Market affected by clear weather change

Focus week 24: Extremely wet weather forecasts affected both the spot prices and the forward prices in the Nordic energy market last week, when we experienced some sudden price falls.

Here and now

Last week, there were falling prices in the Nordic forward market, particularly in the immediate contracts. This was primarily due to the weather forecasts having become very wet. In the coming weeks, low pressure will result in more than twice as much precipitation as normal, and the hydro-balance, which had otherwise fallen to its lowest level in more than one year, is once again improving. As a result of the wet forecasts, the most frequently traded contracts all experienced price falls, and the Q3-21 and YR-22 contracts now cost EUR 35.85/MWh and EUR 30.55/MWh respectively.

Read Focus here.