Nordic Power Rises to Record With Freezing Weather Coming Friday
Nordic power prices for Friday rose to a record on cold weather and low winds.
Day-ahead power prices gained 37% to 151.33 euros ($170) per megawatt-hour in the Nord Pool spot auction for Friday. That was the highest level in records dating back to 1996.
“With high pressure weather and sub-zero degrees the demand for electricity is set to increase at the same time as there is less wind power output,” utility Bixia AB said in note predicting a record this week.
Prices rose as average temperatures across the region are set to drop to -2 degrees Celsius on Friday and wind generation in Sweden, with the most installed capacity, is set to drop below 1,000 megawatts, according to Bloomberg model using ECMWF. Even higher prices in neighboring German and U.K. markets mean the region will also export power.
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