Nordic power for delivery in the fourth quarter rose to its highest level in more than three months as forecasts for dry weather fueled speculation that hydropower production will decline.
The Nordic benchmark rose 1.3 percent to 40.15 euros ($40.15) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, after rising to 40.20 euros, the highest price since April 30. The contract has gained 7.9 percent this month, Nasdaq OMX data on Bloomberg show.
“A high-pressure-dominated weather outlook, with drier- than-average forecast, is the key driver for the advances,” Kjell Idar Saure, a trader at Tussa Kraft in Oersta, Norway, said today by phone. “The question is: Will the weather outlook buck, or will the trend continue?”
Less rain will reduce the oversupply of hydro power in the Nordic market, where more than half of its electricity is generated by running water through turbines. The oversupply may drop by 26 percent to 5.61 terawatt-hours in the next two weeks, according to Markedskraft AS data on Bloomberg. That compares with Denmark’s annual power demand of about 34 terawatt-hours.
Electricity for delivery tomorrow rose 39 percent to 16.88 euros in an auction on Nord Pool Spot AS in Oslo.
Vattenfall AB, the region’s biggest utility, plans to extend annual maintenance at its 940-megawatt Ringhals-2 nuclear reactor in Sweden by four days from Oct. 18 to Oct. 22, “based on further developed logistics planning for several parallel time critical activities,” the company said today in a filing via the Nord Pool Spot AS exchange.
The outage will begin on September 15. Output will be limited to 807 megwatts until September 2013 when “modifications of valves in the auxiliary feedwater system will take place,” Vattenfall said.
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