How to: Make the Nordic market great again!

The best way to sell the Nordic market internationally is to focus on the differences in the price drivers. Being different by design and regulatory framework adds complexity and is not a value addedthe result is a costly unattractive barrier for new entrants.

 Regardless of compliancy with continental Europe, the current structure of the Nordic market seems to struggle to deliver adequate hedging opportunities. To overcome this the market participants may need to “crack a few eggs”:

 1st egg: The Systemprice and the calculation method

2nd egg: The Systemprice and the geographical scope

3rd egg: Geographical scope of basis risk hedging instruments


Looking forward to a fruitful debate at the NAET Autumn meeting.


Kind regards,

Heine Rønningen