Storm Hans Brings Zero-Cost Electricity In Norway’s Two Largest Cities

Storm Hans battered Scandinavia in early August, replenishing reservoirs in a region where hydropower dominates electricity production. The silver lining was free power for customers in Norway’s two biggest cities on Monday, according to market data.

Bloomberg said, “Storm Hans dumped water on both Norway and Sweden, causing extensive flooding, landslides, and property damage. The village hardest hit by the storm, Nesbyen, experienced the worst flooding in over 100 years, with 256 millimeters (10 inches) of rain falling in August, about three times the normal volume. But along with the devastation, the downpour filled dams in southern Norway to the brim, after standing at just 68% the same time last year.” 

As a result of full reservoirs, hydropower plants were working overtime, churning out spot prices for electricity before taxes and grid fees of 0 and -0.3 kroner (-3 US cents) on Monday in the capital, Oslo, and the second largest city, Bergen. 

On Nord Pool, Europe’s leading power market, wholesale electricity prices for the two cities were -1.42 euros per megawatt hour, which means power companies pay customers to use power. 

“(Electricity) producers have explained in the past that it is better to produce when prices are a little bit negative rather than take measures to stop production,” Europower said.

Cheap Nordic power markets helped alleviate higher continental prices. Power prices have eased as the continent has above-average natural gas storage levels for this time of year. Stocks sit at 93% full, ahead of the 90% Nov. 1 target set by the European Union. 

Cheap power prices couldn’t have arrived at a better time for consumers from Oslo to Stockholm and elsewhere. The worst inflation in a generation, plus elevated interest rates, have battered European households. “Weak currencies in both countries are adding to the strain, with bankruptcies among Swedish companies surging to the highest level in 10 years and the number of Norwegian businesses buckling under their debt also on the rise,” Bloomberg said. 

Corporate media outlets who sparked ‘climate hysteria‘ about hot temperatures despite being peak summer in July — have also blamed Storm Hans as a direct consequence of ‘climate change.’ We hate to break it to these folks, but the climate has been changing for billions of years.