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Nordic region changes power market model to help renewables combination

The Nordic power market will on Tuesday switch the technique for setting dayahead costs, intending to enhance grid performance, improve renewable resource integration and even out electrical power expenses across the region, market operators said.

The marketplace includes 12 bidding zones, five in Norway, 4 in Sweden, two in Denmark and one in Finland, that are interconnect through electricity transmission lines.

The offered grid capability together with bids and offers from buyers and producers, form the price for next-day electricity supply, which is set daily at 1145 GMT.

The four Nordic transmission system operators (TSOs),. Svenska kraftnat, Statnett, Energinet and Fingrid generally. determined how much power can be moved in between adjoining zones,. however have actually long planned a switch.

The new system takes a more comprehensive view of transit flows across. the Nordics and even Europe, Erik Ek, head of operations at. Swedish TSO Svenska kraftnat, told Reuters.

Called flow-based market coupling, this system has actually been used. in continental Europe for several years, and test runs in the. Nordics showed power circulations from north to south could increase. more than 10%, Ek included.

The majority of brand-new Nordic production in the last few years came from. unpredictable wind output built in sparsely inhabited northern parts,. while demand is mainly in the south.

Greater power circulations must see rates converge, increasing in the. north and falling in the south, but there are likewise cost savings,. according to Ek.

If you can utilize the grid more effectively, you do not have. to develop as much grid, he said.

For traders, the brand-new method provides more chances,. Ek included.

It will be exciting to observe the capabilities we achieve. for both the day-ahead and intraday

(source: Reuters)