Authored by Tsvetana Paraskova via OilPrice,
Low water levels in hydropower reservoirs and soaring natural gas prices are putting upward pressure on power prices in the Nordic countries as winter approaches, Denmark-based energy trader Mind Energy says.
The surge in gas prices and potentially reduced hydropower generation in southern Norway and Sweden could lead to price spikes this winter, especially if there are prolonged periods of low wind speeds, the analysts said.
In its November recap insight, Mind Energy said that "Winter is upon us, and panic is evident across the European energy markets, which had clearly underestimated the seriousness of the situation earlier in the year."
The price spikes in European natural gas prices in October and the "severe hydrological pressure on the Nordics ahead of winter" could send electricity prices soaring in the coming months, according to the analysts.
Chart shows US and EU NatGas prices in USD/volume equivs (EU NG 8x US)
The Nordics will enter
