The Norwegian government plans to allocate NOK 100 million in electricity support to Longyearbyen in 2025, though this is unlikely to fully offset rising energy fees, according to the community council chair. Additionally, NOK 184 million is proposed for the University Center in Svalbard, aimed at resuming normal activity levels. Longyearbyen is currently navigating a complex energy transition following the closure of its coal power plant in 2023. The switch to diesel-based power, while waiting for renewable energy solutions, has led to a significant increase in energy prices. The 2025 national budget includes earmarked funds for Longyearbyen‘s households and businesses, building on previous grants (NOK 50 million in 2023 and NOK 125 million in 2024). The budget also allocated NOK 42 million for improving the security of energy supply. While the proposed aid will ease the transition, it may not be sufficient to avoid energy price hikes altogether.
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