Electricity Retail Market Report: Strong growth in Nordic solar PV

Interest in solar PV is growing, as is competition for solar-related products and services, with battery storage solutions among those offers entering the market. The Electricity Marked Report also includes a new overview of Nordic datahubs, which support competition and further innovation in the retail market.

This year’s in-depth analysis focuses on solar power. The report provides an overview of the total installed PV capacity in the Nordic countries, categorised by type of installation. The main observation is a significant growth in solar energy capacity in the Nordic region, due to the increasing competitiveness of solar panels. Sweden has the largest installed capacity in the region, boasting 3,783 MW.

The report examines the reasons behind differences in installed capacity and identifies regulatory factors that could influence development in different countries. Cost reductions and government subsidies are the primary drivers for the capacity increase. Varying solar conditions and electricity price volatility may also explain the differences observed between countries.

In an era with an increasing share of PV-capacity in the power system, both among households and larger facilities, the need for batteries and flexibility that can exploit price differences that arise and increase the value of solar power is increasing. Products and services related to local electricity storage and grid balancing are therefore entering the end-user market for electricity. Examples highlighted in the report are Pixii – a supplier of modular and scalable battery – based energy storage solutions – and Powerwall – an integrated battery system that stores excess solar energy for later use.

As in previous years, the market report summarises the key trends in the Nordic electricity market. For example, we see that the number of electricity supplier switches is increasing, although the figures have stabilised somewhat in recent years.

New to this year’s report is an overview of data hubs for the electricity market in the Nordic countries. Denmark was the first to introduce a data hub in 2016. Data hubs serve as a platform for collecting, managing, and distributing metered data from the electricity grid to various stakeholders. In the service market, the development of data hubs stimulates competition and innovation among electricity suppliers, leading, for example, to offers of additional functionality for end users. There is still significant potential for further development in data collection and utilisation in the sector.

A separate report for the Norwegian market shows developments in supplier switches over the past year, as well as structural changes in the industry. For example, lower electricity prices may have contributed to fewer supplier switches. We also delve deeper into the tariffs, products, and services on offer from the largest suppliers. Together, this provides a good overview of the Norwegian market and how it has developed since the previous market report.

The report aims to provide a comprehensive overview of developments in the Nordic retail electricity market and highlight differences between the Nordic countries.

For more information about the report, please contact Christoffer Noreng or Celine Munkeby. A summary of the report can be downloaded from ITERA’s website here.

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