Nord Pool

Nord Pool AS is a European power exchange owned by Euronext and the continental Nordic and Baltic countries' Transmission system operators (TSOs). Nord Pool delivers power trading across Europe. Nord Pool offers day-ahead and intraday trading, clearing and settlement, data and compliance, as well as consultancy services. More than 360 customers trade on Nord Pool today.

This article is about the present-day power exchange that was spun off from Nord Pool ASA in 2001 and acquired by Euronext in 2019. For the energy market derivatives exchange that resulted from Nasdaq OMX's acquisition of Nord Pool ASA's remaining parts between 2007 and 2010, see NASDAQ OMX Commodities Europe.

Nord Pool AS
Logotype since 2016
Current markets (blue), expansion markets (green) and serviced markets (orange)
TypePhysical commodity exchange (energy exchange)
LocationLysaker, Norway
Founded2002
OwnerEuronext (66%), Nordic and Baltic countries' transmission system operators (34%)[1]
Key peopleKari Ekelund Thørud (CEO)
Torger Lien (Chairman)
CurrencyNOK, SEK, DKK, EUR
CommoditiesElectric power
Websitewww.nordpoolgroup.com

Nord Pool operates power trading markets in Norway, Denmark, Sweden, Finland, Estonia, Latvia, Lithuania, Germany, the Netherlands, Belgium, Austria, Luxembourg, France and the United Kingdom. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also providing serviced power markets in Croatia and Bulgaria.

In 2019 Nord Pool had a total turnover of 494 TWh traded power, this includes more than 90% of total power consumption in the Nordic and Baltic market. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.

History

1932-1991: Norwegian origins
1934 control room of Foreningen Samkjøringen at Smestad in Oslo

Nord Pool traces its origin to Foreningen Samkjøringen (lit. the Coordination Association), a power exchange formed by eastern Norwegian electricity companies in 1932 on the initiative of Augustin Paus, and which soon encompassed all the electricity companies in eastern Norway. In 1971 the exchange merged with the regional exchanges in other parts of Norway, and became Samkjøringen av kraftverkene i Norge (literally the Coordination of Power Stations in Norway), with 118 power companies as members as of 1988.

1991-2000: Nordic deregulation and integration

In 1991 the Norwegian parliament decided to deregulate the market for power trading. In 1993 Statnett Marked AS was established as an independent company.

Logotype of Nord Pool ASA (1996-2000). The company was established in 1996, spun off Nord Pool Spot AS (presently known as Nord Pool AS) in 2001 and was acquired by Nasdaq between 2007 and 2010.

In 1996, the Swedish electricity market was also deregulated. Statnett Marked AS was subsequently replaced by Nord Pool ASA, owned in equal parts by the Swedish and Norwegian Transmission System Operators (TSOs), Svenska Kraftnät and Statnett. This contributed to the unification of the two countries' electricity markets.

Finland as well as western and eastern Denmark joined Nord Pool ASA in 1998, 1999 and 2000, respectively.

2000-present: Expansion in Europe
Logotype of Nord Pool ASA (2000-2010)
Logotype of Nord Pool Spot AS (2003-2016)

In 2000, Nord Pool ASA participated in establishing the Leipzig Power Exchange (now part of the European Energy Exchange). Nord Pool also supplied its technology to France's Powernext exchange.

On 27 December 2001, Nord Pool ASA's spot market (derivatives and physical energy markets) activities were spun off into a new company, Nord Pool Spot AS. The remaining parts of Nord Pool ASA were later acquired by Nasdaq, and are presently known as Nasdaq Commodities.[lower-alpha 1]

In 2005, Nord Pool Spot AS started trading and clearing of European Union (EU) emission allowances, becoming the first exchange to expand its activities into this area. The company expanded its activities to Germany by opening the KONTEK bidding area.

On 12 January 2010, Nord Pool Spot AS in cooperation with Nasdaq Commodities launched the N2EX power market in the United Kingdom.[7]

On 2 February 2010, Nord Pool Spot signed an agreement with the Estonian national grid company Elering to create the Nord Pool Spot Estlink bidding area starting from 1 April 2010.[8] Nord Pool Spot also delivered the technical solution for the Lithuanian market place Baltpool.[9] On 9 June 2010, APX-ENDEX, Belpex and Nord Pool Spot agreed to create a cross-border intraday electricity market based on Nord Pool Spot's Elbas technology. Today, the common intraday market includes the Nordic countries, the Baltic countries, Germany, the Netherlands, and Belgium.[10]

Prior to Euronext's acquisition, Nord Pool was owned by the Nordic countries' TSOs:

  Statnett (28.2%)
  Svenska kraftnät (28.2%)
  Fingrid (18.8%)
  Energinet (18.8%)
  Elering (2%)
  Litgrid (2%)
  Augstsprieguma tīkls (2%)

In 2012, Nord Pool Spot opened a bidding area in Lithuania, and in 2013 the Latvian market was opened.[11]

On 20 January 2016, Nord Pool Spot AS was rebranded to Nord Pool AS.[12]

In 2017, a new clearing and settlement system was launched and a new GB half hourly auction was introduced. In addition, Nord Pool was nominated as a NEMO in the island of Ireland and joined forces with Agder Energi to develop NODES, a new marketplace capable of exploiting decentralised flexibility.

On 27 August 2019 Nord Pool started trading in France, Germany, Luxembourg, Belgium, Austria and the Netherlands, the result of a European Union decision to allow several power exchanges to operate in the same markets, increasing competition.[13]

On 5 December 2019 Euronext announced that it would acquire 66% of Nord Pool.[14][1] The acquisition was completed on 15 January 2020.[15]

The following timeline outlines the consolidation through mergers and acquisitions among bourses in the European Union, which has taken place since the 1990s in response to financial harmonisation and liberalisation. Current, independent (parent) exchange companies are shown in colour.

    Intercontinental Exchange, Inc.
  New York Stock Exchange, Inc. NYSE Euronext, Inc.
    London Traded Options Market London International Financial Futures and Options Exchange Euronext N.V.
      London International Financial Futures Exchange
    London Commercial Sale Rooms London Commodity Exchange  
Amsterdam Exchanges N.V. (Amsterdam Bourse)     Euronext N.V.
    Bourse de Valeurs Mobilières de Bruxelles S.A. (Brussels Bourse)
  Société des Bourses Françaises S.A. (Paris Bourse)
    Bolsa de Valores de Lisboa e Porto (Lisbon Bourse)
          Irish Stock Exchange  
                Oslo Stock Exchange Oslo Børs Holding ASA Oslo Børs VPS Holding ASA  
                                      Verdipapirsentralen Verdipapirsentralen ASA  
                                    VP Securities A/S  
                  Borsa Italiana S.p.A. (Italian Bourse) London Stock Exchange Group plc  
    London Stock Exchange plc  
                                              Statnett Marked AS   Nord Pool Spot AS Nord Pool AS  
                                              Nord Pool ASA    
                                National Association of Securities Dealers, Inc. (NASD) NASDAQ NASDAQ OMX Group, Inc. Nasdaq, Inc.
                      Stockholm Stock Exchange OM AB OM HEX AB OMX AB
                          Helsinki Stock Exchange Helsinki Exchanges Group Plc
                                                Tallinn Stock Exchange  
                                              Riga Stock Exchange  
                                              Vilnius Stock Exchange
  Copenhagen Stock Exchange  
                                          Iceland Stock Exchange  
                                                          Armenian Stock Exchange  
                                                SIX Swiss Exchange AG
                      Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (Spanish Bourses)  
                          Budapest Stock Exchange     Budapest Stock Exchange
          Wiener Börse AG (Vienna Stock Exchange) Central and Eastern Europe Stock Exchange Group AG Vienna Stock Exchange
                                                Burza cenných papírů Praha, a.s. (Prague Stock Exchange)  
                                            Ljubljana Stock Exchange      
                                              Zagreb Stock Exchange
Frankfurter Wertpapierbörse AG (Frankfurt Stock Exchange)   Deutsche Börse AG (German Bourse)
                                  Centrale de Livraison de Valeurs Mobilières Cedel International  
                                                              European Energy Exchange  
                                                        Eurex Exchange  
                                                        STOXX
1585
1602
1625
1698
1724
1769
1771
1792
1799
1801
1808
1818
1831
1863
1864
1912
1954
1970
1971
1978
1979
1980
1985
1989
1991
1993
1995
1996
1998
2000
2001
2002
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2014
2015
2016
2018
2019
2020
2021

Organisation

Ownership after Euronext's acquisition:[1]

  Euronext (66%)
  Joint holding company representing Nordic countries' Transmission System Operators (TSOs) (34%)

Nord Pool has its main office in Lysaker (Oslo) and further offices in Stockholm, Helsinki, Tallinn, Berlin and London.[16]

It is owned by Euronext and the national grid companies Fingrid, Energinet, Statnett, Svenska Kraftnät, and Litgrid, and have wholly owned subsidiaries Nord Pool AB and Nord Pool Finland Oy.

Nord Pool AS has 360 trading customers in about 20 countries. These include public and private energy producers, energy intensive industries, large consumers, distributors, funds, investment companies, banks, brokers, utility companies and financial institutions.[17]

See also

Other pan-European exchanges

Regulations and agencies

Notes
  1. Nord Pool ASA's remaining subsidies Nord Pool Clearing, which dealt with clearing transactions, and Nord Pool Consulting - were acquired by Nasdaq OMX on 21 December 2007.[2] On 17 March 2010, NASDAQ OMX announced it would acquire all shares of Nord Pool ASA. This did not include Nord Pool Spot AS, which continued physical electricity market trading operations independently.[3][4] The deal was approved by market regulators on 31 May 2010.[5] On 1 November 2010, Nord Pool ASA changed its name to NASDAQ OMX Oslo ASA and introduced a trade name NASDAQ OMX Commodities Europe. It is presently known as Nasdaq Commodities[6]

References
  1. https://www.nordpoolgroup.com/message-center-container/newsroom/exchange-message-list/2019/q4/nord-pool-welcomes-new-owner/
  2. "OMX buys Nord Pool's clearing, consulting operation". Reuters. 2007-12-21. Retrieved 2008-06-15.
  3. Fouche, Gwladys (2010-03-17). "Nasdaq OMX buys Nordic power bourse Nord Pool". Reuters. Retrieved 2010-06-13.
  4. "Norway's Nasdaq OMX to acquire Nord Pool ASA". Bloomberg Businessweek. Associated Press. 2010-03-17. Retrieved 2010-06-13.
  5. "NASDAQ OMX Completes Nord Pool ASA Acquisition" (Press release). NASDAQ OMX. 2010-03-17. Retrieved 2010-06-13.
  6. "Nord Pool ASA changes its name" (Press release). NASDAQ OMX. 2010-11-01. Retrieved 2010-12-25.
  7. Kwok W. Wan (2010-01-12). "Nasdaq, Nord Pool launch new UK power market". Reuters. Retrieved 2010-02-06.
  8. Juhan Tere (2010-02-02). "Elering and Nord Pool Spot conclude a cooperation agreement". The Baltic Course. Retrieved 2010-02-06.
  9. "Nord Pool Spot will deliver the technical solution for new Lithuanian market place" (Press release). Nord Pool Spot. 2009-08-28. Retrieved 2010-02-06.
  10. "APX-ENDEX, Belpex and Nord Pool Spot to establish cross-border intraday electricity market from Helsinki to Brussels" (Press release). Nord Pool Spot. 2010-06-10. Archived from the original on 2010-10-23. Retrieved 2010-06-13.
  11. "See outline of our power market history". www.nordpoolgroup.com.
  12. "Nord Pool History". Archived from the original on 2017-04-15. Retrieved 2016-11-16.
  13. https://www.reuters.com/article/europe-power-trade/new-nord-pool-power-markets-trade-14-gw-hours-in-first-week-idUSL5N25T20V
  14. https://www.euronext.com/en/investor-relations/financial-information/regulated-information-and-investor-news/euronext-acquire-0
  15. https://www.nordpoolgroup.com/message-center-container/newsroom/exchange-message-list/2020/q1/euronext-completes-the-acquisition-of-nord-pool/
  17. "Membership". Nord Pool Spot. Retrieved 13 March 2015.
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