Nord Pool, the European power market, has been announced as the winner of a tender from Statnett, the Norwegian energy transmission system operator, to run its Electricity Price Area Differentials (EPAD) futures contract auctions.
The tender was issued by Statnett following a request from the Norwegian Ministry of Energy, to find an operator for EPAD auctions.
The new auctions, which will see Statnett buying and selling monthly, quarterly and calendar capacity contracts on three borders (NO1/NO2, NO1/NO5, NO3/NO4), will take place twice a month, with the aim of commencing at the end of 2024 and running for at least a year.
Commenting on the tender success, Tom Darell, CEO at Nord Pool, a Euronext company, said: “We are pleased to be able to provide the unique experience and expertise in auction organization and market design that will allow Statnett to deliver a simple, secure and liquid EPAD auction market for Norway.
“These new EPAD auctions will greatly increase hedging opportunities and liquidity in Norway, as well as strengthening the Nordic power market model, which is already recognized as an exemplar throughout Europe.”
More information will be provided to market participants on how to take full advantage of the new auctions during the implementation project, in the run up to go-live.
EPADs are instruments traded between market participants in order to hedge the price risk associated with the difference between local power prices and the common Nordic System Price.
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. In 2023 the company, which is majority owned by Euronext, celebrated 30 years of powering the market. Nord Pool offers day-ahead and intraday trading, clearing and settlement, and additional services, to customers regardless of size or location. Today 370 businesses 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, Luxembourg and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 16 European countries, while also servicing power markets in Bulgaria, Croatia and Georgia. In 2023 Nord Pool had a total turnover of 1103.83 TWh traded power.
Nord Pool’s three decades of power market experience is built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
For more information, please contact:
Stuart Disbrey
Communications Director
[email protected]
Irene Zeier
Communications Director
[email protected]
Oslo, 20 August 2024