Nord Pool Spot runs the largest market for electrical energy in the world, measured in volume traded (TWh) and in market share. It operates in Norway

Norway

Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

, Denmark

Denmark

Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, Sweden

Sweden

Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

, Finland

Finland

Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

, and Estonia

Estonia

Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

. More than 70% of the total consumption of electrical energy in the Nordic market

Nordic energy market

Nordic energy market is a common market for energy in Nordic countries. It is one of the first free energy markets in Europe and is traded in NASDAQ OMX Commodities Europe and Nord Pool Spot. In 2003, the largest market shares were as follows: Vattenfall 17%, Fortum 14.1%, Statkraft 8.9%, E.on...

 is traded through Nord Pool Spot. It was the world's first multinational exchange for trading electric power

Electric power

Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

. Nord Pool Spot offers both day-ahead and intraday markets.

History

Nord Pool Spot AS was established in 2002, when the derivatives and energy markets were separated from Nord Pool ASA (now NASDAQ OMX Commodities Europe). All Nord Pool spot market activities were transferred into Nord Pool Spot AS. In 2005, Nord Pool Spot expanded its activities to Germany

Germany

Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 by opening the KONTEK

Kontek

The Kontek is a 170 kilometer long, monopolar 400kV DC-cable for the interconnection of the German power grid with the electricity grid of the Danish island Sealand. The name comes from "continent" and the name of the former Danish power transmission company "Elkraft", which operated the power grid...

 bidding area, and one year later opened its office in Berlin

Berlin

Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

.

On 12 January 2010, Nord Pool Spot in cooperation with NASDAQ OMX Commodities launched the N2EX power market in the United Kingdom

United Kingdom

The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. On 2 February 2010, Nord Pool Spot signed an agreement with the Estonian national grid company Elering

Elering

Elering is an electric power transmission system operator in Estonia. Elering was established on 1 November 1998 under the name of Põhivõrk as an operating unit of the Estonian national power company Eesti Energia. On 1 April 2004, it became a private limited company, OÜ Põhivõrk, as a subsidiary...

 to create the Nord Pool Spot Estlink

Estlink

Estlink is a set of HVDC submarine cables between Estonia and Finland. Estlink 1 is the first interconnection between the Baltic and Nordic electricity markets following by Estlink 2 in 2014...

 bidding area starting from 1 April 2010. Nord Pool Spot also delivered the technical solution for the Lithuanian market place Baltpool. On 9 June 2010, APX-ENDEX

APX-ENDEX

APX-ENDEX is an Anglo-Dutch energy exchange operating the spot and derivatives markets for electricity and natural gas in the Netherlands, the United Kingdom, and Belgium. Established in 1999, APX-ENDEX provides exchange trading, central clearing and settlement, and data distribution services as...

, Belpex and Nord Pool Spot agreed to create a cross-border intraday electricity market based on Nord Pool Spot's Elbas technology. The common intraday market will include Nordic countries, Germany, the Netherlands, and Belgium.

Organization

It is owned by the national grid companies Fingrid

Fingrid

Fingrid Oyj is a Finnish national electricity transmission grid operator. It is owned by the Finnish state , power companies Fortum and Pohjolan Voima and financial investors . CEO of the company is Jukka Ruusunen....

, Energinet.dk

Energinet.dk

Energinet.dk is the Danish national transmission system operator for electricity and natural gas. It is an independent public enterprise owned by the Danish state under the Ministry of Climate and Energy...

, Statnett

Statnett

Statnett is a Norwegian state owned enterprise responsible for owning, operating and constructing the stem power grid in Norway. The company has its headquarters in Oslo, Norway....

, and Svenska Kraftnät

Svenska Kraftnät

Svenska Kraftnät is an electricity and natural gas transmission system operator in Sweden. It is a state-owned public utility, which was created in 1992 by splitting the former government agency Vattenfall into a power generation company and a transmission company...

. Nord Pool Spot has the main office in Lysaker

Lysaker

Lysaker is a section of and a postal code area of the Norwegian municipality of Bærum, just west of Oslo.Geographically, it is bordered by Lysakerelven on the east, which also forms the border to Oslo; Fornebu to the south; Stabekk to the west; and Jar to the north...

 (Oslo) and offices in Fredericia

Fredericia

Fredericia is a town located in Fredericia municipality in the eastern part of the Jutland peninsula in Denmark, in a sub-region known locally as Trekanten, or The Triangle...

, Stockholm

Stockholm

Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

, Helsinki

Helsinki

Helsinki is the capital and largest city in Finland. It is in the region of Uusimaa, located in southern Finland, on the shore of the Gulf of Finland, an arm of the Baltic Sea. The population of the city of Helsinki is , making it by far the most populous municipality in Finland. Helsinki is...

, Tallinn

Tallinn

Tallinn is the capital and largest city of Estonia. It occupies an area of with a population of 414,940. It is situated on the northern coast of the country, on the banks of the Gulf of Finland, south of Helsinki, east of Stockholm and west of Saint Petersburg. Tallinn's Old Town is in the list...

 and London

London

London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

. It has wholly owned subsidiaries Nord Pool Spot AB and Nord Pool Finland Oy. In addition, Nord Pool Spot has 50% of shares in the gas exchange Nord Pool Gas A/S, the other shareholder is being Energinet.dk. In addition, in the United Kingdom

United Kingdom

The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 Nord Pool Spot owns in cooperation with NASDAQ

NASDAQ

The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

OMX Commodities the N2EX power market, which is not a legal entity.

Members

The Nord Pool Spot market membership includes energy producers, energy intensive industries, large consumers, distributors, funds, investment companies, banks, brokers, utility companies and financial institutions. Nord Pool Spot AS has a customer base of 317 in Elspot and 55 in Elbas.

Services

Nord Pool Spot AS is the world's largest exchange for electrical energy measured in volume (300 TWh) and market share (73.5% in 2009). It operates the day-ahead market for electrical energy, Elspot, and the intraday market, Elbas.