Feb. 12 (Bloomberg) -- Nordic electricity prices advanced after German power and the cost of carbon allowances increased.
The benchmark near-quarter contract rose as much as 0.8 percent to 36.60 euros ($49.21) a megawatt-hour and closed at 36.45 euros on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The March contract gained 1.3 percent to 38 euros before closing at 37.90 euros.
EU carbon permits for December climbed as much as 5.4 percent to 4.72 euros a metric ton on the ICE Futures Europe exchange in London. Emission prices can influence generating costs at coal- and gas-fed plants. German power for baseload delivery next quarter rose as much as 1.1 percent to 37.75 euros a megawatt-hour, broker data compiled by Bloomberg show.
Electricity usually flows from where it’s cheapest to produce to more expensive areas, which means Nordic contracts typically track the movements of their equivalents in German power derivatives.
Today’s temperature forecasts for the next two weeks in Scandinavia are 1 to 2 degrees Celsius (2 to 4 degrees Fahrenheit) milder than yesterday, Danish energy trading company Energi Danmark A/S said today on its website. Higher temperatures reduce the need for heating.
The Nordic region meets more than half of its power needs by running water through turbines. The amount of water and snow available to generate electricity in the region may be 15.3 terawatt-hours below normal for the time of year in two weeks, down from 11.8 terawatt-hours today, Markedskraft AS data on Bloomberg show.
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