Providing Market Access to Profitable Nordic Intraday Markets

A Norwegian hydropower plant increased revenues from electricity production by 50 percent when accessing the intraday power market, compared to using the day-ahead market alone.

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Volue offers trading and market services through its subsidiary Markedskraft. A Norwegian customer with a medium-sized available volume is among the producers that had to face reduced revenues from lower electricity prices in the day-ahead market this year. Volue advised the customer to trade a large share of the available volumes in the more volatile intraday market and increased the income by 50 percent

"The Norwegian day-ahead prices have been very low this year. By trading some of the volume in the intraday market and using Volue’s trading platforms and forecasts, the total income from both markets was 50 percent higher compared to the revenue from the day-ahead market only," says Bård Mageli, Portfolio Manager in Markedskraft.

Volue offers through Markedskraft unique market access and is the only provider of Intraday services for hydropower producers in Norway. Being present in the intraday-market gives access to a platform where participants from 15 countries and several price areas meet to trade themselves in balance after closing the day-ahead market.

"In this low-price market situation, it can be extremely profitable to switch markets. Instead of having it on day-ahead, you might earn a lot more on Intraday. This is a unique way of giving the best possible return to our customers, and we are the only one in Norway to capture this 24/7 value for customers," says Christian Sønderup, CEO of Markedskraft.

Being present in the intraday market is becoming more relevant with an increasing market complexity in the light of harmonisation and EU-regulations. Here, the intraday market brings hydropower plants to the future market by optimising portfolios and increasing customers' margins.