Nordic electricity declined along with contracts in Germany even as colder weather was forecast.
Power for next quarter fell as much as 1.1 percent to 35.40 euros ($47.58) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo and was at 35.60 euros at 10:50 a.m. Power for delivery next month declined as much as 0.7 percent to 40.80 euros and later traded at 40.85 euros.
Baseload German day-ahead power, for delivery around the clock, slid as much as 19 percent as Meteologica SA predicted wind generation would climb to a record megawatts tomorrow. The contract fell as much as 6.25 euros to 26.25 euros a megawatt- hour and was at 27.75 euros at 9:56 a.m. Berlin time, according to broker data compiled by Bloomberg.
“German power prices are falling severely on the short end, which weighs especially on the Nordic February and next- quarter contracts, offsetting the impact from cold weather,” Phong Le, a senior trader at Danish energy trading company Energi Danmark A/S, said today by phone from Aarhus, Denmark.
Low temperatures in Oslo may drop to minus 12 degrees Celsius (10 Fahrenheit) on Feb. 3, from zero today, according to CustomWeather Inc. data on Bloomberg. Temperatures are poised to drop to as low as minus 20 degrees on Feb. 12. Cold weather boosts demand for electric heating.
German wind generation was at 18,872 megawatts today compared with a record 22,299 megawatts on Jan. 3, 2012, according to data from European Energy Exchange AG on Bloomberg.
Nordic power for tomorrow traded at 35.25 euros a megawatt- hour on Nasdaq OMX, lower than yesterday’s price for baseload supplies around the clock today, of 37.04 euros, set on the the Nord Pool Spot AS exchange in Oslo.
Baseload prices may drop further as a result of mild weather over the next two or three days, Le said.
“The Nordic spot price will likely remain very low for the next few days, with abundant German wind power production that results in exports to the Nordics,” he said. “Then it’s set to turn cold again, with temperatures 2 to 4 degrees below the seasonal average for the next two weeks, offering support to prices.”
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