Oslo and Bergen to benefit from 'free' electricity
For only the second time on record, price zones in Norway will have negative prices for a whole day on Monday.
On Monday, residents in Oslo (zone NO1) and Bergen (zone NO5) will see electricity prices range between zero and minus 3 øre/kWh (before grid rent and other fees are factored in), as reported by Europower.
READ MORE: Is energy in Norway really 'free' when prices enter negatives?
The first time on record that entire price zones in Norway reported negative electricity prices for a full day was on August 8th, in the wake of Storm Hans.
The negative prices in Oslo and Bergen are linked to the heavy rainfall in recent weeks.
The NO1 zone has overflowing water reservoirs and must produce at the maximum just remove excess water.
In central Norway (zone NO3) and northern Norway (zone NO4), the spot price will average just under 8 øre/kWh on Monday (grid rent and fees excluded).
These price areas will see negative prices for a total of nine hours on Monday: from midnight until 5 am and also from 9 pm until midnight.
Higher prices in Kristiansand
The price difference between Oslo and Kristiansand (zone NO2) has received much media attention lately. According to Europower, the price difference has become bigger and bigger.
Measured as a percentage, it was the largest on record in August.
On Monday, the average price in Kristiansand will be 94 øre/kWh. The difference between Oslo and Bergen on the one hand and Kristiansand on the other will thus be a whopping 96 øre/kWh.
How do negative energy prices work?
When electricity prices fall below zero in a part of Norway, the residents of the area in question "get paid" for using electricity, as energy producers have to pay to sell electricity.
However, even with negative prices, energy producers in Norway have previously explained that it makes more sense for them to produce when prices are barely negative than to stop production altogether.
Even though the spot price is slightly in the red in some parts of the country, companies are still able to make money from green electricity certificates.
Usually, negative prices don't last long, as supply and demand are quickly balanced out.
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On Monday, residents in Oslo (zone NO1) and Bergen (zone NO5) will see electricity prices range between zero and minus 3 øre/kWh (before grid rent and other fees are factored in), as reported by Europower.
READ MORE: Is energy in Norway really 'free' when prices enter negatives?
The first time on record that entire price zones in Norway reported negative electricity prices for a full day was on August 8th, in the wake of Storm Hans.
The negative prices in Oslo and Bergen are linked to the heavy rainfall in recent weeks.
The NO1 zone has overflowing water reservoirs and must produce at the maximum just remove excess water.
In central Norway (zone NO3) and northern Norway (zone NO4), the spot price will average just under 8 øre/kWh on Monday (grid rent and fees excluded).
These price areas will see negative prices for a total of nine hours on Monday: from midnight until 5 am and also from 9 pm until midnight.
Higher prices in Kristiansand
The price difference between Oslo and Kristiansand (zone NO2) has received much media attention lately. According to Europower, the price difference has become bigger and bigger.
Measured as a percentage, it was the largest on record in August.
On Monday, the average price in Kristiansand will be 94 øre/kWh. The difference between Oslo and Bergen on the one hand and Kristiansand on the other will thus be a whopping 96 øre/kWh.
How do negative energy prices work?
When electricity prices fall below zero in a part of Norway, the residents of the area in question "get paid" for using electricity, as energy producers have to pay to sell electricity.
However, even with negative prices, energy producers in Norway have previously explained that it makes more sense for them to produce when prices are barely negative than to stop production altogether.
Even though the spot price is slightly in the red in some parts of the country, companies are still able to make money from green electricity certificates.
Usually, negative prices don't last long, as supply and demand are quickly balanced out.
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