According to Johan Sigvardsson, electricity price analyst at the electricity trading company Bixia, the weather has been really, really favorable for electricity price production for some time now. Rain in Norway, wind in Germany and then sunny at that.
— The water reservoirs in Norway are full, and the hydropower producers are pressing on with production, because they know there will be more rain. It has been very windy since then, he says.
There has simply been an overproduction of electricity, and that has made prices really low, even negative in Europe at times.
— We import electricity from Germany, because electricity is cheaper there. It can take place over a number of hours now.
The super low prices are expected to last this week and next. According to Bixia, the average price for next week is expected to land at 5 öre per kWh.
The question is whether it is time to celebrate the end of the electricity crisis.
— No, you can’t say that. But the conditions are much better now than last autumn.
The power stored in the water reservoir means 30 terawatt hours, which corresponds to the difference in electricity consumption between a cold winter and a normal winter, he explains. That means we have a margin now.
— It has calmed down the market. The expectation now is that the electricity price will be on average 65 öre per kWh during the first quarter of 2024. Last year at this time, the expectation was 5 kroner per kWh, says Johan Sigvardsson.