Nordic Electricity Pares Gains After Day-Ahead Power DeclinesTorsten Fagerholm
Nordic electricity for April pared gains after the day-ahead power price retreated.
The April contract traded at 39.24 euros ($51.26) a megawatt-hour as of 3:35 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo, after earlier trading at a six-week high of 39.75 euros. Power prices rose amid forecasts for drier and colder weather.
The Nordic region gets more than half of its power from hydroelectric plants. The amount of water and snow available to generate electricity in the region may be 17 terawatt-hours below normal for the time of year in two weeks, down from 14.7 terawatt-hours today, Markedskraft AS data on Bloomberg show.
“Weather forecasts have shifted, and become drier and slightly colder than last week,” John Brottemsmo senior analyst at energy adviser Bergen Energi AS said today by phone from Bergen, Norway.
Temperatures in Sweden may average minus 1.8 degrees Celsius (31 Fahrenheit) through March 14, compared with an earlier forecast of minus 1.6, MetraWeather data on Bloomberg using the ECMWF model show. Lower temperatures boost demand for electric heating.
The Nordic next-quarter contract was at 37.40 euros after earlier rising as much as 2.2 percent to 37.85 euros, the highest since Jan. 18.
Nordic power for delivery around the clock tomorrow will cost 40.92 euros a megawatt-hour on average, following today’s auction on the Nord Pool Spot AS exchange in Oslo. That’s 4.2 percent less than the day-ahead price set yesterday, and below the financial contract for tomorrow on Nasdaq OMX, which earlier traded in a bid-ask spread of 42 euros to 42.35 euros. Forward contracts frequently track movements in prompt prices.