Snow deficit could result in record high electricity prices

Photo: Erik Johansen / NTB scanpix

A snow deficit in the mountains could give the highest electricity prices ever warned the Norwegian Water Resources and Energy Directorate (NVE).

Electricity prices rose to new record levels in southern Norway on Monday this week. Although increased prices for coal and gas in Europe are important reasons for this, the snow deficit in Norwegian mountains could push the electricity price higher wrote Dagens Næringsliv newspaper.

‘’Currently, we lack a sixth of the snow we usually get during the winter’’ said senior adviser, Martin Andreas Vik, of NVE.

If the prices of coal and gas remain high, and if the snow deficit continues, it could lead to the electricity prices being unusually high in the second quarter.

‘’ The amount of snow tends to have the greatest effect on power prices in the second quarter. We usually get a reduction in power prices when the snow melt is at full capacity, but we are less likely to get such a fall in prices this year’’ said Vik.

However, the snow levels are changing rapidly, and the snow piles can fill up in the next two months, he emphasized.

© NTB Scanpix / #Norway Today