Beginning of trade on the UK-Norway power cable, with both markets facing constraints

Workers lay a NordLink submarine interconnect power cable to connect Norway and Germany in the Vollesfjord fjord near Flekkefjord, Norway, May 31, 2018. REUTERS / Lefteris Karagiannopoulos // File Photo

OSLO, September 30 (Reuters) – Nordic power exchange Nord Pool will hold its first auction on Thursday to trade electricity on a recently launched interconnector between Norway and Britain as the two markets are on the market. taken on tight energy supplies.

On the Norwegian side, more than 10 market players have signed up to trade electricity on the North Sea Link (NSL), Nord Pool told Reuters. The cable will operate at half of its nominal capacity of 1,400 MW for a three-month trial period starting on Friday.

Linking southern Norway’s NO2 price zone to the UK electricity market, the cable has detractors in Norway, where some MPs have said it will lead to exports of electricity that could be better used in the country.

Spot power stood at a record monthly average of 86.01 euros per megawatt hour in the Nordic market in September and 106.33 euros per megawatt hour of NO2, according to data from Nord Pool.

But proponents of the project say both countries will benefit, as Britain will have access to Norway’s hydropower resources to help balance intermittent wind power, while Norway can import electricity during periods of strong wind to save water in the tanks.

Starting NSL at a time of strained energy systems in both markets will test these arguments.[nL1N2QH0KC)knowmore[nL1N2QH0KC)readmore[nL1N2QH0KC)ensavoirplus[nL1N2QH0KC)readmore

Dry weather in Norway this year and strong demand last winter have reduced levels in some reservoirs to 20-year lows. The operator of the Statnett transport network lowered the status of the NO2 zone from “normal” to “tight” on Monday.

The warning has no impact on Norway’s electricity exports, NO2-based power producer Lyse told Reuters this week.

A respite could also be in sight for Norway, Anders Gaudestad, head of energy management at Agder Energi (AGDER.UL) based at NO2, told Reuters.

“The forecast is for a lot of rain this week, so we hope and believe the situation will improve somewhat if the rainy weather hits,” he said.

NSL capacity will be allocated at 1050 CET (0850 GMT) for next day deliveries via Nord Pool’s existing day-ahead electricity auction in the UK, and a matching auction in the NO2 auction area of Norway.

Reporting by Nora Buli, editing by Terje Solsvik and Barbara Lewis

Our standards: Thomson Reuters Trust Principles.

Source link

Check Also

Gautam Adani meets British Prime Minister Boris Johnson and pledges $ 70 billion for “energy transition”

The chairman of the Adani group, Gautam Adani, met British Prime Minister Boris Johnson on …

Leave a Reply

Your email address will not be published. Required fields are marked *