NORDIC POWER-Spot seen down on lower exports, higher wind output

Tue Oct 2, 2012 6:29am EDT

Related Topics

* Nordic spot price for Weds seen at 30.1 euros/MWh
    * Front-quarter falls on wetter weather forecast

    OSLO, Oct 2 (Reuters) - Nordic spot power prices are
expected to fall on higher wind and nuclear output, and lower
exports to Germany, analysts said on Tuesday.
    The Nordic average day-ahead power price for
Wednesday's delivery is expected to settle at 30.1 euros a
megawatt-hour (MWh), down from 31.8 euros on Tuesday, analysts
at Point Carbon said.
    Reduced demand from Germany was expected because of the
German Unity Day public holiday on Wednesday, they said. 
    At Sweden's Ringhals nuclear plant, the Ringhals-1 reactor
is expected to ramp up production to full output of 865 MW from
100 MW, and the Ringhals-4 reactor to 940 MW from 680 MW, the
plant's operator told the Nordic stock exchange.
    Combined wind power output in Denmark and Sweden was
forecast to rise by an hourly average of 710 MW to 2,030 MW on
Wednesday.
    The market was more bearish on the spot price for Wednesday.
The day-ahead contract was traded at 29.0 euros a MWh by 0900
GMT.
    The contract for baseload (24 hours) power delivery in the
first quarter fell by 60 cents to 40.8 euros a MWh from
Monday's close.
    An Oslo-based trader said he expected the front quarter to
be traded in the range between 39 euro and 43 euros a MWh.
    "It's very much dependent on the weather. Until something
actually changes we are going to stick around here," he added.
    The latest 15-day weather forecast showed total
precipitation levels for the period rising to 3.1 terawatt-hours
(TWh) above normal compared to the 1.6 TWh forecast early on
Monday.
    The Nordic region relies on hydroelectric power for more
than 50 percent of its power generation. Rain boosts hydro power
capacity, pushing down prices.
    At the far end of the curve, the Nordic contract for
baseload power delivery next year was down 35 cents to
37.05 euros a MWh by 0915 GMT, in step with falling carbon and
coal prices.
    Both European carbon prices and coal API2 2013
futures were trading slightly down by 0915 GMT on
Tuesday, a bearish factor for power prices.
    Brent crude futures steadied near $112 a barrel as investors
weighed a weaker outlook for demand due to a sluggish global
economy, and potential supply disruptions. 

 (Reporting by Nerijus Adomaitis; Editing by Pravin Char)
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