How does Norway use electricity?

Norway has a cold climate, and a large part of its energy consumption is used for heating. The electricity grid enables electricity transport from producers to consumers, and connects Norway’s power system to other countries’ systems. The power market is an important tool for ensuring cost-efficient use of electricity resources.

Why are Norway's electricity prices so high?

Norway’s trading capacity with other countries is high, and price levels in Norway are therefore strongly influenced by the cost of producing electricity in thermal power plants, and especially by the prices of coal, natural gas and emission allowances.

What is the electricity sector in Norway?

The electricity sector in Norway relies predominantly on hydroelectricity. A significant share of the total electrical production is consumed by national industry. Production, consumption and export of electrical energy in Norway. Source: Statistisk sentralbyrå.

Does Norway export electricity at night?

These differences mean that Norway can import electricity from abroad at night, when the price is lower, and export it during the day, when consumption and prices are higher. Over the year, Norwegian electricity exports are normally highest in the summer, when reservoir inflow is high and Norwegian consumption is low.

How does power trading work in Norway?

Power trading thus moderates price rises in Norway in winter, and maintains higher summer prices. In the same way, power trading provides access to relatively low-cost power in dry years, and increases the value of Norwegian electricity in years when there is a surplus of power in the domestic market.

What is the Norwegian Energy Act?

The Norwegian Energy Act is based on the principle that electricity production and trading should be market-based, while grid operations are strictly regulated. The power market ensures that effective use of resources and reasonable prices on electricity.