Last May, the price of electricity in Finland was close to zero, and even negative for some days. However, spring and summer prices are highly dependent on the weather. This year, users of the electricity market will be able to determine the best time of year to buy electricity. In May 2020, the average taxable price of electricity was only 3.3 cents per kilowatt hour, and on some days there were negative prices for a long period. This phenomenon was not a market disruption but the result of spring floods that caused increased production of electricity from hydropower plants.

During spring floods, hydropower plants have to produce electricity at a loss due to excess water supply. Coupled with sunny and windy conditions, this has led to an oversupply of electricity and consequently lower prices. While southern Finland experiences early snowmelt and flooding, large hydropower plants in the north usually experience flooding in May. The changing flood situation, combined with unpredictable weather, makes it challenging to accurately predict electricity prices.

Despite the maintenance of the triple reactor of the Olkiluoto nuclear power plant in March, electricity prices remained relatively low. Strikes in the forestry and steel industries can also affect electricity prices by reducing consumption and reducing demand. Electricity futures are an effective way to forecast electricity prices, with price futures in the Nordic region falling in recent weeks. Short-term electricity contracts have also become popular, offering consumers flexibility based on the time of consumption.

In the summer, a drop in regional electricity prices in Finland is expected due to the temporary closure of the Estlink2 connection between Finland and Estonia. This connection is usually used to export electricity from Finland to Estonia. The variability of electricity prices during the spring is not only affected by floods but also by weather conditions that affect the production of wind and solar energy.

Overall, there are multiple factors that contribute to fluctuations in electricity prices, making it imperative that consumers remain informed and flexible in their energy purchasing decisions.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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