The evolution of the common Nordic electricity market is a significant enabler in the implementation of the vision of the Nordic Countries, wherein the Nordic region aims to become the world's most sustainable and integrated region.
Secure, affordable, and clean energy is fundamental to realizing this. As recognized by the Nordic Electricity Market Group, established under the Nordic Council of Ministers, the Nordic electricity market holds significant importance as an essential instrument for ensuring a resilient security of supply and high-quality electricity service to customers, all while maintaining competitive and affordable electricity prices. In addition, energy markets, such as the electricity market, can help to ensure efficient utilization of our resources across the Nordic borders and energy systems.
Yet, in view of the recent year's unprecedented energy prices and geopolitical risk, the electricity prices surged and exposed the need for a review of resilient energy infrastructure measures. As a response, the European Commission created the Just Energy Transition Fund and a toolbox of emergency intervention measures for action and support aimed at consumers and industry.
This report delves into the Nordic approaches to implementing the EU's emergency intervention measures aimed at tackling the energy crisis and high energy prices during the winter of 2022/2023. Simultaneously, readers are presented with a theoretical economic analysis of the implications resulting from these interventions.
The report supplements other studies by Nordic Energy Research. Latest, the reports “The Nordic Energy Trilemma - Security of Supply, Prices and the Just Transition” as well as “Inflation and its social consequences – The case of Nordic and Baltic countries”. All reports analysing the recent years energy price rise, measures, and consequences.
It is my hope that these reports will create knowledge-based foundation for enlightening and sharing of best practices to ensure a resilient, sustainable, and integrated Nordic energy region of tomorrow.
Klaus Skytte
CEO, Nordic Energy Research