One of Europe’s most important sources of clean power is replenishing faster than normal.
(Bloomberg) — One of Europe’s most important sources of clean power is replenishing faster than normal.
Despite unseasonably warm temperatures in much of Europe this winter, heavier-than-normal snowfall is set to boost reservoirs that supply key Norwegian hydroelectric plants. It’s another sign that the worst energy crunch in decades is waning.
It’s a change in fortunes after some reserves in the region, often referred to as Europe’s biggest battery, were almost completely dry just months ago amid Europe’s worst drought in 500 years. As a result, Norway warned neighbors, the UK and Germany that it may limit power exports to protect its own supplies.
As of Monday, snow reserves in the NO2 price area in the southwest stood at about 9.8 terawatt-hours, about 10% higher than a year ago and 9% above the 30-year average, according to data compiled by Volue, a Norwegian energy consultancy. The region matters more than others because it’s the starting point of export cables to the UK and the continent.
“Due to precipitation events over most of Europe during autumn and winter so far, we are still in an energy crisis,” said Silje Eriksen Holmen, a hydrologist at Volue. “Ideally, we would like a large snow pack so that we would get a proper melting season.”
In Norway, as well as Sweden, the reservoirs act like a huge natural battery. Snow built up in winter melts in the spring and summer, filling up dams with water that can then be dispatched through turbines to produce electricity. The more snow there is during the cold months, the better supplied the region will be throughout the rest of the year.
Benchmark Nordic power prices have slumped more than 30% this year, echoing the wider trend in other electricity and gas markets in Europe as strong supplies of liquefied natural gas have countered the sharp drop in pipeline supplies from Russia after its invasion of Ukraine.
The boost in hydropower up north will also help to compensate for the failings of France’s nuclear fleet, which is the region’s other main source of fossil-free power. Output from the 56 reactors remain unstable after dropping to the lowest in more than three decades last year.
“It’s important that hydro levels recover back to normal to reduce gas demand and absorb the impact of more unplanned French nuke outages,” said Kesavarthiniy Savarimuthu, an analyst at BloombergNEF.
The conditions in Norway contrast other large hydropower areas in France and Switzerland where persistently dry weather is threatening to make 2023 a repeat of the weak hydro power production seen last year. In the Swiss alps, hydro reserves have as little as 30% of the normal level of snow.
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