While Southern Norway is seeing prices fall midday thanks to strong solar production on the continent and the start of snowmelt, NO5 is missing out — and reservoir levels are the reason.
Reservoirs in NO5 are sitting at just 14.3% on average, compared to 27.8% in NO2. Snowmelt has been significantly delayed this year due to colder-than-normal weeks in May and snowpack levels well below normal. With so little water available, several reservoirs in NO5 simply do not have enough to produce with, pushing prices higher than in neighboring areas.
The Outlook
As snowmelt picks up, prices across Southern Norway should move closer to continental levels in the coming weeks. However, once reservoirs start refilling and inflow eases, Southern Norway will likely remain more expensive than Eastern and Western Norway through late summer and into autumn, given the persistent water deficit in the south.
