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Fall in Swedish energy prices expected soon
Tuesday, 13 March 2012
The warm spring weather may means that the electricity prices in Sweden
will fall and February's price rise shock becomes a distant memory.
Electricity prices in March are 50 percent lower than last year.
The winter price shock is determined to be over and at the moment, the
price of electricity is already much lower than last year. In the first
weeks of March, the spot price, at Nordic energy exchange, Nord Pool,
remained at around Skr0.28 per kilowatt hour. There is a price has
fallen 50 percent compared to March last year.
In the Nordic market, spot prices fell by 6 percent last week. In two
of the Swedish electric regions, the far north and the far south, the
prices fell by as much as 9 percent on a weekly basis.
The lower electricity prices in March were mainly due to three things.
High levels of the water in the reservoirs to increase in put for hydro
electric generation, reduced demand from industries and the warmer
spring weather which is forecast such the household demand for power
will be low.
One possible area of concern is the nuclear power section which still
has operational problems. Two reactors are shut down, Ringhals 2 and
Oskarshamn 2. In addition, Ringhals 1 has run since December last
year at very low capacity.
On whole Sweden has shown that it is very poor in harnessing power from
nuclear sources as most of its plants stay idle year round or produce
energy a very lose capacity, that is if one compares with other
places such as Finland where their nuclear plants generate energy at
almost 90 percent of their capacity.
Therefore in Sweden – especially southern Sweden, the spring floods
mostly from the rain as fewer threatening clouds are now visible in the
sky could be the source of salvation. This could largely affect the
prices electricity in southern Sweden.
By Scancomark.se Team
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