Under political pressure from high local electricity prices despite abundant hydropower resources, Norway’s centre-left government decided on Monday to prioritize topping up its reservoirs when water levels are below seasonal averages. Norway is one of Europe’s biggest electricity exporters, often selling via cables to the UK, Germany, the Netherlands and Denmark. This latest move portends a tough winter for the continent as it deals with the energy supply implications of Russia’s invasion of Ukraine. “The government will ensure that we have arrangements that prioritize the filling of our hydroelectric reservoirs and the security of electricity supply and limit exports when the water level in the reservoirs drops too low,” Terje Aasland, oil minister and energy of Norway. , he told the political parties on Monday. Norway exports electricity throughout its summer, even though many hydropower reservoirs are at historically low levels after a dry winter and spring. The water level in southern Norway – where most of its export cables are based – is at its lowest level since 1996, at just 49.3%, compared to a seasonal average of 74.4%, according to the Norwegian Water Resources Directorate and Energy. Ashland said officials would decide the exact mechanism next week, but suggested that when reservoir levels were below the seasonal average, exports would be limited. He added that the distribution of electricity – initially for street lights and mountain cabins – was a possibility in Norway, although unlikely, even though the situation was “tight”. Some Norwegian politicians have proposed halting exports until the energy crisis is over, amid anger over high prices for domestic consumers, even as the state earns record amounts from selling energy. Authorities said this was not possible as Norway, although not a member of the EU, is part of Europe’s single energy market and has bilateral agreements covering the cables. While in many European countries electricity demand has largely either leveled off or fallen since 1990, Norway’s domestic energy consumption has risen nearly 25 percent over the same period as it has curbed fossil fuel use and encouraged electric car ownership. Other major European electricity exporters, notably France, are facing production problems of their own. Output from France’s large fleet of nuclear reactors has hit multi-decade lows due to problems such as corrosion in older units. The prospect of restrictions on electricity exports from Norway will raise further questions about electricity security in many countries this winter, including the UK. An undersea power cable between Britain and Norway opened last year with a potential export capacity of 1.4 gigawatts, equivalent to 2 to 3 percent of expected British demand this winter. Analysts at Aurora Energy Research, a UK-based consultancy, said Britain may need to fire up coal plants due to be retired next month to make up for a shortfall in Norwegian imports – a move that would likely lead to more higher prices for Consumers.
