Electricity prices set to rise over 60 cents per kilowatt-hour across Finland

The morning electricity prices are set to rise significantly tomorrow, reaching over 60 cents per kilowatt-hour at 7 AM. According to the hourly prices published by Nord Pool in the afternoon, electricity will remain expensive throughout the day, although prices are expected to ease as the evening approaches.

Weather conditions will have a considerable impact on price variations, with forecasts indicating a somewhat colder-than-usual pattern across Finland and other Nordic countries. Wind energy production is projected to be low on both Wednesday and Thursday, as calm weather is expected. However, wind power generation is anticipated to increase back to normal levels by the end of the week.

Prices are fluctuating sharply throughout the week, but a stabilization may occur next week. Tommi Kontulainen, the risk management director for the electricity sales company Väre, noted that spot prices could reach around 50 cents per kilowatt-hour at their peak on Wednesday and Thursday, with an average price settling at around 20 cents. By the weekend, average prices are expected to drop significantly, potentially to as low as two cents.

Meanwhile, maintenance work at the Loviisa and Olkiluoto nuclear power plants is expected to conclude by the end of the week, and transmission connections with Sweden will soon improve. Both nuclear plants have been offline for several weeks, and the link between Sweden and Finland has been underperforming due to ongoing repairs. Kontulainen is weighing whether now is the right time to sign a fixed-price contract, an electricity market deal, or a combination of both.