The Average Price for the Year in the Estonia Price Area of the Nord Pool Power Exchange has been around 46 EUR/MWh

The first year of operations in Estonia of the Nord Pool Spot (NPS) power exchange saw a lot of trading activity, with 16 traders in the market. An average of 30% of our domestic consumption was covered by electricity bought from the power exchange, which shows the reliability of the market place.

However, it will still take some time for competition in the power market to become fully effective, with many producers selling to local consumers. This will demand an extension of the power exchange into Latvia and Lithuania, the entry into the market of Russian producers operating under the principles of fair competition and the chance for our producers to sell in non-NPS markets, new production capacity in Estonia, and additional links to the Nordic countries.

A total of 5.2 TWh of electricity were sold in the 12 months in the NPS Estonia price area, of which 67% or 3.5 TWh were sold in Estonia. A total of 3.6 TWh were bought from the power exchange during the year.

The average price for the year was 46.29 EUR/MWh, which was lower than the price in neighbouring price areas. The average price in NPS Finland was 55.16 and in Baltpool it was 47.65 EUR/MWh.

The high price in Finland meant that almost throughout the year the demand in Finland for electricity produced in Estonia was larger than the 350-MW capacity of the EstLink1 undersea cable could supply. The flow of power through Estlink1 in the first year of operation of the power exchange was in the direction Estonia to Finland 79% of the time. From the end of September 2010 the full capacity of the 350-MW cable was put at the disposal of the electricity market.

There are 204 consumers in the open market, who buy electricity either through bilateral agreements or from the power exchange. Calculations by the Competition Authority in the summer of last year show 28.4% of the electricity market was open.

On 1 April 2010 the electricity market in Estonia was opened for large consumers and the Estonia price area of the Nord Pool Spot power exchange was launched.