Europe could experience elevated electricity prices for an extended period as tensions in the Middle East and lower-than-normal natural gas and Nordic hydropower reserves continue to pressure energy markets, Statkraft Chief Executive Birgitte Ringstad Vartdal said on Tuesday.
Speaking during the Norwegian utility’s earnings presentation, Vartdal said uncertainty triggered by the conflict in the Gulf has pushed gas prices back to levels seen at the start of the U.S. war with Iran, raising concerns over future power costs. Statkraft also reported higher earnings, supported by stronger electricity prices in the Nordic region and Germany.
The CEO warned that persistently high power prices could weaken the long-term competitiveness of European industries, although she declined to forecast specific electricity price levels. According to LSEG data, Nordic fourth-quarter wholesale power traded at €86 per megawatt hour, while the German equivalent stood at €140.75/MWh.
Vartdal also pointed to Norway’s limited winter snowfall, which has reduced water levels in hydropower reservoirs and tightened the country’s hydrological balance, particularly in southern Norway, where major hydropower resources are connected to continental Europe through subsea power cables. She said the situation remains manageable for now but stressed that reservoir levels will need close monitoring, with autumn rainfall expected to play a key role in easing supply concerns.