Monday, 06 August 2018
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Trading activity picked up slightly last week, and the positive price momentum continued. Prices for hydro and wind GOs continued to converge.
We currently see bid / ask prices for Nordic Hydro vintages 2020 and above overtaking bid / ask prices for wind GOs. The shortage of Nordic hydro has been the main driver of the price increase, combined with limited trading of wind GOs. We therefore expect the prices for wind GOs to increase as trading activity picks up.
The warm weather is forecast to remain over Europe for August. Some rain is expected in Scandinavia this week, but could convert back to drier weather for the remainder of August. Should this be the case, we could see a greater shortage of hydropower, pushing up prices for Nordic Hydro. Currently, the volume weighted average ...