A new plan published last autumn for the electrification of two offshore oil platforms in Norway would connect a 142-kilometer submarine cable from Fosen, Trøndelag, to the Draugen and Njord oil platforms on Haltenbanken. The plan outlines supplying 80 MW (0.7 TWh per year) of electricity per year from the mainland from 2026 onwards. These platforms are currently powered by local gas turbines, generating 0.33 MTCO2 emissions per year.
What is the price impact of the new electricity consumption in NO3 in the first operating years 2026-2028?
Using our price model of the Nordic and Continental European price zones and hourly simulations, we have simulated the price impact in two scenarios:
- A 0.7 TWh/a increase in electricity consumption for NO3,
- A combination of a 0.7 TWh/a increase in electricity consumption and 0.7 TWh/a supply from new wind power in the same price zone.
In the scenario without the combination of new wind power, the price impact is highest in winter for the Q1 products of 5 €/MWh* in 2027-2028. This is followed by lower prices in the summer, with a price impact for the Q3 products of 2.7 €/MWh.
*Assuming that the power supply via the submarine cable can be interrupted whenever NO3 prices exceed 120 €/MWh, causing supply from local gas turbines to trigger during these periods.
