Anticipated affordable electricity prices for spring and summer

In May of the previous year, the cost of electricity in Finland was almost zero or even below on several days. However, the prices during spring and summer are dependent on the weather. Exchange electricity users can now determine the best times to purchase electricity by analyzing these trends.

Last year in May, the average taxable price of electricity per kilowatt hour was only 3.3 cents, with some days experiencing negative prices for extended periods. This phenomenon occurred due to spring floods causing increased power generation from hydroelectric plants in Finland.

Spring floods cause hydroelectric plants to generate electricity at a loss, which results in an oversupply of electricity. Sunny and windy conditions also contribute to this phenomenon. The big hydropower plants in southern Finland experience early snow melts and floods, while those in northern Finland typically see floods in May. The fluctuating flood situation combined with unpredictable weather makes it challenging to accurately predict electricity prices.

The Olkiluoto nuclear power plant’s triple reactor was undergoing maintenance in March, but this did not significantly impact electricity prices.

Strikes in the forest and steel industries can also affect 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 recently. Short fixed-term contracts have become popular among consumers who want flexibility based on their energy consumption timing.

During summer, the regional price of electricity is expected to decrease due to the temporary closure of the Estlink2 connection between Finland and Estonia. This connection is used for exporting excess electricity from Finland to Estonia.

The variability in electricity prices during spring is influenced by flooding as well as weather conditions affecting wind and solar power generation. Several factors contribute to fluctuations in electricity prices, making it necessary for consumers to stay informed and adaptable when making their energy purchasing decisions.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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