The Norwegian Government to Strengthen Svalbard Budget With NOK 72,3 Million

On Tuesday, the Norwegian government presented its proposal for the revised national budget for 2026.

The proposal includes an increase in the Svalbard budget of NOK 72,3 million, which will serve several purposes.

Among the measures are the introduction of a Svalbard price for electricity and district heating for households and voluntary organizations in Longyearbyen through an allocation of NOK 9,3 million to Svalbard Energi AS.

The measure will entail a maximum electricity price of NOK 1,3 per kWh and NOK 0,6 for district heating.

"We will still facilitate making it attractive for Norwegians to stay and settle in Svalbard. A Svalbard price is a clear incentive for strengthening the Norwegian family community in Longyearbyen," says the Norwegian Minister of Justice and Public Security Astri Aas-Hansen (Labor) in a press release.

"We also know that many in Svalbard rent the homes they live in and thus have few options for energy efficiency measures in their homes. Therefore, we suggest a district heating price so that one does not pay more for heating one's home in Longyearbyen than on the mainland," continues the minister.

In addition, the government will allocate NOK 30 million to Svalbard Energi AS due to the general increase in diesel prices.

Other allocations

In the revised national budget, the government is also proposing the following allocations related to Svalbard:

• NOK 10 million in an extraordinary restructuring grant to Longyearbyen Local Council to facilitate the transport of goods between mainland Norway and Svalbard in 2026, pending the establishment of a long-term solution by local actors. The funds may be used for both air transport and other means of transport.
• NOK 19 million to Svalbard Energi AS for demolition and clean-up measures at the coal-fired power plant in Longyearbyen, so that the work can be carried out at the same time as the local council's clean-up of the waste disposal site in Adventdalen.
• NOK 4 million to the Governor of Svalbard to establish an emergency preparedness storage in order to handle major or prolonged incidents. The storage will be available for use by both civilian emergency and preparedness actors and the Armed Forces.
• NOK 10 million as a one-year increase in the grant to the University Center in Svalbard (UNIS). The funds will compensate UNIS for increased costs for electricity, rent, heating and fiber rental.
• NOK 25 million to the Norwegian Communications Authority to implement measures to strengthen communications between Svalbard and mainland Norway.