In Elspot the current technical price floor in EUR, NOK, SEK and DKK is 0.
As of 1 October 2009, Nord Pool Spot will implement a negative minimum price. Consequently, Nord Pool Spot will accept Elspot bids at negative prices. The values of the price floor in each trading currency in Elspot will be as follows:
• EUR - 200
• NOK - 2,100
• SEK - 2,400
• DKK - 1,650
In case of curtailment at the minimum price, among the floors listed above, the Elspot calculation system will use the highest price floor as the market price. The highest floor is calculated by multiplying each of the floors in the Nordic currencies by the relevant exchange rate and comparing with -200 EUR.
A negative price floor has been in demand for some time - especially from participants trading Elspot in the Danish bidding areas. In situations with high wind feed in Denmark there have been incidents where sales bids have been curtailed at price EUR 0. Curtailment of sales may give an imbalance cost for the affected seller and thus creates a willingness to pay in order to deliver power in the market.
Lysaker 4 February 2009
For further information, please contact Nord Pool Spot:
Åsmund Drivenes, acting director trading, phone +47 6752 8036
Elspot helpdesk, phone +47 6752 8010, firstname.lastname@example.org