Nordic balancing markets: a case for further integration at regional and European level

European energy market integration is an ongoing process that includes the balancing timeframe, which is increasingly important with the diversification and variability of electricity generation sources. Balancing mechanisms remain focused on national measures, although accession to European balancing platforms gradually brings a more European dimension.

The Nordic balancing mechanisms recently experienced significant technical changes, which led to volatile prices. In this position paper, we set out to identify the root causes, the mitigation measures that have been deployed, and recommend additional measures to further help balancing market integration at the European and regional level.

Underpinning these recommendations is the need for strong coordination and harmonisation, and reinforced dialogues with market participants who provide insights and suggest adaptive measures for better market functioning, better price signals, and better transparency.