Physical electricity trading – the electricity market
The Nordic electricity market, Nord Pool Spot AS, organises electricity trading for physical supply, the “spot” market. The spot market is a market for short-term trade in physical electrical power/physical electricity contracts. Players submit their bids to buy and offers to sell to the market and, in accordance with these, a system price or “spot” price and area prices are calculated for the electricity for every individual hour a day ahead of the supply period (24 hours). The spot markets system price also constitutes a reference price for the financial trading on the electricity market. On the “Elbas” adjustment market, players have the opportunity to trade during the current 24-hour period up until one hour before supply, and to adjust the imbalances that may have occurred as a result of events taking place after the spot market has closed.