Price coupling in North West Europe is implemented by prices being calculated in one daily operation using one common model. The current price areas in the power market will be retained.
“This is a major step towards a common European power market,” says Executive Vice President Bente Hagem of Statnett. She has headed the project together with the CEO of the EPEX SPOT power exchange, Jean-Francois Conil-Lacoste.
“The market is an important tool for ensuring that we make the most of our power production and grid investments. Price coupling will ensure better liquidity and competition and increase the socio-economic benefit. This will also benefit consumers through a more efficient market.”
From now on, the participating power exchanges will calculate the prices simultaneously using the same method. The new scheme will comprise a total annual power consumption of more than 2000 Twh, corresponding to 75 per cent of the European power consumption. The price coupling in North-West Europe comprises the countries Germany, Austria, France, Belgium, the Netherlands, the UK, Denmark, Finland, Sweden, Norway, Estonia, Latvia and Lithuania. Poland is also connected through the SwePol link.
“For us it is particularly important that the UK market now joins the market coupling. The UK and Nordic markets are approximately the same size. In parallel, Nord Pool Spot has developed a highly liquid power exchange in the UK. All this paves the way for more profitable trading between Norway and the UK,” says Bente Hagem.
The establishment of a common European power market has been a priority area for the EU for a long time, and with their established and well-functioning cross border power markets, the Nordic countries have lead the way. The target for 2014 and 2015 is to ensure that other parts of Europe’s power markets are also connected to form one common European market.
Bente Hagem, Executive Vice President +47 - 91 35 47 20
Christer Gilje, Vice President Corporate Communications +47 - 95 23 71 28