Market indicators for South-Eastern Europe – week 46

Eylert Ellefsen

As the world undergoes the green transition, it is expected that demand for electricity will increase as we look to replace fossil fuels as a source of power.

Eylert Ellefsen

Recently, the Nordic power market’s exposure to the current low hydrological balance and very high European power market prices have had a strong influence on power prices. This blog will focus on the situation in Norway South, which accounts for most of the hydrological deficit in the Nordic market.

Eylert Ellefsen

We have sadly all now seen the pictures from the devastating flooding that recently hit Germany, Belgium and other neighbouring countries. After several weeks in which precipitation continued above normal levels, these areas were hit by about 500% of normal precipitation during week 28 (July 12th - 18th) leading to a scenario where riverflows destroyed several villages and many people lost their lives. Our thoughts go out to the victims, their families and those making rescue efforts. Whilst unimportant given the context, the unprecedented rainfall has also affected power markets and those hydrological impacts will be the focus of this blog.