Nordic Power Price Gains for Fifth Day on Cold-Weather Outlook
Nordic electricity for delivery next week advanced for a fifth day to close at a record as forecasts for cold weather and little rain indicated rising power use and diminishing supplies.
The contract for delivery from Dec. 3 through Dec. 9 gained as much as 2.2 percent to 46.75 euros ($60.50) a megawatt-hour and closed at 46 euros on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The contract for January through March rose 1 percent to 41.65 euros, while the December contract climbed 0.6 percent to 41.75 euros.
Minimum temperatures in Stockholm may drop to minus 5 degrees Celsius (23 degrees Fahrenheit) on Dec. 3 from 6 degrees today, according to CustomWeather Inc. data on Bloomberg. The five-year mean for today is 1 degree.
The drop in temperatures prompted hydroplant operators on the Skellefte river in northern Sweden to restrict output by 30 percent to 700 megawatts from Nov. 29 through Dec. 6 to prepare for winter by letting a layer of ice form on the river to prevent the formation of ice plugs that may limit output later.
“We sacrifice some production short-term to avoid potential greater losses later on,” Peter Stedt, spokesman for Vattenfall AB, one of the operators on the river, said today by phone from Lulea in northern Sweden.
The risk of ice plugs affects the majority of Vattenfall’s 92 hydropower stations in Sweden, including plants on the Lule, Ume, Angerman and Indalaelven rivers, he said. The company produces 35 terawatt-hours annually in Sweden from running water through turbines, more than Denmark’s annual power use.
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