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Integration of multiple national markets for electricity: The case of Norway and Sweden

โœ Scribed by Eirik S. Amundsen; Lars Bergman

Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
210 KB
Volume
35
Category
Article
ISSN
0301-4215

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โœฆ Synopsis

During the second part of the 1990s the Nordic (Denmark, Finland, Norway and Sweden) countries have created a unique multinational market for electricity. This paper aims to analyse the degree of integration of the different national markets that constitute the Nordic electricity market. In particular the Norwegian and Swedish wholesale and retail electricity markets are analysed. The results suggest that the wholesale markets are well integrated. Thus prices differ significantly only during periods with unusually high or low supply of hydropower. However, the retail markets are not integrated to the same degree. Thus retail prices and trade margins differ significantly. Differences in the national electricity market legislation seem to be a key factor behind these differences.

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