Nordic Power Price Drops on Milder Weather, Reduced Demand
Nordic electricity for next week fell to a record low after weather forecasts indicated lower electricity demand amid rising temperatures.
The contract for next week fell as much as 1.3 percent to 37.30 euros ($50.10) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo as of 10:15 a.m. Power for delivery next quarter declined as much as 0.8 percent to 35.90 euros before trading at 36.10 euros.
Low temperatures in Oslo may rise to plus 1 degree Celsius (34 Fahrenheit) on Jan. 30, from minus 17 tomorrow, according to CustomWeather Inc. data on Bloomberg. Higher temperatures damp demand for electric heating.
Temperatures forecast for the Scandinavian region are slightly below the norm for the next 15 days, with cold air slowly giving way to a deep low pressure above the Atlantic area, Danish energy trading company Energi Danmark A/S said today on its website.
Swedish power use peaked at 26,609 megawatts from 8:00 to 9:00 a.m., compared with a forecast of a record 27,500 megawatts, according to data from transmission system operator Svenska Kraftnaet. That’s still the highest demand this winter, according to the grid company’s data.
Svenska Kraftnaet activated two oil-fired winter peak-load reserve stations operated by EON SE and Vattenfall AB at 6 a.m. Stockholm time today to ensure a “sufficient” power balance margin, it said yesterday in a filing to the Nord Pool Spot exchange in Oslo.
Nordic nuclear reactors operated at 96 percent of their combined capacity at 7:43 a.m., 1 percentage point higher than yesterday, data from operators showed.
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