Page 8 - EurOil Week 50 2021

EurOil POLICY EurOil

South Norway risks power deficits

amid increased electrification

NORWAY NORWAY’S south could be struggling with a is also growing opposition to new wind power
power deficit as well as 2026 as an increasing projects in Norway and space is limited for new
Norway’s power surplus number of offshore installations become elec- hydropower plants as well.
will be eroded away trified, according to a report by grid operator Combined power production in the Nor-
over the next six years. Statnett. dic countries, which share an electricity
Oil and gas producers working off Norway market, is due to rise by 40 TWh by 2026,
have electrified platforms in order to reduce according to Statnett, which is in step with
direct emissions from their operations. These demand growth. The market has traditionally
platforms are supplied with onshore power, most enjoyed lower power prices than continental
of which is generated at hydroelectric dams, Europe, but has recorded record high prices
rather than using onsite diesel and natural gas- this year owing to low water levels, weak wind
fired generators. power output and the prevailing market trend
Power demand in Norway is set to grow to in Europe.
158 TWh by 2026, up by 19 TWh from the cur- According to Statnett, prices in south Norway
rent level, Statnett said in a market analysis pub- have averaged around €100 ($113) per MWh
lished last week. The driving force behind this since September, while prices in north Norway
growth is increasing consumption from oil and have averaged under €40 per MWh. The dispar-
gas platforms, as well as the emergence of new ity is partly the result of bottlenecks in transmis-
onshore consumers such as data centres. sion capacity, Statnett said. While prices should
As a result of these trends, Norway’s annual subside, they will remain higher than over the
power surplus is projected to shrink from 15 last decade, with prices in south Norway falling
TWh at present to only 3 TWh in 2026. And to €55 per MWh and in north Norway to €25 per
southern Norway is set to be experiencing the MWh by 2026.
deficit by then. The major electrification projects “The trend towards lower power prices is pri-
in the pipeline include ones at Troll, Norway’s marily due to the fact that gas and coal prices are
largest gas field, and Johan Sverdrup, its biggest expected to fall back to more normal price levels,
oilfield. which directly reduces power prices in Europe
While power demand continues to rise, there and in Norway,” the operator said. ™

P8 www. NEWSBASE .com Week 50 16•December•2021