Norway plans to limit electricity exports to avoid shortages - Bloomberg

09 August 2022, 01:50 | Economy
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Norway prepares to curtail electricity exports in a first sign of the test Europe's cross-border solidarity will face this winter amid the energy crisis..

Energy Minister Terje Asland said on Monday that when temperatures fall below the seasonal average, filling reservoirs will take priority over generating electricity..

Norway is one of the largest European exporters and sells about a fifth of its electricity to its neighbors. Meanwhile, low water levels in southern Norway mean the government should act now to prevent domestic shortages this winter..

" The ministry will work this week to lay the groundwork so that this mechanism can be launched as soon as possible.. [see_also ids\u003d"

As Europe's energy crisis escalates, any restrictions will be another blow to countries on the continent that rely on cheap Norwegian hydroelectric power.. One of the countries most dependent on Norwegian exports is the UK..

Any restrictions could drive up already high prices and force British electricity and gas utility National Grid Plc to draw on its strategic coal-fired reserve, Aurora Energy Research said in a note..

Asland and Prime Minister Jonas Gahr Store met with parliamentary leaders on Monday morning to brief them on the situation on the electricity market, and once the summer break is over, MPs can start addressing the issue.

Norway gets almost all of its electricity from its own vast hydro resources.. Historically, a country can export huge surpluses and still have some of the lowest prices in Europe. But after a spring drought, hydro reservoirs in the worst-affected area are 49.3% full, compared to an average of 74.9% over the past 10 years..



At the same time, according to Asland, there is now more water in water bodies in Norway than preliminary forecasts indicated for the beginning of autumn.. Therefore, the likelihood of the need to ration electricity in winter is “low,” he added, referring to the forecasts of the NVE regulator..

Earlier it was reported that the European network of operators of the electricity transmission system ENTSO-E allowed an increase in the export of Ukrainian electricity to Europe by 2.5 times.




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