High Reservoir Filling Levels in NO2 and High Spot Prices?
Last Wednesday, NVE reported the highest reservoir level in South of Norway (NO2) in 10 years, while NO1 and NO5 were both close to the 10-year high. Despite high reservoir levels, spot prices for NO2 for Monday June 17th, were at their highest since January (daily average of 79.9 €/MWh) and the highest priced hour since December 1st, 2023, at 190 €/MWh.
Hydrological Situation
Despite high reservoir filling levels and wetter than normal precipitation forecasts for the week in the region, which normally could result in seasonally low prices, NO2 decoupled from NO1 and rather coupled with NL during morning and peak hours, with prices climbing thereafter compared to neighboring Norwegian areas. NO5 came out significantly lower than NO1 and NO2 as hydro producers in the area see more pressure from snow melting high up in the mountains alongside wetter than normal forecasts for the next week. NO2 has the same hydrological situation for this week, while the following week shifts to very dry conditions.
Southern Norwegian Summer Price Differences?
The three price areas in Southern Norway decoupled for Monday, June 17th on reduction in grid capacity. Every summer due to warm weather, the capacity on the central grid in Norway is reduced. NO5’s capacity towards NO1 is reduced further due to maintenance until tomorrow the 18th by 40 per cent to 2400 MW. This is causing NO1 to couple towards SE3 instead and the 400 MW towards NO2 is by far enough to affect NO2’s coupling to NL. We expect NO2 to continue to couple towards Continental areas looking ahead towards fall.
