Norway may soon introduce a rule to reduce its vast electricity exports if levels at reservoirs for hydropower generation drop to critically low levels in a bid to prevent power shortages and further rises in energy bills domestically.
Norway's Energy Minister Terje Aasland told Norwegian media, as quoted by Bloomberg, that the government could introduce limits on electricity exports if the water in reservoirs drops to "very low" levels.
A cut in Norwegian power exports would be felt in Northwest Europe, which itself is grappling with issues at coal and nuclear power generating plants due to the low water level in rivers limiting coal supply via barges and warm river water unsuitable for cooling nuclear reactors.
As a result of these issues and the uncertainty over natural gas supply from Russia, power prices in Germany for the year ahead jumped to a record on Friday.
This summer's dry weather across Europe has affected Norwegian hydropower, which accounts for 90% of Norwegian power generation. The remaining around 10% of the electricity supply in Norway comes from wind power.