"Nord Pool has played an important role in establishing a well-functioning power market in Norway and the Nordics, and the active ownership of Statnett and the other TSOs has been strategically important. With competing power exchanges expected to enter the Nordic market, this is changing," says EVP Gunnar Løvås of Statnett.
The European power market is changing, and price coupling is a joint European process. The market place for trading electricity is commercialized across Europe, with competing exchanges in place in many countries. This is also expected to happen in Norway and the Nordics. Nord Pool currently operates market places in Germany, the UK, France, Belgium, the Netherlands, Austria and Luxemburg in addition to its home market of the Nordics and Baltics.
"As owners and operators of the transmission system in Norway, we don't consider it our role to be dominant owners in such commercial activities. As system operators, we are obliged to treat competing exchanges equally and fairly. At the same time, it is important for the security of supply that the market and the exchanges provide price coupling each day. Through retaining a minority share of 34 percent, we believe that this will be ensured," underlines Gunnar Løvås from Statnett.
The Nordic power exchange was established in 1993 and became the world's first cross-border power exchange with the establishment of the Norwegian-Swedish market in 1996. Nord Pool is currently owned by the Nordic TSOs Statnett, Fingrid, Svenska kraftnät and Energinet. The Baltic TSOs Elering, Litgrid and Augstsprieguma hold minor shares. Statnett has held a share of about 28 percent for 18 years. After the transaction, Statnett will hold an indirect share of approximately 10 percent. Nord Pool sold its financial trading platform to Nasdaq in 2008.
The majority shares of 66 percent are sold to pan-European exchange Euronext. Euronext acquired the Oslo Stock Exchange in 2019 and is establishing a stronger base in Oslo with this transaction. The transaction values Nord Pool at 850 million NOK at enterprise value.
"There were several interested parties, and we are content that Euronext becomes the majority share holder in Nord Pool. Euronext is a major player in exchanges and is already established in Oslo through the Stock Exchange. It is also important for us that the headquarters for Nord Pool will remain in Oslo," underlines Mr. Løvås.
Nord Pool will retain its headquarters in Oslo. The company has nearly 140 employees. The revenue was 383 million NOK in 2018, when 545 TWh was traded through its platforms.
Media contacts:
Statnett's media duty officer: +47 23 90 40 00
SVP Communications Henrik Glette: +47 932 33 010