Congestion management in the Nordic electricity market

Balmorel: Power system model | December 2007 - March 2008

The project focused on the technical and economic consequences of the present congestion management in the Nordic electricity market and the most important alternatives to the present scheme.

The analyses included efficiency of resource utilisation, market power, incentives for infrastructure investments, security of supply and technical issues.

The electricity market model Balmorel was used in the analyses.

Concrete recommendations

The analyses formed the basis for concrete recommendations concerning the future Nordic congestion management and should be seen in context with the previous project “Steps for improved congestion management and cost allocation for transit”.

The project was carried out by Hagman Energy, COWI and Ea Energy Analyses for the Nordic Electricity Market Group under the Nordic Council of Ministers.