This site uses cookies to offer you a better browsing experience. Find out more on how we use cookies and how you can change your settings.

Nord Pool logo
Nord Pool logo
Market updates
  • Operational messages
  • Urgent market messages
Operational Messages

    View all

    Urgent Market Messages

      View all

      • Market data
        • Nord Pool day-ahead
          • Prices
          • Volumes
          • Capacities
          • Flow
        • Nord Pool intraday
          • Market data
          • Volumes
          • Initial capacity
          • Transmission capacity
          • SEM-GB intraday auction UK
        • Nord Pool UK
          • Prices
          • Block prices
          • Volumes
          • Capacities
          • Flow
          • Exchange rates
          • Half hourly prices
          • Half hourly block prices
          • Half hourly volumes
        • Regulating power
          • Regulating power per area
          • Regulating prices
          • Regulating volumes
          • Volume of regulating bids
          • Special regulation volume
          • Automatic activated reserve
        • Power system data
          • Production
          • Consumption
          • Exchange
          • Hydro Reservoir
        • Maps
          • Day-ahead overview
        • Data downloads
          • Aggregated Market Data
          • System Price Curve Data
          • Recalculated Nordic System Price
          • Nord Pool Report on the Nordic System Price
      • Trading
        • Join our markets
          • Becoming a customer
          • Membership list
          • Market Managers
        • Operational messages
        • Day-ahead trading
          • Order types
          • Price calculation
          • Preliminary prices and exchange rates
          • Capacities
          • Ramping
          • Loss functionality
          • Curtailment, price thresholds and decoupling
        • Intraday trading
          • Order types
          • Capacities
        • Clearing
          • Settlement
          • Collateral
          • Margin model
        • API
          • ISV partners
        • Rules and regulations
        • Market surveillance
          • Market Surveillance Quarterly Newsletter
          • Expert reports
        • Customers have their say
        • Events
          • Nord Pool Event Dusseldorf
          • Introduction to Nord Pool and Data Services
      • Services
        • Power Data Services
          • Day-Ahead Market Data
          • Aggregated Bidding Curves
          • Intraday Market Data
          • Intraday Hub2Hub
          • Data Portal
          • Electricity retailers
          • Other products
          • FAQ
          • Inquire and Order
        • Compliance
          • REMIT UMM
          • REMIT transaction reporting service
          • REMIT Best Practice Report
        • Consulting
          • Recent projects
        • Nord Pool Academy
          • Nord Pool Day-ahead course
          • Nord Pool Intraday course
          • Nord Pool Certified Compliance Course online
          • The Physical & Financial Power Markets and Post Pandemic Power Participation Conference
      • Media
        • Media contacts
        • Newsroom
          • News
          • Newsletter
          • Market Surveillance Newsletter
          • TSO news
          • Subscribe
          • Feature
        • Photos
        • Annual report
      • About us
      Log in
      Log in
      Day-ahead market
      • Single Day-Ahead Coupling (SDAC)
      • Price Coupling of Regions (PCR)
      • Price formation
      Intraday market
      • Single Intraday Coupling (SIDC)
      CACM regulation
      Benchmark Regulation – the Nordic system price
      Market members
      Bidding areas

      The power market

      Power is a vital element that supports our lives at home and at work. As power production and transmission capacity has been extended over the years, transmission of power between countries has become more common. As a result a dynamic market has evolved where power can be bought or sold across areas and countries more easily.

      Supply and demand set the price

      The power price is determined by the balance between supply and demand. Factors such as the weather or power plants not producing to their full capacity can impact power prices.

      Today, there is general agreement among politicians and other stakeholders that this model serves society well. While the price of power is determined according to supply and demand, it also becomes clear where there are issues in the grid when the price of power goes up. This makes it easier to identify where production or capacity is lacking, as there is too high demand compared to production supply.

      Integrating Nordic and Baltic markets

      The Nordic countries deregulated their power markets in the early 1990s and brought their individual markets together into a common Nordic market. Estonia, Latvia and Lithuania deregulated their power markets, and joined the Nord Pool market in 2010-2013.

      The term ‘deregulation’ means that the state is no longer running the power market, and instead that free competition is introduced. Deregulation was undertaken to create a more efficient market, with exchange of power between countries and increased security of supply. Available power capacity can be used more efficiently in a large region compared to a small one, and integrated markets enhance productivity and improve efficiency.

      An emerging European market

      Now that transmission capacity and coupling is in place between the Nordic countries, the European continent and the Baltics, the power market covers large parts of Europe. This means that power from many different sources – hydro, thermal, nuclear, wind and solar –  enters the grid. This ensures a more ‘liquid’ market, where large volumes are traded daily, and a more secure power supply.

      Financial market

      Financial contracts are used for price hedging and risk management. The contracts have a time horizon up to ten years, covering daily, weekly, monthly, quarterly and annual contracts. The system price calculated by Nord Pool is used as the reference price for the financial market in the Nordic region.

      There is no physical delivery for financial power market contracts. Cash settlement takes place throughout trading – and/or the delivery period, starting at the due date of each contract, depending on whether the product is a future.

      Technical conditions such as grid congestion and access to capacity are not taken into consideration when entering financial contracts. However, with the help of the financial power market, buyers and sellers can  manage the risks associated to the physical market prices.

      Nord Pool logo

        Nord Pool AS

        Tel. +47 6710 9100

        P.O. Box 121

        1325 Lysaker, Norway

      Market Data

      • Day-ahead
      • Intraday
      • Regulating power
      • Power system data
      • Maps

      Trading

      • Join our markets
      • Operational messages
      • Day-ahead trading
      • Intraday trading
      • Clearing
      • API
      • Rules & regulations
      • Market surveillance
      • Customer information on Brexit
      • Customers have their say

      Services

      • Premium Data Services
      • Compliance
      • Consulting
      • Nord Pool Academy
      • German mini-site
      • French mini-site

      The Power Market

      • Day-ahead market
      • Intraday market
      • CACM regulation
      • Benchmark regulation - Nordic system price
      • Market members
      • Bidding areas

      Social media

      Quick links

      • UMM
      • Auction
      • Intraday Web
      • CASS
      • Intraday and GB Half Hourly auctions

      Media

      • Press
      • Newsroom
      • Annual report
      • Download center

      About us

      • Careers
      • Advisory board
      • History
      • Organisation
      • Meet our people
      • Corporate Compliance Policy
      • Control cookies

      Contact us

      • Norway
      • Sweden
      • Finland
      • Estonia
      • UK
      • Germany

      © Nord Pool 2020 | Imprint, Data Policy, Legal Notice, How We Treat Personal Data