The impact of wind power on power prices varies considerably from year to year. In some years, such as in 2020, wind power production had little effect on power prices. In 2021, we estimate that Norwegian power prices would have been from 8 to 18 øre/kWh higher without wind power production, depending on price area. Hence, a typical household would pay between 2,000 and 4,500 kroner more for electricity in 2021 without wind power, depending on where in the country you live.
The calculations have been completed for NORWEA and are based on a mathematical model for supply and demand in the European power system. The model simulates, among other things, how the owners of hydropower plants dispatch their hydropower reservoirs, how wind power production fluctuates in line with variations in the weather, costs for thermal power plants on the continent and the exchange of power on interconnectors. The analysis looks at the effects of removing all Norwegian wind power with other factors unchanged.
The memorandum can be read in its entirety on NORWEA’s website (in Norwegian only).