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Nordic power prices reverse downward as abundant rainfall and a carbon price correction exert pressure

Nordic power prices reverse downward as abundant rainfall and a carbon price correction exert pressure

智通财经智通财经2026/08/26 10:21
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  1. Nordic forward power prices weakened across the board on Wednesday, with near-term contracts falling to €86 per megawatt-hour and near-year contracts slipping to €54.5 per megawatt-hour, mainly due to continued improvement in hydrological conditions and an increase in precipitation expectations.
  2. Available water resources rebounded to an atypically low 9.57 terawatt-hours, the highest level since mid-January, compared to 11.3 terawatt-hours below average the previous day, marking a noticeably accelerated pace of reserve improvement.
  3. Meteorological models indicate that western airflows will continue to dominate the Nordics over the next two weeks, with overall rainfall above normal levels and only mild temperatures, a wet weather pattern likely to continue suppressing power demand expectations.
  4. German next-year power prices fell in tandem, with continental benchmark contracts dropping to €111.2, while surrounding market natural gas prices extended the decline seen since Tuesday. News that Iran and Oman are negotiating a temporary shipping lane through the Strait of Hormuz has eased fuel supply concerns.
  5. The European carbon allowance benchmark contract edged down slightly to €83.88 per ton, a decline of less than 1%. Weaker carbon prices further reduced marginal cost support for coal-fired power. Under the effect of multiple bearish factors, short-term sentiment in the Nordic power market tends to be under pressure.
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