How long could the dip in energy prices in Norway last?
Several parts of the country saw significant dips in energy prices in October compared to previous months. But how long will the trend last, and when will power costs shoot back up?
A wet and warm autumn has contributed to lower energy prices in Norway throughout October.
Plenty of rainfall, along with reduced consumption and lower prices in Europe, meant that in Oslo in October, the average spot price for energy was 1.32 kroner per kilowatt hour (kWh), according to figures from the energy exchange Nord Pool.
This is down significantly from previous months when the average energy price was 3.55 kroner in September and 3.51 kroner in August in Oslo.
Due to the rainfall, reservoirs in Norway, which the country relies on for its energy needs, have risen significantly throughout October, leading to lower prices. Similarly, low reservoir filling levels have contributed to high energy prices in southern Norway for over a year.
Lower prices were also recorded throughout October in other parts of the country, such as the west, south and southwest, where energy prices have been high for over 12 months.
The good news for consumers and those who have struggled with high bills over the past year is that the price dip is likely to continue in the short term, at least.
However, prices will likely return to exceptionally high levels at the turn of the year, according to energy analyst Tor Reier Lilleholt.
“In January and February, the market expects the price to be between 3.5 and 4 kroner,” he told Norwegian newswire NTB.
In addition, high prices could also return if temperatures in Norway are more in line with seasonal averages rather than abnormally warm. This is because colder temperatures would lead to more energy consumption as people heat their homes, driving up prices.
A cold snap on the continent could also affect energy prices there, which in turn feed into Norwegian energy prices due to the presence of power export cables in the Nordic country linking Norway to the European market.
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A wet and warm autumn has contributed to lower energy prices in Norway throughout October.
Plenty of rainfall, along with reduced consumption and lower prices in Europe, meant that in Oslo in October, the average spot price for energy was 1.32 kroner per kilowatt hour (kWh), according to figures from the energy exchange Nord Pool.
This is down significantly from previous months when the average energy price was 3.55 kroner in September and 3.51 kroner in August in Oslo.
Due to the rainfall, reservoirs in Norway, which the country relies on for its energy needs, have risen significantly throughout October, leading to lower prices. Similarly, low reservoir filling levels have contributed to high energy prices in southern Norway for over a year.
Lower prices were also recorded throughout October in other parts of the country, such as the west, south and southwest, where energy prices have been high for over 12 months.
The good news for consumers and those who have struggled with high bills over the past year is that the price dip is likely to continue in the short term, at least.
However, prices will likely return to exceptionally high levels at the turn of the year, according to energy analyst Tor Reier Lilleholt.
“In January and February, the market expects the price to be between 3.5 and 4 kroner,” he told Norwegian newswire NTB.
In addition, high prices could also return if temperatures in Norway are more in line with seasonal averages rather than abnormally warm. This is because colder temperatures would lead to more energy consumption as people heat their homes, driving up prices.
A cold snap on the continent could also affect energy prices there, which in turn feed into Norwegian energy prices due to the presence of power export cables in the Nordic country linking Norway to the European market.
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