Nord Pool Spot has received the following information from Statnett:
Svenska Kraftnät (SvK) has proposed to implement four price areas in Sweden that will be operational from July 2011. Statnett is positive to this initiative from SvK, however points out that the substantial investment plans to build new capacity between and within Sweden and Norway also need to be implemented to increase cross border capacity for the market.
The daily operation of the Nordic system will be significantly affected by the new Swedish price areas, with more precise control of network flows. The actual capacity constraints in the system will be apparent through trading limits applied directly in the price calculation algorithm of Nord Pool Spot. More representative spot and tertiary reserve power prices are expected as they will be closer linked to the actual network constraints, and the allocation of resources will be better both in the short and long term. The need for counter-trade in the operational phase will be significantly reduced and it is Statnett’s view that this will contribute to improved system security in general including improved frequency quality.
Prices are expected to rise slightly in southern Sweden and to fall slightly in the north of Sweden. It is expected that the prices in the north and south of Norway will both reflect these price increases and decreases in the same directions, though less pronounced than in Sweden. The new Swedish price areas have marginal or no impact on planned network development projects in Norway.
Lysaker 4 November 2009
For further information, please contact Statnett:
Øyvind Rue, Executive Vice President, Grid Operations, phone +47 22527295, mailto:email@example.com
Lars Voldhaug, National Control Center, phone +47 90987386, mailto:firstname.lastname@example.org