Goal 3: Develop an even more efficient and innovative Nordic electricity market

A well-functioning electricity market is the key to an efficient sustainable transformation. The green transition will involve the large-scale electrification of Nordic society. Major changes are expected both within electricity production, in that more nuclear power, wind and solar energy and other forms of fossil-free production will be used, and within energy consumption, in that consumers will use more energy and we will see new large-scale industrial consumers, e.g. relating to the production of hydrogen and e-fuels. In order to keep pace with these changes, it will be necessary to develop the Nordic electricity market further.

The electricity market will need to be further developed in order to incentivise new investments into electricity production with the right location, while simultaneously ensuring that new consumers use electricity efficiently. The electricity market must support better balance between growing levels of production and growing levels of consumption.

Since a large part of the additional electricity production will come from wind and weather-dependent sources, it is crucial that both consumers and producers be incentivised and have the opportunity to react to this volatile form of electricity production. Flexible consumption and an expansion of predictable, fossil-free electricity production can reduce the costs of the green transition and contribute towards greater security of supply.

Periodic fluctuations in energy prices across different parts of the Nordic Region have demonstrated weaknesses in our transfer capacity, especially between the north and south. More electrification and the rising share of fluctuating, renewable energy sources will mean an even greater need for Nordic co-operation on more robust infrastructure to ensure that resources are used as efficiently as possible, and that the costs of energy consumption are kept down.