There are more than 370 companies responsible for power production in the Nordic and Baltic countries.
The annual average power generation in the Nordic and Baltic countries is around 420 TWh in total. In a year with normal rain and snow fall, hydro power accounts for half of the Nordic countries’ electricity demand.
In Norway almost all power is generated by hydro power while Sweden and Finland have a mixture of hydro, nuclear and thermal power (steam driven). Denmark uses predominantly thermal power, but wind power is becoming increasingly important. In Estonia and Lithuania there is mostly thermal driven power. In dry years, Nordic countries become more dependent on the import of power from other countries: Russia, Estonia, Netherlands, Poland and Germany.
Production cost varies. The graph above represents a typical situation in the Nordic market. Hydro is the cheapest power source. A low level in the hydro reservoirs will mean producers use more expensive sources which will result in a higher production cost. In the same manner production cost will fall with more water in the reservoirs. Hence Nordic power prices are highly dependent on both rainfall levels and access to nuclear power and the price of other sources.