CROSS-BORDER COOPERATION IN THE ELECTRICITY SECTOR -THE NORDIC EXAMPLE

In the very beginning …

2

Pearl Street Stationstarted generating electricity on September 4, 1882, serving an initial load of 400 lamps at 85 customers.

The development of interconnection capacity in the Nordic region

3Source: Annual report 1998, Nordel

The history of Nordel

4

2000-2009

TSOs

1992-2000

Competition- unbundling

1963-1992 Vertical integration

Pre- Nordel interconnections

Nordel ENTSO-E, RG Nordic

Source: Sweco, 2013

Nordel’s organisation in 1992

5Source: Nordel

The electricity transmission grid in the Baltic Sea Region

6

How is the decarbonisation of power supposed to play out?

7

2010 2020 2030 2050

50%

50%

20%

80%

80%

20%

3.3701 TWh

4.900 TWh

Source: ECF – Roadmap 20501: Eurostat (online data code: nrg_105a)

EU-27, Norway and Switzerland

RES Thermal

New wave of electrification - from 20 to 35/40% of end use

Food for thought 04/10/2023 88

The context – interaction has grown more complex over time

Basic electrification

+ Play a major role in industrialisation/automatisation

+ A tax base

+ Open up for competition

+ Resource efficiency seen from society’s perspective

DriversTarget forced on marketsPricing emissionsSubsidiesEmission standardsGovernanceOrganising marketsInfrastructurePublic demandTechnology breakthroughs

ObstaclesLow-quality interventions adding costsPolitical inability to defend long-term benefitsfrom “cost-attacks” by pressure groupsLack of governance capacity to handle the transitionLack of support from the main streamInability to handle interdependenciesVolume disease problemsA weak Europe