Nordic electricity retreated as falling German power and carbon prices reduced the impact of weather forecasts that pointed to higher demand and lower supplies.
The contract for next quarter fell as much as 0.4 percent to 35.30 euros ($48.70) a megawatt-hour and traded at 35.35 euros as of 1:38 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for next year dropped to a record 35.75 euros.
German power for around-the-clock delivery next quarter slid as much as 1.2 percent to 37.15 euros, an all-time low, according to broker data compiled by Bloomberg. EU carbon permits for December traded down 22 cents, or 5.8 percent, at 3.58 euros a metric ton after falling as low as 3.53 euros on the ICE Futures Europe exchange in London.
Low temperatures in Oslo may decline to minus 13 degrees Celsius (9 Fahrenheit) on Feb. 3, from plus 1 today, according to CustomWeather Inc. data on Bloomberg. Temperatures are set to fall to as low as minus 22 degrees on Feb. 11. Cold weather boosts demand for electric heating.
Drier weather and forecasts of falling temperatures indicate that the amount of water and snow available to generate electricity in the region may be 13.4 terawatt-hours below the seasonal norm in two weeks, Markedskraft AS data on Bloomberg show. That represents a 25 increase from today’s deficit of 10.8 terawatts. The Nordic region meets more than half its power needs by running water through turbines, which means lower rainfall affects supplies and electricity prices.
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