Nordic power for next week climbed after temperature forecasts indicated increased demand for electric heating.
The next-week contract gained 0.9 percent to 44.25 euros ($57.68) a megawatt-hour at 11:05 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The benchmark next-quarter power contract was little changed at 37.20 euros, while the April contract rose 0.1 percent to 39 euros.
Temperatures in Sweden may average minus 3.6 degrees Celsius (25 Fahrenheit) over the next 10 days, 0.3 degrees less than an earlier forecast, MetraWeather data on Bloomberg using the ECMWF model show. Lower temperatures boost demand for electric heating.
The Nordic next-quarter power contract traded higher than the German equivalent, according to data from the Nasdaq OMX Group energy exchange and brokers. German power for baseload delivery next quarter declined 0.1 percent to 37.10 euros a megawatt-hour, according to broker data compiled by Bloomberg.
On the spot market, the German day-ahead baseload contract traded at 41.75 euros, according to broker data. That compares with a bid-ask spread of 40.25 to 41.25 euros for the Nordic equivalent contract on the Nasdaq OMX Group energy exchange.
“Norwegian hydropower producers are good in control, and are able to hold back production in order to keep prices just low enough to trigger exports to Germany, while avoiding a price collapse in the Nordic area,” Juha-Pekka Paunu, a trader at utility Vantaan Energia Oy, said today by phone from Vantaa, Finland.
Finland imported zero megawatts from Russia on a 1,400- megawatt link that connects the countries from 8 a.m. through 10 a.m. today for the first time since high-voltage links were put in place between the countries in the 1980s, data on grid operator Fingrid’s website showed.
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