Hafslund Eco Hydropower Portfolio slide image

Hafslund Eco Hydropower Portfolio

Partial hedging of power prices Power price development Øre/kWh, Spot price: NO1, Forward price: System price Hedging activity in the Hafslund Group 43 36 22 ئنا 42 39 29 23 24 18 ill 10 76 194 127 88 68 80 67 71 69 59 67 5.4 54 50 50 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Spot price Forward price per Dec. 2022 Forward price per Aug. 2023 Source: Nasdaq Commodities and Nordpool Spot Partial power hedging to stabilize income and cash flow over time Hafslund seeks to diversify its hedging positions to minimize risk and uses a variety of hedge instruments: 1. Long-term contracts for delivery of physical power ("industrikraftkontrakter") and other long-term fixed price contracts 2. Bilateral financial contracts with solid counterparts 3. Exchange traded financial contracts Counterparty and collateral risk is followed up on a continuing basis. 29
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