Monday, October 15, 2012


Wet Weather Pushes Nordic Power Contracts to Two-Week Lows
October 15, 2012 9:40 AM EDT
Nordic power for delivery in January to March fell to the lowest in more than two weeks as weather forecasts pointed to a growing surplus of water in the hydropower-dependent region.
The next-quarter contract dropped as much as 2.2 percent to 40.70 euros ($52.71) a megawatt-hour and traded at 40.85 euros at 2:59 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. That’s the least since Sept. 28. The next-month contract traded at 38.35 euros after dropping as much as 2.5 percent to 37.85 euros, the lowest since Oct. 2.
The hydrological balance, or the amount of water available for generation in excess of the seasonal mean, may rise by 1.4 terawatt-hours to 12.2 terawatt-hours by Oct. 30, as wet an mild weather is expected for the next few days, Danish energy trading company Neas Energy A/S said today in a report on its website.
The Nordic area gets about a fifth of its power from nuclear reactors and half by running water through turbines, which means rainfall and reactor generating rates affect prices.
Baseload power for around-the-clock delivery in the Nordic region will cost 35.43 euros on average tomorrow, according to an auction on the Nord Pool Spot AS exchange in Oslo. That’s 4.1 percent lower than yesterday’s turnout for today.
The 550-megawatt Fenno-Skan-1 cable connecting Sweden and Finland will be shut for repairs until Jan. 1, Finnish transmission system operator Fingrid Oyj said today in an e- mailed statement.
Flows on the 600-megawatt Sweden-Poland cable halted in both directions at 3:05 p.m. Stockholm time, Svenska Kraeftnaet, the Swedish grid operator, said in a filing to Nord Pool Spot.
To contact the reporter on this story: Torsten Fagerholm in Helsinki at tfagerholm@bloomberg.net
To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

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