Nordic electricity for delivery next week rose to a record as forecasts for drier, colder weather were poised to boost power demand and limit supply.
Power for next week gained as much as 4.1 percent to a record 54 euros ($70.56) a megawatt-hour and traded at 53 euros as of 10:31 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The next-quarter contract gained as much as 1.1 percent to 38.20 euros, and later traded at 37.95 euros.
“Starting tomorrow, cold weather with daytime frost will arrive in Norway and Sweden, with low temperatures to last until January 20,” Danish energy trading company Scanenergi AS said today on its website.
Low temperatures in Stockholm are forecast to drop to minus 9 degrees Celsius (16 Fahrenheit) on Jan. 14 from minus 2 today, according to CustomWeather Inc. data on Bloomberg. That compares with a 10-year seasonal norm of minus 5.
The region’s hydropower reserves, which are 1.6 terawatt- hours below the seasonal average, may drop further to a deficit of 9.1 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region, which gets more than half of its power supplies by running water through turbines, had a surplus of 9 terawatt-hours as recently as the end of November.
“It remains to be seen whether nuclear producers can deliver on their promise to raise output by 1,000 megawatts from the middle of next week,” Bixia AB, Sweden’s fourth-largest power trading company, said yesterday in an e-mailed report.
The utilization rate of Swedish and Finnish nuclear reactors may rise next week to 100 percent from today’s 92 percent, if EON SE starts its 638-megawatt Oskarshamn-2 reactor on Jan. 13 and the 473-megawatt Oskarshamn-1 reactor on Jan. 15, as planned, according to data from the operator and calculations by Bloomberg. The region gets a fifth of power output from atomic reactors.
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