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.
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