Nord Pool Europe’s Leading Power Market
Tallinn, 15 märts 2016 Europe’s leading power market
FINLAND
Nordic/Baltic and UK – day-ahead and intraday SWEDEN
German market – intraday NORWAY
ESTONIA Serviced markets LATVIA
DENMARK LITHUANIA
UK POLAND
GERMANY
CROATIA BULGARIA
17 March 2016 Europe’s leading power market
FINLAND
Appointed NEMO SWEDEN
Awaiting NEMO appointment NORWAY Serviced markets ESTONIA LATVIA
Norway not part of EU DENMARK LITHUANIA (Nord Pool operate on a Licence from The Norwegian
Water Resources and Energy Directorate) UK POLAND NETHER- LAND GERMANY BELGIUM
FRANCE AUSTRIA
CROATIA BULGARIA
17 March 2016 Volume growth from 1996 A total of 489 TWh traded in 2015 - Day-ahead market Nordic/Baltic 374 TWh - Day-ahead market UK 110 TWh 600 - Intraday market Nordic/Baltic/Germany 5 TWh
500
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0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Volume traded in TWh
17 March 2016 CEO
Mikael Lundin
Corporate Business Business Operations Business Development Marie Thuestad Hans Randen
IT Development Finance/HR/Administration functions Chris Whellams Erling Thiis functions
Markets Legal/ Market Surveillance/ Compliance Marianne W Jenssen Camilla Berg
Communications Business Units Stina Johansen
Central European Market Coupling Consulting Nordic & Baltic UK & Ireland Markets Serviced Markets Services Sami Oksanen Richard Sarti Lina Masiuliene Hans-Arild Act Hans Randen Jan Rönnback Bredesen
17 March 2016 Our history
1991 1993 1996 1998 1999 2000 2002 2008 2010 2010 2012 2013 2014 2014 2014 2015 2016
17 March 2016 Stakeholders
Owned by Nordic and Baltic transmission system operators
Regulated in Norway by Norwegian Water Resources and Energy Directorate (NVE) Statnett – Norway – 28.2% Elering – Estonia – 2%
Svenska Kraftnät – Sweden – Nominated NEMO in Austria, Denmark, 28.2% Ligrid – Lithuania – 2% Estonia, Finland, France, Germany, Great Britain, Latvia, Lithuania, the Netherlands and Sweden Energinet.dk – Denmark – 18.8% AST – Latvia – 2%
Fingrid – Finland – 18.8%
17 March 2016 Our focus and established expertise is in efficient power trading Our role
To provide liquid, efficient and secure power markets to our customers
To provide accurate information to the whole market, ensuring transparency
To provide equal access to market for everyone wanting to trade power
To be the counterparty for all trades; guaranteeing settlement and delivery
17 March 2016 Our customers
380 customers from 20 countries trade in our markets
Our customers are typically power producers, suppliers and traders
Large end-users also trade on the markets and buy power directly through Nord Pool rather than a supplier
17 March 2016 The day-ahead market
An auction of power for delivery the following day Price (EUR/MWh)
Prices are calculated based on supply, demand and transmission capacity (how much power can be moved from one area to another)
Liquidity is key: A market with a lot of power Market traded in and out leads to depth in the market price and reliable index prices
Turnover Volume (MWh)
17 March 2016 The intraday market
The intraday market is continuous, and power trading takes place until 30 minutes before the power is delivered
The intraday market offers customers opportunities for risk reduction as well as increased profit
TSOs publish their power transmission capacity to the intraday market – if transmission capacity is available, neighbouring countries can trade
Members ‘offer’ how much power they want to sell and buy and at what price. Trading is then set based on a first-come, first-served basis between a seller and a buyer
17 March 2016 How the markets work
“The day-ahead and intraday supplement each other, with the intraday market acting as a balancing market to the day- ahead”
17 March 2016 The Baltic market
10 Years 36 Hours Financial market (Nasdaq OMX) Day-ahead Used for managing risks. The system price is used as reference price. EPAD Tallinn, EPAD Riga (Elering; AST) PTR-limited auctions on EE-LV border Reference price Adjustment of trades for financial in intraday market Day-ahead market (Nord Pool Spot) market
Day-ahead auction of power for delivery the next day. Intraday market Nord Pool Spot calculates power area prices based on supply and demand for every hour the following day.
Intraday market (Nord Pool Spot) Continuous cross area and cross border trading up to 30 Balancing minutes before delivery to adjust power production or consumption plans.
Balancing market (TSOs) Operated by the respective transmission system operators. Based on bilateral trade, MO is done based Physical delivery on the lowest price of power
17 March 2016 Towards a common European power market A common European market
The concept of market coupling was originally developed by Nord Pool and has been successfully implemented in the Nordic & Baltic market over the last 20 years
Efficient use of transmission capacity by trading energy across borders
Close cooperation between TSOs, Power Exchanges and National Regulators across Europe
17 March 2016 A common European market (end Q1 2016)
FINLAND
Multi Regional Coupling – Price Coupling of Regions SWEDEN
4 MMC NORWAY Independent ESTONIA LATVIA
DENMARK LITHUANIA A fair and transparent determination of day-ahead power prices is a key UK POLAND NETHER- factor for the success of the integration LAND GERMANY BELGIUM
of the European power market. CZECH REPUBLIC SLOVAKIA
FRANCE AUSTRIA HUNGARY SWITZERLAND ROMANIA SLOVENIA
CROATIA BULGARIA ITALY
SPAIN PORTUGAL
17 March 2016 Price Coupling of Regions (PCR)
Price Coupling of Regions (PCR); Seven Power Exchanges cooperates since 2010 in order to achieve a common European day-ahead price calculation covering
Common algorithm (Euphemia) used to calculate power prices
Common system design (PMB) ensuring robust price coupling operations within and between power exchanges and towards TSOs
Each power exchange responsible for own operations, including market (customer) interfaces and pre-post processes, ex. bidding, result distribution, clearing/settlement
Open for all European PXs based on contracts and different alternatives
17 March 2016 System price and area prices
Elspot prices 60
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0 15 - Jan 15 - Feb 15 - Mar 15 - Apr 15 - May 15 - Jun 15 - Jul 15 - Aug 15 - Sep 15 - Oct 15 - Nov 15 - Dec 16 - Jan 16 - Feb SYS SE4 FI EE LV LT
17 March 2016 Price and võlume dynamics
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0 0 13 - 13 - 13 - 13 - 13 - 13 - 13 - 13 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 15 - 15 - 15 - 15 - May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
EE Buy LV Buy LT Buy Elspot prices in EUR/MWh EE Elspot prices in EUR/MWh LV Elspot prices in EUR/MWh LT Linear (LV Buy) Linear (LT Buy) Linear (Elspot prices in EUR/MWh EE) Linear (Elspot prices in EUR/MWh LT)
17 March 2016 Weekly Day-ahead prices
Weekly DA prices 70
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0 48 - 15 49 - 15 50 - 15 51 - 15 52 - 15 53 - 15 01 - 16 02 - 16 03 - 16 04 - 16 05 - 16 06 - 16 07 - 16 08 - 16 09 - 16 10 - 16 SE4 FI EE LV LT
17 March 2016 nordpoolgroup.com
Ingrid Arus [email protected] Tel: +372 5341 2159