Nordic electricity climbed to the highest in more than a week as forecasts indicated below-usual temperatures and a decline in the glut of water in the hydropower-dependent region.
The next-quarter contract rose as much as 1.8 percent to 42.49 euros ($55.48) a megawatt-hour, the highest since Oct. 10, and was at 42.40 euros at 3:18 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for next month gained 2.5 percent to 40.60 euros.
Temperatures in the region will drop to 2 degrees Celsius (3.6 Fahrenheit) below the seasonal average next week, pushing up power demand and prices, Danish energy trading company Energi Danmark A/S said today in a website report.
The surplus of hydropower reserves compared with the seasonal mean may decline 24 percent to 7.7 terawatt-hours over the next two weeks, Markedskraft AS data on Bloomberg show. The Nordic area generates about a fifth of its power from nuclear reactors and half by running water through turbines.
Fourteen Nordic nuclear reactors operated by Vattenfall AB, EON AG, Fortum Oyj (FUM1V) and Teollisuuden Voima Oyj produced at 89 percent of their combined capacity earlier today, according to data from company websites and Bloomberg calculations. The rate may rise to 95 percent next week, a Bloomberg estimate shows, as the Ringhals-2 reactor is set to start production on Oct. 26 following yearly maintenance, according to an Aug. 30 filing to the Nord Pool Spot AS exchange in Oslo by operator Vattenfall.
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