Nordic Next-Quarter Power Approaches Six-Week Low on Water Glut
Nordic power prices for next quarter declined to near their six-week low as forecasts showed stable water supplies in the hydropower-dependent region.
Electricity for delivery from January through March slipped 5 cents to 40.20 euros ($51.26) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The contract closed at 40.02 euros on Nov. 5, the lowest since Sept. 25. Power for December fell 5 cents to 38.70 euros.
The near-quarter contract may drop further because of a water glut and high nuclear utilization rates, according to report today from Bixia AB, Sweden’s fourth-largest power trading company.
The surplus in water supplies in the Nordic countries, compared with the seasonal average, may drop by 0.7 terawatt- hour to 7.5 terawatt-hours in the next two weeks, Markedskraft AS data on Bloomberg show. The area meets more than half its power needs by running water through turbines.
Fourteen Nordic nuclear reactors were producing at 95 percent of their average combined capacity at 7:38 a.m., up 2 percentage points from yesterday, data from the operators and calculations by Bloomberg showed.
Norway’s water reservoirs were 86.7 full on Nov. 4, which is 0.5 percentage points more than the seasonal median, the country’s water and energy directorate said today.
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