Nordic system operators to consolidate Nordel co-operation

The Nordic system operators will consolidate their co-operation within Nordel. This will entail issues such as common management of regulation and operational reserves, harmonisation of electricity transmission tariffs and the preparation of a joint development plan for the transmission grids.Nord Pool, the Nordic electricity exchange which was expanded to the entire Denmark on 1 October 2000, constitutes an important factor in the harmonisation of the electricity markets in Denmark, Finland, Norway and Sweden. All countries involved in Nordel, with the exception of Iceland, form a shared Nordic electricity market. In other words, the future development of the electricity market will not be a merely national issue; instead, it will also call for closer co-operation between the Nordic system operators.

The transmission system operators working together through Nordel are Elkraft System and Eltra in Denmark, Fingrid in Finland, Landsvirkjun in Iceland, Statnett in Norway and Svenska Kraftnät in Sweden. Through a thorough harmonisation process and Nordel, these aim to promote the fluent functioning of the market both in the Nordic countries and in the forthcoming shared European electricity market. There are great challenges ahead, such as joint investments in the transmission grid, drawing up of clear rules for the management of transmission restrictions and agreeing on how to credit transmissions taking place through the grid of a third party. A plan for the strategic projects in the coming years was presented in Nordel's annual meeting held in Mariefred outside Stockholm on Wednesday.

The objective of developing the co-operation between the system operators is to transfer to a joint procurement and management of regulation power and operational reserves. The goal is that all players in the Nordic electricity market can in the future plan and regulate their power generation irrespective of national borders. Nordel also decided that a framework for the implementation of inter-Nordic regulation will be drawn up in the next few years.

The harmonisation of transmission tariffs will continue. Occasional transmission restrictions will arise as the operational situations in the power system change. Nordel supports the management of more permanent restrictions by dividing the electricity market into price areas, while the objective with temporary transmission restrictions is to eliminate them through counter trading. The overall objective is an electricity market which works well without border tariffs and to guarantee equal opportunities to the market parties.

Nordel will draw up a shared development plan for strengthening the Nordic transmission grid. A suggestion concerning the financing solutions for the investments stated in the plan is also being prepared.


Additional information:
Timo Toivonen, member of Nordel's Board, President of Fingrid Oyj + 358 40 560 5250
Kurt Lindström, Director, Fingrid Oyj + 358 400 458 563