Nordic Power for February Plummets to Lowest in 11 Weeks
Nordic electricity for next month declined to the lowest in nearly three months after milder weather pointed to lower power demand in the region.
The February contract fell as much as 5.7 percent to 41.50 euros ($55.27) a megawatt-hour as of 8:45 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The April through June contract lost as much as 3.1 percent to 36.20 euros, the lowest since Jan. 4.
Low temperatures in Oslo are forecast to rise to minus 6 degrees Celsius (21 Fahrenheit) on Jan. 28 from minus 17 one day earlier, according to CustomWeather Inc. data on Bloomberg. That compares with a 10-year average minimum temperature of minus 5 degrees.
Forecasts are returning to normal temperatures and precipitation after a period of cold and dry weather, which means the “near-quarter contract may continue to slide by an additional euro or two,” Handelsbanken AB said on Jan. 18 in an e-mailed report.
Vattenfall AB, Sweden’s largest utility, restarted the 1,064-megawatt Ringhals-3 atomic reactor on Jan. 18 after an emergency stop on Jan. 16. That boosted the utilization rate among the region’s 14 nuclear stations to 96 percent at 7:34 a.m., according to calculations by Bloomberg and data from the operators. The Nordic region gets a fifth of its power from nuclear plants.
Baseload electricity for around-the-clock delivery today in the Nordic region costs 41.23 euros a megawatt-hour on average, according to an auction yesterday on the Nord Pool Spot AS exchange in Oslo. That compares with a price of 47.78 euros for Jan. 18.
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