Statnett cuts Norway power demand outlook, sees lower electricity prices ahead
Statnett's new long-term market analysis predicts weaker growth in Norway's electricity consumption and generation, and forecasts lower power prices over the next five years.
Statnett released an updated long-term power-market outlook that lowers expected growth in both electricity demand and production for Norway in every scenario, attributing the shift to delayed new-capacity projects and a softer outlook for industrial, petroleum and hydrogen consumption. While overall demand growth slows, data-centres are projected to account for a larger portion of the increase. The operator forecasts that electricity prices in Southern and Central Norway will ease to about 42-53 øre per kilowatt-hour during the next five years, mainly because of lower prices in neighboring countries.
Recent months have seen prices above one kroner per kilowatt-hour due to low reservoir levels and limited gas supplies in Europe. Statnett also highlights a narrower price range from 2030 onward, between 32 and 74 øre/kWh, and stresses the need for policy support for offshore wind and possibly nuclear to keep a surplus in the energy balance.
Why it matters
The forecast shapes future electricity costs for households and businesses and signals needed investment in Norway's power system.
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