Estimation of Extreme Values for Financial Risk Assessment

In 1991 the Norwegian government decided that the power market should be deregulated allowing for power trading. Following this, the Nord Pool market was established in 1996 as a common electricity market for Norway and Sweden. Finland followed into the Nord Pool market area in 1998, and western and eastern Denmark joined in 1999 and 2000, respectively. In 2002 Nord Pool spot was established and today runs the spot (1 day ahead) market for electricity in Norway, Sweden, Denmark, Finland, and Estonia. Today, a large part of the consumption of electricity in this market is traded through Nord Pool spot, and the spot market is the most important.