“The CO2 effect plays a major role now. One thumb nail estimate says that a 1 euro rise in the carbon price gives a 3-4 NOK/MWh rise in the nearest forward price at Nord Pool. So, with carbon prices at 14 euros, the current price of 222 NOK on the Summer 05 contract doesn’t seem unreasonable,” says a Norwegian trader. However, carbon prices are adjusting downward today...