Solar eclipse sends electricity prices soaring in Norway and Europe

A solar eclipse on Wednesday evening triggered a significant spike in electricity prices across Europe, with Norway experiencing the effects in its southern price regions. The temporary reduction in solar power generation during the eclipse, coupled with existing challenges in the European energy market, led to sharp price increases.

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It is obvious that the solar eclipse has contributed to the extra high prices in hour 20 and 21 on Wednesday.

In Norway's southernmost price area, NO2, which is closely linked to the European market, electricity prices reached a peak of 4.37 kroner per kilowatt-hour during the eclipse. In the NO1 price area, covering Oslo and parts of Eastern Norway, prices rose to 2.97 kroner per kilowatt-hour in the most expensive quarter-hour. While Norwegian households benefit from power subsidies, businesses do not, facing the full market price.

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This also spills over from the Netherlands and Germany to the Norwegian price areas NO1 and NO2.

Compounding the energy market's strain, several European nuclear power plants are operating at reduced capacity or have shut down due to low water levels in rivers like the Danube. This issue affects cooling systems essential for nuclear operations, further limiting energy supply. Although the eclipse's impact was somewhat mitigated by occurring in the evening, when solar production naturally declines, it highlighted the market's sensitivity to sudden changes in renewable energy output.

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Solar power is dampened by around 10,000 megawatts during the eclipse on Wednesday evening. That is likely the main reason for the high prices we are seeing.