This is an archived release.
Lower production and all time high prices
The production of power in Norway came to 121 667 GWh in 2006. This is a decrease of 12.0 per cent compared with the year before, but 10.1 per cent higher than in 2004. Low flow of water to the reservoirs contributed to lower production and high import as well as all time high electricity prices. The net import amounted to 855 GWh in 2006.
Since almost all power production in Norway is based on hydro power, the production depends strongly on the rainfall. A lower flow of water to the reservoirs in 2006 contributed to a decline in the production in 2006 compared with 2005. The period September-November was characterized by low production of power and this also included the last month of the year. The production came to 10 837 GWh in December, a drop of 25.8 per cent compared with the corresponding month in the year before and 6.4 per cent less than in December 2004. High temperatures and a higher mean forward price in January and February compared with the spot market price in December may have affected the fall in the production.
At the beginning of December, the reservoir filling was 67.2 per cent. During the month the deviation between the filling and the median was considerably improved. At the end of year 2006 the filling was 67.0 per cent, which is 4.6 percentage points below the median. Much of the precipitation fell as rain instead of snow in December because of high temperatures.
Net import of electricity
Imports of power in December amounted to 1 375 GWh, the third largest import figure for power recorded for this month. Exports came to 466 GWh, resulting in net imports of 909 GWh. The low production of power contributed to imports exceeding exports.
All time high electricity prices
The mean price in the spot market on Nord Pool in 2006 was 39.1 øre/KWh. This is the highest price ever and an increase of 66.4 per cent compared with 2005, in which the spot price was 23.5 øre/KWh. Low flow of water to Norwegian and Swedish reservoirs as well as higher mean price for fossil fuels in 2006 than in 2005 contributed to lower production and higher spot price. In addition, it was a considerable reduction in the Swedish nuclear production at the end of July and during August, which pushed the price upwards. The spot price reached all time high on the 28. of August and was then 64,7 øre/KWh. Preliminary figures of the statistics of Electric energy prices show that total price for the whole year for electric energy and grid rent taxes included amounted to 91.5 øre/KWh in 2006. This is 16.7 øre and 5 øre more than in 2005 and 2003, respectively.
Lower consumption of electricity
Gross domestic consumption of electricity in 2006 was 122 521 GWh, 2.8 per cent lower than in 2005. The consumption in energy-intensive manufacturing fell by 2 218 GWh, which is a decrease of 6.6 percent compared with 2005. The drop in the consumption was largest in production of iron steel and ferroalloy, more precisely 15.3 per cent. The consumption in the category "Gross domestic consumption subtracted consumption in energy-intensive manufacturing" in 2006 was 91 099 GWh, a decrease of 1.4 per cent compared with 2005. Higher temperatures and prices in 2006 than in 2005 may have influenced the drop in consumption.
The consumption in the category “Gross domestic consumption subtracted consumption in energy-intensive manufacturing” came to 9 172 in December, 12.2 per cent lower than the same month in 2005. The record high temperature of the month may have had an impact on this result. The average temperature was 6.1 degrees above the normal, the highest figure recorded for this month.
See also Prices of electric energy