Until the energy crisis from 2021, the price difference between Northern Norway and Southern Norway was minimal, according to Nordpool’s price history. The power grid from the parts of the country is intertwined with transmission connections between northern Sweden and southern Sweden.
The bottleneck in the transmission capacity did not become visible in the form of price differences until 2021. Then the price differences exploded.
Southern Norway was more closely connected to Europe with power cables to Germany and Great Britain, which have traditionally been more expensive price areas than southern Norway.
At the same time, the price of gas and coal in Europe rose, in addition to the CO2 tax. The gas and coal power plants produce the most expensive electricity in the electricity market. This raises electricity prices in southern Norway, even though the region produces far cheaper hydro and wind power.
Last year, the electricity price south of the Sognefjord was four times as high as up north, according to Nordpool.
The reason is that Northern Norway has received more wind power and thus a greater power surplus.
At the same time, southern Norway has been infected by record high electricity prices from fossil energy sources in Europe.
The bottleneck in the power grid has been worsened by the fact that less power has been transferred on the Swedish side, both from northern Sweden to southern Sweden, but also from southern Sweden to eastern Norway, according to Statnett.