London — Nordic wholesale electricity markets took a breather in the second week of August as much-awaited rainfall made an appearance in the region, with forecasts predicting more wetter and cooler weather.
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"The wet weather forecasts push down the system contracts at the near curve," a trading firm said in a report Friday.
Nordic front-month power prices declined to Eur47/MWh on Thursday, Week 32, hitting more than a one-month low and easing from multi-year highs of Eur54.60/MWh on July 25, Nord Pool data showed.
Previously, the month-ahead contract was below Thursday's level on June 27 at Eur45.10/MWh.
"By the end of next week there is hope that the long-lasting drought Denmark is suffering hard under can be replaced by more normal conditions," Danish weather forecaster DMI said in a note Friday.
Following a hot and dry July, heavy rain and thunderstorms are predicted for many parts, including Denmark and Sweden, bringing to an end drought-like conditions, which depressed hydro reservoirs in the region.
The long-awaited precipitation in the region already helped stabilize reservoir levels last week, with hydro content across Norway, Sweden and Finland rising a touch on week to 75.12 TWh, Nord Pool data showed.
Forward power prices, however, towards the end of Week 32 gained on rising coal, gas and carbon prices. September base contract edged up 25 euro cent to trade at Eur47.95/MWh, while the Q4 base contract was unchanged at Eur47.15/MWh Friday afternoon.
--Anuradha Ramanathan, firstname.lastname@example.org
--Edited by Jeremy Lovell, email@example.com