wealth in energy.

The EAPI scores and ranks 105 countries globally on how well their energy system promotes economic growth and development, environmental sustainability, and energy security and access – the three elements of the energy triangle. But can Norway?s excellent performance be explained just by geological luck?

After the discovery of Oil in the North Sea in 1960s, Norway has been one of the biggest providers of oil and gas for Europe. This maximizes Norway?s GDP. According to the Norwegian Petroleum Directorate, crude oil, natural gas and pipeline transport services accounted for 21% of GDP and 26% of government revenues in 2010. Hydropower, which provides over 95% of Norway?s electricity supply, based on data from the International Energy Agency (IEA), has contributed to some of the lowest domestic and industrial electricity prices of the IEA member states.

Norway?s Government Pension Fund has been successful in managing Norway?s resource windfall. Filtering revenues through the fund has helped avoid the overheating and inflation often linked to large resource proceeds, and energy sector investment has had spill-over benefits for engineering and ICT industries. Resource revenues have also been invested on a national basis, not just in industry.

Norway's policy also proves the country's highly environmental responsibilities. The flagship Enova SF programme has improved the energy efficiency of Norwegian industry above the EU average over the last decade. Investment in RD&D for clean energy initiatives is the third highest among the IEA member countries and the government has pledged to make Norway carbon neutral by 2030, bringing forward the original 2050 deadline. Norway wishes to be a driving force on a new climate change treaty to replace Kyoto.

However, there's still a lot of work to do. Norway?s oil and gas sector is a heavy emitter of CO₂ and the passenger vehicle fleet has a relatively poor vehicle efficiency compared to the European average. In response to these challenges, Bard Vegar Solhjell, Norway?s Environment Minister, has recently pledged over US$ 8.2 billion to drive industry CO₂ cuts to meet the nation?s target of 30% emissions reduction by 2020. Transport, manufacturing, and the oil and gas sector will have to meet the majority of these.

With plans confirmed to partner in the construction of a sub-sea electric power interconnector with the United Kingdom and Germany, Norway will strengthen the northern European electricity grid and increase its own supply security. Enova SF?s measures to promote energy efficiency means the government should also avoid an energy intensity increase. And Norway has recently gained 54,000 square miles of continental shelf for the development of further oil and gas deposits in an agreement with Russia.

Overall, a strong energy policy has been coupled with multiple energy resources to deliver cheap, secure and relatively clean power to Norway, and generated large and stable national revenues.

Source: http://sustainability.thomsonreuters.com/2012/12/11/when-it-comes-to-energy-is-norway-just-lucky/