Nord Pool, Europe’s leading power market, has been awarded a contract by National Grid and Statnett to deliver a solution outside of the Internal Energy Market (IEM) to provide implicit capacity in its day ahead market for the 1,400 MW North Sea Link (NSL).
NSL, a joint venture between National Grid and Statnett, will directly connect the electricity systems of the UK and Norway for the first time, when it goes live in 2021.
Since the UK will not be able to access the IEM post-Brexit, NSL will provide alternate arrangements to offer capacity to the market. This new solution, delivered by Nord Pool through its day-ahead auction, offers a blueprint for how the GB market could operate outside of the IEM. Nord Pool’s GB market accounts for some 70% of the exchange traded day-ahead volumes.
Hans Randen, Director of Market Coupling at Nord Pool, said: “We are immensely proud to have been chosen by National Grid and Statnett to deliver implicit trading services for the new NSL interconnector. At a time of uncertainty in the GB power market, we see this as an important first step in securing an efficient market solution outside the IEM.
“With its strategic position linking the British and Norwegian power markets, NSL is central to Nord Pool’s core markets, meaning it will bring tangible benefits to our customers. We look forward to continued close collaboration with the NSL team, in the build-up to a successful commercial go live in 2021, and into the future.”
Josh Coomber, Commercial Readiness Lead at National Grid North Sea Link, added: “This is an exciting opportunity for us to work closely with Nord Pool to develop a solution that will allow us to offer implicit capacity products to the market once NSL goes live.
“It is a great step towards facilitating electricity trading between GB and Norway, bringing positive benefits to consumers and a cleaner energy future.”
Bjørn Harald Bakken, Project Director for NSL Market & Operations at Statnett, commented: "We are looking forward to cooperating with Nord Pool in developing a well-functioning market solution for the North Sea Link interconnector, confident that the knowledge and experience of Nord Pool will provide an excellent solution for market players on both sides of the cable."
For further information on NSL visit http://northsealink.com/. Find out more about Nord Pool at www.nordpoolgroup.com.
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. The company offers day-ahead and intraday trading, clearing and settlement to customers regardless of size or location. Today 360 companies from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany, Poland, France, the Netherlands, Belgium, Austria and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. In 2019 Nord Pool had a total turnover of 494 TWh traded power. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.
Nord Pool has 25 years of power market experience built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
Oslo, 16 November 2020
For further information, please contact:
Stuart Disbrey, +44 7887 409044 - [email protected]