The deregulated Nordic electricity market-10 years of experience

The liberalization of the electricity markets in the Nordic countries, Denmark, Finland, Norway and Sweden, started in the beginning of the 1990s. This report describes the deregulation process and the parties involved. The parliaments were important in preparing the necessary legislation. The establishment of a regulator with the required power was important The transmission system operator was established and given appropriate tasks. The goals for the common Nordic market are presented, the main goal being to provide for more efficient development and use of the power system. Basic requirements for a competitive electricity market are given. The main part of the report is devoted to the experiences from the Nordic market. The presentation of the important step from theory to practice is mentioning the key success factors; energy act, unbundling, regulation and TSO operation. To create a competitive environment the right responsibilities should be given to the TSOs and regulators. The reasons behind choosing a TSO model is described. Finally the importance of confidence in the market and the solutions chosen are underlined.