in English
The graph illustrates electricity price for today and tomorrow. Updates roll in daily by 12:00 (UTC) for next day electricity price.
The electricity market is where electricity is bought and sold, similar to how other commodities like oil or gas are traded. In this market, prices are determined by supply and demand, with various factors influencing costs like weather, production methods (renewable or non-renewable energy), and overall electricity consumption.
Norway introduced its electricity market in 1991 following the Electricity Act of 1990, which deregulated the energy sector. This allowed electricity to be traded competitively between producers and consumers. Norway, together with Sweden, created Nord Pool in 1996, forming the first multinational electricity exchange. The reform aimed to increase transparency in pricing and improve the efficiency of electricity distribution. This market structure has supported Norway's extensive use of hydropower, which remains the primary source of its electricity production.
Electricity markets like NordPool exist to efficiently match supply and demand of electricity. Unlike most commodities, electricity cannot be stored in large quantities, so it must be produced and consumed in real time. This dynamic nature requires a transparent, regulated system where prices reflect current conditions.
By allowing multiple producers and distributors to participate in the market, prices are determined more by supply and demand. This creates an open competetive market environment to develop innovative solutions for power generation that yield in best efficiency, favoring the production of electricity with lower upfront costs and reduced operational expenses. Eventually leading to a market where energy producers with lowest margins can thrive.
Day-ahead data refers to electricity prices that are determined one day in advance. Participants submit their bids for how much electricity they plan to buy or sell for each hour of the upcoming day. Based on supply and demand forecasts, the market sets prices for every hour of the next day. This allows electricity producers, distributors, and consumers to plan ahead, ensuring they are prepared for the expected energy costs and consumption levels.
Electricity prices are often published in megawatt-hours (MWh), but for everyday consumers, it's more practical to think in kilowatt-hours (kWh). For example, a typical oil radiator might have a power rating of 2000W (or 2kW). If the radiator runs continuously for one hour, it will consume 2kWh of electricity.
Our electricity price graph displays the cost in cents per kilowatt-hour (cents/kWh). So, if your oil radiator consumes 2 kWh of electricity and the current price is 10 cents per kWh, the total cost for running the radiator for one hour would be:
2 kWh x 10 cents/kWh = 20 cents