Definition
Nord Pool is the leading electricity exchange in Europe and the marketplace where electricity suppliers, producers, and financial actors buy and sell electricity in the wholesale market. The exchange was established in Norway in 1993 as the world's first international power exchange and today covers the Nordic and Baltic markets as well as parts of Western Europe. Nord Pool offers trading in the day-ahead market, the intraday market, and financial derivatives. The electricity price in Norway is set by price areaGeographic zone in the electricity market with a common spot price - Norway is divided into five price areas (NO1–NO5). (NO1–NO5) based on bottlenecks in the transmission grid - which means electricity prices can vary significantly between northern and southern parts of the country. Electricity suppliers purchase power from Nord Pool and resell it to end users with a margin. BRPs use Nord Pool prices as a reference in settlementTurning metering data into money. Consumption and production per metering point become what each party owes or is owed.. For technology suppliers in the industry, an understanding of Nord Pool's market structure is important for grasping the price signals that drive customers' business logic.