Market-Status today

The Norwegian electricity market is part of the Nordic Market and a large share of electric power produced in Norway is traded through the common Nordic exchange for contracts for physical delivery of electric power operated by Nord Pool Spot AS.

Nord Pool operates two markets for physical wholesale trading of electric power: the day-ahead market Elspot where hourly power contracts are traded daily for physical delivery in the next day’s 24 hour period and Elbas which is a continuous cross-border intra-day market where adjustments to trades done in the dayahead market are made until one hour prior to the delivery. Together these markets covered about 74 % of the Nordic consumption of electricity in 2010 with a volume of 307 TWh. The remaining traded volume is negotiated bilaterally by supplier and customer.

The Norwegian hydropower system has been traditionally used to cover peak load (export) during the day and to import during the night (or in low load periods). In the Nordic interconnected system, hydropower from Norway has been used in smoothing out the heat power and reducing start and stop costs of these generation capacities. Due to the steady increase of renewables (largely wind power) the time aspect of ‘balancing’ can change from daily, slow variations to more unpredictable short term (within one hour) generation variations.