(Bloomberg) -- Last week’s power price spikes highlight the need for reforms in Europe’s electricity market, Norwegian Prime Minister Jonas Gahr Store said in an interview.
The nation has long enjoyed some of the lowest electricity prices in the world because of its abundant hydro power. But being part of the regional market has led to higher volatility and a growing dissatisfaction among Norwegian consumers, which use a lot of electricity to heat their homes.
Last Thursday, when wind generation plunged across much of the continent, power prices in Oslo surged to their highest since December 2022, only to plunge by 65% the following day.
“There are big challenges,” Store said Thursday in an interview after his half-year press conference. “Europe needs a discussion on how the system distributes renewable power in a way that secures supply and stable prices,” he said without offering a detailed solution.
The national debate has recently centered around curbing energy exports to keep the country well supplied, although European Union rules state that countries aren’t allowed to curtail flows to neighbors for prolonged periods.
The focus has also been on two old cables with Denmark that date back to the late 1970s. They need to be replaced by 2026, and lawmakers from Store’s Labor Party have called for them to be scrapped altogether.
“When it comes to cables, my message is that Norway decides what to do based on Norwegian interests,” Store said.
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