Research topics  /  Electricity prices and the power market

Electricity prices and the power market

Once an hour, the Nord Pool power market calculates the electricity price for the various regions in the Nordic region. Whether buying or selling, it is very important for most market participants to have knowledge of price formation and how it may develop in the future.

Electricity prices and the power market

Once an hour, the Nord Pool power market calculates the electricity price for the various regions in the Nordic region. Whether buying or selling, it is very important for most market participants to have knowledge of price formation and how it may develop in the future.

Fundamental market models are widely used to calculate the marginal costs of producing and obtaining energy in the Nordic power system. The market models are based on a physical description of actual production, transmission and consumption.

Such calculations can be interpreted as price forecasts since the models simulate market clearing for future scenarios of renewable energy supply (such as tidal, wind and solar), power demand, marginal costs of thermal power, and so on.

Price forecasts are used, among other things, in the operational planning of hydropower production and in investment analyzes for new power production.

A renewable power system presents new challenges

The Nordic power market is developing both in terms of technological solutions and market structures. Stricter requirements have been set to increase the share of renewable energy, while nuclear power is gradually being phased out.

This development means that the total share of unregulated renewable power will continue to increase and entails higher requirements for flexibility and regulation ability on both the production and consumption side.

In such a future system, the price will be controlled by other drivers than what is the case in the current market. Among other things, it is expected that short-term uncertainty related to the availability of wind and solar power as well as flexibility on the consumption side will be important drivers of price formation.

Illustration from the report "Multimarked modelling. Application of different models to HydroCen Low Emission scenario" with comparison of electricity prices.

CONTACT

Birger Mo, SINTEF Energi

Mari Haugen, SINTEF Energi

RESEARCH RESULTS

HANDBOOKS AND TOOLS

PUBLICATIONS

Multimarket modelling
Mari Haugen & Linn Emelie Schäffer (2020)


Modelling batteries
Linn Emelie Schäffer (2020)


Environmental Constraints in Seasonal Hydropower Scheduling Survey and Feasibility.
Arild Helseth (2019)


Power Price Scenarios -  Results from the Reference scenario and the Low Emission scenario.
Linn Emelie Schäffer & Ingeborg Graabak (2019)


ValueFlex – the value of flexibility.
Michael Belsnes, Ellen Aasgård & Liv Randi Hultgreen

MORE RELEVANT TOPICS

About HydroCen

We are a research center for environmentally friendly energy.

Researchers will deliver knowledge and innovative solutions to Norwegian hydropower.

The goal is for the research to contribute to Norwegian hydropower being able to meet complex challenges and opportunities in the future's renewable energy system.

Norwegian University of Science and technology (NTNU) is the host institution and main research partner in HydroCen together with SINTEF Energy and the Norwegian Institute for Natural Research (NINA). HydroCen has around 50 national and international partners from research, industry and administration.

About the Knowledge Hub

The goal of the Knowledge Hub is to collect and make available the knowledge from the research in HydroCen so that the results can be used directly by the hydropower industry or in further research, thereby helping to ensure value creation and societal benefit.

Newsletter from HydroCen

We regularly send out newsletters with research results and news. Please register here:

CONTACT

Birger Mo, SINTEF Energi

Mari Haugen, SINTEF Energi

RESEARCH RESULTS

HANDBOOKS AND TOOLS

PUBLICATIONS

Multimarket modelling
Mari Haugen & Linn Emelie Schäffer (2020)


Modelling batteries
Linn Emelie Schäffer (2020)


Environmental Constraints in Seasonal Hydropower Scheduling Survey and Feasibility.
Arild Helseth (2019)


Power Price Scenarios -  Results from the Reference scenario and the Low Emission scenario.
Linn Emelie Schäffer & Ingeborg Graabak (2019)


ValueFlex – the value of flexibility.
Michael Belsnes, Ellen Aasgård & Liv Randi Hultgreen

MORE RELEVANT TOPICS

About HydroCen

We are a research center for environmentally friendly energy.

Researchers will deliver knowledge and innovative solutions to Norwegian hydropower.

The goal is for the research to contribute to Norwegian hydropower being able to meet complex challenges and opportunities in the future's renewable energy system.

Norwegian University of Science and technology (NTNU) is the host institution and main research partner in HydroCen together with SINTEF Energy and the Norwegian Institute for Natural Research (NINA). HydroCen has around 50 national and international partners from research, industry and administration.

About the Knowledge Hub

The goal of the Knowledge Hub is to collect and make available the knowledge from the research in HydroCen so that the results can be used directly by the hydropower industry or in further research, thereby helping to ensure value creation and societal benefit.

Newsletter from HydroCen

We regularly send out newsletters with research results and news. Please register here:

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