The case in summary Electricity prices in Norway are expected to fall towards the summer due to full gas stocks in Europe. The mild winter in Europe has contributed to full gas stocks, which has led to lower gas prices. Lower gas prices contribute to lower electricity prices. Another factor that contributes to lower electricity prices is rising temperatures, which lead to lower electricity consumption. The average price for electricity may drop to 40 øre, according to power analyst Marius Holm Rennesund. Electricity prices are expected to rise again after the summer and into winter, with an average of around 80-90 øre. In 2023, the average electricity price in Norway was 64 øre per kilowatt hour. That is less than half the price of the previous year, which was a record year. And the trend of lower electricity prices looks set to continue this year as well. Because the winter in Europe has been mild. This has led to the gas reservoirs being full. Gas prices are now only a tenth of what they were at their worst in autumn 2022, when electricity cost up to six kroner in Norway. This with gas is one of the reasons why electricity prices are now lower. You can learn why this is so by scrolling through the box below: Good weather forecasts Another reason for the price drop in electricity is that consumption is lower now that temperatures are starting to rise in the country. – The worst winter cold has probably given way for this season, says state meteorologist John Smits. State meteorologist John Smits says spring temperatures will soon arrive. Photo: Tore Meek / NTB This means: Lower electricity consumption and cheaper electricity. – Globally speaking, the winter months this season have been some of the warmest that have been measured, says Smits. Fear of cold: Produced a lot of gas A lot of gas was produced before winter for fear that it would get cold. This has led to gas prices falling sharply, due to a lot of gas in circulation. – You have made a lot of profit and gas prices can also be quite low this summer, says Tor Reier Lilleholt, head of analysis at Volue Insight. And when gas prices stay low, it therefore leads to lower electricity prices. Full gas stocks give optimism for low electricity prices going forward. Here from the Kollsnes processing plant in Vestland county. Photo: Brynjar Osgjerd Expects prices down to 40 øre Marius Holm Rennesund is a power analyst at Thema Consulting. He predicts lower electricity prices in the future. – We expect prices to go down through the spring, he says. Power analyst Marius Holm Rennesund in Thema Consulting. Photo: Hallvard Norum Today’s electricity prices in Norway are on average between 60 and 70 øre. Holm Rennesund believes the average price may drop to 40 øre before long. The period with the very highest electricity prices may be history, he says. – It looks significantly better now. It will take some time to get into such a tight spot as we were during the crisis years with high electricity prices, says the analyst. 25 øre in Northern Norway That’s exactly what Lyse energi’s communications manager, Atle Simonsen, hopes too. – We had a year where we lost a lot of gas from Russia, at the same time as we had a dry year. In addition, nuclear power in Finland and France had to be turned off, he says. Atle Simonsen is communications manager at Lyse Energi. He also believes that 2024 will be a year of cheaper electricity. Photo: Odin Omland / news These events helped drive electricity prices up in 2022. Towards spring and summer, he believes these will be the general electricity prices in the country: Southern Norway: 60 to 70 øre Central Norway: 40 øre Northern Norway: 25 øre – After the summer, electricity prices will rise. Towards winter and next year, the average will probably be around 80–90 øre, says Simonsen in Lyse.
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Probably cheaper electricity this year than last year. Gas stocks and temperatures are the reasons – news Rogaland – Local news, TV and radio
