Nordic Monthly Power Extends Record Rising Streak on Dry WeatherTorsten Fagerholm
Nordic electricity climbed for an 11th day, the longest period of gains for a month-ahead contract since at least 2003, after weather forecasts signaled the lowest water supply for hydropower producers in two years.
April power gained as much as 2.3 percent to a record 46.15 euros ($58.93) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for April through June rose 1 percent to 41.95 euros, after earlier reaching 42 euros.
The amount of water and snow available to generate electricity in the region may be 24.1 terawatt-hours below normal for the time of year in two weeks, the lowest since March 28, 2011, and down from minus 21.5 terawatt-hours today, Markedskraft data on Bloomberg showed. Drier weather typically boosts prices because the region gets more than half of its power from hydroelectric plants.
Power for delivery around the clock tomorrow will cost 48.50 euros a megawatt-hour on average, following today’s auction on the Nord Pool Spot AS exchange in Oslo. That’s 2.1 percent more than the day-ahead price set yesterday. It’s also above the financial contract for tomorrow on Nasdaq OMX, which earlier closed at 47 euros. Forward contracts frequently track movements in prompt prices.
The Nordic power market will close for five days starting tomorrow, according to Nasdaq OMX Group’s energy exchange.
Nordic hydropower reservoirs were 31.6 percent full on March 24, down 3.2 percentage points from a week earlier and 6.3 percentage points below the seasonal median value, according to data from Nord Pool Spot.
Fortum Oyj, Finland’s biggest utility, will permanently close its 230-megawatt Inkoo-4 coal-fired unit, the company said today in a filing to the Nord Pool exchange.
“The plant has not been operated since 2007, and has been mothballed since 2011,” Matti Ruotsala, an executive vice president of Fortum’s power division, said today by phone from Espoo, Finland. It’s “no longer viable to keep on long-term standby, so therefore, we have decided to make it permanently unavailable for the market,” he said.