Elområdet

Elområdet, literally “the electricity area,” is a term used in the Nordic electricity sector to denote a defined geographic portion of the electrical grid and the market arrangements that apply there. An elområde encompasses the physical network covering generation, transmission, and distribution within its borders, together with the regulatory rules, tariffs, and balancing responsibilities that pertain to that area. The concept is used to describe both the physical infrastructure and the governing market framework for a specific region.

Management and purpose: In most systems, elområder are defined by the network operators and overseen by national regulators. The delineation affects grid planning, connection approvals, and the allocation of tariffs. In market operation, electricity trading and price formation often reference elområder as price areas, meaning that local supply-demand conditions and transmission constraints influence the price observed within the area, as opposed to a single national price.

Implementation in market design: The Nordic electricity market uses the price-area concept to reflect transmission constraints, cross-border capacity, and regional balancing needs. Elområde boundaries can evolve with grid upgrades, policy changes, or shifts in regulatory frameworks, and a country may include multiple elområder to capture regional differences in supply, demand, and network topology.

See also: electricity market, distribution network operator, transmission system operator, Nord Pool, price area, regulator.