Nena News

Outage to cost Norway utilities up to EUR 78m – analyst

(Montel) Power producers in Norway may lose as much as EUR 78m due to a reduction in transmission capacity out of the country between June and October, analysts said on Wednesday.

A fault on a connection below the Oslo fjord has reduced export capacity from eastern Norway (NO1) to central Sweden (SE3) to between 900-1,245 MW from the maximum 2,145 MW since 21 June.

This has lowered prices in Norway, where hydropower reservoirs are fuller than in Sweden and will cost Norwegian power producers around EUR 78m in lost income from exports, said MK Online analyst Olav Botnen.

This is based on the area price in NO1 being EUR 2.70 lower than the Nordic system price in the period from 21 June to 15 October, when TSO Statnett expects to have fixed the problem.

Nena analyst Joachim Jernæs is more cautious, saying the NO1 price would have been lower than the system price even without the curbed transmission, estimating the potential loss of income at no more than EUR 46m.

Statnett confirmed earlier it expected to finish repairs in October, adding that it was “lucky” to be able to complete the work in just four months.

“Fortunately we already had a barge in the area involved in other cable work, so we are able to use this,” said spokeswoman Marta Hagerup Nilson.

The faulty cable is at a depth of 190m in the fjord. 

Reporting by:
Gert Ove Mollestad
16:00, Wednesday, 7 September 2016