• Sat. Apr 20th, 2024

Navigating Fluctuating Electricity Prices: A Guide for Consumers in Finland

BySamantha Jones

Apr 3, 2024
Anticipated affordable electricity prices for spring and summer

In May of 2021, electricity prices in Finland were close to zero or even negative on many days. However, spring and summer prices are highly dependent on the weather. With the advent of exchange electricity users, consumers may soon be able to determine the best times of the year to purchase electricity.

Last year in May, the average taxable price of electricity was only 3.3 cents per kilowatt hour, with some days even seeing negative prices for extended periods. This phenomenon was not a market disruption but rather a result of spring floods causing increased power generation from hydroelectric plants. Hydroelectric plants in southern Finland experience early snow melts and floods while big hydropower plants in the north typically see floods in May. The fluctuating flood situation, combined with unpredictable weather, makes it challenging to accurately predict electricity prices.

Despite maintenance on the Olkiluoto nuclear power plant’s triple reactor in March, electricity prices remained relatively low. Strikes in the forest and steel industries can also impact 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 in recent weeks. Short fixed-term electricity contracts have also become popular, offering consumers flexibility based on consumption timing.

In the summer of 2021, the regional price of electricity in Finland is expected to decrease due to the temporary closure of the Estlink2 connection between Finland and Estonia. This connection is typically used to export electricity from Finland to Estonia. The variability in electricity prices during spring is not only influenced by flooding but also by weather conditions affecting wind and solar power generation. Overall, there are multiple factors contributing to fluctuations in electricity prices, making it necessary for consumers to stay informed and adaptable in their energy purchasing decisions.

In conclusion, consumers must be aware of multiple factors that influence fluctuations in electricity prices throughout different seasons. They should consider purchasing short fixed-term contracts or utilizing exchange markets for flexibility when buying electric energy during times when supply exceeds demand or vice versa.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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