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(Bloomberg) — Norway’s plan to restrict exports of electric power to household materials is angering other Nordic countries, at a time when maximum cooperation is needed.
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The worst energy crisis in decades is testing old loyalties as electric power costs hit record levels almost daily and more countries warn of shortages and blackouts this winter. This puts more pressure on governments to push plans for families out of devastating spending and emerging inflation.
In a blow to Europe’s cross-border solidarity, Norway warned earlier this month that filling its hydropower reservoirs would take precedence over sales as utilities in the country’s southwest struggle with severe water shortages. The country is one of Europe’s leading exporters.
Sweden, which in the afterlife has limited its exports to its network, recently replaced France as Europe’s largest net exporter. Sweden’s water tanks are 83% full, while Norway’s are 68% full, according to Nord Pool data.
Network operators in Sweden, Finland and Denmark said this week in a rare set that they were “deeply concerned” about the Norwegian plan and suggested Oslo reconsider it.
“If export restrictions were allowed under existing EU electric power regulations, we believe such a move would cause other countries to apply similar restrictions and thus generate a much greater negative effect on the Nordic and European electric power markets,” the corporations said.
Norway takes steps to restrict electricity exports in a blow to Europe
Although not a member of the European Union, Norway is “an integral component” of the EU’s internal electricity market, the government says on its website, and that’s why its neighbours are reacting so strongly.
National Divisions
It remains to be seen how Norway will put its plan into effect, and the Energy Ministry said a final proposal will not be submitted until sometime in the fall. Rising electricity price lists have also created divisions nationwide, with record levels. in the south, while low costs in the north have led manufacturers to give up water instead of selling unprofitable electric power.
“Of course, we are concerned that countries feel they should or are starting to take such measures to restrict exports to other countries,” Sweden’s Energy Minister Khashayar Farmanbar said in an interview on Tuesday. , many years to build a formula to help each other in the event of a crisis. “
While Farmanbar said there is no genuine threat of a shortage of force, Finns were warned this week that power cuts can occur only for hours this winter.
Finland will have to do without Russia’s exports for the first time in decades, which accounted for up to 10% of last year’s call. Flows were reduced to 0 just days after the announcement of the country’s plan to join NATO.
Fragmented domestic responses like Norway’s are damaging Europe’s unity and will most likely give flavor to Russia, which uses energy restrictions as a weapon in retaliation for sanctions after its war in Ukraine.
Finnish houses will have to plan forced cuts next winter
“The Kremlin would be delighted with such a decision,” Finnish Economy Minister Mika Lintila said, according to the Helsingin Sanomat newspaper. “I would play into Putin’s hands. “
Norway “will have to weigh” the coverage of its national power with “Nordic and European power cooperation,” he said.
(Updates with Norway on the EU energy market in the seventh paragraph).
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