THEMA’s Power Market Insights provides a quarterly overview of power price developments, transaction activity and project announcements across the Nordic region. In Q1 2026, southern Nordic power prices remained elevated and closely linked to Continental gas price dynamics, while northern areas continued to see lower prices supported by stronger hydrological conditions and limited north-south transmission capacity.
M&A activity remained subdued during the quarter, with 19 deals recorded in Q1. Activity is broadly in line with recent quarters but remains significantly below the 2022–2023 run-rate, with last-twelve-month deal volume continuing to drift lower.
Announced infrastructure projects showed a modest uptick from the record-low Q4 2025 level, rising from 7 to 15 projects in Q1 2026. However, the project pipeline remains weak by historical standards, reflecting higher financing costs, grid connection constraints and regulatory uncertainty.
The special focus in this edition is the transformation of Nordic reserve markets. Battery storage is entering these markets at increasing scale, supported by falling costs, growing system needs and deeper market integration. As renewable generation increases, reserve requirements are expected to rise, while batteries may become an increasingly important price-setting technology across the Nordics.
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