Energy, Estonia, EU – Baltic States

Estonian bidding area in the day-ahead market was successfully launched on April 1, 2010; soon an intraday market is going to be opened as well. The day-ahead market is the main market for buying and selling electrical energy, while the intraday market gives market participants the opportunity to sell surplus energy or buy missing capacity. Intraday trading starts after the spot-market has closed and offers can be made up to one hour prior to delivery.

Mikael Lundin, the CEO of Nord Pool Spot, says opening the intraday market is the final step towards a fully integrated Estonian market, and that the support from the transmission system operators have been really good. From 1 October the Estlink bidding area will change name to Estonia.

Taavi Veskimägi, the CEO of Elering, pointed out that the Elbas market will make it possible for the Estonian market participants to sell surplus energy on the Nordic exchange. Jump-starting the intraday market in Estonia is an effective measure for producers to use their production capacity more efficiently, as well as a chance for consumers to gear their own consumption strategy towards the best price.

All Estonian market participants can sign a separate agreement for Elbas and use their current guarantees for both markets. All Estlink 1 cable capacity which is still uncommitted after the day-ahead auction is released to the intraday market. Trading for October 19, 2010, starts at 14:00 CET on the previous day.

The total Elbas market volume in 2009 was 2,4 TWh. In comparison, Estonian net consumption in 2009 was 7,7 TWh.

Nord Pool Spot runs the largest market for electrical energy in the world, offering both day-ahead and intraday markets to its participants. 330 companies from 20 countries trade on the exchange. The Nord Pool Spot group has offices in Oslo, Helsinki, Stockholm, Fredericia (Denmark), Tallinn and London. Nord Pool Spot is owned by the Nordic transmission system operators. In 2009 the group had a turnover of 288 TWh representing a value of EUR 10.8 billion.