Price fixing

Elspot prices are determined through auction trade for each delivery hour. The trading horizon is 12- 36 hours ahead – the next day 24 hour period. The System price and the area prices are calculated after all participants' bids have been received at gate closure 12:00 (noon).

Bidding areas

In order to handle grid congestions the Nordic exchange area is geographically divided into  bidding areas or trade zones. Participants must make bids according to where their production or consumption is physically connected to the Nordic grid. Thus the transmission capacity between each bidding area is auctioned implicitly in the Elspot price calculation. Internal grid congestions within a bidding area are handled by the TSOs using other methods such as counter-trading.

In general the bidding areas are consistent with the geographical area of each of the Transmission System Operators. Thus Sweden (SE) and Finland (FI) constitute one bidding area each. The grids in Jutland and Zealand are not physically connected giving two bidding areas in Denmark (DK1 and DK2). The Norwegian grid is usually divided into two bidding areas but three or more areas within Norway are possible (NO1, NO2 etc.). It is the Norwegian TSO – Statnett – who determines how to split the Norwegian grid into bidding areas based on physical conditions.