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🇳🇴 Norway /Energy & Infrastructure

Cheap electricity in northern Norway may end within a few years, expert says

From Aftenposten · () Norwegian

Translated from Norwegian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • An analyst forecasts that electricity prices in northern Norway will rise toward 2030 and approach levels elsewhere in the Nordic region.
  • Data centers, the electrification of Melkøya and previously approved grid connections are expected to consume much of the region’s power surplus.
  • Statnett halted new industrial connections north of Svartisen in April, but the analyst said the measure would not prevent demand from increasing substantially.

Northern Norway’s era of exceptionally cheap electricity may be nearing its end. A shrinking power surplus and fast-growing industrial demand are expected to push prices higher toward 2030.

“We have a forecast showing that prices will move upward toward 2030 and come closer to the rest of the Nordic region,” said Anders Strand Ryssdal, an analyst at Thema, according to Europower.

We have a forecast showing that prices will move upward toward 2030 and come closer to the rest of the Nordic region.

· Anders Strand RyssdalThe Thema analyst described the expected rise in northern Norway’s electricity prices.

For years, the region’s large electricity surplus kept prices low. That trend is now turning. Statnett introduced a halt in April on new industrial grid connections north of Svartisen, but Ryssdal said the decision would not solve the underlying problem because many projects had already secured access to the network.

Even though there is now a connection halt, many have already been granted access to the grid. Consumption is expected to increase significantly. That will cause the power surplus behind the very low prices to disappear.

· Anders Strand RyssdalRyssdal explained why Statnett’s restriction on new industrial connections may not prevent price increases.

Demand is expected to rise significantly, eroding the surplus that has supported the region’s very low prices. Data centers and the electrification of Melkøya are expected to consume much of the excess before 2030, while little new power generation is being built.

“No one foresaw the data centers,” Ryssdal said, noting that building transmission networks takes eight to 15 years. Developments in Sweden and stronger grid links are also expected to push prices closer to levels elsewhere in the Nordic region.

No one foresaw the data centers.

· Anders Strand RyssdalThe analyst pointed to unexpected data-center demand and the long time required to expand transmission capacity.
About this summary

Originally published by Aftenposten in Norwegian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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