There is a strange situation in the electricity market at the moment. European gas storages are more or less full, while the electricity situation in Norway is reported to be healthy.
Read also: Fresh reports on the power situation, at the same time the amount of water in Norwegian reservoirs is falling
Nevertheless, prices are still at a historically very high level. It is partly linked to the outcome of Swedish nuclear power, and partly to very great uncertainty about European security of supply this winter.
Prices are going up
This uncertainty is reflected in electricity prices. This morning, the market “believed” the electricity price in southern Norway to be around NOK 2.1 per kWh, but when the final electricity prices from Nordpool appeared, the price was significantly higher:
The average price in the three southern price areas increases by more than 16 per cent from yesterday, ending at NOK 2.5 per kWh.
Electricity prices will be relatively flat throughout the day, with a small peak in the morning and early evening of almost NOK 3.
The electricity price today and tomorrow:
Prices in Central Norway are marginally down, while Northern Norway ends up with the second highest electricity price in a long time, only beaten by the extreme prices on Monday caused by Swedish preparations for winter operation.
Cheaper in Norway
The fact that the water reservoirs in Norway have been declared healthy is quite clear when you look at the prices in the rest of Europe. Norway has the lowest price in Europe, with the exception of England tomorrow.
The reasons for the high prices in Europe include lower production of wind power. As a result, it is the gas price that controls the electricity price to a greater extent.
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The fact that prices are lower in Norway than our neighboring countries also means that exports are more or less in full swing from southern Norway throughout the day.
Tomorrow the export will look like this:
- Germany: 29 GWh
- Denmark: 27 GWh
- Sweden (SE3): 23.1 GWh
- The Netherlands: 12 GWh
- England: 1.2 GWh net import
The exception is England, where the current flows to a greater extent back and forth. This should not really have been done based on the final electricity prices, but is happening because earlier today the market thought the electricity price would be around 40 øre cheaper. The power on the cable to England is decided in a separate auction earlier in the day.