Nordic electricity for April traded near the highest in six weeks as forecasters maintained predictions for dry and cold weather in the coming weeks, while German prices were little changed.
The April contract gained as much as 0.6 percent to 39.50 euros ($51.35) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, after rising yesterday to 39.75 euros, the highest since Jan. 18. Temperatures in Finland for the next 10 days may be colder than earlier forecasts, MetraWeather data on Bloomberg show.
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 17.5 terawatt-hours below normal for the time of year in two weeks, up from 14.8 terawatt-hours today, Markedskraft data on Bloomberg show. Drier weather signals less supply and points to higher prices.
Temperatures in Finland will average minus 7.6 degrees Celsius (18 Fahrenheit) through March 15, compared with an earlier forecast of minus 7.2, MetraWeather data using the ECMWF model show.
The April Nordic contract was unchanged at 39.25 euros a megawatt-hour at 11 a.m. in Oslo, while the benchmark next- quarter contract was at 37.35 euros.
German power for baseload delivery next quarter gained 0.1 percent to 37.25 euros a megawatt-hour, according to broker data compiled by Bloomberg. Electricity usually flows from the cheaper area to the more expensive one, which means Nordic contracts can track movements in Germany.
The Nordic next-quarter power contract traded higher than the German equivalent for first time since March 31, 2011, according to data from the Nasdaq OMX Group energy exchange and brokers.
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