Cold snap lifts Nordic power price for Monday to record high

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Workers on Nexans Skagerrak vessel lay a NordLink subsea interconnector power cable to connect Norway and Germany at the Vollesfjord fjord near Flekkefjord, Norway May 31, 2018. REUTERS/Lefteris Karagiannopoulos

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OSLO, Nov 28 (Reuters) - Nordic power prices on the Nord Pool exchange hit record highs on Sunday as cold weather, low renewables output and high gas prices continue to push up the cost of electricity in Europe.

The Nordic system price for day-ahead power rose to a record high of 246.86 euros per megawatt, Nord Pool data showed, up from a previous high of 186.16 euros on Sunday, while French and German prices were near recent highs.

Although Nord Pool said a calculation error meant it had to correct the key reference price for recent weeks, Monday's level still exceeds any old records, the new exchange data showed.

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A low availability of French nuclear output has also impacted Europe's power costs, with Monday's baseload auction for Germany settling at 265.96 euros per megawatt hour, its third-highest level ever.

German day-ahead auctions have averaged 177.96 euros in November to date, up 27% from October's average, a Reuters calculation showed.

NORDIC CORRECTION

In the Nordics, Nord Pool said it has recalculated all system prices - the region's reference price - for delivery days Nov. 10-27 due to a calculation error.

Saturday had initially been settled at what was then a record-high of 228.02 euros per megawatt hour, but market participants raised concerns as this was above prices for each of the underlying 12 individual bidding areas that make up the Nordic market, prompting Nord Pool to check.

Nord Pool said an investigation showed that the difference was triggered by a configuration of the topology change, which created a virtual area in southern Norway (NO2A).

"This configuration, implemented on 9th November, duplicated volume in and out of the virtual NO2A area from the NorNed and NordLink interconnectors," it added.

NordNed is a 700 megawatt subsea power cable connecting Norway with the Netherlands, while NordLink is a 1,400 megawatt connection to Germany.

The system price for all affected days has been corrected lower, with the price for Saturday now averaging 160.47 euros per megawatt hour, almost 30% below the initially published price, according to a Reuters calculation based on the released Nord Pool data.

"No prices other than the Nordic System Price are affected," Nord Pool said.

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Reporting by Nora Buli, editing by Terje Solsvik and Alexander Smith

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