At the core of the Nordic electricity market is a Finnish company whose goal is to achieve the smallest possible revenue
In today’s electricity market, price fluctuations, concerns about domestic production capacity, and the resilience of the power grid have all become common topics of discussion. The functioning of the Nordic electricity market and the importance of cooperation among transmission system operators is especially relevant now that electricity trading with Russia has quieted down.
“Reliable operation of the electricity market is based on balancing electricity consumption and procurement as well as possible,” says Minnakaisa Ahonen, CEO at eSett Oy. The Finnish company is owned by Nordic transmission system operators and they aim for the smallest possible revenue. “Perhaps that’s a bit bluntly stated,” Ahonen adds. “But there’s some truth to it.”
Forecasting is difficult – or is it?
eSett operates at the core of the network consisting of over a thousand participants in Nordic electricity markets. Network members are committed to forecasting their electricity consumption and procurement as accurately as possible. This helps participants operate efficiently in the electricity market and ensures the reliable functioning of the electricity system. When a member consumes more or less electricity than they have procured, eSett invoices them for the imbalance.
“This encourages all parties to strive for the most accurate forecasting possible,” Ahonen explains. “Good forecasts lead to a better-functioning electricity market, which benefits everyone. The purpose of the operation is to harmonize the activities of network members across the Nordic region – which can also indirectly smooth out electricity price spikes.”
Compactness of organization places importance on partners
Despite their significant responsibilities, eSett doesn’t have a large organization. “We have just over twenty experts working with us,” Ahonen says. “About a quarter of that is our IT team. We intend to remain moderately sized but are committed to building a strong partner network.”
eSett chose Asteroid as their partner due to our reputation and expertise in the energy sector. “We had heard many good things about Asteroid,” explains Ahonen. “We wanted to complement our internal IT expertise with innovative thinking while also seeking a partner that understands eSett’s role that is critical to the security of supply at the center of a large market. We quickly realized that Asteroid meets these requirements. They are sharply focused not only on the present moment but also the future.”
Relying on Asteroid's expertise
Ahonen describes Asteroid’s way of thinking as different from many other players in the industry. “They approach undertakings differently,” shares Ahonen. “Asteroid’s experts have strong technical skills, but they also have a broad understanding of how electricity markets operate – and they recognize the importance of meeting customer needs. At the beginning of our collaboration spanning multiple projects, Asteroid’s CTO and their team directly engaged with our clients to clarify our shared understanding. This quickly led to positive results.”
Asteroid initially delivered one project for eSett. The experience and feedback were so positive that follow-up projects have been already agreed. “Our collaboration continues,” says Ahonen. “The IT world is complex, and operating within it requires different types of experts. We need discussion partners, coaches, and people with long-term vision. In my experience, we get all of this from Asteroid. I’m very satisfied with the outcomes of our collaboration.”
The appreciation goes both ways. “In our partnership with eSett, we’ve been able to apply our expertise accumulated in the energy sector in the best possible way,” says Eero Kurkela, CTO of Asteroid. “But we’ve also learned a lot from their clients. eSett’s skilled, close-knit team is passionate about the societal significance of the electricity system and the related technical challenges.”
The article was written in collaboration with a partner of Asteroid.