– It’s just a look at the past two years we’ve been through. We came from almost zero last year, and we’re now hitting very new highs almost every week, says electrician and head of analysis Tor Reier Lilleholt at Volue Insight to TV 2.
He points to climate change as an explanation for higher prices, and says people should be prepared for the fact that there will still be significant price swings in the future.
– Lilleholt explains that it’s part of the major climate changes we’re experiencing in a green shift that causes prices to change dramatically from time to time, because we depend on the weather and there are big changes all over the world.
Price hike expectations: Electricity expert and head of analysis Tor Reier Lilleholt at Volue Insight predicts that electricity prices will continue to rise over the next five years. Photo: Volue Insight
He was today’s work (DN) first mentioned the case, with Lilleholt saying it could take five years before significant price swings stabilize at around 50 øre per kilowatt-hour.
Distinguish the entire market
Climate and new energy policies in the EU and Europe also characterize the Norwegian market.
Energy giant Germany has begun shutting down the country’s nuclear power industry, and was a vocal opponent of the proposal to consider nuclear power plants “green” during the COP26 climate summit in Glasgow last month.
During 2021 and 2022, Germany will shut down 100 TWh, which is roughly equivalent to Norway’s production through hydropower. Lilleholt explains that it has only been two years since coal and nuclear power have been used, and it is clear that they will create a different balance in the entire European energy market.
One terawatt-hour (TWh) is equivalent to one billion kilowatt hours. Annual consumption in Oslo is currently about 18 TWh, which is 15 percent of Norway’s annual consumption, according to DN.
At the same time, there are targets in the European Union to build approximately 100 TWh of new renewable energy each year, but we cannot build more than 50. Therefore, there is an imbalance when shutdown occurs faster than the time it takes to build new , he says.
Expensive: More people could get a price shock when they receive their November electric bill. It could be a normal affair according to the electrician. Photo: Goran Jorganovich / TV 2
Gas price hike
Norway is not a member of the European Union, but it cooperates with the European Union on a number of energy policy issues. In 2018, Norway also joined the European Union’s agency for energy cooperation in Europe, Acer, through the third package for the EU energy market. In addition, Norway agreed to build one New UK-Norway power cable for power sharingNorth Sea Link Calt.
– We are getting closer and closer to a common European market where we have cables that connect each other. If it’s a little too late with renewable energy, Lilleholt explains, there will be an imbalance and prices will be more dependent on the gas market.
At the same time, the electrician points out that higher gas prices are also good for Norway, because we are an oil country and we earn a lot from selling oil and gas abroad at high prices.
— There are different ways to tune it, he says.
Nor does Lilleholt think politicians will withdraw from cooperation with the EU now.
“I think it’s very difficult to do something with this market because it is invested in both cables and power systems based on the conditions in the market,” he says.
– But it is clear that if you have additional production here as profits, it is important that you also use a number of investments in depreciation.
Record sales of firewood
Exorbitant electricity bills have also caused more Norwegians to invest in burning wood to stay warmer this winter. Since September, there has been a record increase, and so far this winter, timber sales have been three times higher than normal.
norwegian firewood center He says they are now out of birch wood due to increased demand, and Norwegians may risk paying up to 1,000 kroner for a 1,000 liter bag at Finn.no.
Record sales: Timber sales have tripled compared to previous years. Exorbitant electric bills must be a big part of the reason. Photo: Terje Bendiksby / NTB
Clarify the laws
Prime Minister Jonas Gahr Store (Labour) promised to clarify power before Christmas.
Power clearing: Prime Minister Jonas Gahr Store (Labour) said the government is working to clear power before Christmas. Photo: Ingvild Gjerdsjø/TV 2
It’s a condition that affects many people. This is a situation we haven’t seen in 25 years. We will provide assistance to those who have been particularly affected, Store said on Sunday.
We must create accurate charts regarding the people who are hardest hit by ordinary families. We are working on it, but it will take some time.
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