Why is power exchange important in Norway?

Power exchange strengthens Norwegian supply security, facilitates Norwegian value creation, and contributes to the future climate-friendly energy system. Norway has had transmission connections to foreign countries since the 1960s, when the first connection to Sweden was built.

Is Norway part of the European power market?

Norway is part of a joint Nordic power market with Sweden, Denmark and Finland, and is in turn integrated into the wider European power market through interconnectors to the Netherlands, Germany, the Baltic states, Poland and Russia. The last two interconnectors from Norway to Europe became operational during 2021.

How does power trading work in Norway?

Power trading thus moderates price rises in Norway in winter, and maintains higher summer prices. In the same way, power trading provides access to relatively low-cost power in dry years, and increases the value of Norwegian electricity in years when there is a surplus of power in the domestic market.

Why do Norwegian hydropower producers need a connection?

The connections also allow for import in situations where there is a lot of power production in our neighboring countries. This helps to lower power prices and allows Norwegian hydropower producers to save water in their reservoirs for later.

When did Norway introduce market-based power trading?

Norway introduced market-based power trading in 1991. Instead of planning a gradual transition to market-based solutions, as many European countries did, Norway opened the market to all customers from the very beginning. Hence, Norway was the first country to provide universal market access.

How many power lines does Norway have?

In total, Norway has 17 lines or subsea connections to other countries. With an increasing share of intermittent renewable power production in both the Nordic region and the rest of Europe, the benefit of power exchange is increasing. The interconnectors contribute to value creation by increasing the value of Norwegian hydropower through export.