The NO1 energy region covers eastern Norway and saw a monthly energy price of 78.61 øre per kilowatt hour in May. Meanwhile, the NO5 region, which covers the west, saw prices of 78.99 øre per kWh.
In the southernmost regions of Norway (NO2), energy was 80.88 øre per kWh. The price for the east is the lowest recorded for the area since August 2021. Then the energy price was 74.8 kroner, which at the time was the highest monthly price ever recorded in Norway.
The three aforementioned regions saw monthly prices hover above the threshold for government subsidies. Energy news publication Europower reports that the weak krone to euro exchange kept energy prices above the threshold in NO1 and NO5 areas.
Prices in central and northern parts of Norway (NO3 and NO4) were 31.82 and 21.94 øre per kWh. There, prices are typically lower than in the rest of the country as there is a power surplus, meaning more energy is produced than can be used.
A contributor to the lower average power costs is energy prices entering into the negatives. This has happened three times in May.
When electricity prices in Norway fall below zero in a certain part of the country, the residents of the area in question “get paid” for using electricity, as energy producers have to pay to sell electricity when the prices enter negative.
Negative prices don’t mean free energy, however, as grid rent, taxes, and other charges need to be paid.
A winter with plenty of snowfall, which has melted and is making its way to Norway’s hydroelectric reservoirs, heavy rainfall, reduced energy exports and lower consumption than typical have contributed to lower prices.