NEMO (Nominated Electricity Market Operator)
A NEMO (Nominated Electricity Market Operator) is, per Regulation (EU) 2019/943 Article 2(8) and CACM Regulation (EU) 2015/1222, an entity designated by the competent authority to perform the tasks of the single day-ahead and single intraday market mechanisms. In Estonia, Nord Pool is the operational NEMO; EPEX SPOT also holds NEMO designation but does not run active trading on EE.
A NEMO (Nominated Electricity Market Operator) is, per Regulation (EU) 2019/943 Article 2(8) and CACM Regulation (EU) 2015/1222, an entity designated by the competent authority to perform the tasks of the single day-ahead and single intraday market mechanisms. In Estonia, Nord Pool is the operational NEMO; EPEX SPOT also holds NEMO designation but does not run active trading on EE.
What a NEMO actually does
Three core functions: (1) collect bids and offers from market participants in the bidding zone, (2) operate the matching algorithms — Euphemia for SDAC, the SIDC continuous matching engine for intraday — and (3) publish the clearing prices and matched volumes that downstream BRPs and BSPs use for scheduling and settlement. NEMOs are licensed and supervised by the national regulator (Konkurentsiamet in Estonia).
Multi-NEMO arrangements
In bidding zones with more than one designated NEMO — including Estonia in principle — market participants can choose which NEMO to bid through; the matching algorithm clears them together so the price is the same regardless. In practice Nord Pool dominates the Estonian and broader Nordic-Baltic flow, and EPEX SPOT presence in EE is nominal.
Usein kysyttyä
- What is a NEMO (Nominated Electricity Market Operator)?
- A NEMO is an entity designated by a Member State authority under Regulation (EU) 2019/943 Article 2(8) and CACM Regulation (EU) 2015/1222 to perform the tasks of the single day-ahead market (SDAC) and single intraday market (SIDC). NEMOs run the auctions, publish clearing prices and settle the trades for their bidding zones.
- Who is the NEMO in Estonia?
- Nord Pool is the operational NEMO for the Estonian (EE) bidding zone. It runs the EE day-ahead and intraday auctions and publishes the hourly (and from October 2025: 15-minute) clearing prices that anchor most Estonian retail tariffs and PPAs. EPEX SPOT also holds NEMO designation for Estonia but does not run active trading on EE.
- What's the difference between a NEMO and a TSO?
- A NEMO operates the wholesale electricity market — the auction that prices generation and consumption. A TSO operates the physical grid — the wires, the frequency control, the cross-border interchange. In Estonia: Nord Pool = NEMO; Elering = TSO. The two cooperate via the SDAC/SIDC mechanism, where the NEMO matches market positions and the TSO provides the cross-zonal capacity allocation.
- How does a NEMO get nominated?
- CACM Regulation (EU) 2015/1222 Article 4 lays out the criteria. Member States designate NEMOs that meet the requirements (financial standing, technical capability, governance, fee transparency). Once designated for a bidding zone, the NEMO can offer day-ahead and intraday services in that zone. Several NEMOs can compete in the same zone — Estonia has Nord Pool active and EPEX SPOT designated but inactive.