Preliminary figures from Nord Pool show that there will be another electricity price record in Oslo, Bergen and Kristiansand on Tuesday. The average price will be closer to NOK 6.5 per kilowatt hour. – This winter will be insanely tough. We only see the contours of how it could turn out, says Johnny Horsdal to news. He is head of administration at SKS Handel, the trading company of Salten Kraftsamband, which is a leading producer of power in Northern Norway. In comparison, the prices will be around 11 øre per kilowatt hour in Tromsø. Can anything improve the situation for those in southern Norway? Horsdal believes industry and business should recognize that there are full warehouses further north – and got on the train. – Now they should vacuum everything from the premises and personnel. The trains to the north should have been full of flavor. Move all possible activity north The expensive electricity prices “half” Norway has to endure is by no means a Norwegian phenomenon. Some countries have it far worse and there are different crisis solutions from country to country. According to Horsdal in SKS, southern Norway is in for a very tough winter. But a potential dampener could be that people packed their bags and headed north. – As of now, several players are reducing their activity due to high prices. More people should really consider moving to an area where the price is lower. They must react quickly and be proactive. Johnny Horsdal believes that several players should consider whether to move parts of the industry north. Photo: benjamin fredriksen / news He points out that this would lead to less pressure on electricity use in southern Norway. A possible electricity subsidy or a price cap, however, will do the opposite. – I am not sure that state aid is the solution. It will increase consumption. Then we should rather move consumption north. Must prioritize correctly There is, however, no shortage of news about planned large new establishments in the electricity paradise in Northern Norway. In Mo i Rana, they are building a battery factory for NOK 17 billion. In Narvik, Aker Horizons and Røkke will invest NOK 50 billion in green industry. But it is not always that the municipalities are happy that power-intensive industry is making the trip north. In Hadsel, a data center that mines cryptocurrency has caused debate. The leader of the Hadsel Labor Party, Bengt Are Pettersen, thought this was not the right way to use valuable electricity. – I feel we are being exploited because we have cheap electricity. In the neighboring municipality, Øksnes, they have also received requests for cryptocurrency mining. As of now, it is very reasonable for electricity in Northern Norway and in Øksnes. Photo: Allan Klo – There have been few restrictions on who can withdraw electricity. In the future, we will have to prioritize and make good choices for how our children will fare in the future, says Mayor John Danielsen. He emphasizes that the municipalities will have to set strict priorities if more and more people want to establish themselves in Northern Norway. – Is cryptocurrency, for example, something we want to use our electricity for? If we waste it, there will be too little electricity in Northern Norway in a few years’ time as well. Double-edged sword Horsdal in SKS says it could be positive for several people if some of the industry is moved further north. Firstly, it will reduce the pressure on electricity prices in the south – which can result in lower prices for most people. Secondly, it will increase the pressure on prices in the north. It can be good news for municipalities that have lost money for a long time due to low electricity prices. – Low electricity prices over time affect schools, kindergartens and other welfare in municipalities that depend on earnings from concession power, explains Horsdal. Nordland’s largest municipality, Bodø, notices that prices are low. Municipal director Kjell Hugvik says the low prices for electricity can make the situation difficult. Kjell Hugvik, municipal director in Bodø municipality. Photo: Josef Benoni Ness Tveit / news – It is a joy for the consumer and the industry in the north, but again it means that the owners get less income. It is a double-edged sword, Hugvik tells the newspaper Bodø Nu. However, the people of Bodø will not notice that the municipality earns less from electricity this year. – We will probably see the result of this next year, says Hugvik. It is true that prices in northern Norway have increased somewhat in recent weeks. – We are not reaching the levels we see in the south, but we are on our way to a slightly higher level. Towards the end of the year, we may end up at around 30–40 øre, concludes Horsdal.
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