Cold weather results in high spot prices

Focus week 41: High pressure has resulted in cold, dry and calm weather in the Nordic region this last week. This has resulted in high spot prices, but the forward market, however, is continuing downwards.

Here and now

The price falls in the Nordic energy market continued steadily last week for both the short-term and long-term contracts in the market. The falls could predominantly be attributed to a downtrend in the allowance, coal and gas markets. At the same time, the cold weather we have experienced in the last week does not look set to stick around. The Q1-19 contract closed at EUR 40.05/MWh on Monday, a fall of EUR 2.25/MWh, while the YR-20 contract has fallen by EUR 0.90/MWh to EUR 34.25/MWh. We are therefore close to returning to the price level experienced before the French nuclear power crisis at the start of September.

Read Focus here.