Nordic electricity for delivery tomorrow dropped to the lowest in more than six weeks as low demand and high wind-power output weighed on prices.
The average price for baseload power delivery tomorrow in Norway, Sweden, Denmark and Finland will be 31.57 euros a megawatt-hour, the lowest since Oct. 7, based on the results of an auction today on the Nord Pool Spot AS exchange in Oslo.
Mild temperatures and high wind power output have caused a slide in prices, and the “risk for extreme prices this winter looks limited,” with a glut of water and nuclear output creating a broad surplus in supply, Bixia AB, Sweden’s fourth-largest power trading company, said yesterday in a report.
Falling temperatures next week may trigger a 3,000-megawatt increase in average power demand, pushing up the average baseload price for prompt delivery to 37 euros, the company said. Sweden consumed 18,824 megawatts between noon and 1 p.m. Stockholm time, according to data from grid operator Svenska Kraftnaet’s website.
Electricity for next week fell to the lowest since Nov. 16 as rainy forecasts and the weak price for prompt delivery weighed on the market. The next-week contract lost 2.3 percent to 35.80 euros ($46.14) a megawatt-hour as of 2 p.m. on the Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for next quarter fell 0.4 percent to 40.15 euros, while the contract for next month gained 0.8 percent to 39.60 euros.
Hydropower assets in excess of the seasonal average may total 8.77 in the next two weeks, which is 0.99 terawatt-hours more than forecast earlier today, Markedskraft AS data on Bloomberg show. The Nordic region meets more than half its power needs by running water through turbines, which means rainfall impacts electricity prices.