Sweden is in the process of reviewing its four existing bidding zones, primarily focusing on resolving congestion issues within the SE3 (Stockholm) bidding zone. Our research indicates that the proposed reconfigurations have the potential to improve grid stability. However, they may also affect market liquidity, zonal balance, cross-zonal transmission availability, and financial hedging efficiency.In this report, we have analysed the following questions:
- What are the proposed configurations, and what is the most likely outcome from the Bidding Zone Review?
- What is the long- and short-term impact on prices and the economics of renewables & batteries?
- How could the ongoing Bidding Zone Review in Germany impact the Nordic energy system?
If you have any content-related questions or want to discuss the Nordic energy market, please contact Laura Raud Pettersson.
