Anticipated affordable electricity prices for spring and summer

In May of last year, electricity prices in Finland were close to zero or even below on many days. However, spring and summer prices are highly dependent on the weather. Exchange electricity users may soon be able to determine the best times of the year to purchase electricity based on their predictions. Last year in May, the average taxable price of electricity was only 3.3 cents per kilowatt hour, with some days even seeing negative prices for extended periods. This phenomenon was not a market disruption but rather a result of spring floods causing increased power generation from hydroelectric plants.

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.

Despite maintenance on the Olkiluoto nuclear power plant’s triple reactor in March, electricity prices remained relatively low due to several factors affecting demand for energy.

Strikes in the forest and steel industries can also impact electricity prices by reducing consumption and lowering demand.

Electricity futures are an effective way to forecast electricity prices as they have been decreasing in recent weeks. Short fixed-term contracts have also become popular among consumers who want flexibility based on their consumption timing.

In the summer, the regional price of electricity in Finland is expected to decrease due to temporary closure of Estlink2 connection between Finland and Estonia that is typically used to export excess energy 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.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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