Kraftmarkedet

Kraftmarkedet is the term used in Danish and Norwegian for the electricity market, referring to the system for producing, trading, transmitting, distributing, and consuming electric power. In the Nordic and Baltic region it encompasses wholesale markets, retail markets, and balancing processes, with price formation driven by supply and demand. The market operates under liberal competition, with market operators and transmission system operators coordinating trading, delivery, and reliability. Nord Pool is the main wholesale market operator in the area.

Wholesale trading occurs mainly in day-ahead and intraday markets. In the day-ahead market, bids and offers determine hourly prices for the next day within price areas, subject to transmission constraints. Nord Pool publishes prices and volumes; intraday trading allows adjustments closer to delivery. Cross-border interconnectors enable trade across borders, while the balancing market, run by the TSOs, handles real-time deviations between contracted and actual supply and demand.

Participants include electricity producers, traders, retailers, and large consumers, with households usually purchasing through retailers. Regulation is provided by national energy authorities and European bodies such as ACER and ENTSO-E, which set rules on market access, transparency, and reliability. Since the 1990s the Nordic markets have liberalized to foster competition, with prices influenced by hydrology, fuel costs, and grid constraints.

The kraftmarkedet plays a central role in energy security and decarbonization by enabling market-based allocation of resources and investment signals for infrastructure and renewables. Ongoing reforms focus on price stability, market transparency, and deeper cross-border integration in the Nordic-Baltic region.