Melting snow drives Nordic power prices down, hits earnings at renewables producer

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Statkraft is a major producer of hydropower.

Company cites "significant hydrological surplus due to high snow reservoirs" as putting pressure on prices.

Announcing its results for the period, the company cited "significant hydrological surplus due to high snow reservoirs" as putting pressure on prices. Statkraft, which is owned by the Norwegian state, said the average Nordic system – or benchmark – price was 5.6 euros per megawatt-hour in the second quarter, a drop of 84% compared to the same period in 2019."High snow melting has given exceptionally low Nordic power prices during the spring and summer, leading to a weak second quarter result," Christian Rynning-Tønnesen, Statkraft's CEO, said in a statement.

Like many companies around the world, Statkraft has been impacted by the coronavirus pandemic. Construction projects in Chile, India and the U.K. have been "temporarily halted" but are set to recommence "in accordance with the respective national guidelines on Covid-19."were set to fall this year due to the impact of the pandemic.

 

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