Finland Power Grid Operator: No Need To Split Grid Into 2 Areas
LONDON -(Dow Jones)- Finland's power grid operator Fingrid Wednesday said it
doesn't see any reason to divide the country into different price areas, after
concluding a study at the request of the ministry of employment and economy.
Fingrid's analysis considered the possibility of splitting Finland into two
price, or bidding, areas for electricity after the ministry asked the grid
whether market efficiency and management of transmission congestion could be
improved by subdividing the market.
"The problems caused by transmission congestion within Finland can be managed
through long-term grid investments and counter trade, at least so far. There is
hence no need for separate price areas," Fingrid concluded. It said dividing the
grid into more pricing areas would result in an increased number of bottlenecks
and greater price disparity between regions, depending on where the surplus and
deficit were at a given time.
To help reduce congestion in the grid, particularly between Southern and
Northern Finland, the operator said it has launched grid investments to
intensify power transmission from the south to the north, and is improving its
counter-trading arrangements.
It said small price areas would be a challenge to the efficiency of the
electricity market. "Finnish market parties are very critical about dividing
Finland into two price areas," Fingrid noted.
Company Web site: www.fingrid.fi
-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 20 7842 9386;
elizabeth.adams@dowjones.com
(END) Dow Jones Newswires
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