Jan 15 (Reuters) - Nordic forward power prices gained for a third straight session on Wednesday, aided by a drop in water reserves and an outlook for dry weather.

* Nordic front-quarter baseload power contract rose 1.85 euros to 21.55 euros per megawatt hour (MWh) at 1012 GMT.

* Nordic front-year added 1.07 euros to 34.4 euros per MWh.

* "The weather forecasts now appear to agree that the low-pressure dominated period will end already next week, and from that point on, drier and cooler conditions are on the way, also with less wind output," said Karsten Sander Nielsen, a senior market analyst at Energi Danmark.

* The HPR (hydro power reserve) surplus is also expected to retreat further towards the end of the month, Nielsen added.

* Nordic water reserves available 15 days ahead were seen at 16.77 terawatt hours (TWh) above normal, compared with 18.47 TWh above normal on Tuesday.

* The southeast of Scandinavia will likely remain calm and mostly dry until the end of the month, Georg Muller, meteorologist at LSEG, said in a note.

* In the European carbon market, the benchmark contract

was up 1.14 euros at 78.1 euros a metric ton.

* German year-ahead power gained 2.2% to 94.25 euros per MWh.

* Dutch and British wholesale gas prices were slightly higher on expectations of lower temperatures and less wind output.

* The Nordic power price for next-day physical delivery

, or system price, rose 11.12 euros or 60.83% to 29.4 euros per megawatt hour (MWh).

(Reporting by Daksh Grover in Bengaluru; Editing by Tasim Zahid)

((Daksh.Grover@thomsonreuters.com;))