Current markets (blue), expansion markets (green) and serviced markets (orange)
|Type||Physical commodity exchange (energy exchange)|
|Owner||Nordic countries' transmission system operators|
|Key people||Kari Ekelund Thørud (CEO)|
Torger Lien (Chairman)
|Currency||NOK, SEK, DKK, EUR|
Nord Pool AS is a pan-European electric power exchange that runs the continent's largest market measured in volume traded and in market share. It operates in Norway, Denmark, Sweden, Finland, Estonia, Latvia, Lithuania, Germany, the Netherlands, Belgium, Austria, Luxembourg and the United Kingdom. Nord Pool is a Nominated Electricity Market Operator[further explanation needed] (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. More than 80% of the total consumption of electrical energy in the Nordic market is traded through Nord Pool. It was the world's first multinational exchange for trading electric power.
Nord Pool offers a services related to trading, including data, consulting and compliance services, as well as day-ahead and intraday markets.
1932-1991: Norwegian origins
Nord Pool traces its origin to Foreningen Samkjøringen (literally the Coordination Association) , a power exchange formed by eastern Norwegian electricity companies in 1932 on the initiative of Augustin Paus, and which soon encompassed all the electricity companies of eastern Norway. In 1971 the exchange merged with the regional exchanges in other parts of Norway, and became Samkjøringen av kraftverkene i Norge (literally the Coordination of Power Stations in Norway), with 118 power companies as members as of 1988.
1991-2000: Nordic deregulation and integration
In 1996, the Swedish electricity market was also deregulated. Statnett Marked AS was supsequently replaced by Nord Pool ASA, owned in equal parts by the Swedish and Norwegian Transmission system operators (TSOs), Svenska Kraftnät and Statnett. This contributed to the unification of the two countries' electricity markets.
Finland as well as Western and Eastern Denmark joined Nord Pool ASA in 1998, 1999 and 2000, respectively.
2000-present: Expansion in Europe
On 27 December 2001, Nord Pool ASA's spot market (derivatives and physical energy markets) activities were spun off into a new company, Nord Pool Spot AS. The remaining parts of Nord Pool ASA were later acquired by Nasdaq, and are presently known as Nasdaq Commodities.[a]
In 2005, Nord Pool Spot AS started trading and clearing of European Union (EU) emission allowances, becoming the first exchange to expand its activities into this area. The company expanded its activities to Germany by opening the KONTEK bidding area.
On 2 February 2010, Nord Pool Spot signed an agreement with the Estonian national grid company Elering to create the Nord Pool Spot Estlink bidding area starting from 1 April 2010. Nord Pool Spot also delivered the technical solution for the Lithuanian market place Baltpool. On 9 June 2010, APX-ENDEX, Belpex and Nord Pool Spot agreed to create a cross-border intraday electricity market based on Nord Pool Spot's Elbas technology. Today, the common intraday market includes the Nordic countries, the Baltic countries, Germany, the Netherlands, and Belgium.
In 2012, Nord Pool Spot opened a bidding area in Lithuania, and in 2013 the Latvian market was opened.
On 20 January 2016, Nord Pool Spot AS was rebranded to Nord Pool AS.
In 2017, a new clearing and settlement system was launched and a new GB half hourly auction was introduced. Nord Pool is nominated NEMO[clarification needed] in Ireland and Nord Pool and Agder Energi join forces to develop a new marketplace capable of exploiting decentralised flexibility.
In 2018, European Market Coupling Operator AS was spun off from Nord Pool AS as a separate legal entity, separating the market coupling operator functions from the commercial power exchange functions. Nord Pool saw new volume records (524 TWh).
On 27 August 2019 Nord Pool started trading in France, Germany, Luxembourg, Belgium, Austria and the Netherlands, the result of a European Union decision to allow several power exchanges to operate in the same markets, increasing competition.
It is owned by the national grid companies Fingrid, Energinet, Statnett, Svenska Kraftnät, Elering, Litgrid and AST. Nord Pool has the main office in Lysaker (Oslo) and offices in Stockholm, Helsinki, Tallinn, Berlin and London. It has wholly owned subsidiaries Nord Pool AB and Nord Pool Finland Oy.
Nord Pool AS has 360 members in about 20 countries. Members are public and private energy producers, energy intensive industries, large consumers, distributors, funds, investment companies, banks, brokers, utility companies and financial institutions.
Other pan-European exchanges
Related technology companies
- European Market Coupling Company
- European Network of Transmission System Operators for Electricity (ENTSO-E)
- European Network of Transmission System Operators for Gas (ENTSO-G)
- Council of European Energy Regulators (CEER)
- European Regulators’ Group for Electricity and Gas (ERGEG)
Regulations and agencies
- Regulation on Wholesale Energy Market Integrity and Transparency
- Agency for the Cooperation of Energy Regulators
- Energy Community
- Nord Pool ASA's remaining subsidies Nord Pool Clearing, which dealt with clearing transactions, and Nord Pool Consulting - were acquired by Nasdaq OMX on 21 December 2007. On 17 March 2010, NASDAQ OMX announced it would acquire all shares of Nord Pool ASA. This did not not include Nord Pool Spot AS, which continued physical electricity market trading operations independently. The deal was approved by market regulators on 31 May 2010. On 1 November 2010, Nord Pool ASA changed its name to NASDAQ OMX Oslo ASA and introduced a trade name NASDAQ OMX Commodities Europe. It is presently known as Nasdaq Commodities
- "About us". Nord Pool AS.
- "OMX buys Nord Pool's clearing, consulting operation". Reuters. 2007-12-21. Retrieved 2008-06-15.
- Fouche, Gwladys (2010-03-17). "Nasdaq OMX buys Nordic power bourse Nord Pool". Reuters. Retrieved 2010-06-13.
- "Norway's Nasdaq OMX to acquire Nord Pool ASA". Bloomberg Businessweek. Associated Press. 2010-03-17. Retrieved 2010-06-13.
- "NASDAQ OMX Completes Nord Pool ASA Acquisition" (Press release). NASDAQ OMX. 2010-03-17. Retrieved 2010-06-13.
- "Nord Pool ASA changes its name" (Press release). NASDAQ OMX. 2010-11-01. Retrieved 2010-12-25.
- Kwok W. Wan (2010-01-12). "Nasdaq, Nord Pool launch new UK power market". Reuters. Retrieved 2010-02-06.
- Juhan Tere (2010-02-02). "Elering and Nord Pool Spot conclude a cooperation agreement". The Baltic Course. Retrieved 2010-02-06.
- "Nord Pool Spot will deliver the technical solution for new Lithuanian market place" (Press release). Nord Pool Spot. 2009-08-28. Retrieved 2010-02-06.
"APX-ENDEX, Belpex and Nord Pool Spot to establish cross-border intraday electricity market from Helsinki to Brussels" (Press release). Nord Pool Spot. 2010-06-10. Archived from the original on 2010-10-23. Retrieved 2010-06-13. Cite uses deprecated parameter
- "See outline of our power market history". www.nordpoolgroup.com.
- Nord Pool History
- "Membership". Nord Pool Spot. Retrieved 13 March 2015.