Electricity market
The same tools for different goals?
The Nordic electricity market demands a new form of collaboration and foresight in order to overcome the challenges of tomorrow, says Fortum’s Simon-Erik Ollus.
27.9.2021
The Nordic electricity market demands a new form of collaboration and foresight in order to overcome the challenges of tomorrow, says Fortum’s Simon-Erik Ollus.
In June, the Energy Authority issued a decision requesting Fingrid to issue transmission rights for the cross-border transmission links between Finland and Estonia. When a smaller area is connected to a larger area with a more liquid hedging market, transmission rights will significantly increase the opportunities available to market parties to hedge against fluctuating electricity prices in that area.
The Go-Live of Fingrid’s datahub, the centralised information exchange system for the electricity retail market, is progressing. A trial production run of datahub, covering the entire electricity market, began in June to test and verify the system’s functionality. The observations and user experiences gained from the trial will help to improve the system further.
The price of emission rights has doubled in the last six months. At the end of May, the right to emit one tonne of carbon dioxide into the atmosphere was priced at EUR 54, more than double the EUR 25 price at the end of last year. The change is striking compared with the trend from 2013 to 2018 when emission rights cost just EUR 5–10.
The energy revolution and the transition to European markets require Nordic transmission system operators to make changes to their balance management and imbalance settlement processes. The joint Nordic balancing model program consists of several projects. The first of these – the single pricing model – will be completed this November.
Fingrid’s Head of Business Development, Mikko Järvenpää, answers the questions.
The joint Nordic balancing model is making progress in Finland and all across the region. Some adjustments have been made to the timetables.
Fingrid is taking part in the OneNet flexible market project, which began last autumn. OneNet is a three-year research project that is mainly funded by the European Commission’s Horizon 2020 framework. It seeks to develop various flexible market solutions to address the challenges that the power system faces during the energy revolution.
EU Commission prioritises electricity grids, offshore* energy and renewable gases over oil and natural gas infrastructure.
Transmission system operators do not know everything. Nordic transmission system operators have been in the habit of preparing their proposals together before asking customers and other stakeholders for their comments.