Low Hydropower Reserves Drive Nordic Electricity Price Spikes
Mind Energy warns that low hydropower reserves and high natural gas prices will cause significant electricity price volatility across Nordic countries this winter.
Electricity prices across the Nordic region are expected to face significant volatility and spikes this winter. Mind Energy reports that a combination of low hydropower reserves and soaring European natural gas prices has left the region vulnerable, with gas prices reaching their highest levels since late 2022.
Water levels in hydropower reservoirs are noticeably lower than normal. In the southernmost Norwegian price area (NO2), reservoir levels have hit their lowest point in 30 years. This hydrological pressure is a primary driver of the price increases observed in October.
The region's vulnerability increases during periods of low wind speeds. In these instances, power prices in Denmark, southern Sweden, and southern Norway become dependent on German gas plants to meet demand, further driving up costs.
