In 1991, as one of the first countries in the world, Norway deregulated its power market. The other Nordic countries soon followed and connected their individual markets into a common Nordic market. This was done in order to optimize social welfare and increase 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.

The power price is determined by the balance between supply, demand taking into account transmission capacity. Today, there is general consent among politicians and other stakeholders in our home market that this model serves society well. 

A Northern European market emerging

With transmission capacity in place also between the Nordic countries and towards the European continent and the Baltics, the power market now covers large parts of Northern Europe. This means that power from many different sources enters the grid – hydro, thermal, nuclear, wind and solar. This ensures a more liquid market and more secure power supply.

Nord Pool Spot – the world’s first power market

Nord Pool Spot was the world’s first market for trading power. Today it is also one of the world’s largest markets of its kind, and provides the leading market for buying and selling power in the Nordic region, as well as Estonia, Germany and Great Britain. 74 percent of all energy production in the Nordic region is traded here. The rest is traded through bilateral contracts between suppliers, retailers and end consumers.

In 2010, total volumes traded over Nord Pool Spot amounted to 310 TWh, including the UK auction volume on N2EX.  This represented a value of EUR 18 billion.