Market based energy markets
International energy markets are globally considered to be international oil trade. EU energy markets are also characterized by fuels, especially natural gas, in which EU is heavily dependent on imports. EU is aiming for internal electricity market, so that electricity could freely move from one member state to the other. So far regional electricity markets have been formed. Finland is part of Nordic electricity market area, which is the most progressive one in the EU.
In the Electricity Market Act, the production and sale of electricity have been defined as free business operations. When EU member states started to reform their previously closed electricity markets during the 1990’s, the starting point was to create market based solutions and advance free competition. The electricity transmission being a monopoly, is still controlled by the national authorities, in Finland by Finnish Energy Authority.
The importance of the heating market in emission reductions and energy efficiency has started to gain footing in EU as well. District heating is the most common heating form in Finland, with a market share of 47 per cent.