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Anticipated affordable electricity prices for spring and summer

In May of 2021, electricity prices in Finland were near zero or even below on many days. However, this was not a market disruption but rather the result of spring floods causing increased power generation from hydroelectric plants. Hydroelectric plants must generate electricity at a loss due to the excess water supply, which led to an oversupply of electricity and subsequently lower prices. Despite maintenance on the Olkiluoto nuclear power plant’s triple reactor in March, electricity prices remained relatively low.

In contrast, strikes in the forest and steel industries can impact electricity prices by reducing consumption and lowering demand. Electricity futures are an effective way to forecast electricity prices, with the Nordic regional price futures decreasing in recent weeks. Short fixed-term electricity contracts have also become popular, offering consumers flexibility based on consumption timing.

The temporary closure of the Estlink2 connection between Finland and Estonia during the summer is expected to decrease the regional price of electricity in Finland. This connection is typically used to export electricity from Finland to Estonia. The variability in electricity prices during the spring is not only influenced by flooding but also by weather conditions affecting wind and solar power generation. Overall, there are multiple factors contributing to fluctuations in electricity prices, making it necessary for consumers to stay informed and adaptable in their energy purchasing decisions.

During spring floods, hydroelectric plants must generate electricity at a loss due to the excess water supply. Coupled with sunny and windy conditions, this led to an oversupply of electricity and subsequently lower prices. While Southern Finland experiences early snow melts and floods, the big hydropower plants in the north typically see floods in May. The fluctuating flood situation, combined with unpredictable weather, makes it challenging to accurately predict electricity prices.

Strikes in the forest and steel industries can impact electricity prices by reducing consumption and lowering demand. Electricity futures are an effective way to forecast electricity prices, with the Nordic regional price futures decreasing in recent weeks. Short fixed-term electricity contracts have also become popular, offering consumers flexibility based on consumption timing.

Overall, there are multiple factors contributing to fluctuations in electricity prices

By Samantha Jones

As a dedicated content writer at newsaca.com, I bring a unique blend of creativity and precision to my work. With a passion for storytelling and a keen eye for detail, I strive to craft engaging and informative articles that captivate our readers. From breaking news to thought-provoking features, I am committed to delivering content that resonates with our audience and keeps them coming back for more. Join me on this exciting journey as we explore the ever-evolving world of news and information together.

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