Kraft Director predicts low electricity prices over the next two years

ElectricityElectricity.Photo: Norway Today

Electricity prices will fall over the course of the next two years. Then, electric cars will contribute to a 50% rise in prices by 2025, according to Norway’s biggest energy provider, Los Energy.

Los Energy has responsibility for a customer portfolio of over 22 terawatt hours (TWh) in the Nordic countries, equivalent to the annual consumption of about 1.3 million households. They predict historically low electricity prices until 2019, wrote Dagens Næringsliv newspaper.

‘Electricity prices up to summer will fall by 20 to 21 øre (1 øre = 100th of a kroner) on average. For the whole of 2017, the utility bill will be almost the same as last year.

And next year, and in 2019, falling price averages will push prices down further by an average of around 20 øre. From a historical perspective, this is low’, said Andreas Myhre, director of power trading in Los Energy.

But after 2020, electricity prices will rise again, and will probably remain at 30 øre per kilowatt an hour until 2025’, according to Myhre’s calculations.

‘After 2020, there will be declining production of nuclear power in Sweden, and accelerating growth in consumption of everything from planned data centers, to the electrification of shopping, and the charging of electric vehicles.

The market believes that the electricity rate will rise by around 30 øre by 2025, which we must remember is still,historically, quite low’, said Myhre.

‘But in the longer term, market forces will help to equalise the Nordic price levels with those of other countries. There is no reason to fear some kind of commodity boom of electric power prices’, said Myhre.

 

Source: NTB scanpix / Norway Today

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