New record lows in spot market

Focus week 23: The flood is under way in the Nordic region, and spot prices fell to their lowest levels ever recorded last week. The hydro-balance surplus, however, is falling slightly.

Here and now

The short-term contracts in the Nordic energy market are continuing to trade within a very narrow range of between EUR 8/MWh and EUR 10/MWh. The week ended with a closing price of EUR 9.20/MWh in the Q3-20 contract, a fall of EUR 0.15/MWh. The small fluctuations are due to the fact that it is already clear that the Nordic region will experience a hydrological surplus during this period. Looking at the long-term contracts in the market, the YR-21 contract experienced a marginal fall of EUR 0.02/MWh. The carbon emissions allowance market remains a key price driver.

Read Focus here.