Nordic Power Price Slides as Water Glut and Nuclear Output Grow

Nordic power for the first quarter of 2013 dropped as wet and mild weather combined with the highest nuclear output in 7 years for the month to boost supply.

“Swedish nuclear output for November is poised to reach the best levels since the Barsebaeck reactor was closed” in 2005, while utilization rates for December may rise further if EON AG’s Oskarshamn-1 unit is started, Handelsbanken AB said today in an e-mailed research note.

Nordic nuclear reactors, which supply a fifth of the region’s power use, were producing at 96 percent of their average combined capacity at 7:35 a.m., unchanged from yesterday, data from the operators showed. The Oskarshamn-1 unit, the only reactor which is not operating, may start on Nov. 19, EON AG said on Nov. 6 in a filing with the Nord Pool Spot AS exchange in Oslo.

Electricity for delivery from January through March lost 0.4 percent to 40.15 euros ($50.99) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo at 2:45 p.m. Power for December lost 1.1 percent to 38.34 euros, and is set to lose 2.4 percent over the week.

The next 10 days may be 3 degrees Celsius warmer than average in the region, pointing to subdued electricity demand, Handelsbanken said.

Weather forecasts continue to point to higher water supplies in the hydropower-dependent region. The surplus compared with the seasonal average may increase by 12 percent to 9.6 terawatt-hours in the next two weeks, Markedskraft AS data on Bloomberg show. The area meets more than half its power needs by running water through turbines.

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