Precipitation and mild weather have sent electricity prices plummeting at the end of 2019. The outlook for the New Year now looks considerably better than before.
A sudden change of weather with a lot of rainfall and mild weather has completely reversed the market, says energy analyst Marius Holm Rennesund from the Theme Consulting Group to Dagens Næringsliv.
– There has been a turnaround, and only in the last couple of days have the prospects changed dramatically. Winter prices now look much better for consumers, he says.
Only this weekend the electricity price dropped by almost twenty per cent, to around 31 euros per megawatt hour (MWh), Rennesund said. By comparison, the price was around 50 euros at the end of last year.
The mild weather causes the consumption of heating to decrease, while snowmelt and precipitation fill up the reservoirs of the hydropower plants.
On Tuesday morning, the spot price for electricity in Eastern Norway was about 40 øre per kilowatt hour, while at the beginning of December it was more than 60 øre. The total electricity bill consists of the cost of the power used plus fees and grid rent.
© NTB Scanpix / #Norway Today