Nordic balancing market: what will the future bring?

In recent months, the Nordic balancing market has seen significant changes. This includes a shift to 15-minute balancing markets and the automation of the market clearing mechanism. The market's algorithm uses remaining cross-border transmission capacities for exchanging reserves. After the shift to flow-based market coupling in October 2024, these capacities have been reduced compared to earlier methods. This means the market is now focusing more on providing local flexibility. Our Nordic balancing market webinar will explain how these factors impact imbalance prices.

We've recently seen several price spikes in these markets, which has created concern and curiosity among energy stakeholders. Join us for an in-depth webinar where our Nordic market expert, Priyanka Shinde will explore the reasons behind these extreme pricing events and the changing market dynamics causing such volatility. We'll also provide an outlook on the future of the Nordic balancing markets.

Themes covered in the Nordic balancing market webinar

·       Key drivers behind the recent balancing market price spikes

·       Impacts of recent policy and regulatory changes

·       The role of renewables, grid constraints, and demand shifts

·       Market behaviour and response from major players

·       Forward-looking insights on what to expect in the coming months

What you'll learn: Nordic balancing market insights

Understanding the Nordic balancing market evolution

This section will delve into the recent structural and operational changes within the Nordic balancing market, setting the stage for understanding current price dynamics.

·       Shift to 15-minute balancing markets:

o   Impact of shorter settlement periods on market participants.

o   Increased need for rapid response and flexibility.

·       Automation of balancing market clearing:

o   How automated algorithms influence market efficiency and pricing.

o   The role of real-time data in market operations.

·       Cross-border transmission capacity changes:

o   Impact of flow-based market coupling (October 2024 onwards).

o   Reduction in available cross-border capacities for reserve exchange.

o   Increased emphasis on local flexibility provision.

Decoding recent price spikes and market volatility

Explore the specific factors contributing to the recent extreme price events in the Nordic balancing market.

·       Key drivers behind price spikes:

o   Detailed analysis of supply-demand imbalances.

o   Correlation with external market factors.

·       Policy and regulatory impact:

o   How recent policy changes have shaped market behaviour.

o   New regulations affecting market participants and operations.

The interplay of renewables, grid constraints, and demand

Understand how fundamental energy system characteristics contribute to balancing market dynamics.

·       Role of renewable energy:

o   Increased intermittency and its effect on grid stability.

o   Challenges and opportunities presented by high renewable penetration.

·       Grid constraints and congestion:

o   Impact of transmission limitations on local flexibility needs.

o   Influence on imbalance prices due to network bottlenecks.

·       Shifting demand patterns:

o   How evolving industrial and consumer demand affects balancing needs.

o   The role of demand-side response in market stability.

Market behaviour and outlook

Gain insights into how major players are responding to new market conditions and what to expect in the coming months.

·       Market participant response:

o   Strategies adopted by energy traders and utilities.

o   Adaptation of portfolio management in volatile conditions.

Forward-looking insights:

o   Expert predictions on future market trends and developments.

o   Anticipated challenges and opportunities for investment.

Who should attend this webinar?

This webinar is tailored for professionals seeking deep insights into the evolving Nordic energy landscape.

Energy traders and market analysts:

·       Optimising trading strategies in volatile balancing markets.

·       Advanced analytical approaches for price forecasting.

Portfolio managers and policy professionals:

·       Risk management in renewable energy portfolios.

·       Shaping regulatory frameworks for future market stability.

Utilities and short-term power market operators:

·       Operational excellence in a 15-minute balancing environment.

·       Strategies for enhancing grid resilience and local flexibility.