Common issues and measures that can improve the Nordic electricity market

Energy end use, efficiency and demand response | December 2011 - May 2012

On behalf of the Nordic Council of Ministers’ Electricity Market Group, Ea Energy Analyses, in collaboration with Hagman Energy AB, has conducted an assessment of common issues and measures that can improve the Nordic electricity market, with particular focus on the end-user.

A well functioning Nordic electricity market
Generally speaking, the Nordic electricity market functions very well, however further improvements, such as grid and transmission expansions, management of congestions, optimal utilisation of production resources, etc., are possible. Also a number of common challenges will have to be handled within the next couple of years, such as integration of variable renewable energy, securing of peak load capacity, improving demand response, securing a Nordic and international perspective when grid investments are decided, common rules for the end-user market, and consumer distrust.

Focus on the consumer perspective

Based on the assessment of common issues and measures that can further improve the Nordic electricity market, including different stakeholder views on these issues, the 2-3 most important issues was further analysed and proposals for a more efficient market are given. The focus is on the consumer perspective, and as such the project also provide a thorough and informative description of the Nordic electricity market so that consumers can see the benefits of the common Nordic electricity market.

The primary focus of the project was thus to give an analysis of possible improvements in the Nordic electricity market. As such, it has been essential to include an overview on the completed and ongoing work regarding the harmonisation of the Nordic market – also to be able to identify issues that lack adequate attention and subsequent actions. This requires an understanding of completed improvements since its initial implementation in Norway in 1991 and remaining challenges.