Nordic power for day-ahead delivery may decline to its lowest level in almost nine months as a public holiday in Sweden and Finland curbs power demand, according to electricity trading company Goeteborg Energi Dinel.
The next-day contract may fall as low as 25 euros a megawatt-hour from July 21 through July 23, Jens Nordberg, head of trading at Goeteborg Energi Dinel, said today by phone from Gothenburg, Sweden. That would be the least since Sept. 22 and compares with 34.13 euros today on the Nord Pool Spot AS exchange in Oslo.
Power consumption typically drops as factories halt during the midsummer public holiday in Sweden and Finland on the third Friday of June. The decline may be prolonged as wet weather boosts hydropower reserves, which account for more than half of the region’s electricity, according to Nordberg.
“The question is, will the weather remain wet, causing the day-ahead power price to remain below 30 euros also after the weekend,” said Nordberg, who has 15 years of experience in the Nordic power market.
The Nordic hydropower deficit will narrow to 5.7 terawatt-hours below the seasonal average in two weeks, as supplies increase by 3.4 terawatt-hours from today, according to Markedskraft AS data on Bloomberg.
Nordic power for day-ahead delivery cost an average of 41.12 euros this year, Nord Pool Spot data show. A day-ahead price below 30 euros would cause all Nordic power contracts through the first quarter of next year to fall by as much as 3 euros, according to Nordberg.
Papermaker UPM-Kymmene Oyj, Finland’s biggest power consumer, will close three mills with a joint electricity use of 670 megawatts from today through June 25, and limit consumption at other mills for maintenance, the company said in four separate filings to Nord Pool Spot. The Helsinki-based company’s global electricity use was 15,900 gigawatt-hours in 2011, mainly in Finland, according to its annual report.