Major price falls following weather change

Focus week 6: The cold winter in Europe lasted for a couple of weeks and has now given way to mild, wet weather. This resulted in falling electricity prices last week.

Here and now

The Nordic weather forecasts made it increasingly clear that a weather change was under way last week. Following several weeks of temperatures below normal, the level is now expected to be around 3-4 degrees above average from the middle of week six. These changes resulted in significant price falls across the Nordic energy market last week. The Q2-19 contract has fallen by EUR 3.60/MWh (approximately 7.5%) to EUR 43.90/MWh, while the YR-20 contract has fallen by EUR 1.61/MWh and is now trading at a price of EUR 36.90/MWh.

Read Focus here.