Fingrid has requested that Nord Pool Spot open an electricity exchange bidding area – FRE - on the Finnish-Russian border, to handle cross-border capacity in a transparent manner. FRE will open on Sunday 31 May – with the first delivery date, Monday 1 June 2015.
The FRE area will serve as the cross-border trading and congestion management solution for transmission capacity allocated for ‘direct trade’ between Finland and Russia. Further information about the FI/RU cross-border connections.
Electricity exchange area concept
An electricity exchange area serves as a market-oriented and transparent cross-border trading solution, where market participants are able to trade simultaneously cross-border. The FRE area enables several participants to trade within the area if this is seen feasible on the Russian side.
The electricity exchange bidding area facilitates trading on both the day-ahead and intraday markets. The day-ahead market, FRE, will have its own hourly price calculated, based on the orders placed and taking into account the available cross-border trading capacity. Trades will be settled against the calculated FRE price. The introduction of a bidding area increases the compatibility of third country trading principles in the Baltic Sea area.
Introducing the electricity exchange bidding area FRE requires updates to Nord Pool Spot’s Rulebook. Appendix 2g (“Special Regulations for Trading in the Finnish Electricity Exchange Area towards Russia”) will be amended in agreement with Nord Pool Spot’s Customer Advisory Board (CAB). This appendix describes the rules for trading in the FRE area. Changes to the Trading Rules will take effect from 31 May 2015.
The Norwegian Water Resources and Energy Directorate is informed.
See further description on FI/RU electricity exchange area setup.
About Nord Pool Spot
Nord Pool Spot operates Europe’s leading power markets, offering both day-ahead and intraday trading to its members. 380 companies from 20 countries trade on Nord Pool Spot’s markets in the Nordic and Baltic regions, and on our UK market N2EX. In 2014 the group had a total turnover of 501 TWh traded power. Our markets are operated from offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. Nord Pool Spot strives continually to strengthen its business by working with integrity, together with members and stakeholders, to achieve excellence.
Lysaker, 8 May 2015
For more information, please contact:
Risto Lindroos, Fingrid Oyj, +358 30 395 5139
Stina Johansen, Nord Pool Spot, +47 916 50 603 (Press)