Nordic electricity for delivery next month climbed to the highest in more than two weeks as forecasts of reduced rainfall indicated less water for hydropower production.
Hydropower assets compared with the seasonal average may fall by 34 percent to 6.46 terawatt-hours over the next two weeks, Markedskraft AS data on Bloomberg show. A high pressure weather system with dry and cool conditions may set in at the end of next week, Energi Danmark A/S said on its website.
Electricity for delivery next month gained as much as 1.7 percent to 39.50 euros ($50.44) a megawatt-hour, the highest since Nov. 1, and traded at 39.35 euros as of 2:42 p.m on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for January through March gained 0.9 percent to 41 euros, having earlier traded as high as 41.10 euros.
The benchmark near-quarter contract is unlikely to climb above 44 euros, due to a glut of water and high nuclear utilization rates, which together point to a higher power balance than in the past few winter periods, SEB AB, Sweden’s third-largest bank, said today in an e-mailed research note.
The Nordic region meets more than half its power needs by running water through turbines, which is why rain affects electricity prices. Nuclear reactors provide a fifth of the region’s electricity.
EON SE, Germany’s biggest utility, has delayed the start of the Swedish 473-megawatt Oskarshamn-1 reactor by seven days to Nov. 26, the company said today in a filing with the Nord Pool Spot AS exchange in Oslo. The reactor has been idle since Oct. 30, 2011.
Nordic nuclear reactors were running at 96 percent of their combined capacity as of 7:33 a.m., up by 2 percentage points from Nov. 16, data from operators showed.