As reported by the TwójNorwegia.no portal, electricity prices are on average 60% higher than at the beginning of the year. Until now, this phenomenon was not considered to be related to the high demand for electricity. It was indicated, inter alia, higher January exports than usual and dwindling water resources. However, one cannot remain indifferent to the upward trend in electricity consumption, which has continued for 3 years.
Increasingly in demand
According to Martin Andreas Vik from NVE in an interview with NTB, electricity demand is 2,8% higher so far in 2018 than in the same period of 2017. If this trend continues, it will be the third year in a row with the highest demand electric. Experts believe that the reasons for consumption on such a scale include: in a cool spring, and in an ever-growing economy. According to Vik, the increase in the country's population and the growing number of electric cars may also have an impact Norwegian roads.
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Prices up
This year's dry summer brought 40% less rainfall than usual this time of the year. The recent downpours have only slightly helped to replenish the water supplies needed to produce electricity. As the NVE statistics show, the current reserves are able to cover 65,5% of Norway's energy demand.
The first time so expensive in 12 years
Insufficient water resources for production and high demand contributed to record high prices. It is worth noting that a similar situation in August took place 12 years ago. While prices have fallen steadily since then, Vik now does not expect energy costs to return to standard levels quickly.
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Therefore, he appeals to residents Norway has really started to reduce electricity consumption. He also emphasizes that reducing energy demand is particularly important in autumn. It is at this time that central heating systems will start to be turned on, and most of them need electricity to function.
New standards
Vik predicts that prices will most likely return to normal during next summer. He also pointed out that a new "price standard" should be expected. In his opinion, they will not return to the level of December 2017. In line with global trends, electricity production is more expensive, and it is influenced by factors such as stricter climate policy or higher taxes on carbon dioxide emissions. Although almost all electricity production in Norway comes from hydroelectric power plants, the country must contribute to the costs of reducing global warming.
