Nordic Credit Rating (NCR) said today that it expects unregulated Nordic utility companies to maintain their strength over the next three years, propelled by elevated system prices and a rise in electricity demand due to industrial initiatives and increasing electrification. The agency's credit outlook for the sector is favourable, backed by a significant presence of cost-competitive generation technologies and projections of prices that surpass historical levels.
"Renewable generation technologies, which are widespread in the region, have a favourable position in the merit order system and are likely to generate higher profits if system prices remain elevated," said NCR credit analyst Gustav Nilsson. "However, we remain cautious about the industry's susceptibility to price volatility, which we see as a primary risk factor."
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com