Electricity and heat sales
The Nordic electricity market is freely competitive. Electricity price is determined on the basis of the cheapest possible electricity production and electricity imports sufficient to cover the demand in each hour. Because of the transmission network’s capacity bottlenecks, the market has been divided into price areas, and their prices differ from each other when transmission needs exceed the network’s capacity.
The majority of Nordic and Baltic electricity production is sold
through the Nordic electricity exchange’s Nord Pool Spot. In 2014, 361 TWh, i.e. about 90% of the electricity consumed in the Nordic and the Baltic countries, was sold in Nord Pool Spot.
Electricity sellers and buyers can also hedge their electricity price with derivatives on the Nasdaq Commodities exchange. In 2014, the trading volume of Nordic electricity market products totalled 1,497 TWh, i.e. about fourfold compared to the physical production.
Fortum sells electricity and heat to private and business customers. We are one of the leading electricity sales companies in the Nordic countries. At the end of 2014, we had over 1.3 million electricity sales customers in Sweden, Finland and Norway.
In 2014, we sold a total of 13.8 (2013: 13.6) TWh of electricity to private and business customers.
Fortum is one of the world’s biggest producers and sellers of heat. We sell heat to companies, the public sector and private customers in Finland, Sweden, Poland, all the Baltic countries, and especially in Russia. Fortum’s heat sales in 2014 totalled 35.4 TWh, of which 26.0 TWh was sold in Russia, 3.2 TWh in Finland and 3.4 TWh in Poland. In 2014, we started selling district cooling in Finland, and we decided to invest in district cooling production and distribution in Tarto, Estonia.
In Sweden, Fortum Värme sold 7.6 TWh of heat and 0.4 TWh of district cooling.