The Performance of the Deregulated Electricity Markets in Norway and Sweden: A Tentative Assessment

This paper briefly describes the design and functioning of the new electricity markets in Norway and Sweden and makes a preliminary evaluation of the performance of these markets. The Norwegian-Swedish "model" of deregulation is described in terms of the basic deviations from the approach adopted in England and Wales. The paper primarily focuses on institutional and regulatory aspects such as: the role of public and private ownership, the organization of the merit order dispatch, the organization of the real time dispatch, and the design of transmission pricing.