Nord Pool Spot has calculated the price in DK2 for hour 13 and 14 at EUR 190.38 for delivery date 12 October 2011. At the same time there is an unconstrained export for hour 13 and 14 from DK2 towards Germany on the Kontek cable of 480.6 MW and 469.2 MW.
The constellation of bids and offers in DK2 consists of price-dependent single hourly orders, giving a supply curve with vertical steps, based on offers from large power plants. Some of the generation in DK2 is offered as sales block orders.
In DK2, there is generation offered at a price step around EUR 70 – similar to the price you can see in Germany – and the next available generation is available at EUR 190.38. There is a vertical step in the DK2 supply curve of approximately EUR 120.
EMCC has calculated a flow value on the left side of the vertical for DK2. The intersection point between the supply and demand curves found by EMCC is at the last few MW available at the cost similar to the price we can see in Germany.
The already decided export from DK2 to Germany - calculated by EMCC - is then handled as a price-independent purchase order in the DK2 area in Nord Pool Spot price calculation.
The two systems at EMCC are aligned as far as possible in the volume coupling between the Nordic and CWE regions. Smaller price discrepancies can be seen between the two regions. However, these differences very seldom give discrepancies like the ones seen today.
When Nord Pool Spot – taking the purchase order from EMCC into account – calculates the Nordic area prices, the system finds that some of the sales block orders cannot be accepted because the price condition in these block bids are not fulfilled at the lower price. Not being able to accept these block bids, the generation with the price at EUR 190.38 has to be activated in order to find balance between sales and offers in the DK2 area. This results in the higher price of EUR 190.38 in the two hours.
About Nord Pool Spot
Nord Pool Spot runs the leading power market in Europe and offers both day-ahead and intraday markets to its customers. 350 companies from 18 countries trade on the market. The Nord Pool Spot group has offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. In 2010 the group had a total turnover of 310 TWh, which includes the auction volume in the UK market N2EX.
Lysaker, 11 October 2011 17:35 CET
For further information, please contact:
Stina Johansen, Communications Manager Nordic, +47 916 50 603