The Nordic Market: Signs Of Stress?
The supply shock that hit the Nordic electricity market in 2002-2003 put the market to a severe test. A sharp reduction in inflow to hydro reservoirs during the normally wet months of late autumn pushed electricity prices to unprecedented levels. We take this event as the starting point for analysing some potential weaknesses of the Nordic market. We conclude that fears regarding supply security and adequacy are likely to be unfounded. Nevertheless, as inherited over-capacity is eroded, and new market-based environmental regulation takes effect, tighter market conditions are to be expected. It is then crucial that retail markets are fully developed so as to allow consumers to adequately protect themselves from occurrences of price spikes.
|Date of creation:||27 Nov 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.uib.no/econ/enEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amundsen, Eirik S. & Nesse, Arvid & Tjotta, Sigve, 1999.
"Deregulation of the Nordic power market and environmental policy,"
Elsevier, vol. 21(5), pages 417-434, October.
- Amundsen, E.S. & Nesse, A. & Tjotta, S., 1999. "Deregulation of the Nordic Power Market and Environmental Policy," Norway; Department of Economics, University of Bergen 194, Department of Economics, University of Bergen.
- Hauch, Jens, 2003. "Electricity trade and CO2 emission reductions in the Nordic countries," Energy Economics, Elsevier, vol. 25(5), pages 509-526, September.
- Hindsberger, Magnus & Nybroe, Malene Hein & Ravn, Hans F. & Schmidt, Rune, 2003. "Co-existence of electricity, TEP, and TGC markets in the Baltic Sea Region," Energy Policy, Elsevier, vol. 31(1), pages 85-96, January.
When requesting a correction, please mention this item's handle: RePEc:hhs:bergec:2004_015. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kjell Erik Lommerud)
If references are entirely missing, you can add them using this form.