Nordic Power Price Gains Amid Forecasts of Prolonged Cold SpellTorsten Fagerholm
Nordic electricity for April through June rose as forecasts for an extended period of freezing temperatures and dry weather indicated an increase in electricity demand and lower supply.
Low temperatures in Oslo are forecast to drop to minus 18 degrees Celsius (zero Fahrenheit) on Jan. 19 from minus 13 today, and sink further to minus 22 degrees on Jan. 23, according to CustomWeather Inc. data on Bloomberg.
The next-quarter contract gained 1.7 percent to close at 38.30 euros ($51.12) a megawatt-hour at 3:30 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. February power rose 0.9 percent to 46.75 euros.
Power demand in the Nordic region can surge as freezing winter temperatures boost heating demand. The region’s hydropower reserves are 4.8 terawatt-hours below the seasonal average and may decline to a deficit of 12.5 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region, which gets more than half of its power supplies by running water through turbines, had a surplus of 9 terawatt-hours at the end of November.