Jan. 30 (Bloomberg) -- Nordic electricity erased gains as lower carbon permit costs offset forecasts for colder weather that may boost power demand.
The electricity contract for next quarter fell 0.1 percent to close at 35.45 euros ($48.01) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo after earlier rising as high as 36.05 euros. Power for delivery next month declined 0.1 percent to 40.65 euros after earlier reaching 41.30 euros.
Carbon for December dropped as much as 6.8 percent to 3.72 euros a metric ton and were at 3.75 euros at 2:34 p.m. on the ICE Futures Europe exchange in London. Power can track carbon as it influences production costs at fossil fuel fed plants.
Nordic hydropower reservoirs fell 3.7 percentage points to 57.1 percent full in the week to Jan. 27, 3 points below the seasonal average, according to the latest data from the Nord Pool Spot AS exchange in Oslo. The region gets half of its power supplies by running water through turbines.
Low temperatures in Oslo may drop to minus 19 degrees Celsius (5 Fahrenheit) on Feb. 9, from zero today, according to CustomWeather Inc. data on Bloomberg. Temperatures are poised to fall as low as minus 23 degrees on Feb. 10. Cold weather boosts demand for electric heating.
Power for baseload delivery around the clock this week may average 36.50 euros a megawatt-hour and 39 euros next week, Bixia AB, Sweden’s fourth-largest power trading company, said today in an e-mailed report.
Electricity consumption in the Nordic region may total 9.2 terawatt-hours this week, and rise to 9.3 terawatt-hours next week, Bixia said.
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