Extreme weather “Jakob” ravaged large parts of the country last week. Now the effect is in full force: Record-full magazines and cheap electricity. The cheapest is region Midt, which had the cheapest electricity in the country today, more precisely NOK 0 for a kilowatt hour (kW). – We have a surplus of electricity, which means that we get a very low price. Last week we had a lot of rainfall, says senior trader in TrønderEnergi, Siri Line Hove Ås. Figures taken from the electricity exchange Nord Pool show particularly low prices in several of the price ranges. Price area East 0.47 NOK/kWh Price area South 0.63 NOK/kWh Price area Central 0.00 NOK/kWh Price area North 0.09 NOK/kWh Price area West 0.38 NOK/kWh The trader points to the amounts of precipitation that have come with the extreme weather « Jacob”. – When it gathers together, everything must go through the rivers. Then there will be very great production pressure. New record fill rate At the end of last week, the fill rate in the magazines was 87.4 per cent nationally, an increase of 1.8 percentage points. In the West, the fill rate is as much as 93.7 per cent, an increase of 3.2 percentage points from the previous week, according to figures from Norway’s Directorate of Water Resources and Energy (NVE). It is the highest level at this time of year in the last 20 years. Magazine filling in both south-eastern and western Norway is now over 90 per cent. The occupancy rate in the south-west is somewhat lower than the other price areas in southern Norway, writes NVE. “Together with high exports to Europe, this contributed to the fact that the price was almost unchanged in this price range from the week before.” NVE also highlighted that Central and Northern Norway now have among the lowest power prices in Northern Europe. Despite higher consumption and lower temperatures, power prices are still low in large parts of Norway. NVE explains that there was a lot of rainfall in connection with storm Jakob. The rainfall came on the eve of autumn when the reservoirs were already full while waiting for winter and the bottling season. Still low prices Power analyst Olav Johan Botnen in Volts says what is happening now is good news for consumers. – Actually, we should have started draining water for winter consumption and snowmaking now, but now the opposite is happening. He says it is unusual for prices to be so low at this time of year and that “the best you can get” is full magazines before winter starts. – At the same time, rather mild weather is reported as far as the long-term forecast goes. So there will be at least ten more days of mild weather. And the very long forecast shows that it will be milder than normal right up to Christmas. Energy analyst Olav Johan Botnen says that electricity prices are abnormally low during the day. Photo: Erik Wiig Andersen Energy analyst Tor Reier Lilleholt in Volue Insight writes that the market expects between 80 and 90 øre on average in all the southern areas in the first quarter of next year. The electricity subsidy will lead to a lower average price than this for consumers. – When the cold comes and consumption increases, the producers will start drawing from the reservoirs and then the value of the water will increase sharply because you can save water at higher prices in winter in the neighboring area. He believes that prices in the east and west will rise “significantly more” than southern Norway, so that the prices will be evened out. And Northern Norway will be some way below. Energy analyst Tor Reier Lilleholt in Volue Insight believes that electricity prices will level out over the winter. Photo: news Published 06.11.2024, at 20.42
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Extreme weather “Jakob” brings low electricity prices – news Vestland
