Nordic electricity market changes tack due to shifted weather pattern

Focus week 37: Risk of drier development is recently priced into Nordic electricity contracts with renewed premiums. Still the probability of another change in forecasts remains.

Here and now

Last week’s explosive opening has been followed by some cooling down. While weather forecasts started to vary already on Monday, in the course of the week it became more apparent that in the short run low pressure impact from the west is keeping precipitation levels a bit more elevated than anticipated earlier. However, at the end of the week a slight change in scenarios occurred, where the risk of a drier development during the latter half of this month is included. Q4-20 was Monday traded around 26,15 EUR/MWh, while the YR-21 was seen at 25,65 EUR/MWh.

Read Focus here.