The electricity markets in the Nordic countries have undergone major changes since the middle of the 1990s. All Nordic countries have liberalised their electricity markets, opening both electricity trading and electricity production to competition.
The purpose of the liberalisation was to create better conditions for competition, and thus to improve utilisation of production resources as well as to provide gains from improved efficiency in the operation of networks.
Norway was the first Nordic country to launch the liberalisation process of its electricity market with the approval of the Energy Act in 1990, which introduced regulated third-party access. Norway was followed by Sweden and Finland in the middle of the 1990s and by Denmark at the beginning of 1998 when the large electricity customers were given access to the electricity network.
The establishment of Nord Pool
The liberalisation process in the middle of the 1990s was followed by an integration of the Nordic markets. The establishment of Nord Pool, the Nordic electricity exchange, was an important part of this integration. Today, we have a common Nordic wholesale electricity market.