Published 15. Oct. 2015

Baltic and Nordic Energy Markets need to integrate!

Energy and Resources

By Markku Rimpiläinen

Today, the Nordic and Baltic countries already belong to a common wholesale electricity market which uses Nord Pool Spot of Norway as its trading centre.

However, the market is not quite as unified as it looks, says Karla Agan, Head of Energy Sales in Eesti Energia AS.

“Today the market still consists of different regions. The Baltic states are not enough connected with the Nordic countries. They are a bit separate”, says Agan and predicts that the integration will speed up in coming years.

“We will have physically and financially one common market with harmonized rules, and the market actually works like one market.”

Dr. Dalius Misiūnas, Chairman of the Board and CEO of Lietuvos Energija UAB, agrees.

“Lithuania, Latvia and Estonia will integrate into the Nordic market. I believe we will have some impact on the market, as well as the market coming from the Nordic side will impact the Baltic states.”

A bigger market will be more innovative and customer-centric, says Karla Agan.

“The existing market changes. We have new technologies coming, and new business models emerging. The market will also be more customer-centric. The customer will start to play a much bigger role than today, for example in the new demand response solutions.”

Traditionally suppliers have added peaking power plants to the grid to increase power generation to meet a growing demand.

Demand response works the opposite way – instead of adding more energy to the system, it pays energy users to reduce their consumption.

“Interesting times are coming. Energy is now sexy”, Agan concludes.
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