Full reservoir puts pressure on Scandinavian electricity prices


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Tuesday, 06 September 2011
One of the drivers to the high electricity prices observed in Sweden was usually lack of enough water in the reservoirs to run hydo turbines. Now there are full reservoirs driven the increased rains and melting ice. Do we now hope to see falls in electricity prices in Sweden? Nah!

Reports hold that forward prices
for electricity fell sharply at the end of last week. The reason has been that the spring’s alarming water shortage has turned to surpluses and even leading to risk of flooding.

In eastern Norway, reservoirs are now overflowing such that Norwegian regulations authority has issued a warning of flooding. And more rain is forecast in the coming days.

Concerns about the economic situation means that it is expected that reduced use of electricity have also put pressure on electricity prices, according to Energy Market Inspectorate (EI).

But even if the water situation this year is much better than before the last winter's there would still be concerns about prices. One reason is that hydro doesn’t produce all the power needed in its Nordic market. Nuclear power plants, which supposed to produce more and complement with hydro has not been performing well.

Right now the annual audits at several nuclear power plants are being conducted. The audit of the Ringhals 3in Sweden  has been moved forward, to a better time in early October. But if the audit of the other reactor is delayed so can there be less availability of nuclear power - expected to produce below 40 percent of its capacity in early October, according to  EI.

Because Maud Olofsson is concerned about power sufficiency and the intensity of winter, she has invited representatives of Eon, Fortum and Vattenfall, in a new appointment in September, according to Energy Online newsletter.
By Team

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