Answering the Energy Crisis
Throughout 2022 we have seen a great deal of speculation and debate among energy sector stakeholders and in the media about high electricity prices, their causes and the background to the energy crisis. High prices place a strain on both private customers and businesses alike, creating a situation which few in the sector could possibly see as either desirable or sustainable. Nord Pool operates the power market across 16 European countries, making us very well placed to constructively contribute to the discussion around energy markets, price formation and the underlying causes of the current crisis.
For us, the answer to the current energy crisis lies in addressing a combination of key factors – lowering demand, increasing supply of renewable generation, strengthening the grid and further integrating European markets.
There is much political pressure on national governments and the European Commission to take action over high energy prices. In such a pressured environment it is all the more necessary to carefully assess any potential measures so as not to destroy a market that, despite high prices, is in fact functioning well.