Workshop about Study on methodologies for evaluation of the Nordic forward market for electricity

Save the date: Workshop about Study on methodologies for evaluation of the Nordic forward market for electricity at Arlanda 7th of December 2016.

NordREG invites stakeholders to a workshop at Arlanda (Stockholm, Sweden) the 7th of December 2016, to discuss a study on methodologies for evaluating the Nordic financial electricity market with regards to the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (“FCA GL”).

DATE: 7th of December 2016

TIME: 10:00-15:00. Registration from 9:30.

VENUE: Radisson Blu SKYCITY, Arlanda Airport, Stockholm

AGENDA: draft-agenda-nordreg-ws-fca-7-dec-2016 (The Agenda will also be send by e-mail before the workshop.)

DOCUMENTS: The consultant report to be discussed in the workshop is found here: Methods for evaluation of the nordic forward market for electricity

REGISTRATION: Please do your registration on
Please register by November 28.


FCA GL was published in the Official Journal of the European Union on 27 September. The text foresees its coming into force 20 days after publication (17 October 2016).
The aim of the FCA GL is to establish common rules for Forward Capacity Allocation and providing market participants with sufficient hedging opportunities related to the area price risk. The FCA GL makes clear that the reference tools to allow for cross-border hedging are Long-Term Transmission Rights (LTTRs) auctioned by the TSOs. However, an exemption is possible, if cross-border financial hedging tools on both side of an interconnector exist and have shown their efficiency. In such a case, issuing of LTTRs is not mandatory, as long as the competent regulatory authorities of the bidding zone border have adopted coordinated decisions not to issue LTTRs. The code also provides for alternative products to be offered instead of LTTRs.

According to the FCA GL, the regulators` decision on whether to introduce LTTRs or not, shall be based on an assessment “which shall identify whether the electricity forward market provides sufficient hedging opportunities in the concerned bidding zones”. The assessment shall include at least “a) a consultation with market participants about their needs for cross-zonal risk hedging opportunities on the concerned bidding zone borders” and “b) an evaluation”.

The aim of the evaluation is to “investigate the functioning of wholesale electricity markets […].”

The FCA GL lists minimum criteria/indicators to include in the evaluation. The FCA GL does not exclude the possibility to add other indicators/criteria for the evaluation of the functioning of the market. NordREG finds it crucial that the evaluation covers the most important indicators that are relevant for participants in the Nordic electricity market. NordREG also finds it important to use indicators that are well- founded in economic theory and applicable in light of the specific characteristics of electricity markets. Hence, NordREG has commenced a consultant study that will be related to methodology for evaluating the Nordic financial electricity market.

The study should present a justified suggestion on the specific method/s to be used by the NRAs in the evaluation of the financial electricity markets as required in the FCA GL. NordREG will publish the study by the end of November and a workshop will be held at Arlanda (Stockholm, Sweden) the 7th of December 2016. The workshop will enable the stakeholders to provide their own views and also to have open discussion about the results of the study with the consultants EC Group with partners.

Contact persons in NordREG

Cathrine Holtedahl, NVE, e-mail
Kimmie Byriel Laage-Petersen, DERA, e-mail
Kaj Forsberg, EI, e-mail:
Jarno Lamponen, EV, e-mail: