Norway will have three market areas for power
(4/2/2009)
Commencing on April 13, Norway will again be divided into three market areas for trading on the spot market for power on the Nordic power exchange. The northern area will be divided into two, so that Central and North Norway become different trading zones.
This is necessary because of low water levels in the reservoirs in the region, combined with reduced grid capacity into the area. The reduction is due to the disconnection of the power line from Sweden to Central Norway this summer because of the construction of a new line with greater capacity. Besides, this construction project is to be completed during the autumn according to the plans, and will help improve import possibilities from Sweden to Central Norway.
Due to the combination of low reservoir water levels and reduced import capacity to Central Norway, it is important to utilise fully the other lines into the region. Therefore the present NO2 will be divided into a new NO2 (Central Norway) and NO3 (Northern Norway). This division will be the same as it was in the period from November 2006 to November 2008.
The progress in the reservoir filling during recent weeks in Central Norway has been monitored closely by Statnett. It is especially during the period until the snow melting starts, which is normally at the end of April, that the water level is expected to be low. Statnett will monitor the power situation in Central Norway very closely in order to assess whether further actions may be relevant.
The new demarcation of market areas will be maintained until further notice and as long as deemed necessary. The change in the market areas is authorised through NVE’s regulation on transmission system responsibility and is an instrument designed to counteract energy shortages in an area or region and to handle major bottlenecks in the system.
Statnett and Svenska Kraftnät are building a new power line between Nea in Tydal Municipality and Järpströmmen on the Swedish side. The line is to follow the same route as today’s line, and the existing line will be out of operation for long periods between 14 April and 15 October. When the new line is in place, import capacity to Central Norway will be improved. However in the coming building phase the capacity will thus be temporarily reduced.
In a commentary on this, Statnett’s president and CEO Auke Lont, emphasises that supply security in Central Norway will be at the same level as in the rest of the country when the planned power line between Sogn and Sunnmøre (Ørskog-Fardal) is in place.