About Energy Co-operation

The Nordic Region is one of the richest sources of energy in the world. Apart from the natural occurrence of fossil fuels such as oil and gas, the Nordic Region has also great opportunities to exploit renewable energy sources such as water, wind, bioenergy and geothermal heat.

Coal, oil and gas make up not only most of the energy consumption in the Nordic countries, but most of the energy consumption in the whole world. Fossil fuels are not inexhaustible resources and their consumption results in carbon dioxide emissions. The challenge is therefore not just to ensure a more effective exploitation of resources but also, to a greater extent, to concentrate on renewable energy sources.

The Nordic countries work together to create frameworks for the development of effective, competitive, safe and sustainable energy systems.

The Nordic electricity market

In 1995 the Nordic ministers of energy presented their vision for an open and free electricity market in the Nordic Region. The world's first international electricity exchange, Nord Pool, was set up the next year, and the Nordic markets were liberalised before the year 2000. The common Nordic electricity market strengthens security of electricity supply and ensures a better use of the energy resource in the Nordic countries.

As a result of the harmonising of the Nordic electricity markets joint institutions were set up. Their role is to trade for the benefit of the Nordic market as a whole. These are the Nordic organisation of transmission system operators, Nordel, and the Nordic organization for regulatory authorities, Nordreg.

The success of the common liberalisation of the Nordic electricity market has become a model for regional co-operation and harmonisation in the EU.

Sustainable energy systems

Demand for energy is still rising, the environmental requirements are tougher, and the price of oil is going up. These are some of the reasons why there is a need for a more effective exploitation of our energy resources. This applies to households, industry and construction. An effective use of the country's energy resources combined with research into new sources of energy will create the foundation for increased welfare and prosperity.

Energy efficiency plays a major role in the development of sustainable energy systems. The Nordic countries are working together to reduce the environmental impact of buildings, make better use of existing resources, and testing and labelling. This co-operation covers policy development and the implementation, for example, of EU and EEA directives. The Nordic Council of Ministers' Working Group for Energy Efficiency and the institution Nordic Energy Research are both working in this area.

The development of sustainable energy systems will ensure a balance between security of supply, economic growth and environmental consideration.

Remote communities

A large number of remote communities in the Nordic Region are cut off from the common energy network. These areas often have a high consumption of fossil fuels. In 2003 the Nordic ministers of energy decided therefore to place particular focus on supporting efforts that would promote a sustainable energy supply in remote communities in the Nordic Region and in the Arctic (the Nordic ministers of energy's working group for remote communities).

In 2007 the Nordic Council of Ministers held a conference Energy from the Edge in co-operation with the Nordic Region's western neighbours. The conference focused on the use of renewable energy in remote communities.

The Nordic Region in the outside world

Climate and energy issues are high on the international agenda. The Nordic countries want to be seen as a pioneer region in international energy co-operation.

The Nordic countries are part of an innovative and sustainable region, both on the political level and with regard to the development of new technologies for the environment and energy. This region must continue to this position of strength for the benefit of stability, economic growth and to fight climate changes.

Nuclear power

There is no official Nordic co-operation on nuclear power. There are, however, network activities, such as Nordic Nuclear Safety Research and the Nordic Society for Radiation Protection.