Storm Hans Exposes the Limitations of the Nordic Grid

Report Summary:

During the week of Monday 7^th August, the Nordics were hit by Storm Hans, with strong winds and intense rain bringing disruption to the region. The surge in wind and run-of-river hydro output entering an already limited market space - Nordic power demand is down 4% this year - led to all-time lows in zonal and system prices. Price formation during this stress event offers valuable insight into the potential implications of the rapid rise in Nordic wind capacity, if that is not complemented by new demand and/or system flexibility.

Delving into power volume, flow and pricing data during this period, this insight addresses questions such as:

• Is hydro reservoir flexibility alone enough to insulate Nordic wind from value erosion?

• How is transmission congestion impacting opportunities to export Nordic power?