Nordic Power Pares Early Gains as Forecasts Call for More Rain
Nordic power for delivery in January to March pared early gains as wetter weather forecasts point to a smaller-than-earlier decrease of water in the region.
The next-quarter contract rose as much as 1.5 percent to 41.50 euros on Nasdaq OMX Group Inc.’s energy exchange in Oslo and was at 41.30 euros ($53.89) a megawatt-hour at 1:35 p.m. Power for next-month delivery rose as much as 1.8 percent to 39.15 euros, and later traded at 39.10 euros.
The latest weather forecasts mean that surplus hydropower reserves may decline 23 percent in the coming two weeks to 7.1 terawatt-hours, indicating a 0.3 terawatt-hour build in reservoirs compared with a drier early-morning forecast, Markedskraft AS data on Bloomberg show.
The Nordic area gets about a fifth of its power from nuclear reactors and half by running water through turbines, which means rainfall and reactor generating rates affect prices.
Fourteen Nordic nuclear plants run by Vattenfall AB, EON AG, Fortum Oyj (FUM1V) and Teollisuuden Voima Oyj were producing at a combined capacity of 88 percent this morning, data from company websites and calculations by Bloomberg show. That’s the highest rate since Bloomberg started compiling the data in August.
EON’s Oskarshamn-2 reactor in Sweden may be ordered to halt production by the country’s nuclear regulator from Dec. 31 to June 1 due to a delayed safety upgrade, public broadcaster Sveriges Radio reported today.
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