The price of electricity in Finland dropped to nearly zero or even below zero in May of last year due to a combination of factors, including spring floods and strong winds. This trend is likely to repeat this year, as the major hydropower plants in the north typically experience flooding in May.
The fluctuation in electricity prices is also influenced by other factors such as maintenance at nuclear power plants, strikes in industries that reduce electricity demand, and weather conditions impacting renewable energy production. Despite fears that maintenance at the Olkiluoto nuclear power plant would raise electricity prices, prices have remained relatively low.
Fixed-term contracts for electricity have become more popular, with short contracts of only three months available at competitive prices. Futures in the electricity market are a good indicator of price trends, with Nordic regional price futures for the second and third quarters of the year decreasing last week.
Overall, the electricity market in Finland is experiencing price reductions due to a combination of factors such as spring floods and strong winds. Despite the variability in electricity prices, market analysis suggests that prices will continue to decrease in the coming months.
