Nordic electricity for delivery in January through March declined a second day as forecasts of increasing rainfall indicated more water for hydropower production.
The latest weather forecasts are wetter than yesterday’s, and show a 1.8 percent increase in surplus hydropower assets compared with the seasonal average during the next two weeks to 9.6 terawatt-hours, Markedskraft AS data on Bloomberg show.
Electricity for delivery in the next quarter lost 0.4 percent to 40.70 euros ($51.97) a megawatt-hour as of 3:11 p.m on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for December lost 0.9 percent to 38.65 euros, while the contract for 2013 dropped 0.3 percent to 37.30 euros.
The Nordic region meets more than half its power needs by running water through turbines, which is why rain affects electricity prices.
Estonian state-owned utility Eesti Energia AS will become a market maker when the Nasdaq OMX Group starts offering contracts for difference in the Baltic country on Nov. 26, the exchange said in an e-mailed statement today. The contracts are used as insurance against differences in regional price and the average Nordic price.