How much does power cost in Norway?

The mean annual Norwegian power price from the Monte Carlo simulations is estimated to be 39 ± 4 €/MWh and long-term price levels below 23 €/MWh or above 50 €/MWh seem highly unlikely in an average weather year.

How does power trading work in Norway?

Power trading thus moderates price rises in Norway in winter, and maintains higher summer prices. In the same way, power trading provides access to relatively low-cost power in dry years, and increases the value of Norwegian electricity in years when there is a surplus of power in the domestic market.

Will fossil fuel costs affect electricity prices in Norway in 2040?

Electricity prices remain strongly affected by fossil fuel costs to 2040. The 2040 power price in Norway is modelled to be 39 ± 4 €/MWh. Market value of Norwegian hydropower is 34% higher than the average power price. Seasonal patterns for solar PV give <3% probability of revenues higher than the LCOE.

Does Norway have hydropower?

Hydropower accounts for most of the Norwegian power supply, and the resource base for production depends on the precipitation in a given year. This is a significant difference compared to the rest of Europe where security of supply is mainly secured through thermal power plants, with fuels available in the energy markets.

Does Norway have a power market?

Today, Norway is part of a joint Nordic power market with Sweden, Denmark and Finland, and this is in turn integrated into the European power market through interconnectors to Germany, the Netherlands, Estonia, Poland and Russia. Because of these interconnectors, power can be consumed where it is most needed.

Why are Norway's electricity prices so high?

Norway’s trading capacity with other countries is high, and price levels in Norway are therefore strongly influenced by the cost of producing electricity in thermal power plants, and especially by the prices of coal, natural gas and emission allowances.