Substantial increases across forward market

Focus week 24: Bone dry weather forecasts and large fluctuations in both the coal and carbon emissions allowance markets resulted in climbing forward prices in the Nordic energy market last week.

Here and now

Following a couple of months without any notable fluctuations, there were substantial price climbs in the short-term contracts in the forward market last week. The main reason for the increases is the fact that the hydro-balance surplus has dwindled sharply in recent weeks. The Q3-20 contract closed at EUR 15.20/MWh on Monday, an increase of EUR 6.00/MWh for the week. The distant contracts in the market have also increased following a week in which both the coal and carbon markets have been climbing substantially. The Nordic YR-20 contract now costs EUR 25.45/MWh, EUR 2.40/MWh more than at the same time last week.

Read Focus here.