* Court revokes Statnett's permit to build the line
* New line needed to boost supply in central Norway
* Nyhamna gas plant to drive up consumption in 2016 (Adds detail)
By Nerijus Adomaitis
OSLO, July 9 (Reuters) - A major Norwegian power lineproject will be delayed, which is likely to result ininsufficient electricity supply and drive up prices in centralNorway from late 2016, grid operator Statnett said.
Construction of the Oerskog-Sogndal power line had to bestopped after a court revoked a permit that had been issued bythe ministry of oil and energy, which means the line cannot becompleted in 2016 as previously planned, Statnett said in astatement on Wednesday.
The court decision said the license was revoked due toerroneous information regarding the path of the transmissionline and because Statnett's right to access properties wasinvalid, according to the grid operator.
"It's probable that there may be a very difficult energysituation in (the region of) Moere after Nyhamna (a gasprocessing plant) increases consumption by about 120 megawatts(MW) in the fourth quarter of 2016," the state-owned companysaid in a letter to the ministry.
Nyhamna processes gas from Royal Dutch Shell's giant Ormen Lange field offshore Norway.
As a result of increased consumption, prices in centralNorway could be higher than elsewhere in the Nordic region, andcostly reserve capacity at gas-fired plants may have to be usedin dry years when hydropower supply is reduced, Statnett said.
Hydropower plants typically generate more than 95 percent ofthe electricity in Norway, and during dry years it has to importpower from other Nordic countries and continental Europe.
Norway also has several gas-fired plants, which are usedmainly to provide reserve power.
If the construction of the line is further delayed untilend-2017, the supply of power to a Norsk Hydro aluminumsmelter could be limited to avoid blackouts, Statnett added.
The grid operator said it would consider whether to appealthe court's decision. (editing by Jane Baird)
