Electricity prices in the south have never been higher, and the price may still rise. Whereas in central and northern Norway, electricity is much cheaper. But will new power lines from north to south have any say in electricity prices in southern Norway? The head of the Storting’s Energy and Environment Committee, Marianne Sivertsen Næss (Ap), does not think so. – It is not the case that better transmission capacity between north and south will contribute in the big picture. It will probably only contribute to us getting high electricity prices in the north, she says. Næss believes that the potential for electricity production is great in the north. But consumption will overtake production in the north in the coming years, she says. – Will we need more power than we have available today. The surplus we have in the north has probably been eaten up within a reasonably short time, she says. Troms and Finnmark produced four percent of the energy in Norway last year, according to Statistics Norway. Nordland accounted for just over eleven percent, while Trøndelag produced just under eight percent. I think the prices in the south would be similar. Tor Reier Lilleholt is head of analysis at Value Insight. He does not necessarily believe that better transmission capacity from north to south would lead to cheaper electricity in the south, as the power market is today. – I would like to think that the prices in the north would have been higher if there had been better transmission capacity, but the prices in the south would have been at roughly the same level, he says. Lilleholt justifies this with the high prices elsewhere in Europe, partly as a result of the war in Ukraine. However, he believes that prices will level out in the long run, even without more cables. – It is a very extraordinary situation we have now. We have never experienced that there have been so many extra resources in central and northern Norway and so little in southern Norway, says Lilleholt. – In the winter, they will start draining the magazines in the north, and then the prices will increase. Energy analyst Tor Reier Lilleholt believes that better transmission capacity between north and south will level out prices in the long term. Photo: news – Cables are there to create flexibility in the market In a normal situation on the power market, Lilleholt believes that more cables will lead to more even electricity prices in the north and south, and stabilize at 50-60 øre per kilowatt over a period of ten years. – Cables exist to create flexibility in the market, so that electricity can flow from where it is cheapest to where it is most expensive. With more cables, more volume will flow between the various areas, and the price will thus be more even, he says. As the situation is today, there is a large surplus of electricity in the north, but few can buy it due to poor transmission capacity. If more people get the opportunity to buy the electricity produced in the north, the producers can increase the price. – Then the power you have will become more valuable, says Lilleholt. But the development of new power lines will take a long time. – Are there other measures that can be taken to reduce the price of electricity? – The Government and the Storting have taken it easy to find measures. It is not so easy to find measures that immediately produce results. Here you have to think more long-term. But the best solution has been to provide state support, says Lilleholt. Much debate In the media, headlines about the difference between prices in the south and the north have been pouring in since last autumn. – I fully understand that the debate is ongoing, says Næss. – There are insanely high prices in the south, which means that people struggle to pay the bills. Næss understands that people in the north are worried that the same thing will happen there. – I think it is important to obtain facts and knowledge. It takes a long time to build transmission capacity between north and south. And when that capacity is eventually in place, the surplus that exists in the north has already been used up – in the north. To industry and to people, she says. Næss believes that the solution in the long term, both for the north and the south, is to increase power production. – It is the only single investment factor that enables us to have low electricity prices in the future. And that is clearly our goal, she says. Næss wants the low prices that northern Norway has experienced recently to be the norm throughout the country in the future as well.
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Storting politicians do not think new power lines will have anything to do with electricity prices in southern Norway – news Troms and Finnmark
