Colder, drier development supporting Nordic power prices

Focus week 41: Anticipated decline in precipitation easing pressure on hydro producers and reservoir levels lately, while cooler conditions drive power demand projections.

Here and now

The Nordic power market faced a rather choppy start of the last trading week. On Monday, especially contracts with nearby delivery periods were weighed down as wet weather forecasts persisted, putting further pressure on hydro reservoirs being at rather high levels already. With a swing back to drier alternatives some turn to gains followed on Tuesday, but this impulse eased a bit afterwards and softer fuels and German power prices sent signals instead. This Monday Q1-21 was traded back up to around 28,45 EUR/MWh, while the YR-21 was similarly lifted to a level at around 23,65 EUR/MWh.

Read Focus here.