Norway outdoor power wholesale

Power producers, suppliers, industry and other participants buy and sell power in competition with other market participants in the electricity wholesale market. The wholesale market facilitates export from, as well as import to, Norway.

European legislation is opening the possibility of multiple exchanges competing for customers in the same area. Two power exchanges operate in both the day-ahead and intraday market in Norway, these are Nord Pool and EPEX SPOT. Norway is currently divided into five bidding zones (NO1-NO5).

96 % of power production in Norway stems from hydropower. A large share of the production capacity is flexible; hydropower storage possibility is 85 TWh. In 2015, Norway had a net export of 14.8 TWh. On average, in the last five years, the net export has been 11.3 TWh. However, in 2011, Norway was a net importer (7.6 TWh).

As a result of the large hydropower capacity, Norway has a considerable surplus of power in periods with good hydrological conditions, e.g. snow melting, periods with high precipitation, etc. During such periods of oversupply, it is typically profitable to export power from Norway to other countries.

There are differences in the power systems in Northern Europe, stemming from differences in the fundamentals, both on the supply and the demand side. Whereas Norway has a large share of flexible hydropower, Denmark has a large share of wind power. Sweden and Finland have a high share of thermal production.

The Nordic electricity market covers Norway, Sweden, Finland, and Denmark, and as many as 12 price areas. The Nordic countries produce above 400TWh in a normal year of which around 50% hydro power, 20% nuclear, 20% wind and 10% CHP.