What does the state of Norway's water reservoirs mean for you?
Roughly 90 percent of Norway's electricity output comes from hydropower, and the country is reliant on well-filled reservoirs to meet its energy needs in winter months when the demand peaks. In Norway, around 90 percent of power is generated through hydropower. Therefore, full water reservoirs are very important for energy production in the country – especially in the winter months.
Reservoir filling levels also affect energy prices in Norway. Higher levels mean lower energy prices while depleted reservoirs mean higher prices for consumers.
According to a report published on Wednesday by the Norwegian Directorate of Water Resources and Energy (NVE), power imports, low production, and wet weather have contributed to a sharp increase in the degree of filling of the water reservoirs in the south of Norway.
That means that Norway will face the winter with more available power, the NVE noted.
"A warm and wet autumn was exactly what we needed this year. This is good news for water reservoir filling (levels) and the power situation this winter," the director of the NVE's energy and licensing department, Inga Nordberg, noted in a press release.
Steady increase
Last week, reservoir filling levels in the south of Norway increased by 1.9 percentage points. Over the previous five weeks, the increase amounted to 14 percentage points.
"Southern Norway has rarely experienced such a sharp increase in reservoir filling as we have seen in October. In all parts of the country, reservoir filling is now higher than at the same time last year," Nordberg says.
In addition, power producers in the south of the country continue to conserve water. Last week, less power was produced than normal for the time of year, and Norway was a net importer of power.
In October, power production in the south was 34 percent – one third – lower than the average for the past five years, the NVE ads.
"When less power is produced in Norway, part of the consumption is covered by imports. That also helps out reservoir filling rates," Nordberg says.
Good news for consumers
The above-average filling of water reservoirs in October is also good news for consumers, as Norway will be able to enter the winter periods with more available energy, which is also expected to affect price developments positively.
Furthermore, that means the odds of energy rationing in the country being necessary this winter have also decreased.
More good news is the effect of fuller reservoirs on prices can be felt in the cost of energy. In October, the spot price in Oslo was 1.32 kroner per kilowatt hour. A month before, the price was 3.51 kroner per kilowatt hour. A similar dip in prices was also seen in other parts of the country where prices have been high over the past year, according to figures from energy exchange Nord Pool.
This dip in prices could likely continue until the new year, power analyst Tor Reier Lilleholt at the analysis company Volue Insight told Norwegian newswire NTB.
At the turn of the new year, prices were likely to return to the high levels seen in Norway over the past year.
"(In) January and February, the market expects the price to be between 3.5 and 4 kroner," he said.
Comments
See Also
In Norway, around 90 percent of power is generated through hydropower. Therefore, full water reservoirs are very important for energy production in the country – especially in the winter months.
Reservoir filling levels also affect energy prices in Norway. Higher levels mean lower energy prices while depleted reservoirs mean higher prices for consumers.
According to a report published on Wednesday by the Norwegian Directorate of Water Resources and Energy (NVE), power imports, low production, and wet weather have contributed to a sharp increase in the degree of filling of the water reservoirs in the south of Norway.
That means that Norway will face the winter with more available power, the NVE noted.
"A warm and wet autumn was exactly what we needed this year. This is good news for water reservoir filling (levels) and the power situation this winter," the director of the NVE's energy and licensing department, Inga Nordberg, noted in a press release.
Steady increase
Last week, reservoir filling levels in the south of Norway increased by 1.9 percentage points. Over the previous five weeks, the increase amounted to 14 percentage points.
"Southern Norway has rarely experienced such a sharp increase in reservoir filling as we have seen in October. In all parts of the country, reservoir filling is now higher than at the same time last year," Nordberg says.
In addition, power producers in the south of the country continue to conserve water. Last week, less power was produced than normal for the time of year, and Norway was a net importer of power.
In October, power production in the south was 34 percent – one third – lower than the average for the past five years, the NVE ads.
"When less power is produced in Norway, part of the consumption is covered by imports. That also helps out reservoir filling rates," Nordberg says.
Good news for consumers
The above-average filling of water reservoirs in October is also good news for consumers, as Norway will be able to enter the winter periods with more available energy, which is also expected to affect price developments positively.
Furthermore, that means the odds of energy rationing in the country being necessary this winter have also decreased.
More good news is the effect of fuller reservoirs on prices can be felt in the cost of energy. In October, the spot price in Oslo was 1.32 kroner per kilowatt hour. A month before, the price was 3.51 kroner per kilowatt hour. A similar dip in prices was also seen in other parts of the country where prices have been high over the past year, according to figures from energy exchange Nord Pool.
This dip in prices could likely continue until the new year, power analyst Tor Reier Lilleholt at the analysis company Volue Insight told Norwegian newswire NTB.
At the turn of the new year, prices were likely to return to the high levels seen in Norway over the past year.
"(In) January and February, the market expects the price to be between 3.5 and 4 kroner," he said.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.