Low Prices, High Stakes: Norway Weighs Nuclear Amid Power Fluctuations

Low Prices, High Stakes: Norway Weighs Nuclear Amid Power Fluctuations

 Electricity prices continue to fluctuate throughout the year due to various factors. In March 2025, Norway recorded the lowest electricity prices for the month since 2020 across all bidding zones—except zone 3, which saw even lower prices before 2022 (Ntb, 2025). Finland and Sweden have experienced a similar decline in March prices since 2022.


Figure 1: Electricity’s price development in Norway's biding zones 2020–2025

Source: Montel

This development may come as a relief for household consumers, especially considering that electricity prices have shown a steady monthly increase since October 2024 in most Nordic bidding zones. However, Finland and Norway’s bidding zone 4 stand out as exceptions, with prices in these areas fluctuating independently of broader regional trends. Denmark also diverges from the general Nordic pattern, having recorded even lower electricity prices in March 2024 than in March this year.

The decline in March electricity prices is primarily attributed to warmer weather and increased precipitation, which led to reduced electricity consumption and higher water levels in reservoir resulting in lower prices (Ntb, 2025). Nevertheless, since Norway relies heavily on hydropower for electricity generation, unfavorable weather conditions that lower reservoir water levels often force the country to import electricity from abroad. As a result, price fluctuations in the broader continental European market tend to spill over into Norway as well. In an effort to protect itself from volatile electricity prices and stay aligned with its climate goals, Norway has already begun assessing the potential for establishing nuclear power (Blaker, 2025).


Sources:

Blaker, M. (2025, April 9). Jubler: – En historisk dag for kjernekraft i Norge. Nettavisen. https://www.nettavisen.no/okonomi/regjeringen-vil-ha-utredningsprogram-for-kjernekraft-to-steder-i-norge/s/5-95-2376707

Ntb. (2025, April 12). Uvanlig strømpris: Ikke sett siden 2020. Nettavisen. https://www.nettavisen.no/okonomi/uvanlig-strompris-laveste-regning-pa-mange-ar/s/5-95-2383854

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