1. Experiences with new Power Exchanges 18.05.2017, Sarajevo
Nord Pool
Experiences with new Power Exchanges
, Sarajevo

2. Nord Pool is Europe’s leading power market
Nord Pool offices
Nordic/Baltic and UK – day-ahead and intraday
Intraday with access to Nordic volumes
Serviced markets
Nord Pool nominated as exchange
Turkey
Bulgaria
Romania
Moldova
Ukraine
Belarus
Lithuania
Latvia
Estonia
Russia
GreeCe
Albania
MaCedonia
Kosovo
Monte- negro
Serbia
BosniA & Herzegovina
Croatia
Slovenia
Hungary
Italy
Austria
Switzerland
Portugal
Spain
ANDORRA
France
Slovakia
Czech Republic
Luxembourg
belgium
Ireland UK
Nether- landS
Poland
Germany
Denmark
Finland
Sweden
Norway
2016
European intraday: TWh
UK day-ahead: TWh
Nordic/Baltic day-ahead:391 TWh 2
Nord Pool Consulting

3. Expansion since the 1990s
2016 Nord Pool Spot is rebranded to Nord Pool.
Nord Pool is appointed NEMO in Belgium, Germany, Luxembourg and Poland.  Nord Pool is together with IBEX opening the Bulgarian power market and together with Cropex opening the Croatioan power market.
2015 Nord Pool Spot introduce a new Day Ahead Web and Intraday Web.  Nord Pool Spot is appointed Nominated Electricity Market Operator (NEMO) across 10 European power markets; Austria, Denmark, Estonia, Finland, France, GB, Latvia, Lithuania, the Netherlands and Sweden.
2014 Nord Pool Spot takes sole ownership of the UK market. North-Western European power markets are coupled through the Price Coupling of Regions (PCR) project. Nord Pool Consulting is launched.
2013 Elspot bidding area opened in Latvia. Intraday market, Elbas, introduced in both Latvia and Lithuania.
2012 Nord Pool Spot opens bidding area in Lithuania.
2011 Elbas licensed to APX and Belpex as the intraday market in the Netherlands and Belgium respectively.
2010 Nord Pool Spot and NASDAQ OMX Commodities launch the UK market N2EX. Nord Pool Spot opens a bidding area in Estonia and delivers the technical solution for a new Lithuanian market place.
2009 Norway joins the Elbas intraday market. The European Market Coupling Company relaunches the Danish-German market coupling on 9 November. Nord Pool Spot implements a negative price floor in Elspot.
2008 Highest turnover and market share recorded in the company's history until then. Elspot market share 70%.
2007 Western Denmark joins the Elbas market. SESAM, the new Elspot trading system is set into production.
2006 Nord Pool Spot launches Elbas in Germany. 
2005 Nord Pool Spot opens the Kontek bidding area in Germany, which geographically gives access to the Vattenfall Europe Transmission control area.
2004 Eastern Denmark joins the Elbas market.
2002 Nord Pool's spot market activities are organized in a separate company, Nord Pool Spot AS.
2000 The Nordic market becomes fully integrated as Denmark joins the exchange.
1999 Elbas is launched as a separate market for balance adjustment in Finland and Sweden. Elspot area trade begins 1 July.
1998 Finland joins Nord Pool ASA. Nord Pool opens an office in Odense, Denmark.
1996 A joint Norwegian-Swedish power exchange is established. The exchange is renamed Nord Pool ASA.
1995 The framework for an integrated Nordic power market contracts was made to the Norwegian Parliament. Together with Nord Pool's license for cross-boarder trading (given by the Norwegian Water Resources and Energy Administration), this report made the foundation for spot trading at Nord Pool.
1993 Statnett Marked AS is established as an independent company. Total volume in the first operating year is 18.4 TWh, at a value of NOK 1.55 billion.
1991 Norwegian parliament's decision to deregulate the market for trading of electrical energy goes into effect.

4. We continue to see steady growth

5. Number of customers:

6. European target model – the same basic solution
Part of MRC initiative today
4 MMC
Independent UK
Estonia
Latvia
Lithuania
Portugal
Sweden
Finland
Spain
Italy
Austria
Poland
Denmark
Norway
Nether- land
Germany
Luxembourg
belgium
France
Russia
Switzerland
Belarus
Ireland
Northern
Hungary
Slovakia
Czech Republic
Croatia
Turkey
Monte- negro
Kosovo
Bosnien & Herzegovina
Serbia
Moldova
Romania
Ukraine
Albania
Makedonia
Bulgaria
GreeCe
Slovenia
European target model – the same basic solution
The European target model shall ensure the completion of the EU Internal Energy Market for electricity. Guidance and standards for each timeframe: Day Ahead (DA), Intra-Day (ID), Balancing and Forward Market.
A fair and transparent day-ahead power price is an key factor for the models success.
Price Coupling of Regions (PCR)
The initiative of 7 Power Exchanges to develop a single price coupling solution, launched Feb 2014
EUPHEMIA algorithm
Multi-Regional Coupling (MRC)
Coupling of regions and efficient management of available transmission capacities between areas and countries
Implicit capacity allocation
Cross Border Intraday Trading (XBID)
The integrated European electricity market is
expected to increase liquidity, efficiency, social welfare and transparency of prices and flows.
THE SERVICED PX concept opens for easy access . 6

7. SEE markets and European market coupling
Croatia and Bulgaria
Operates MRC/PCR markets
Nord Pool as service provider of systems and PCR operation.
Waiting for possibility to couple with neighbouring countries.
CROPEX will launch an Intraday market during first quarter of 2017, IBEX last quarter of 2017
Albania and Kosovo on path of developing MRC compatible markets
Macedonia in progress with an Action Plan to create Power Exchange and launch MRC compatible markets.
Montenegro aims to start a day-ahead market, it will be important to ensure that this new market will be MRC compatible and ready to start European market coupling when this becomes possible.
Bosnia and Herzegovina seeking best option to go forward with the market establishment – should also be MRC compatible solution from the beginning
Serbia running separate markets and Power Exchange with PCR compatible platform
Part of MRC initiative today
4 MMC
Independent
MRC compatible markets in development
Nord Pool Consulting

8. Stepwise market implementation – key to the success
Volume
Historical consumption level
Volume that has to be purchased in the market
Year 1
Year 2
Year 3
Year 4
Year 5
Power sector reforms and organized market implementations can be done in a step-wise manner
DAM – Corner stone of the European Target Model
IDM – Supporting market for DAM
Balancing Power market – Vital part of the big picture
Market interlinked imbalance settlement – Incentivized balancing responsibility
Allow market liquidity and participant base increase to secure to operations
Build trust and confidence among market participants
Accelerating integration with neighbor market zones based on the MRC and PCR compatibility.
DAM & BM
IDM & Market Coupling
Market based Imbalance
Supporting
segments
Nord Pool Consulting

9. Case example – Gradual growth in IBEX
Highest daily traded volume
Average price
MWh
33,67 EUR/MWh
on the

10. Nord Pool as a service provider “PX in a box”
Cross-Border Intraday
Trading Platform
Day Ahead Trading Platform
Urgent Market Messages
Settlement, Clearing
& Risk Platform
REMIT and OTC Reporting
Nord Pool Consulting

11. Power Exchange – Service provider task division
Price and volumes calculation,
Coupling Functions
Technical support
“First line” support
Settlement and risk management
Customer acquisition process
Market development
Market surveillance
Power Exchange
responsibilities
Service provider responsibilities

12. Power Exchange start up from Service Provider point of view
Consulting
(organizational setup, market rules, capacity building)
System establishment
Testing
Trainings
Operations
Support and continued development (IDM, MC projects etc.)
Cooperation/Consulting agreement
IT delivery agreement
Operational Agreement/SLAs
Nord Pool Consulting

13. Thank you for your attention
Thank you for your attention! Matias Peltoniemi Senior Consultant, Nord Pool Consulting