About the market> The financial market

The Nordic countries have been precursors to liberalize their power markets. Financial turnover was EUR 120 billion / 2575 TWh in 2008. That is 6-7 times the underlying consumption. There are currently around 400 participants representing 20 countries in the financial power trade at Nord Pool

The players in the market

The players have different backgrounds and motivations for their participation at Nord Pool. Manufacturers will hedge against adverse price fluctuations in order to optimize their production plans. Large industrial companies wants to achieve predictable (and low) costs. Distributors need to ensure they have positive margins on end user sale. Portfolio Managers are acting in the market on behalf of entities that do not have proper knowledge to participate directly at Nord Pool. Traders act in the market to make money on price fluctuations, they often turn positions and help to ensure good liquidity in the market. Traders are making money from taking over risk that other categories of players are not willing to take.

Products traded

In a similar way as the interest rate market and many commodity markets the product range at Nord Pool consist of time series: days, weeks, months, quarters and years. The maximum time horizon is 6 years. The spot serves as the reference price for all products. The products are nominated in Euro / MWh and cleared by Nord Pool Clearing. Trading activity takes place directly between the players, through brokers or directly on electronic trading platforms.

See products and prices at Nord Pool.