Climbing prices on back of dry weather forecasts

Focus week 22: Following a cold, wet spring, the weather forecasts for the Nordic region have now become both warm and dry. There is once more a hydro-balance deficit.

Here and now

Prices continue to climb in the Nordic forward market, and it is important to look to the spread in relation to Germany to find an explanation. The spread remains very high, and Nordic power traders therefore feel that Nordic prices must rise, as Germany is not experiencing any real price falls. At the same time, the Nordic hydro-balance once more has a deficit, and we therefore experienced the highest prices observed in nearly two years for both the short-term and long-term contracts in the market last week. The Q3-21 contract has climbed to EUR 41.95/MWh, while the YR-22 contract costs EUR 33.95/MWh.

Read Focus here.