Impacts of green deal policies on the Nordic power market

This study analyzes how the Green Deal affects the Nordic electricity and district heat market, considering carbon pricing alone and in combination with policy measures such as a coal phaseout, a renewable target, or an electrification strategy. Our findings show that the Green Deal targets significantly increase CO2 prices and power price variability. The Green Deal has a minor impact on Nordic electricity production, while a switch to increased power-to-heat is observed in the district heating sector. However, if the EU ETS is supplemented with other policies, generation mix, producer revenues, and CO2- and power prices are significantly impacted.