Nordic Next-Week Power Surges to Record on Freezing Temperatures
Nordic electricity for delivery next week surged to a record as forecasts for freezing and dry weather pointed to rising power demand and flagging supplies.
The contract for delivery from Dec. 3 through Dec. 9 gained 4.8 percent to close at 45.75 euros ($59.31) a megawatt-hour as of 3:29 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The contract for January through March rose 1.5 percent to 41.25 euros, while the December contract advanced 3.5 percent to 41.50 euros.
Minimum temperatures in Stockholm may drop as low as minus 9 degrees Celsius (16 Fahrenheit) on Dec. 2 from 3 degrees today, according to CustomWeather Inc. data on Bloomberg.
“From a short-term perspective we see a good possibility for rising power prices” due to the cold weather, Mats Forsell, a commodity trader at SEB AB, Sweden’s third-largest bank, said today in an e-mailed research note.
Hydropower assets may be 1.9 terawatt-hours above the seasonal normal in two weeks time, 78 percent less than today, Markedskraft AS data on Bloomberg show. The Nordic region meets more than half its power needs by running water through turbines, which means lower rainfall affects supplies and electricity prices.
EON SE (EOAN), Germany’s biggest utility, failed to start the 473- megawatt Oskarshamn-1 reactor in Sweden today, and delayed operation until Nov. 30, with full capacity planned for Dec. 7, the company said today in a filing with the Nord Pool Spot AS exchange in Oslo.
“Abnormal chemical values” in the reactor vessel at the country’s oldest reactor, idle since Oct. 30 last year, caused the delay, Anders Oesterberg, a company spokesman, said today by phone from the plant.
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