Nordic power prices fall on stronger hydro conditions

Nordic power prices declined sharply as rainy autumn weather bolstered hydro reserves across Scandinavia, improving power prospects ahead of winter.

Data from Volue, a market analysis firm, reported that the two-week hydrological balance for Sweden and Norway, a measure of groundwater and snow available for electricity production, rose by 3.8 per cent to 7.69 terawatt hours on Monday, marking the highest level since November 1.

Nordic next-quarter power on Nasdaq Inc.’s commodities market dropped by up to 4.2 per cent, reaching €54 per megawatt hour before recovering some losses. The Danish energy firm Energi Danmark sees further rain and high wind output over the weekend, expecting above-average precipitation to maintain favourable hydro conditions.

This wet autumn has been critical for building hydroelectric reserves across the region, a key low-carbon energy source for Europe that helps curb reliance on natural gas during the high-demand winter months.

Attribution: Bloomberg

Subediting: Y.Yasser