NORDIC POWER-Front-quarter prices at multi-year low on rising water reserves, lower German rates

  • Mar 25, 2020
  • Reuters - Africa

March 25 (Reuters) - Nordic front-quarter power prices dipped to a multi-year low on Wednesday, on increasing water reserves in hydropower-dependent regions and a fall in the German power market and carbon rates.

* Nordic front-quarter baseload power contract fell 0.3 euro to 7.85 euros per megawatt hour (MWh) as of 1142 GMT, its lowest since at least Sept. 2015.

* Nordic front-year lost 0.15 euro to 20.70 euros/MWh as of 1217 GMT.

* “The front-end curve was considerably weaker due to more bearish weather,” said Arne Osterlind, a fund manager at Shepherd Energy.

* Scandinavia is likely to experience near or slightly above normal precipitation for the next two weeks, according to Georg Muller, a meteorologist at Refinitiv.

* Nordic water reserves available 15 days ahead were seen at 33.9 terawatt hours (TWh) above normal, compared with 32.4 TWh above normal on Tuesday.

* Germany’s Cal ‘21 baseload, Europe’s benchmark contract, fell 0.15 euro to 34.75 euros/MWh, having risen to 35.70 euros earlier in the session.

* “When the German market did a big recoil downwards again... the Nordic market went down,” Shepherd Energy’s Osterlind added.

* European next-year coal prices rose $1 to $58.20 a tonne.

* Carbon front-year allowances eased 0.65 euro to 16.13 euro a tonne.

* The Nordic power price for next-day physical delivery , or system price, rose 0.46 euro to 7.02 euros per MWh at an auction on the Nord Pool exchange.

Reporting by Harshith Aranya in Bengaluru; Editing by Krishna Chandra Eluri

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