The report draws on data from LSEG and THEMA’s own analysis. It offers a concise overview of Nordic power market developments, M&A activity, and project announcements, with this quarter’s special feature on the rapid expansion of Norwegian data centers and their impact on electricity demand and grid capacity. For detailed datasets, deal-level insights, or customized analyses, please contact us directly.
Key Findings from Q3 2025
Northern Nordics recorded Europe’s lowest power prices
Average Nordic system price reached EUR 36/MWh in Q3. Abundant hydro inflow and limited north–south transmission kept northern prices well below continental levels, where gas and carbon costs remain the main price drivers.
Structural changes are reshaping price formation
Two shifts dominate: the move to 15-minute bidding intervals in the day-ahead market and major grid upgrades in Norway and Sweden. These will increase short-term volatility but improve long-term efficiency and price convergence.
Renewable M&A activity continued to decline
Deal volume is down 35 % from the 2023 peak, with 101 transactions LTM. Cross-border deals account for 80 % of activity, underlining continued international investor interest despite tighter financing conditions.
Project announcements fell sharply
Only 108 new renewable infrastructure projects were announced LTM, down from 355 at mid-2023. Finland leads with 35 % of projects, followed by Norway and Denmark. Wind remains the most common technology segment, included in nearly one-third of all announcements.
Data centers emerge as a new power-demand driver
Electricity use from Norwegian data centers has nearly doubled since 2022, and grid connection requests now exceed 20 times current consumption. Abundant renewable power and competitive prices make Norway an attractive hub, but limited grid capacity remains a key bottleneck.
The full report is free to download and includes price analyses, transaction insights, and a special section on Norway’s data center boom.
