Southern Norway faces record-low reservoir levels and soaring electricity prices
Reservoirs in southern Norway have hit new lows, pushing wholesale electricity prices above 1.5 kroner per kilowatt-hour and threatening higher costs for businesses.
The southern Norwegian power system is experiencing unprecedented low water levels in its reservoirs, a situation that has driven wholesale electricity prices to exceed 1.5 kroner per kilowatt-hour. The most critical area, the NO2 region covering Agder, Rogaland, Telemark and Vestfold, is markedly below its typical seasonal fill. Ongoing net exports of roughly 6 TWh in August and a cumulative 20.9 TWh since May have depleted domestic reserves.
While the regulated price protects households, the higher market price is passing directly to the business sector. Western Norway’s rainy summer has only modestly improved storage in adjacent regions, and the export-focused use of interconnector cables is cited as a key factor in the shortage. Authorities warn that without significant rainfall, the region could face sustained high electricity costs through the winter.
