Kraftmarkedene

Kraftmarkedene, or electricity markets, are the organized systems where electricity is traded, priced, and delivered. They include wholesale markets for buyers and sellers, and often financial products that hedge price risk. In practice, kraftmarkedene typically cover day-ahead markets, intraday markets, and balancing markets, along with forward or futures contracts traded on exchanges or over the counter. Most markets are organized on a cross-border basis or as part of a regional market coupling, linking neighboring countries to optimize transmission capacity and align prices with supply and demand.

In the Nordic and Baltic region, the main electricity market infrastructure is operated by Nord Pool. The day-ahead market allows participants to settle prices for hourly consumption for the following day, while intraday markets enable trading closer to real time to fine-tune deviations. The balancing market, coordinated with transmission system operators, handles residual imbalances to keep the power system in balance. Clearing and settlement are provided by a clearing house associated with the exchange.

Price formation in kraftmarkedene is driven by marginal costs: the price is set by the most expensive unit needed to meet demand, given available capacity, generation mix, weather, fuel prices, and network constraints. Transmission interconnections across borders enable cross-border flows and price convergence, subject to congestion.

Regulation is provided by national energy authorities and European Union rules, including market surveillance to prevent abuse and to ensure reliability. Kraftmarkedene play a central role in energy policy by promoting competition, efficient resource use, and integration of renewable generation, while exposing consumers and participants to price volatility and market risk.