• Tue. Apr 23rd, 2024

Fluctuating Electricity Prices in Finland: Adapting to Spring Weather and Market Trends

BySamantha Nguyen

Apr 2, 2024
Anticipated affordable electricity prices for spring and summer

In May of the previous year, electricity prices in Finland were close to zero or even below that on several days. However, the cost of electricity during spring and summer is highly dependent on the weather. With the help of exchange electricity users, consumers may soon be able to determine the best times to purchase electricity.

Last year in May, the average taxable price of electricity was only 3.3 cents per kilowatt hour, with some days experiencing 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, hydropower plants generate electricity at a loss due to excess water supply. Additionally, sunny and windy conditions led to an oversupply of electricity and subsequently lower prices. While Southern Finland experiences early snow melts and floods, 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. 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, with the Nordic regional price futures decreasing in recent weeks. Short fixed-term electricity contracts have also become popular among consumers, offering flexibility based on consumption timing.

In the summer months of Finland, it is expected that the regional price of electricity will decrease due to the temporary closure of Estlink2 between Finland and Estonia. This connection is typically used for exporting Finnish electricity to Estonia. The variability in electricity prices during spring is not only influenced by flooding but also by weather conditions affecting wind and solar power generation.

Overall, there are many factors contributing to fluctuations in electricity prices that make it necessary for consumers to stay informed and adaptable when making their energy purchasing decisions

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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