Water reservoirs full to the brim

Focus week 43: The Nordic energy market experienced a sharp price fall last week. Significantly wetter weather is on the way, and this caused prices to fall by more than 10% in both the coming quarter and year contracts.

Here and now

Last week, we were able to describe how changes to the weather forecasts caused the market to change direction, and the falling trend was reinforced even further last week. Prices fell significantly in both the long and the short-term contracts in the market. According to most forecasts, large volumes of precipitation are now expected to fall across the Nordic region in the coming weeks, and the pressure on hydro-power producers looks set to increase. As a result, both the Q1-21 and YR-21 contracts fell by more than 10% and now cost EUR 24.80/MWh and EUR 21.10/MWh respectively.

Read Focus here.