Nordic Energy Perspectives
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  Area of research focus, phase 2
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Area of research focus, Phase 2:

Market structures

Nordic Energy Perspectives (NEP) is to demonstrate consequences and values of continued development and integration of the energy markets (for electricity, gas, district heating and fuels) in a Nordic perspective and in the event of continued integration with the rest of Europe, as well as to demonstrate a number of possible paths of development.

This is to be done by analysing how the Nordic energy markets can be developed within the framework of new changes in the surrounding world, how the functions involved can be improved, and which types of incentives and political control/planning are required for carrying out necessary invest-ments in the infrastructures. Also central is the trade-off between the different infrastructures’ expansion and the mutual balance of network, production and use. Emphasis is also placed on the institutional structures, which include e.g. the question of a common Nordic ISO/TSO.

All energy markets and all infrastructures – competition and coordination between all kinds of energy
An overall analysis is made of how the development of the Nordic energy markets for electricity, gas, district heating and fuels is influenced by inter-national developments and how their mutual competition and coordination is changed. The analysis is performed both with NEP’s energy models and through traditional analytical methods. A comparison is also made between the Nordic countries (regarding means of control, ownership, energy use, regulation etc.).

The energy markets are increasingly integrated and developments in one market affect the others. This clarifies the overall system analysis. Market design, regulations, price signals and infrastructure development are important aspects in this equation. An efficient development of the Nordic energy system requires that the right tradeoffs are made between different energy carriers, different technologies, investments in supply and infrastructure, and investments in energy efficiency and end-user flexibility.

Biofuel market development, competition for the raw material, and the connection with peat and waste
Our domestic solid fuels are an important part of the market analysis. The biofuel market is developing increasingly into an international fuel market. The competition for the raw material base of biomass between the industry, energy, and transport sectors is at the same time ever clearer, and the connection between biofuel, peat and waste is a key factor.

Expansion and strengthening of the Nordic power infrastructure
Our possession of an integrated and well-established power market in the Nordic region gives us an advantage within the EU. We will survey and analyse the content and implication of this advantage, and investigate to what extent and in what areas the energy sector constitutes a common advantage even thought the national structures are different. We will also analyse strengthening and expansion of the market.

Pricing of district heating, gas and electricity
As part of the market analysis, the pricing of grid-based energy carriers in the Nordic region is studied in relative detail.

Page updated Sep, 09, 2007

 

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