OSLO: Nordic spot power prices gained slightly on lower wind power output but this was partly offset by imports of cheaper power from the continent, analysts at Point Carbon said on Wednesday.
The Nordic average day-ahead power price for Thursday came out at 40.72 euros ($53.00) per megawatt-hour (MWh) on the Nordic power exchange versus 39.92 euros for Wednesday.
The day-ahead contract in the financial market was last traded at 40.50 euros MWh. Spot prices rose on forecasts that wind power output in Denmark and Sweden will drop by about 1,900 megawatts (MW) on Thursday, analysts said.
There were rising imports of cheaper electricity from Germany.
"We expected 400 megawatts higher net imports, but the actual change was 1,600 MW," a Point Carbon analyst said.
The German baseload power price for Thursday were 32.66 euros a MWh on EEX exchange, well below the Nordic price.
FORWARD PRICES
The Nordic front-quarter contract gained by 39 cents to 37.65 euros per MWh from the previous day close.
"We had a drier weather forecast this morning, but then later we got a wetter one. Still, it looks like the majority of the market players are betting on drier weather development," a Point Carbon analyst said.
Meteorologists said the beginning of May could see drier and warmer days, although the intensity of high pressure weather was uncertain.
Drier weather is a bullish factor in the Nordic region, which gets about half of electricity from hydropower plants.
Further out on the curve, the front-year contract firmed by 25 cents to 36.75 euros MWh, even though carbon and coal prices were broadly steady.
"The front-year prices could have been lifted by the news that the Oskarshamn-2 reactor's outage has been prolonged into April next year," the Point Carbon analyst said.
The Swedishs 638 MW reactor was previously expected to restart on Nov. 12 this year after the maintenance set to begin in June.
The benchmark contract for European Union carbon futures were 4 cents down to 3.04 euros a tonne.
Power and carbon trade in tandem as utilities have to cover their carbon output with European Union Allowances (EUAs).
Coal API2 year-ahead futures were steady at $93.60 a tonne. Brent crude rose above $101 a barrel on Wednesday, drawing support from strong equity markets, but gains were capped by data pointing to slower growth and fuel demand in major economies.
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