European power exchanges Nord Pool Spot and EPEX Spot have signed a letter of intent to create a joint venture based in London to build a joint system platform they would operate together.

Nord Pool Spot offers day-ahead and intraday markets for Norway, Denmark, Sweden, Finland and Estonia. EDEX Spot operates day-ahead and intraday power spot markets for France, Germany, Austria and Switzerland.

“We are evaluating a strategic alliance in order to increase value for our customers,” said Mikael Lundin, CEO of Nord Pool Spot, at a joint press conference in London on 28 September.

“Working together with more resources, we can create the best IT applications and solutions, while keeping close to our customers in our respective regional markets.”

The first step aims at unifying the intraday and day-ahead systems. “Harmonising our systems and simplifying the interfaces are a prerequisite for further successfully integrating European power markets”, said Jean-François Conil-Lacoste, CEO of EPEX Spot, at the joint press briefing. 

The next step envisaged is to harmonise the operations of the markets. The joint venture will be created during 2012 and based in London, although employees will be located in their present offices. The parties will contribute equally to the entity.

The joint venture will reinforce ongoing European integration projects, said the firms. The collaboration is intended to accelerate and simplify the creation of a single price calculation in the European day-ahead markets, which would drive more efficient use of power.

Nord Pool Spot and EPEX SPOT will continue as separate power exchanges, keeping their rulebooks and remaining in charge of their respective customers.

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