Feb. 20 (Bloomberg) -- Nordic electricity for next quarter advanced after weather forecasts indicated higher demand and after carbon prices rose.
The benchmark Nordic contract gained 1.1 percent to close at 36.20 euros ($48.44) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, after earlier trading as high as 36.35 euros. Power for March climbed 1.1 percent to 37.80 euros after earlier reaching 38 euros.
Temperatures in Sweden will average minus 2.3 degrees Celsius (28 Fahrenheit) through March 2, down from an earlier forecast of minus 2.1 degrees, MetraWeather data using the ECMWF model show. Lower temperatures boost the demand for electric heating.
EU carbon permits for December rose as much as 6.2 percent to 4.97 euros a metric ton on the ICE Futures Europe exchange in London. Emission prices can influence generation costs at coal-and gas-fed plants. German power for baseload delivery next quarter climbed as much as 0.5 percent to 37.35 euros a megawatt-hour, according to broker data compiled by Bloomberg.
Electricity for around-the-clock delivery in the Nordic area has cost 40.43 euros a megawatt-hour on average from Feb. 18 through tomorrow, compared with 42.55 euros a week earlier, according to data from the Nord Pool Spot AS exchange in Oslo.
The price for the full week, from Feb. 18 through Feb. 24, may average 39.50 euros a megawatt-hour, followed by a drop to 39 euros for the week after, Bixia AB, Sweden’s fourth-largest power trading company said today in an e-mailed report.
Nordic hydropower reservoirs were 47.4 percent full on Feb. 17, down by 3.5 percentage points from a week earlier, and with an energy content of 57.5 terawatt-hours, according to data from Nord Pool Spot. That’s roughly twice Denmark’s annual electricity use.
The reservoir content may drop to 41 percent by March 3, Bixia said in its report. The Nordic region meets more than half of its power use by running water through turbines, with reservoirs normally declining in winter when precipitation is stored as snow in mountains.
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