There is no snow in the mountains and water is running low in reservoirs. Norway braces for high electricity prices
Norway is facing an expensive summer on the energy market. Water reservoirs are filled to 40 percent below normal, and the small amount of snow limits the inflow of water from spring thaws. Prices are also affected by tensions around the Strait of Hormuz and expensive gas in Europe.
The average price varied for each region of Norway and depended on the selected contract.
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There is no sign of the typical spring flood in the Stårheimselva river in Nordfjord. Water is scarce. However, for the 29 landowners who have launched a local small hydropower plant, this is a favorable situation. Low water levels mean higher electricity prices.
Reservoirs are exceptionally low. This will affect electricity prices
According to Eivind Samseth from Volt Power Analytics, the total reservoir fill level is 40 percent below normal. This is an unusual situation. Data from the Norwegian Water Resources and Energy Directorate (NVE) shows that in the last 30 years, such a low hydrological balance has only occurred twice. In the Vestlandet region, the fill level has dropped in some places to 14 percent.
Southern and central Norway are most at risk of high prices. Samseth estimates that prices will remain consistently high. In the summer, they may drop only slightly, by about 20 øre compared to May levels. Fortum's forecasts indicate prices from 100 to 130 øre/kWh at the beginning of summer.
Southern and central Norway are most at risk of high prices. Samseth estimates that prices will remain consistently high. In the summer, they may drop only slightly, by about 20 øre compared to May levels. Fortum's forecasts indicate prices from 100 to 130 øre/kWh at the beginning of summer.
Low levels are recurring regularly. In the photo: dried-up water reservoirs and rivers south of Lillestrøm (23.04.2022).Photo: Trine Jahr Hegdahl/NVE
Market under pressure. Several factors at play
The national grid operator Statkraft is downplaying the situation. The company points out that low reservoir levels at this time of year are part of a seasonal cycle. The current situation was also caused by a cold winter and a later start to the snowmelt. Eviny adds that rainfall could quickly change the situation in Vestlandet.
Prices are also affected by the situation outside Norway. The blockade of the Strait of Hormuz has doubled gas prices in Europe, and more expensive energy from gas power plants is being transferred to southern Norway through international connections. Work on the power grid, which makes it harder to transfer energy between regions, is also significant. Due to such restrictions, Central Norway has sometimes had some of the highest prices in Europe.
Prices are also affected by the situation outside Norway. The blockade of the Strait of Hormuz has doubled gas prices in Europe, and more expensive energy from gas power plants is being transferred to southern Norway through international connections. Work on the power grid, which makes it harder to transfer energy between regions, is also significant. Due to such restrictions, Central Norway has sometimes had some of the highest prices in Europe.
High prices are increasing interest in the 'Norgespris' contract. It provides households with a fixed price of 50 øre/kWh including VAT, and in Northern Norway 40 øre/kWh. It also covers holiday cottages, but not companies. It must be actively ordered via elhub.no. In April, about 47,400 customers chose it, compared to 31,600 in March. As of May 9, 2026, it covered 53.1 percent of eligible meters.
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