1. Market stress APEX Conference, SEOUL 2006 Torger Lien President & CEO Nord Pool ASA

2. Power production capacity in the Nordic countries Production cost Combined heat and power production Gas turbine 100200400 TWh Condensing, oil Hydropower (mean) Nuclear power 300 Annual Nordic consumption Pumped storage power Hydro Thermal Condensing, coal P1 P2

3. Hydro reservoir level Norway and Sweden

4. Price development Nordic market

5. Forward curve Nordic market

7. EUA

8. Volatility Nordic market

9. Example Daily Margin

10. Reflections Psychology or real fear Political dilemma Demand side response Long lead time for new generation/transmission The market is always in balance, the politicians does not always like that balance price Consequences ?

11. www.nordpool.com For more information: