20 for a power producer the amount of electricity

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Unformatted text preview: ntly trade in one or more of Nord Pool’s markets, and traded volume in the physical market totalled 251 TWh in 2006. The value of the physical trading volume increased by around 127% from 2005, and amounted to more than EUR 12 billion in 2006. Nord Pool’s products are divided into three principal categories: the physical market, the financial market and clearing services.20 For a power producer, the amount of electricity sold directly to clients at any time does not need to correspond to the amount generated. To maximise earnings, generators place the water in the reservoirs on the basis of the spot price at any given time and future price expectations. To ensure that output corresponds to sales commitments, generators can buy and sell power in the market, Nord Pool for instance. Anyone who buys electricity for his or her own consumption is an end-user. Small end-users normally buy power from an electricity supply company. Larger end-users, such as industrial companies, often buy directly from the wholesale market. The total ele...
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This document was uploaded on 03/30/2014.

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