The total amount of energy stored in water reservoirs and snowpack compared with the seasonal norm has jumped to almost 6 terawatt-hours from a similar deficit just before Christmas. In terms of actual power output, that’s more than the region’s biggest nuclear reactor produced last year.“We have an amazing battery in the Nordic power market and this is what we call fast charging!” said Fredrik Bodecker, a former trader and founder of Bodecker Partners AB, which advises companies on energy risk management.
Even more precipitation is forecast. After a first week of the year with almost 100% of the norm, Sweco Energy AB analyst Christian Holtz is expecting at least as much this week because of a low-pressure system from the Atlantic.
We currently are not able to use more renewable energy sources because typically renewable energy is more expensive to produce than nonrenewable sources.
The downpour has surely delighted skiers. It will also bring a smile to the faces of buyers at the region’s many energy-intensive industries, ranging from aluminum smelters to pulp and paper mills, because next-month power prices have slumped to their lowest since 2017 on the jump in supplies.
The mild weather has also meant lower use of the water in the reservoirs. The temperature reached a balmy 19 Celsius (66 Fahrenheit) in early January in Western Norway, a record for the month. Bloomberg’s weather model, in the chart below, is showing above-average levels for at least the next month.
(Updates with more details on snow and rainfall in the first paragraph. )To contact the author of this story: Lars Paulsson in London at [email protected] contact the editor responsible for this story: Reed Landberg at [email protected], Andrew Reierson
and biodiesel), water (hydropower), wind and solar. Except for hydropower, they are all derived from the sun.
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