Definition
Norway is connected to Europe and the Nordic region via several subsea high-voltage direct current (HVDC) cables: NorNed to the Netherlands (700 MW, 2008), Skagerrak to Denmark (1,700 MW, four cables), NordLink to Germany (1,400 MW, 2021), and North Sea Link (NSL) to Great Britain (1,400 MW, 2021). These interconnectors make it possible to export surplus hydropowerElectricity produced from the potential energy of falling water - Norway's dominant energy source (~90% of production) with a unique ability to ramp up and down quickly. to Europe and to import power in dry years with low reservoir levels. The cables have a significant impact on Norwegian power prices: high European gas prices drive up the Norwegian spot priceHourly electricity price set in the Nordic power market the day before delivery - basis for variable electricity prices to end users. through exports, even when Norwegian production costs are low. Cable capacity is limited - bottlenecks between bidding zones and to foreign markets create price differentials. The debate about new cables is politically charged, as additional export capacity is assumed to raise Norwegian electricity prices further.