Nordic electricity for next quarter rose as weather forecasts indicated an increased need for electric heating and after carbon climbed.
The benchmark Nordic contract gained 1.1 percent to 36.20 euros ($48.49) a megawatt-hour as of 11:57 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The March contract advanced as much as 1.1 percent to 37.80 euros and later traded at 37.75 euros.
Temperatures in Norway will average minus 1.7 degrees Celsius (29 Fahrenheit) through March 2, down from an earlier forecast of minus 1.4 degrees, MetraWeather data using the ECMWF model show. Lower temperatures boost the demand for electric heating.
EU carbon permits for December rose as much as 5.1 percent to 4.92 euros a metric ton on the ICE Futures Europe exchange in London. Emission prices can influence generation costs at coal- and gas-fed plants. German power for baseload delivery next quarter climbed as much as 0.4 percent to 37.30 euros a megawatt-hour, according to broker data compiled by Bloomberg.
The Nordic region gets more than half of its power from hydroelectric plants. The amount of water and snow available to generate electricity in the region may be 16.4 terawatt-hours below normal for the time of year in two weeks, down from 14.6 terawatt-hours today, Markedskraft AS data on Bloomberg show.
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