Page 1 Created with Sketch. Page 1 Created with Sketch. Page 1 Created with Sketch. Page 1 Created with Sketch. Artboard 1 copy 14Artboard 1 copy 7Artboard 1 copy 66Artboard 1 copy 23Artboard 1 copy 16Artboard 1 copy 55Artboard 1 copy 43Artboard 1 copy 50Artboard 1 copy 54Artboard 1 copy 34Artboard 1 copy 51Artboard 1 copy 36Artboard 1 copy 35Artboard 1 copy 46Artboard 1 copyArtboard 1 copy 31Artboard 1 copy 48Artboard 1 copy 9Artboard 1 copy 27Artboard 1 copy 8Artboard 1 copy 20Artboard 1 copy 2Artboard 1 copy 24Artboard 1 copy 62Artboard 1 copy 30Artboard 1 copy 41Artboard 1 copy 28Artboard 1 copy 26Artboard 1 copy 67Artboard 1 copy 52Artboard 1 copy 33Artboard 1 copy 29Artboard 1 copy 19Artboard 1 copy 53Artboard 1 copy 22Artboard 1 copy 21Artboard 1 copy 12Artboard 1 copy 13Artboard 1 copy 47Artboard 1 copy 49Artboard 1 copy 57Artboard 1 copy 32Artboard 1 copy 4Artboard 1 copy 25Artboard 1 copy 10Artboard 1 copy 15Artboard 1Artboard 1 copy 56Artboard 1 copy 11Artboard 1 copy 38Artboard 1 copy 65Artboard 1 copy 39Artboard 1 copy 5Artboard 1 copy 58Artboard 1 copy 6Artboard 1 copy 17Artboard 1 copy 40Artboard 1 copy 60Artboard 1 copy 3Artboard 1 copy 45Artboard 1 copy 18Artboard 1 copy 42Artboard 1 copy 61Artboard 1 copy 63Artboard 1 copy 64Artboard 1 copy 59Artboard 1 copy 44Artboard 1 copy 37 Combined Shape Created with Sketch. icon/info Created with Sketch. icon/info Created with Sketch. Group 17 Created with Sketch. Fill 1 Created with Sketch. Page 1 Created with Sketch. 99021DFE-DB58-4EE2-9D52-C2BF154A8B0A Created with sketchtool. Oval 2 Created with Sketch. Combined Shape Created with Sketch. Combined Shape Copy Created with Sketch. Group 18 Created with Sketch. Group 16 Created with Sketch. Page 1 Created with Sketch. ; ;
12.3.2007 00:00
Press Releases

Capital expenditure of 1 billion euros in the Nordic grid will reduce transmission congestions and the risks of market participants

Approximately 1 thousand million euros will be used for grid reinforcements recommended by Nordel, the co-operation organisation of the Nordic transmission system operators (TSOs), by 2012.
- After the implementation of the agreed grid projects, we will be considerably closer to having a European electricity market. Developments in the Baltic and Russian electricity markets will also expand the market area to the south and east, says Jukka Ruusunen, Fingrid's President & CEO and President of Nordel.

According to him, the Nordic electricity market is a pioneer and an example both in Europe and elsewhere in the world of a well-functioning multi-national electricity market.

Transmission congestions in the electricity grid constitute risks to the market participants. Congestions can be removed either by grid reinforcements which add to the transmission capacity or by production investments in critical areas. During the past three years, the Nordic TSOs have used a total of 900 million euros in upgrading the transmission grid. In the next few years, approximately 1 thousand million euros will be invested in the five priority cross-sections recommended by Nordel. This sum includes the Fenno-Skan cable connection being constructed between Finland and Sweden. The next development plan shared by the Nordic countries will be completed within Nordel during this year.

Price differences of electricity between various areas are an indication on transmission congestions. In 2006, Finland and Sweden had the same electricity price for 93 per cent of the hours of the year, meaning that there were transmission restrictions for only 7 per cent of the time. The price of electricity was the same in all of the Nordic countries for 33 per cent of the time. - After the agreed grid reinforcements, the transmission congestions will be reduced significantly, and all Nordic countries will have the same price of electricity for 75 per cent of the time. In other words, market efficiency will be enhanced considerably, Jukka Ruusunen says.

Nord Pool Spot takes care of the Elbas market, where electricity trade can take place in almost real time. At the beginning of 2007, the Elbas market expanded to Germany, and it will expand further, in accordance with Nordel’s recommendation, to Western Denmark in April and to Norway by the end of 2007. At that point, the Elbas market together with the Elspot market and regulating power market will constitute the first regional market entity in the world where electricity trade can take place 24 hours a day throughout the year. The market participants can balance their own electricity balances for example in line with changes in weather or in the event of failures at power plants. This will promote competition and reduce the threshold of market access.

Nordel has also decided to harmonise the primary principles of balance management carried out by the TSOs in the Nordic countries. The new principles will be applied as of the beginning of 2009. Harmonisation is a prerequisite for the development of balance management into a Nordic service, where each balance provider only has a single agreement and balance. The uniform principles will concern the balance settlement costs, calculation of balance deviations, and structure of fees. Harmonisation of principles will also promote significantly the development of the Nordic retail market. Jukka Ruusunen, President and CEO of Fingrid Oyj, was elected Nordel’s President as of 7 February 2007. The two-year presidency of Nordel held by Finland will continue until the annual general meeting in June 2008. Juha Kekkonen, Executive Vice President of Fingrid, served as Nordel’s President before Jukka Ruusunen.

Further information on Nordel: www.nordel.org. Further information: 
Jukka Ruusunen, President & CEO, +358 (0)30 395 5140