Nordic electricity for delivery in January through March neared a two-week high after forecasts for dry weather and cold temperatures indicated curbed supply and higher demand.
“The weather is marginally colder, which props up the price, combined with a decline in available water supplies,” Rune Joergensen, a trader at utility HelgelandsKraft AS, said today by phone from Mosjoeen, Norway.
Power for next quarter gained 1.3 percent to 42 euros a megawatt-hour ($55.72) as of 10:27 a.m. on the Nasdaq OMX Group Inc.’s energy exchange in Oslo, the highest since Dec. 7. The contract for next month rose 0.6 percent to 43.80 euros .
Low temperatures in Oslo may drop to minus 25 degrees Celsius (minus 13 Fahrenheit) on Jan. 1 from minus 3 today, according to CustomWeather Inc. data on Bloomberg. That compares with a 10-year seasonal average of minus 11.
Prices swing back and forth day to day, and there is a lack of any clear trend in the market due to mixed weather forecasts, Joergensen said.
“The overall tendency is flat, there are few signals to trade on, and I wouldn’t take any large position based on current weather indications,” he said.
The Nordic region’s hydropower reserves, which exceed the seasonal average by 0.4 terawatt-hours, may drop to a deficit of 3.8 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region gets more than half of its yearly power supplies by running water through turbines, and has had a water surplus since late June 2011.
The utilization rate of Swedish and Finnish nuclear reactors may rise to 96 percent from today’s 91 percent on Dec. 21, if EON SE gets authorization from Sweden’s Radiation Safety Authority to restart the 638-megawatt Oskarshamn-2 reactor, according data from operators and calculations by Bloomberg.
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