Definition
Market design is the term for the overall regulatory framework, market mechanisms and institutional structure that determine how actors buy, sell and balance electrical energy. The Norwegian and Nordic market design is founded on deregulation and competition in the production and retail segments, combined with regulated grid monopolies. Central to the market design are the day-ahead market on Nord PoolNordic electricity exchange where power is traded in the wholesale market - the basis for electricity prices in Norway and the Nordic region., the balancing market managed by StatnettNorway's system operator for the transmission grid - owns and operates the high-voltage network and operates Elhub., and the processes in ElhubNational hub for metering data and market processes in the Norwegian electricity market. for information exchange. The EU is continually working to reform market design to accommodate more variable renewable energyEnergy from sources that renew naturally - wind, solar, hydropower and bioenergy - as opposed to fossil fuels., price signals for flexibilityAbility to change power consumption or production in response to price signals or system operator needs. and increased cross-border trade. Changes to market design - such as the introduction of capacity tariffs, new balancing markets or reforms to the supplier switching process - have direct consequences for IT systems such as KISCustomer Information System - the core system at power suppliers and grid companies for customer management and billing., MDMMeter Data Management - system for collection, storage, quality assurance and distribution of metering data from the electricity grid. and Elhub integrations. Technology suppliers such as TvimenningOld Norse meaning 'two bound together' - one who solves a task shoulder to shoulder with another. follow market design developments closely, because regulatory changes typically require system updates.