Poorer hydropower situation in the Nordic countries has doubled the price of electricity in the exchange

Less electricity can be imported into Finland from the west

May 17, 2001à‚–The Nordic hydropower situation was reported to be impaired during the first quarter of 2001.

As a result, the spot price for Nordic electricity is now twice as high as during the same time last year. This trend in the Nordic electricity market means that Finland cannot import as much electricity from the west as before. During the first quarter of 2001, electricity trading between Finland and its western neighbours has started to show a slight surplus for Finnish exports.

“It may very well be that the period of inexpensive Nordic hydropower is over,” says Juhani Santaholma, President of the Finnish Energy Industries Federation Finergy. According to Santaholma, who gave a speech at the meeting of Finnish energy organisations in Mikkeli, the increase in generation capacity in the Nordic countries has been modest despite the constant growth in electricity consumption. All this indicates that the Nordic countries have no excess generation capacity for a dry year.

This is why the next winter will be an interesting period with regard to electricity supply, says Juhani Santaholma.

Water reservoirs in Norway now hold about 35 percent of the full volume, while the long-term average is 37 percent. A year ago, the water volume in Norway was much above the long-term average, i.e. 50 percent. In Sweden, too, the water situation is clearly poorer than last year. Even a slight change in the Nordic water situation has an impact on the price of electricity traded in the electricity exchange. Much of the reduction in hydropower is compensated through coal power.

More than half of all electricity in the Nordic countries is generated through hydropower. Hydropower generation in Finland has grown somewhat during the first months of this year.

During the first quarter of 2001, Finland consumed 23.2 billion kilowatt hours of electricity, which is some 4 percent more than during the corresponding period last year. Combined heat and power generation covered 38 percent of electricity supply, nuclear power 25 percent, hydropower 17 percent, condensing power 11 percent and net imports of electricity 9 percent. During the first quarter, wind power generation decreased by one third and remained under 0.1 percent of all supply.

Industries use more than half of all electricity consumed in Finland. The wood-processing industry uses more than 60 percent of the industrial electricity and about one third of the total electricity use in Finland.

Statistics in the Internet: https://energia.fi/sahko/english/ptil.html

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