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NORDIC POWER-Wet weather and weaker spot weighs on forwards
August 21, 2012 / 10:08 AM / 5 years ago

NORDIC POWER-Wet weather and weaker spot weighs on forwards

* Spot price for Wednesday seen down to 29.9 euros a MWh
    * Hydro-dependent region could see more rain from Atlantic

    OSLO, Aug 21 (Reuters) - Nordic forward power prices fell on
Tuesday morning on wet weather forecasts and weaker spot prices
in the hydro-dependent Nordic market, traders said. 
    The benchmark quarter-ahead contract for baseload
(24 hours) delivery traded at 38.55 euros ($47.57) per
megawatt-hour (MWh) at 0930 GMT, down 45 cents from Monday.
    "The spot came weaker than expected yesterday, and we have a
wetter weather forecast," a Sweden-based trader said.
    "The market is weather and spot driven at the moment, and
it's testing the (front-quarter contract) level of 38.50 euros,"
he added.
    The Nordic region relies on hydro power for more than 50
percent of its energy needs, and wet weather is a bearish
signal.
    Next week Scandinavia could see more rain as intense low
pressure areas were expected to develop over the north eastern
Atlantic, meteorologists said.
    "Uncertainty is still quite high, but some rather wet days
are possible...stable high pressure is not likely before early
September," said Georg Muller, a meteorologist at Thomson
Reuters Point Carbon.
    At the far end of the curve, the Nordic contract for
baseload power delivery in 2013 fell by 25 euro cents
to 38.65 euros.
    The equivalent German contract for baseload
delivery next year was steady at 49.50 euros a MWh on EEX.
    
    SPOT PRICES
    Nordic average day-ahead price for Tuesday came at 30.6
euros a MWh, down from 31.3 euros on Monday, and below analysts
expectations. 
    The spot price for Wednesday was expected to ease further to
29.9 euros a MWh on higher wind output and slightly higher hydro
inflows from precipitation, analysts at Thomson Reuters Point
Carbon said.
    Combined wind power output in Denmark and Sweden was
forecast to increase by 310 MW to 1,360 MW on Wednesday.
    About 37 percent of total nuclear power capacity or 4,430 MW
was expected to be offline on Wednesday in the Nordics.
($1 = 0.8103 euros)

 (Reporting by Nerijus Adomaitis; Editing by Alison Birrane)

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