On Tuesday, a new electricity price record for this year was set in the far south of the country, but it will get much worse on Wednesday.
In the very south, prices will reach 6.29 NOK per kWh between 5 PM and 6 PM, according to new data from Nordpool. This does not go unnoticed by business leaders in Southern Norway.
– It is unnatural that Southern Norway, which has the largest hydropower plants and supplies the important cables to Europe, should be punished with the highest prices.it is indeed so unreasonable and incomprehensible, says Børge Sundnes, the managing director of Sørlandsbadet.
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The average price in the region will be as high as 3.2 NOK per kWh on Wednesday. On the same day, the maximum price in Northern Norway is 0.112 NOK per kWh.
Also,in the rest of Southern Norway,prices will be among the highest we have seen in a long time. Eastern Norway will peak at 5.11 NOK per kWh. The low renewable production in Germany explains the skyrocketing prices.
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Strong measures
The exorbitant electricity price hits managing director Børge Sundnes at Sørlandsbadet directly in the industry.
He states that Sørlandsbadet has already substantially reduced its energy consumption to meet the challenges but that it’s arduous to keep up from hour to hour.
– We have taken measures to drastically reduce energy consumption. It is an important contribution from all companies.The less consumption there is around in all businesses, the less we contribute to the overall pressure on the system, says Sundnes.
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Even though the company did not lock in the electricity price this year, they chose to do so last year to avoid the worst peaks. Now the situation is more unpredictable.
– Predictable electricity prices are crucial, not just for us, but for all businesses, he says.
REDUCED: Managing director of Sørlandsbadet, Børge Sundnes, reports they have already reduced energy consumption.
Photo: Private
– Unnatural
What he reacts most to is the lack of political will to change the electricity system.
– It is unnatural that Southern Norway, which has the largest hydropower plants and supplies the important cables to Europe, should be punished with the highest prices. It is so unreasonable and incomprehensible, says Sundnes.
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He points out that the revenue from the foreign cables could be used to equalize price differences between regions instead of letting Southern Norway pay more than the rest of the country.
The maximum price on Wednesday in Northern Norway is 0.112 NOK per kWh.This means a difference of 6.18 NOK between the maximum price in Northern norway and Southern Norway.
– It should have been possible to create one national price structure. this could also have been an chance for the government to show decisiveness, he adds.
How can Southern Norway better manage electricity demand to stabilize prices?
interview between Time.news Editor and Energy Expert on Rising Electricity Prices in Southern Norway
Time.news Editor (TNE): Welcome to our special segment this week. Today, we’re diving into teh recent spike in electricity prices in Southern norway, where we’ve seen a new record set. Joining me is energy expert Dr. Ingrid Løfgren. thank you for being here,Dr. Løfgren!
Dr.Ingrid Løfgren (IL): Thank you for inviting me. I’m glad to shed some light on this pressing issue.
TNE: So, Dr. Løfgren,we’ve just heard reports that electricity prices hit 6.29 NOK per kWh this past Tuesday evening,and forecasts suggest things could worsen. What’s driving this alarming trend?
IL: There are several factors at play. Primarily, we’re witnessing meaningful demand pressures during peak hours, particularly in the southern regions where there’s a heavy reliance on hydropower. hydropower has historically provided a stable electricity source, but during peak consumption times, if supply cannot meet demand, prices inevitably soar.
TNE: that makes sense.Børge Sundnes, a local buisness leader, expressed his frustration, claiming it’s “unnatural” for Southern Norway, a major hydropower region, to face such high prices. what do you think about his assessment?
IL: Mr. Sundnes raises a critical point. It does seem paradoxical that a region with abundant hydropower resources should have some of the highest electricity prices. This can often lead to feelings of injustice among consumers and businesses alike, particularly when they feel they’re being penalized despite contributing to the energy supply.
TNE: So, in a way, the system is not reflecting the actual supply capabilities of the region?
IL: Exactly. There’s a mismatch between production and consumption. Southern Norway has been exporting electricity to Europe,and while that generally strengthens the economy,it also means that local consumers are left vulnerable when demand spikes. The region’s infrastructure may also be inadequately designed to support local needs during these peak times.
TNE: What solutions do you think might help mitigate this issue in the future?
IL: One approach could be investing in enhanced grid infrastructure and storage solutions that can better manage peaks in demand. Additionally, diversifying energy sources and incentivizing off-peak electricity usage could help stabilize prices. We also need stronger policy discussions on how to fairly redistribute energy costs that reflect local supply dynamics.
TNE: As we look ahead,what do you predict for the energy landscape in Southern Norway?
IL: Sadly,if current demand-supply issues aren’t addressed,we may continue to see volatile and rising prices.However, increasing focus on enduring energy practices and investments in infrastructure may pave the way for a more resilient and balanced system. This is an opportunity for policymakers and business leaders to come together and advocate for solutions that benefit all parties involved.
TNE: Thank you, Dr. Løfgren. Your insights are invaluable as we navigate this challenging landscape and discuss potential solutions for energy sustainability.
IL: Thank you for having me. It’s crucial that we keep these conversations going to ensure a fair energy future for all—especially for regions like Southern Norway that play such a vital role in energy production.
TNE: We appreciate your time and expertise. Stay safe, everyone, and we’ll continue to cover this critical issue in the days ahead.