prisområder

Prisområder, or price areas, are geographic segments in the electricity market where a single price is determined for all buyers and sellers within that area in the day-ahead market. The concept is used in Nordic and Baltic markets and serves to reflect the regional balance of supply and demand and the capacity of transmission networks.

Prices can differ between prisområder due to transmission constraints. If interconnections between areas are limited, energy may not flow freely to where it would be most valuable, leading to price differences. The boundaries of prisområder are defined by the network owners and market operators based on grid topology and capacity, with inter-area transfer limits set for each hour.

In practice, price areas are used in market processes such as day-ahead auctions, where a price is set for each area and cross-border flows are scheduled to respect limits. Traders buy and sell within a given area, while cross-border participants may exploit price differences through interconnectors. Price-area prices can spike in one region while neighboring areas stay lower, which in turn affects producers, consumers, and investment decisions in transmission capacity.

Legislation and market design in the Nordic-Baltic region have evolved toward greater efficiency through market coupling and regional reforms. The concept of prisområder remains a core element of electricity market structure in many European systems, even as reforms move toward flow-based or market-coupled approaches that optimize cross-border flows across areas.