Nordic Power Volatility to Keep Rising: Axpo

Volatility in Finnish power prices has multiplied in a few years and is anticipated to increase in the country as well as throughout the Nordic region due to the large development of renewables and low demand growth, according to analysts at Axpo, cited by Montel.

• In Finland, from 2013-19, the weekly difference between the maximum and minimum hourly price rarely exceeded €200/MWh and was mostly below €100/MWh.
  
• But over 2020-24 the difference has exceeded €800/MWh several times, and the weekly volatility has generally increased, senior analyst Riku Merikoski at Axpo said.
• Merikoski added Nordic power system is oversupplied, and the development of wind and solar energy is continuing, with the majority in Sweden and Finland.
• Coupled with the lack of demand and export capabilities it will be difficult to “export out of the increasing period of negative prices”, according to Merikoski.
• And “we have clearly passed the point where hydropower can solve the problem,” Merikoski said.
• This issue could be solved with a massive buildout of batteries, pumped power stations, electrification of heating systems and flexibility, according to the analyst.