How is Norway divided into 5 bidding zones?

On this map you can see how Norway is divided into five bidding zones. In a weather-based power system like Norway's, the power situation will vary between different parts of the country, and there is not enough capacity in the power grid to equalize the differences in all situations. Therefore, the grid is divided into five bidding zones.

How many bidding areas are there in Norway?

For each Nordic country, the local TSO decides which bidding areas the country is divided into. The number of Norwegian bidding areas can vary, today there are five bidding areas. Eastern Denmark and Western Denmark are always treated as two different bidding areas. Finland, Estonia, Lithuania and Latvia constitute one bidding area each.

What is a weather-based power system like Norway?

In a weather-based power system like Norway's, the power situation will vary between different parts of the country, and there is not enough capacity in the power grid to equalize the differences in all situations. Therefore, the grid is divided into five bidding zones. The flow of electricity in Norway is limited by the capacity of the power grid.

How many power exchanges are there in Norway?

European legislation is opening the possibility of multiple exchanges competing for customers in the same area. Two power exchanges operate in both the day-ahead and intraday market in Norway, these are Nord Pool and EPEX SPOT. Norway is currently divided into five bidding zones (NO1-NO5).

Why do we organize the power grid into bidding zones?

By organizing the power grid into bidding zones, we ensure that we can utilize Norway's power resources efficiently. The organization provides good signals to the market about scarcity and surplus and ensures the safe operation of the power system.

Is Norway part of the European power market?

Norway is part of a joint Nordic power market with Sweden, Denmark and Finland, and is in turn integrated into the wider European power market through interconnectors to the Netherlands, Germany, the Baltic states, Poland and Russia. The last two interconnectors from Norway to Europe became operational during 2021.