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In July, Norwegian electricity prices were negative for the first time. On Monday evening, electricity customers in southern Norway were again given a few hours at a negative price. At most, you get two øre for every kilowatt hour you use, at least excluding rent and network fees.
Illustration image.
Kjetil Malkenes Hovland, E24
Published:,
Because even if the electricity itself is negatively priced, you still have to pay the grid rent and fees. Therefore, the power was not completely free anyway.
The last time the price of electricity was negative was in July, and then it lasted only an hour. This time the period was longer. The minus prices lasted four hours, from 01 o’clock to 05 o’clock last night.
During these four hours, prices were minus 0.44 øre per kilowatt hour, minus 1 øre kilowatt hour, minus 1.9 øre kilowatt hour and minus 1.5 øre kilowatt hour, respectively, according to the Nord Pool energy exchange.
Only the pricing areas around Oslo and Kristiansand received these prices. In the price zones of Northwest Norway, Central Norway and North Norway, prices were still slightly positive, based on energy exchange.
– This is the second time in history that we see negative prices in southern Norway, says energy analyst Tor Reier Lilleholt at Wattsight at E24.
– The reasons are, among other things, that there has been enormous amounts of precipitation, and then autumn also comes with wind. In addition, more nuclear power will arrive from Sweden after the audit stops this summer. Consumption is also quite low because the temperature is well above normal, he says.
Expect higher prices over time
Lilleholt expects somewhat higher prices during the fall and winter, around 20-25 øre per kilowatt hour. At least if hydropower producers have a normal season, where they have more control over reservoirs than they have had lately and can choose whether to save water in the spring when prices are higher.
Recently, electricity prices have oscillated between 10 and 15 øre per kilowatt hour, after a very abnormal year. Part of the reason has been that there is a lot of water in the reservoirs.
– Did you think in early 2020 that it was possible with negative prices in Norway?
– Actually, it should not be possible in southern Norway, which has a great opportunity to regulate production. It was a bit surprising, but not entirely unthinkable. We saw scenarios where this could happen, says Lilleholt.
Negative also in neighboring countries
– This year has been extraordinary. But these periods of low prices are probably something one should expect more often, because more wind power is being developed in the Nordic region. Offers more volatile prices. But that it should be as low as it is now over a six-month period is quite extraordinary, says Lilleholt.
Also in Sweden, Denmark and Finland, prices were negative between 01 and 05 last night, according to Nord Pool.
– Denmark is used to this, they have negative prices quite often. This is partly because Germany has developed a large surplus of wind power and has limited networks, says the analyst.
– It is southern Norway that experiences this less often, he says.
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