Change in weather leads to climbing prices

Focus week 33: The start of August offered warmer and drier weather in both the Nordic region and Europe as a whole. This has caused electricity prices to soar.

Here and now

Since our last issue, Nordic electricity prices have undergone a development of initially sharply falling prices followed by steadily climbing prices. A falling carbon market and wet summer weather caused further price falls in the forward market at the end of July, but the trend turned at the start of August due to a noticeable change in the weather to drier and warmer conditions. The Q4-20 and YR-21 contracts closed on Monday at EUR 18.80/MWh and EUR 21.09/MWh respectively, slightly higher than the levels in mid-July for both contracts.

Read Focus here.