Temperature and weather conditions influence demand

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Unformatted text preview: of power prices, since hydropower represents such a large share of the Norwegian and Nordic power supply. In Norway, consumption is slightly higher than the power production in years with normal precipitation and temperature conditions, and this means that Norway is dependant on imports from abroad. In years with low inflow, the need for power imports is even higher. Temperature and weather conditions influence demand in the Nordic region and Europe in the short term, which also affects power prices. Periods with cold temperatures and high demand can especially result in higher power prices. The power market is often divided into wholesale and retail markets. The wholesale market includes generators, suppliers, big industrial enterprises and other large undertakings. Electricity is traded bilaterally between different market players and in the markets organised by the Nordic power exchange, Nord Pool. Currently, a number of companies trade standard bilateral contracts, but a growing proportion of contracts are traded in Nord Pool’s markets. About 400 actors curre...
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This document was uploaded on 03/30/2014.

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