Nordic forward power prices rose on Friday, buoyed by forecasts for colder and drier weather in the hydropower-dependent region, with both the contracts on track for a third straight month of gains.
* Nordic front-quarter baseload power contract rose 0.2 euro to 43.75 euros per megawatt hour (MWh) as of 1241 GMT.
* The Nordic front-year gained 0.05 euro to 37.50 euros/MWh.
* On a monthly basis, the front-quarter contract has gained about 3.4% and the front-year contract about 3.9% so far this month.
* “The Nordic weather outlook remains slightly drier and colder than normal for the end of December. This drives the front quarter upwards,” according to Vegard Svarstad, analyst at StormGeo AS.
* Nordic water reserves available 15 days ahead were seen at 3.2 terawatt hours (TWh) below normal, compared with 4.5 TWh below normal on Thursday.
* “The weekend and Monday will be mostly dry in southern Norway, Sweden and Finland but northwestern and northern Norway will receive moderate snow,” said Georg Muller, a meteorologist at Refinitiv.
* “Towards the week after next week a slowly colder and less active pattern will establish with near or slightly below normal temperatures and precipitation,” Muller added.
* European next-year coal prices fell $0.85 to $63.15 a tonne.
* Carbon front-year allowances firmed 0.05 euro to 25.06 euros a tonne.
* The Nordic power price for next-day physical delivery , or system price, fell 0.63 euro to 40.33 euros per MWh at an auction on the Nord Pool exchange. (Reporting by Shreyansi Singh in Bengaluru; Editing by Shounak Dasgupta)