Nordic electricity for delivery next month rose after forecasts for freezing temperatures and dry weather pointed to increased demand and reduced supply.
Low temperatures in Oslo may drop to minus 14 degrees Celsius (7 Fahrenheit) tomorrow from minus 2 today, according to CustomWeather Inc. data on Bloomberg. That compares with a 10-year seasonal average of minus 9.
The Nordic region’s hydropower reserves, which exceed the seasonal average by 0.4 terawatt-hours, may drop to a deficit of 3 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region gets more than half of its yearly power supplies by running water through turbines, and has had a water surplus since late June 2011.
The year-end holiday season will cut power demand in the next two weeks, damping prices for baseload around-the-clock delivery, SEB AB, Sweden’s third-largest bank, said yesterday in an e-mailed report.
Power for next week was quoted at 35.10 euros a megawatt-hour, while the contract for delivery the following week was quoted at 39.50 euros, according to data from the Nasdaq OMX Group’s exchange. That compares with tomorrow’s price for around-the-clock supply of 48.39 euros, according to data the Nord Pool Spot AS energy exchanges in Oslo.