Predicting the future of energy is complex
Prediction is hard. Especially in the energy market.
Electricity pricing is more complex than ever, shaped by weather-dependent production, evolving market places, and the unpredictability of growing industrial demand. At the heart of the energy transition, renewable energy is accelerating, increasing the need for flexible generation and demand to keep the essential balance. As the Nordic region move toward a fossil-free, electrified future, flexibility, innovation, and resilience will define success. Explore insights, trends, and solutions that help industries and communities thrive in an evolving energy market.
Power from renewables and nuclear
Fast decarbonisation redefines the Nordic power mix. Fossil fuels’ share in the Nordic power mix plunged from 15% in 2000 to 3% in 2024.
Volatility entrenched
Energy prices, weather and geopolitics challenge forecasting and planning. Prices in the Nordic energy market are more variable and harder to forecast; risk management needs deeper hedging, demand response and flexible contracts.
Resilience
Nordic power mix transformation is enabled by interconnection. Six decades of deliberate connectivity turned the Nordics into one of Europe’s most resilient and integrated power systems.
Nordic power demand is set to grow. But in today’s volatile world, the pace and scale are uncertain.
Finland’s electricity demand is increasingly driven by industry, with new low-carbon manufacturing and the rapid expansion of data centres set to transform national consumption. Major industrial projects, ranging from low-carbon steel production to battery material facilities, are acting as the primary engines of growth, while emerging sectors such as data centres and hydrogen production are poised to become significant electricity consumers. At the same time, the broader electrification of heating and transport continues to steadily push demand higher year after year.
Sweden’s surge in electricity demand hinges on the pace at which green industrial projects progress from plans to full-scale production. Hydrogen-based steelmaking and other fossil-free industrial initiatives are expected to drive the sharpest increases, while expanding data-centre operations and e-fuel production add further upward pressure. Ultimately, the speed at which these large-scale projects materialise will determine where demand falls within the projected range for 2030.
The power market has changed
The market is shifting from exchange trading to long-term contracts, and physical markets are becoming more complex. Previously, the focus was on the derivatives market, but now the spot market requires a more realistic understanding and a more real-time market. The physical electricity market is becoming more complex and increasingly difficult to understand. On the other hand, longer-term contracts are needed to secure financing and enable longer-term production planning. These changes continue to shape the Nordic energy market.
The energy landscape is being reshaped by geopolitics, resource constraints and climate ambitions
Power Trading and Energy Supply
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