Norway aims to cut energy links with Europe due to soaring prices

The two ruling parties in Norway are pledging to campaign to cut the two power interconnectors that link the country with Denmark, when they come up for renewal in 2026, reports the FT. The smaller coalition party, the Center Party is eyeing revisiting similar energy links with the UK and Europe.

One of the reasons is that electricity prices are extremely high in the country these days, something that the energy minister Terje Aasland described as outrageous, cited Norwegian newspaper E24.

With current high Norwegian prices, critics argue Norway should only send electricity from its abundant hydropower abroad after it has ensured low prices at home, as was the case for decades previously.

A big part of Norwegian electricity generation comes from hydropower, but some 10% of the electricity supply is delivered by wind power mainly coming from the continent. Recently, there was a lack of wind in Germany and the North Sea, coupled with low temperatures in Norway.

So when EU power prices jump,as they have done recently, this price shock spills over to Norway. 

The electricity price in the country's southernmost area rose to over 13 kroner (€1.12) per kilowatt hour in the most expensive hour, including network rental and fees. For comparison, the EU average for the first half of 2024 was €0.1867 per KWh.

Eastern Norway also receives high prices, while the Western part of the country largely escapes the worst prices. In the north, electricity is still cheap due to the fact that it benefits the most from hydropower. 

The cost is supposed to go lower in the coming days, according to Norwegian media outlets, citing meteorology forecasts that suggest that wind production is supposed to pick up this weekend in Europe and prices are