Danish Electricity Prices Head for Highest Level Since 2022

Danish electricity bills are set to rise significantly this month. Energy company Norlys reported that September could be the most expensive month for electricity in several years.

Halfway through the month, electricity averaged 1.12 Danish kroner per kilowatt-hour in eastern Denmark. In western Denmark, the average price reached 1.11 Danish kroner per kilowatt-hour. This is the first time since December 2022 that monthly average prices exceeded 1 Danish krone per kilowatt-hour.

Prices reached over 7 Danish kroner per kilowatt-hour on Monday evening. That was the highest peak in nearly two years. The increase is driven by higher natural gas costs alongside lower wind and solar generation.

Natural gas power plants generate electricity when weather limits wind and solar power. This dependency makes power prices sensitive to gas costs. Green Power Denmark analyst Kristian Rune Poulsen noted that conflict in the Strait of Hormuz is restricting global liquefied natural gas supplies. Energy experts expect elevated electricity prices to continue through the winter. (Source: CPH Post)