Nordic electricity for next month advanced for a third day to the highest in a month, after colder temperatures and less precipitation pointed to increased power use and lower production.
The March contract gained as much as 1.4 percent to 38.70 euros ($50.95) a megawatt-hour, the highest since Jan. 24, and closed at 38.60 euros on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The benchmark Nordic next-quarter contract advanced 0.7 percent to 36.55 euros.
Temperatures in Norway will average minus 1.1 degree Celsius (30 Fahrenheit) through March 4, down from an earlier forecast of minus 0.4, MetraWeather data using the ECMWF model show. Lower temperatures boost demand for electric heating.
The Nordic region gets more than half of its power from hydroelectric plants. The amount of water and snow available to generate electricity in the region may be 16.3 terawatt-hours below normal for the time of year in two weeks, down from 14.6 terawatt-hours today, Markedskraft AS data on Bloomberg show.