Trading to start on UK-Norway power cable as both markets face constraints

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OSLO — Nordic energy change Nord Pool will maintain its first public sale on Thursday to commerce electrical energy on a newly-launched interconnector between Norway and Britain as each markets grapple with tight power provides.

On the Norwegian facet, greater than 10 market individuals have signed as much as commerce energy on the North Sea Hyperlink (NSL), Nord Pool advised Reuters. The cable will function at half of its 1,400 MW design capability for a three-month trial interval that begins on Friday.

Linking Norway’s southern NO2 worth zone with the British energy market, the cable has detractors in Norway, the place some members of parliament have stated it’ll result in exports of electrical energy that might greatest be used at house.

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Spot energy settled at a report excessive month-to-month common of 86.01 euros per megawatt hour within the Nordic market in September, and 106.33 euro per megawatt hour in NO2 , Nord Pool information confirmed.

However supporters of the challenge say each nations will profit, as Britain will get entry to Norway’s hydropower sources to assist steadiness intermittent wind energy, whereas Norway can import energy throughout instances of excessive wind to save lots of water in reservoirs.

The NSL startup at a time of strained power programs in each markets will check these arguments. [nL1N2QH0KC)

Dry weather in Norway this year and high demand last winter have reduced levels in some reservoirs to 20-year lows. Transmission system operator Statnett on Monday downgraded the NO2 zone’s status by one notch from “normal” to “tight.”

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The warning doesn’t impression Norway’s energy exports, NO2-based energy producer Lyse advised Reuters this week.

Respite might also be in sight for Norway, Anders Gaudestad, head of energy administration at Agder Energi primarily based in NO2 advised Reuters.

“Forecasts are for lots of rain this week, so we hope and consider the scenario will enhance considerably if the moist climate hits,” he stated.

NSL capability shall be allotted at 1050 CET (0850 GMT) for deliveries the next day via Nord Pool’s present UK day-ahead energy public sale, and a counterpart public sale in Norway’s NO2 bidding space. (Reporting by Nora Buli, modifying by Terje Solsvik and Barbara Lewis)