Electricity expert says we may face challenges with increased electricity prices next spring, but that this summer we have enough to get by.
(Nettavisen) – We still have enough water, and there is no talk of empty reservoirs right now. When prices become high, we must ensure that we do not export too much, says power expert Tor Reier Lilleholt at Volue Insights.
In June, a temporary ceasefire was signed between the USA and Iran. After this, the Strait of Hormuz was briefly opened.
Last week, Iran stated that it would close again until the USA stops the attacks. As a result, the International Energy Agency (IEA) warned on Friday that a global energy crisis could occur within weeks.
The USA and Iran must increase oil shipments through the strait quickly, otherwise it will become difficult for the whole world, the IEA believes.
Prices rise as a result of the situation
Lilleholt says prices are rising due to the conflict in the Strait of Hormuz.
– In Norway, electricity is most dependent on rainfall in the autumn. We still have time; for now reservoirs are low but prices will still be around 1.20 kroner in Southern Norway, otherwise it will fluctuate weekly across the country.
He says investments in wind and solar power in Europe have been massive, and that Norwegians benefit from these.
– In the hours when there is no renewable energy in Europe, prices also become more expensive in Norway. That is the situation now. It is an uncertain time regarding how the conflict will affect electricity prices in Europe.
Our main problem
Lilleholt says the main problem in Norway is water shortage, but the situation is not critical right now.
– There will always be light in the light bulb in Norway.
He further says that our power system is designed to adapt to variations in, among other things, water reservoir levels, and that we still have more production than consumption.
– The decisive factor will be the autumn months and rainfall. It could become critical next spring if there is not much rain in autumn. Then some consumers may have to ration their consumption, and prices will increase.
Lilleholt predicts large fluctuations of up to seven to ten kroner per kilowatt-hour.
– But average prices will not reach that level.
Huge bill for the government
Lilleholt further says that Norgespris has a real impact on whether Norwegians notice changes in electricity prices, but that the state will pay a huge bill for the increase in electricity prices.
– Business and industry will also face high bills if they have not secured themselves with long-term contracts.
The power expert further explains that electricity prices in summer are close to what one can expect in winter.
– One uses the reserves for winter, and there is always enough water to cover the consumption needed in summer.
