Nordic Next-Month Power Rises to Record on Drier, Colder Weather
Nordic electricity for delivery next month rose to a record as forecasts for drier, colder weather may boost power use and damp supply.
Low temperatures in Stockholm are forecast to drop to minus 8 degrees Celsius (minus 18 Fahrenheit) on Jan. 16 from minus 4 today, according to CustomWeather Inc. data on Bloomberg. That compares with a 10-year seasonal norm of minus 3.
The Nordic region’s hydropower reserves, which are 3 terawatt-hours below the seasonal average, may drop further to a deficit of 8.9 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region gets more than half of its power supplies by running water through turbines, and has turned to a shortage from a surplus of 9 terawatt-hours at the end of November.
Power for next month gained as much as 1.6 percent to 48.05 euros ($62.90) a megawatt-hour, and traded at 47.90 euros as of 10:12 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The contract for next quarter initially traded 1.2 percent higher at 38.45 euros, and later stood at 38.25 euros.
The utilization rate of Swedish and Finnish nuclear reactors may rise next week to 100 percent from today’s 90 percent, if EON SE (EOAN) starts the 638-megawatt Oskarshamn-2 reactor on Jan. 13 and the 473-megawatt Oskarshamn-1 reactor on Jan. 15, as planned, according to data from operators and calculations by Bloomberg.
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