Nordic Power Slips 2% as Rain Forecast Indicates Growing Glut
Nordic electricity for delivery January through March fell to the lowest in more than two weeks as forecasts of increased rainfall indicated more water for hydropower production.
“Mild and wet weather and weak carbon keep Nordic power in negative territory,” Danish energy trading company Energi Danmark A/S said today on its website.
Electricity for delivery next quarter lost 1.9 percent to 40.15 euros ($51.43) a megawatt-hour, the lowest close since Nov. 5, on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for next month fell 1.8 percent to 38.55 euros.
“It’s a bearish picture, with high hydropower and nuclear supply, and low demand from industries, and also from households, due to quite mild weather,” Olav Botnen, senior analyst at Markedskraft AS, a power market analysis and portfolio management company, said today by phone from Stockholm.
Temperatures in the Stockholm area may climb as high as 7 degrees Celsius (45 degrees Fahrenheit) over the next 10 days, and are set to drop to 3 degrees by Nov. 29, according to the website of Sweden’s Meteorological and Hydrological Institute.
The Nordic region meets more than half its power needs by running water through turbines, which is why rain affects electricity prices.
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