9.3.2018 10:42
Current News, International News, Electricity Market

Agreement on future Nordic balancing

The five Nordic TSOs have reached a cooperation agreement on the development of a new Nordic balancing concept.

-We are very happy that an agreement has been reached, and that we can resume the strong Nordic cooperation that is a hallmark for the power sector in the Nordic countries. The agreement is a major step forward for the development of an efficient power market that ensures security of supply, say the CEOs in a joint statement.

The changing power system entails more intermittent renewable power generation and changes in consumption patterns. This means that there is a need for more flexibility and better control of imbalances. The new Nordic balancing model ensures this.

The cooperation agreement outlines the roles and responsibilities of the TSOs. It is committing the five Nordic TSOs to follow a common roadmap for implementation of the new balancing concept and common balancing markets. Furthermore, the agreement outlines the way forward on the development of new market platforms supporting common markets and tasks in the new balancing structure.

- Ensuring value creation and security of supply is paramount to our missions in our respective countries and across the Nordic area. Therefore, this agreement is much needed and welcomed. We are strongly committed to ensuring Nordic cooperation and are happy that we were able to find solutions that were beneficial to all parties, underline the TSOs.

The agreement has paved the way for the common consultation on one common Nordic LFC block, which was launched earlier today.

More information:

Jukka Ruusunen, CEO, Fingrid, tel. +358 40 593 8428

Asta Sihvonen-Punkka, SVP, Markets, tel. +358 50 573 9053

Fact box:

The five Nordic TSOs in the agreement are:

Fingrid, Svenska Kraftnät,  Statnett, Energinet and Kraftnät Åland,

The Nordic balancing concept and roadmap includes, among others, the following milestones:

Common Nordic capacity market for aFRR (Q2, 2019)
Common Nordic capacity market for mFRR (Q4, 2019)
Introduction of 15 minutes imbalance settlement (ISP) (Q2, 2020)
Common Nordic energy market for aFRR (Q1, 2021)
Nordic modernised ACE balancing fully applied (Q1, 2021)