Electricity may be more expensive this summer. NVE explains why Norway is dependent on Europe
The Norwegian Water Resources and Energy Directorate (NVE) predicts low filling levels in many Norwegian hydropower reservoirs in the coming months. In central and southern Norway, levels are lower than the historical norm. NVE is not concerned about an energy shortage in winter, but announces close monitoring of the situation.
Changes in electricity prices are usually felt most strongly by residents of the south of the country.
Na zdjęciu: słupy wysokiego napięcia w Oslo/ Fot. Ryan Hodnett, CC BY-SA 4.0, via Wikimedia Commons
According to NVE, further developments depend on rainfall and the energy balance in neighboring countries. Much of Norway has seen record low snowfall, and the snow remaining in the mountains has already started to melt. This has increased water inflow in recent weeks. Despite this, NVE expects reservoir levels to be lower than usual throughout the summer.
Low reservoir levels. Summer will be crucial
NVE points to regional differences. In central and southern Norway, reservoirs are below typical levels. In the north of the country, the situation remains good. There, reservoir filling is still high.
Inga Nordberg, director of the energy department at NVE, links the current situation to the winter. It was cold and increased energy consumption. At the same time, there was record low snowfall. Autumn rainfall usually has the greatest impact on restoring reservoir levels.
Inga Nordberg, director of the energy department at NVE, links the current situation to the winter. It was cold and increased energy consumption. At the same time, there was record low snowfall. Autumn rainfall usually has the greatest impact on restoring reservoir levels.
Electricity prices in the southern part of the land of fjords are most strongly influenced by the European market.Photo: Pixabay
Energy imports have increased. Prices may be higher
NVE reports that hydropower producers reduced production in the spring, which resulted in periods of increased energy imports to Norway. The system operates differently in summer than in winter. On the continent, there is usually less wind energy and more solar power.
Norway may then import energy during the day and export at night. In the summer half-year, the country is usually a net exporter of energy. However, NVE assumes that electricity prices in summer will be higher than usual. Gas prices and weather in Europe will also have an impact.
Norway may then import energy during the day and export at night. In the summer half-year, the country is usually a net exporter of energy. However, NVE assumes that electricity prices in summer will be higher than usual. Gas prices and weather in Europe will also have an impact.
Energy producers must comply with requirements regarding minimum reservoir levels and water flows. NVE is currently supervising supply security strategies at several producers. Households are to be protected from the highest prices through electricity bill support or the Norgespris scheme.
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