Integration of multiple national markets for electricity: The case of Norway and Sweden

During the second part of the 1990s the Nordic (Denmark, Finland, Norway and Sweden) countries have created a unique multinational market for electricity. This paper aims to analyse the degree of integration of the different national markets that constitute the Nordic electricity market. In particul...

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Bibliographic Details
Published in:Energy policy 2007-06, Vol.35 (6), p.3383-3394
Main Authors: Amundsen, Eirik S., Bergman, Lars
Format: Article
Language:English
Subjects:
Applied sciences
Denmark
Economic data
Economic integration
Electric energy
Electricity
Energy
Energy economics
Energy industry
Energy market
Exact sciences and technology
Finland
General, economic and professional studies
Integration
International comparisons
International market
Market analysis
Market integration
Market structure
Norway
Retail competition
Studies
Sweden
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Summary:During the second part of the 1990s the Nordic (Denmark, Finland, Norway and Sweden) countries have created a unique multinational market for electricity. This paper aims to analyse the degree of integration of the different national markets that constitute the Nordic electricity market. In particular the Norwegian and Swedish wholesale and retail electricity markets are analysed. The results suggest that the wholesale markets are well integrated. Thus prices differ significantly only during periods with unusually high or low supply of hydropower. However, the retail markets are not integrated to the same degree. Thus retail prices and trade margins differ significantly. Differences in the national electricity market legislation seem to be a key factor behind these differences.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2006.12.014