New cable issues in Nordic region

Focus week 27: The Nordic system price remains low in spite of the dwindling hydro-balance surplus, while Danish and Swedish EPADs are rising sharply. One of the causes of this is the reduced cable capacity.

Here and now

After having opened with slight price climbs, the direction of the Nordic forward market changed during the course of last week. The price falls were predominantly caused by notably wetter and milder weather forecasts. The high carbon emissions allowance prices and an uptrend in the coal market did however place a dampener on the downside in the long-term contracts in the market. The Q4-20 contract, which is now the immediate quarter forward in the market, fell by no less than EUR 1.70/MWh to EUR 20.90/MWh, while the YR-21 contract fell by only EUR 0.35/MWh before closing at a price of EUR 24.45/MWh on Monday.

Read Focus here.