blokpris

Blokpris is a term used in the Nordic electricity markets, particularly in Denmark and Sweden, to describe the fixed wholesale price for electricity within a specific time block. This price is determined through trading on the Nord Pool electricity exchange. Instead of a continuously fluctuating hourly price, blokpris refers to the price that applies for a set period, often a few hours at a time. This system is designed to simplify trading and provide some price stability for participants within those defined blocks. The actual blokpris is influenced by factors such as expected electricity demand, the availability of generation capacity, weather conditions (affecting renewable energy output), and the overall supply and demand balance in the market. When electricity prices are expected to be volatile or when there is a need for a more predictable pricing mechanism for certain trading strategies or industrial processes, blokpris can be a relevant concept. It differs from spot prices, which can change more frequently, and from futures prices, which are for delivery at a future date.