Norway 'very unlikely' to face power rationing despite low reservoirs, regulator says
20/09/2022 14:43
By Nora Buli
OSLO, Sept 20 (Reuters) - It is "very unlikely" that Norway
will need to ration power this winter despite record-low
reservoir filling levels in the hydropower-dependent region, the
head of energy regulator NVE told Reuters.
"Rationing is not a main scenario and is very unlikely to
happen," Kjetil Lund said in an interview but added it was
important to avoid being "nonchalant" about the matter.
Hydropower accounts for more than 90% of Norwegian
electricity production, but the driest 12-month period in 26
years in southern Norway has depleted reservoir levels to record
lows.
European gas and power prices have soared to unprecedented
highs this year, after Russia curbed gas supply and nuclear and
hydropower generation disappointed in several markets.
"The uncertainty around us suggests that it will be a good
strategy for Norway to avoid heading into this winter with too
low reservoir filling levels," Lund said.
NVE has asked producers to save water for power generation
this winter and the centre-left Norwegian government is planning
to legislate for tighter regulation, which would ultimately
limit power exports. urn:newsml:reuters.com:*:nL8N3003J0
In the unlikely event of any rationing, this would not come
on a cold, dark day in January, but before the snow melt can
replenish water stocks in April or May, Lund said.
Still, Norway has to strengthen its power balance for future
years with little precipitation, by adding more hydro, wind and
solar power generation capacity and through energy efficiency
measures, the regulator said.
"A stronger balance will contribute to lower prices - not
low, but lower - because we are so connected to the rest of
Europe," Lund added.
Southern Norway links to Demark, Britain, Germany and the
Netherlands via subsea grid connections for imports and exports.
As long as prices in other European countries remain high,
southern Norway prices will remain at elevated levels too, NVE
has forecast.
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(Reporting by Nora Buli; editing by Jason Neely)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))