Southern Norway sees highest electricity prices in eleven years

electricityPhoto: Ole Berg-Rusten / NTB

July of 2021 will go down as the month with the most expensive electricity in over ten years for electricity customers in Southern Norwegian. Higher CO2 prices in Europe are part of the reason for the high price of electricity.

Electricity prices in Southern Norway have remained unusually high in 2020. Prices in July are set to be the highest of the year, E24 writes, referring to figures from the Nord Pool power exchange.

” It will be a record high price for July in Southern Norway, there is no doubt about that,” power analyst Tor Reier Lilleholt in Wattsight told the newspaper.

So far in July, the average electricity price has been 60 øre per kilowatt-hour in Kristiansand. That is above the normal price level in the summer. An electricity customer in Southern Norway with a consumption of 600 kilowatt-hours in July will have to pay around NOK 348 for the electricity, excluding grid rent and fees.

Electricity price: 11-year-record

One must go back to the winter of 2010 to find individual months with a higher electricity price than July of 2021, according to historical figures from Nord Pool.

One of the reasons for the high electricity price in Southern Norway is that the price of CO2 quotas in Europe has risen to record high levels. 

That makes fossil power more expensive and provides higher electricity prices in Europe.

“Europe is replacing old coal power with renewable energy, but still does not have enough renewable energy to meet demand. 

“Coal and gas power are becoming more expensive because the CO2 price has become very high,” Lilleholt said.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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