Electricity prices set to spike in Finland as cold weather impacts supply

Electricity prices are set to see a rare spike tomorrow, with rates exceeding 60 cents per kilowatt hour in the morning. According to hour-by-hour prices released by Nord Pool, electricity will cost over 60 cents starting at 7 AM tomorrow. Although prices will remain high throughout the day, a decrease is expected by evening.

The fluctuations in pricing are largely dependent on weather conditions. Lumme Energian’s market overview predicts that temperatures in Finland and other Nordic countries will be slightly colder than usual for the first time in a while. Wind power production is expected to be low on both Wednesday and Thursday due to calm weather, although it is forecasted to increase toward the end of the week, nearing normal levels.

The price changes will be significant throughout the week, but a more stable situation is anticipated next week. Tommi Kontulainen, risk management manager at electricity sales company Väreen, indicated to Yle that spot prices could rise to around 50 cents per kilowatt hour on Wednesday and Thursday, while the average price may settle at 20 cents. By the weekend, average prices are expected to drop significantly, potentially as low as two cents.

Maintenance work at the Loviisa and Olkiluoto nuclear power plants is expected to be completed by the end of the week, improving electricity transfer connections from Sweden as well. Two nuclear reactors have been offline for several weeks, alongside limited connectivity between Sweden and Finland due to ongoing repairs. Kontulainen is evaluating whether to enter into fixed-rate or market-based electricity agreements, or perhaps a combination of both.