03Where does power flow, and why do prices split?

The Nordics already split the price zone Germany decided to keep whole

What happens to electricity prices when a country splits into several price zones, as the Nordics have?

The zonal price split Germany decided against has been in place in the Nordics for years. Across the 12 Nordic bidding zones (areas that each have one wholesale price) over the 12 months to 14 October 2026, the average day-ahead price ran from about €32/MWh in North (NO4) to about €106/MWh in East Denmark (DK2).

The gap also runs inside single countries: Sweden and Norway are each split into several zones.

Zone prices come from ENTSO-E day-ahead data, one wholesale price per bidding zone (an area that has one wholesale price).

1 · The map of zones
avg day-ahead price · €/MWh

Average day-ahead price by bidding zone. The hydro-rich north (NO4, SE1, SE2) clears cheap; the demand-heavy, interconnected south (SE4, DK1/DK2) clears dear. The split lets the price say where the grid is tight: the signal a single zone averages away.

Loading zone map…
Zones
Zone prices unavailable.

Average day-ahead price by bidding zone. Boundaries are approximate: bidding zones follow grid constraints, so the map builds them from county groupings (Eurostat GISCO NUTS regions). Source: ENTSO-E day-ahead prices per bidding zone.

2 · How far prices diverge

Within one country, the far-north and far-south zones are a single market with two prices. They converge when the whole system is tight, as when a deep-winter cold snap lifts every zone together, and pull apart when the north has plenty of cheap hydro. The gap is widest in spring snowmelt and the shoulder seasons, while the south stays coupled to the pricier continent. One national price would hide that seasonal gap.

Monthly mean day-ahead price (ENTSO-E); the shaded band is the gap between the two zones. Nordic divergence follows the reservoirs as well as the grid: wet springs widen it, tight winters compress it. Denmark's two zones (west/east) barely diverge by comparison.

3 · The lesson for Germany
one price and twelve

Germany has the same physical split, a windy north and a demand-heavy south. It clears at one national price and manages the gap with curtailment and redispatch; the Nordics put a price on the split.

Germany · one zone
One national price; the north–south gap shows up as curtailment and redispatch, and the price stays the same.
See Germany's north–south story →
Nordics · twelve zones
Prices diverge by region, signalling where the grid is tight and where new supply or demand is worth most.

The Nordics are split into many price zones, so a windy, hydro-rich north can clear at a different (often lower) price than a demand-heavy south; the prices reflect where the grid is constrained. It is the live version of the split Germany decided against for its single zone with Luxembourg (DE-LU). Supporters say zonal prices steer investment to where it's needed; critics say they push structurally higher prices onto some regions and add complexity. Wattlas takes no side: it shows what splitting looks like in a system that already did it.

A bidding zone is the area inside which electricity clears at one wholesale price. Nordic zones group regions by where the transmission grid constrains flows.

Questions

How much do electricity prices differ across the Nordic countries?

Across the 12 Nordic bidding zones, areas that each have one wholesale price, the average day-ahead price over the 12 months to 14 October 2026 ran from about €32/MWh in North (NO4) to about €106/MWh in East Denmark (DK2), according to ENTSO-E. The gap runs inside single countries too: Sweden and Norway are each split into several zones.

What is a bidding zone?

An area with one wholesale electricity price. Germany and Luxembourg share one; the Nordic countries have 12, because Sweden and Norway are each split into several. Over the 12 months to 14 October 2026, the average price ran from about €32/MWh in the cheapest Nordic zone to about €106/MWh in the dearest.

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