by Energy cannot be stored since it is a perishable resource. It just has to be put to use as soon as it is made. On the Nordic electrical exchange, Nord Pool, electricity is exchanged.
Here, power companies sell their electricity-to-electricityproviders, who then provide the electricity to customers. Many other nations in Northern Europe utilize Nord Pool as an electricity exchange in addition to the Nordic countries.
The day following their establishment, electricity rates take effect. Power producers and suppliers advise the power exchange on the amount of electricity that will be distributed to the various locations the next day. Nord Pool releases the power rates for the next day at 13.00 every day.
Statnett is in charge of overseeing the functioning of the electrical grid in Norway. The Ministry for Petroleum and Energy owns Statnett and is in charge of developing and managing the Norwegian electricity infrastructure.
What elements influence the cost of power today?
We’ll examine the variables that affect power pricing in more detail. It’s an intricate system with several interrelated components.
The price of energy in the modern market is mostly determined by demand as well as supply. Because demand fluctuates throughout the day, prices fluctuate hourly.
The morning hours of 7:00 to 10:00 and the afternoon hours of 17:00 to 20:00 are when the price of power is highest. This is due to the fact that these are the times when Norway uses the most power overall. Elevated demand results in increased cost of power.
Because there is less demand, the best time to get power is often between 2:00 and 5:00 at night. It is consequently advised that those who use electric cars charge them during this time.
The current cost of power is also influenced by the season. Summertime brings a decrease in the demand for electrical energy and a rise in the price of power. power rates increase in the fall and winter due to the increasing demand for power during this time of year to heat houses.
As a growing number of individuals heat their homes with electricity throughout the winter, it can be challenging to cut back on power use. Energy-saving techniques, however, can be somewhat beneficial. For a list of ways to save energy in your home, visit bestestrøm.no/dagens-strømpris, where you can also view the price of the day for your electricity.
One way to achieve this would be to lower the interior temperature at night. Another precaution would be to shut the door and reduce or turn down the thermostat in any areas you don’t frequently use. More drastic options include installing a heat pump or retrofitting the house with insulation.
The main purpose of hydropower in Norway is to generate energy. The price of electricity today will be high if the level of water in the power dams is low and consumption is high. When snowmelt and precipitation increase the amount of water in reservoirs, the cost of electricity will decrease.
Summers in Eastern as well as Southern Norway have been exceptionally dry in recent years.
Because of this, there is now less water within the reservoirs, which has helped to lower the amount of electricity produced in these places.
The price of power at the moment may also be impacted by wind speed. This is a result of Norway using some wind energy to generate electricity. With 22 wind farms, the country of Norway produced approximately eight percent of the nation’s total electricity in 2022. Low wind causes less power to be produced, which can raise the cost of energy.
Global markets for electricity
Higher electricity costs are the effect of low levels of water in the power reservoirs. This is due to the fact that despite strong demand, electricity output must be decreased.
Norway is a member of a wider power market, thus the price of energy in other European nations will also affect the price of electricity in Norway at the moment. Either directly or indirectly, it occurs.
Around 85% of the continent’s electricity usage is sold through the Nord Pool electricity market, where up to 19 different European nations trade electricity.
Norway’s power rates are significantly influenced by the price of gas and coal throughout Europe. Production of electricity is dependent on the price of its raw resources, coal, and gas, and it decreases when their prices rise. Higher electricity costs will result from this.
The invasion of Ukraine by Russia has also significantly affected the cost of power.
Significantly fewer gas exports from Russia to several European nations resulted in astronomically high gas and energy costs. This resulted in a severe energy crisis throughout Europe, which had an impact on Norwegian prices as well.
Up until the country of Norway has a significant supply of new power and Europe continues to become increasingly independent of Russian gas, the shortage of energy with excessively high electricity costs can go on.
The reality that there is frequently more rainfall in the north compared to the south contributes to the pricing discrepancies between the two regions. Reduced precipitation implies less fuel for the southern power reservoirs, which raises the cost of energy.
In addition, the south of the nation has a greater need for power than the north, particularly during the winter’s harsh months.
The price of power today might also be influenced by your electrical supplier
The many energy suppliers (https://www.eia.gov/tools/glossary/) on the market may have quite diverse prices for their power bills. This is true even if energy providers buy power from the electrical market at the precise same spot price for their clients.
Many providers mark up the cost of power that they sell to their clients. This is an additional payment in addition to the local power rate. Since the premium differs among market participants, making sure you have a power arrangement with the lowest markup feasible is advised.
It’s a good idea to periodically compare the cost of your power plan to that of other available options.
