Feb. 27 (Bloomberg) -- Nordic electricity for next month rose to the highest in four weeks after carbon and German power prices climbed.
The March contract rose as much as 1 percent to 39.50 euros ($51.74) a megawatt-hour, the highest since Jan. 23, and traded at 39.45 euros as of 3:51 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The benchmark Nordic next-quarter contract traded 0.6 percent higher at 36.80 euros after advancing as much as 1 percent to 36.95 euros.
EU carbon permits for December advanced as much as 4.2 percent to 4.48 euros a metric ton on the ICE Futures Europe exchange in London. Emission prices can influence generation costs at plants fueled by coal and gas.
German power for baseload delivery next quarter gained 0.4 percent to 37.30 euros a megawatt-hour, according to broker data compiled by Bloomberg. Electricity usually flows from the cheaper area to the more expensive one, which means Nordic contracts can track movements in Germany.
High nuclear output and hydropower supply and subdued demand have kept Nordic power prices “relatively low, and they have failed to soar, even if January and February are statistically the coldest months with the highest electricity use,” Swedish power trading company Telge Kraft AB said today in an e-mailed report.
Nordic hydropower reservoirs were 44 percent full on Feb. 24, down from 47.4 percent a week earlier, and with an energy content of 53.4 terawatt-hours, according to data from Nord Pool Spot. That’s more than twice Denmark’s annual electricity use. The region meets more than half of its power demand by running water through turbines.
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