Nordic power for next-quarter delivery fell to its lowest price in a month as forecasts of mild and wet weather indicated lower demand and a boost in supplies in the hydropower-dependent region.
Temperatures in the Stockholm area may rise to as high as 9 degrees Celsius (48 Fahrenheit) in the next 10 days, from 5 degrees for today, according to the Swedish Meteorological and Hydrological Institute’s website.
Power for January through March fell as much as 2.7 percent to 40.30 euros ($51.98) a megawatt-hour, its lowest since Sept. 27, and traded at 40.45 euros at 2:33 p.m. Oslo time on Nasdaq OMX Group Inc.’s energy exchange. Next-month electricity declined as much as 3.8 percent to 37.75 euros, and later traded at 37.85 euros.
The Nordic region gets more than half of its average power use each year from running water through turbines, and Swedish and Norwegian reservoirs contain 9.5 terawatt-hours more water for power generation than the seasonal mean, according to Markedskraft AS data on Bloomberg. The surplus is set to drop by 21 percent to 7.5 terawatt-hours in two weeks, which signals an increase of 0.8 terawatts compared with a forecast earlier today, the data show.
Baseload power for around-the-clock delivery in the Nordic region will cost 38.78 euros on average tomorrow, following today’s auction on the Nord Pool Spot AS exchange in Oslo. That’s 6.8 percent higher than yesterday’s turnout for today.
The nuclear utilization rate from 14 reactors in Sweden and Finland may rise by 7 percentage points from today’s level to 96 percent later this week, according to a Bloomberg estimate, as Vattenfall AB’s Ringhals-2 unit will start generating power on Nov. 1, the company said in a Nord Pool filing.