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Rao Nordic Ready to Start Exporting Power From Finland to Russia

Rao Nordic Oy, the Helsinki-based power trading company, will be ready to start selling electricity from Finland to Russia for the first time next year.

The unit of Russia’s OAO Inter Rao UES (IRAO) will be ready as soon as grid operators in both countries implement the necessary rules, Marja Rasi-Kurronen, head of cross-border trading at Rao Nordic said today at a seminar in Stockholm.

Finland imports as much as 10 percent of its power from Russia to supply the Nordic nation’s energy-intensive industries, according to data by grid operator Fingrid Oyj. Technical restrictions had prevented exports to Russia, meaning traders were unable to respond to higher prices in the eastern European nation.

“It will not be easy to get the Russian and Finnish power markets to interact,” Rasi-Kurronen said. Power traders in the EU generally don’t trade capacity, whereas they do in Russia, she said.

Furthermore, most EU countries have a single cost of electricity while Russia is split into roughly 8,000 separate price regions, she said.

Starting next year, Finland will be able to initially sell 350 megawatts to Russia, and later as much as 800 megawatts, according to Fingrid, which manages the Finnish power links to Russia.

Rao Nordic imports electricity from Russia and sells it to countries including Finland, Lithuania, Belarus, Georgia, Kazakhstan and China, according to its website.

To contact the reporter on this story: Torsten Fagerholm in Helsinki at tfagerholm@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

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