Norway is producing a lot of energy in the North but needs a lot of energy in the South. But they also only have a weak interconnection between these two regions, so the energy is “trapped” in the North, leading to very low prices in the North and higher prices in the South.
Since Norway’s and Sweden’s energy grid are connected, that Norwegian energy from the North can be transferred south using Swedish infrastructure and re-enter Norway in the South. You could argue that the price of the northern electricity went up because it could actually be used now.
Norway is producing a lot of energy in the North but needs a lot of energy in the South. But they also only have a weak interconnection between these two regions, so the energy is “trapped” in the North, leading to very low prices in the North and higher prices in the South.
Since Norway’s and Sweden’s energy grid are connected, that Norwegian energy from the North can be transferred south using Swedish infrastructure and re-enter Norway in the South. You could argue that the price of the northern electricity went up because it could actually be used now.
This is what I expected to be the case. Cut the cables and the prices in the north go back down, but in the south they’ll up.