The spike in European electricity prices on December 12, caused primarily by German electricity imports, has sparked anger throughout northern Europe.
Norway said it was now considering severing some of the cables that connect its electricity grid with the rest of Europe to insulate its market from foreign influence. Terje Aasland, Norwegian energy minister, called the situation “absolutely terrible”.
“I understand very well that people are angry,” the Labour Party politician said.
In southern Norway, the price explosion has meant residents and businesses have had to pay more than 13 kroner (€1.12€) per kWh at peak times – meaning a five-minute shower would cost around €4 at market prices.
“This is higher than the most extreme rates during the Ukraine crisis,” an energy analyst told state broadcaster NRK on December 12.
In the past few days due the absence of sun and wind, the large fleet of renewable energy power plants – wind turbines and photovoltaics plants – in Western Europe have generated almost no electricity.
In most countries, reliable so-called baseload power plants pick up the slack, such a nuclear power, hydropower or gas-fired plants. But, since Germany shut down all of its nuclear plants – the last three stopped generation in spring of 2023 – the former industrial powerhouse now has limited baseload capacity.
Germany relies on coal-fired power plants and has planned new gas turbines,but construction of the latter has fallen far behind shcedule. Therefore, the country had to make up the shortfall – almost a quarter of consumption at peak times on December 12 – by imports of electricity from other countries, driving up market prices there.
Norway’s two governing parties – Labour and Centre – are now mulling plans to cut the electrical connection with Denmark.
The Skagerrak high-voltage direct current (HVDC) cables have a capacity of 1.7GW and are Norway’s strongest link with the European grid. The cables need to be refurbished in 2026 but these plans are now under review.
The junior coalition partner, the Centre party, would also like to renegotiate the cable connections with Germany and the UK – as does the right-wing Reform party, which is projected to win the 2025 parliamentary election.
The German energy crisis has also caused irritation in Sweden. Ebba Busch, Swedish energy minister and Deputy Prime Minister, said she was angry with Germany, from which Sweden imports electricity. Price hikes in her country were a direct result of the German exit from nuclear power, she wrote on social media.
“If the wind does not blow this failed electricity system gives us high prices,” Busch continued. Sweden has three nuclear power plants. In November 2023, the government announced ambitious plans to multiply the country’s fleet of nuclear reactors by 2045.
Elprisernas berg- och dalbana är horribel. Imorgon blir det drygt 8 kr i södra Sverige mellan 17-18. Många andra timmar har vi extremt låga priser. Det är ett resultat av nedlagd kärnkraft. När det inte blåser får vi höga elpriser med detta misslyckade elsystem, vilket tyska…
— Ebba Busch (@BuschEbba) December 11, 2024
