Norway boosts hydropower, challenging effort to fill reservoirs
17/08/2022 15:12
OSLO, Aug 17 (Reuters) - Hydropower production in southern
Norway rose last week in response to high prices, potentially
challenging Norway's efforts to fill reservoirs ahead of winter
demand, a report by energy regulator NVE showed on Wednesday.
As drought has affected most of Europe and Norway has
exported electricity to countries that have received less
Russian gas than usual because of issues related to the Ukraine
war, reservoir levels in southern Norway are lower than in
average years.
The Norwegian government is preparing a mechanism to ensure
refilling https://www.reuters.com/business/energy/norway-scrambles-avoid-empty-hydropower-reservoirs-this-winter-2022-07-07
is prioritised over production and power exports at times of
unusually low seasonal reservoir levels, but that is not
expected to be in place until early next year.
Inga Nordberg, a director at NVE, said in a statement that
the hydroelectric power produced in southern Norway in recent
weeks had largely been generated by water that in any case would
not have been stored long-term.
NVE also said that, although generation had risen
week-on-week, it was still lower than during the same week at
any point over the last decade.
Norway uses hydropower for around 90% of its electricity
output and the country relies on having well-filled reservoirs
for the peak-demand winter months.
The latest NVE report covers production from reservoirs
capable of holding the equivalent of 100 gigawatt hours of
hydroelectric production in the three southern Norwegian power
price zones NO1, NO2 and NO5.
Reservoir levels in price zones NO1 and NO2 have fallen to
their lowest point in at least 20 years as a dry year has
limited restocking.
At the same time, Norway's hydropower prices have hit
records, with the NO2 region of southwestern Norway recording
its highest daily power price yet FXNO2EURAL=NPX of 532.52
euros per megawatt hour (MWh) for delivery on Aug. 18.
The high prices, together with a requirement to maintain
minimum levels in the rivers that feed reservoirs, encouraged
utilities to increase production last week, Nordberg said.
Output would continue to vary week by week, she said, but
added it was "very important that we maintain the long-term
trend and hold back water that can be used to produce power
until spring".
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Hydro Reservoirs Southeastern Norway (NO1) https://tmsnrt.rs/3w7sFJy
Hydro Reservoirs Southwestern Norway (NO2) https://tmsnrt.rs/3Cd912v
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(Reporting by Nora Buli; editing by Barbara Lewis)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))