Enabling Nordic Energy Transformation: A Collaborative Effort in Flow-Based Market Coupling Author Sticky Stefano Vassena Senior Client Partner Grid Software, GE Vernova Stefano Vassena is the Senior Client Partner at GE Vernova, specializing in Grid Software for Northern Europe. With over 20 years of experience in the software business for energy utilities, Stefano is passionate about driving innovation and ensuring customer success in their journey towards carbon neutrality.After conducting research in Power System Engineering at the University of Liege in Belgium, focusing on AI/ML, Stefano joined GE Vernova. Throughout his tenure, he has held various roles in operations, innovation, and sales. Stefano holds a Master of Science degree in Power System Engineering from the University of Bologna, Italy, and currently resides in Stockholm, Sweden. Minh Dupuis Senior Product Manager MMS Grid Software, GE Vernova Minh Dupuis is the Markets Product Lead within GE Vernova’s Grid Software business, driving the global strategy and roadmap for Market Management Systems (MMS). He oversees a portfolio that includes cutting-edge GridOS™ applications such as GridOS Markets, the Limit Exchange Portal (LEP), Market ENTSO-E, and Settlements. With over 18 years of experience spanning IT consulting and the grid software industry, Minh has led major projects and product initiatives across Europe and North America. He is passionate about delivering innovative solutions that empower market and system operators to accelerate their energy transition journey. Jul 02, 2025 Last Updated 3 minutes Share The Nordic region has taken a significant step toward transforming its electricity market by implementing Flow-Based Market Coupling (FBMC) in October 2024. This evolution in market design, and a major milestone for the Nordic power market, enables more efficient cross-border electricity trading by better utilizing transmission capacities across Norway, Sweden, Denmark, and Finland. The successful implementation of FBMC is the result of close cooperation between the Nordic Regional Coordination Centre (RCC), the four Nordic Transmission System Operators (TSOs), and various technology partners, including GE Vernova. From left: Stefano Vassena (GE Vernova), Mikko Poranen (Nordic RCC), Carl-Erik Vesterager (Nordic RCC), and Minh Dupuis (GE Vernova) — collaborating to enable Nordic energy transformation through flow-based market coupling. What is Flow-Based Market Coupling? The transition to a sustainable energy system presents numerous challenges, particularly the need to integrate more renewable energy sources like wind and solar into the grid. Flow-Based Market Coupling is a revolutionary approach to electricity market design and plays a pivotal role in addressing this challenge by optimizing existing grid infrastructure.Unlike traditional capacity allocation methods, which limit cross-border flows based on predefined capacities, Flow-Based Market Coupling optimizes power flows based on actual grid constraints and capacities. This method offers two key benefits: maximizing the integration of renewable energy while also enhancing the security of supply in the region. Enabling Nordic Power Shift through FBMC and efficient cross-border trading. Nordic RCC’s Role and Challenges The Nordic RCC played a pivotal role in establishing the FBMC methodology in the Nordic region. It is responsible for orchestrating the capacity calculation process that precedes market coupling. This involves gathering extensive grid data and forecasts from the TSOs to create a combined regional representation of the transmission power grid (Common Grid Model) and calculating the available capacities for cross-border power exchange.To support the implementation and evolution of the Nordic region’s FBMC methodology, the Nordic RCC required a reliable, scalable, and extensible IT solution based on field-proven grid computation software. Collaborative Efforts in the Nordic FBMC Project The go-live of the Nordic Flow-Based Market Coupling project on October 29, 2024, was made successful due to extensive collaboration among all involved parties, including the Nordic RCC, TSOs, and technology partners. This collaboration ensured that the necessary systems and processes were rigorously tested and validated to perform seamlessly under the new market design. Ensuring Cybersecurity and Compliance in grid operations Security and compliance are paramount when updating grid operations. The shift to FBMC introduced new data pathways and interconnected systems, which required robust cybersecurity countermeasures. Ensuring the integrity and security of these systems was a critical aspect of the project. What are the benefits of FBMC on Nordic Power Market Efficiency? The go-live of FBMC marked a significant milestone for the Nordic power market and serves as a blueprint for other regions considering a flow-based approach to market coupling. The anticipated benefits include: Enhanced Cross-Border Trade FBMC allows electricity to flow more freely across borders, better reflecting actual grid constraints and increasing market liquidity. Renewable Integration By maximizing transmission capacity, FBMC supports the integration of more renewable energy sources, reducing dependence on fossil fuels and supporting the region’s emissions goals. Grid Stability and Reliability Optimizing electricity flows minimizes congestion risks and helps balance supply and demand in real time, ensuring the Nordic grid remains stable as its renewable capacity grows. A Collaborative Path to Energy Transformation The successful deployment of FBMC in the Nordic region underscores the importance of collaboration among regional coordination centers, TSOs, and technology partners. This project highlights the collective effort to support sustainable energy markets and the ongoing journey toward a resilient and efficient energy ecosystem.As one of the technology partners involved in FBMC, GE Vernova assisted Nordic RCC by delivering an integrated high-performance solution enabling Nordic RCC to run intricate network analyses and capacity calculations that optimise electricity flow across borders. The solution combines: The GridOS® Advanced Market Management System (AMMS) framework, providing a wide array of pre-built integration points to facilitate the exchange of European Grid and market data and enabling complex, yet efficient, end-to-end grid orchestration;The Common Information Model (CIM) Component Of Network Digital Twin based on IEC CIM to process and merge Individual Grid Models (IGM) exchanged by TSOs in a Common Grid Model (CGM) format in accordance with ENTSO-E guidelinesThe Flow-Based Computation Module (FBCM) that provides a collection of algorithms, libraries, and interfaces that perform the core mathematical and analytic computations tied to the Flow-Based Capacity Calculation process. In the lead-up to the October 2024 go-live, the project required rigorous testing and real-world simulations to validate that all systems would perform seamlessly under the new market design. GE Vernova worked closely with the Nordic RCC and national TSOs to simulate various grid scenarios, assess potential grid congestion, and ensure that the system would respond reliably to both everyday operations and peak demand situations. This testing phase was crucial in preparing the region for a smooth transition to FBMC and in mitigating potential risks.As other regions consider flow-based methodologies, the Nordic experience provides valuable insights into fostering cross-border collaboration, enabling renewable integration, and ensuring grid reliability for a sustainable energy future. Author Section Authors Stefano Vassena Senior Client Partner Grid Software, GE Vernova Stefano Vassena is the Senior Client Partner at GE Vernova, specializing in Grid Software for Northern Europe. With over 20 years of experience in the software business for energy utilities, Stefano is passionate about driving innovation and ensuring customer success in their journey towards carbon neutrality.After conducting research in Power System Engineering at the University of Liege in Belgium, focusing on AI/ML, Stefano joined GE Vernova. Throughout his tenure, he has held various roles in operations, innovation, and sales. Stefano holds a Master of Science degree in Power System Engineering from the University of Bologna, Italy, and currently resides in Stockholm, Sweden. Minh Dupuis Senior Product Manager MMS Grid Software, GE Vernova Minh Dupuis is the Markets Product Lead within GE Vernova’s Grid Software business, driving the global strategy and roadmap for Market Management Systems (MMS). He oversees a portfolio that includes cutting-edge GridOS™ applications such as GridOS Markets, the Limit Exchange Portal (LEP), Market ENTSO-E, and Settlements. With over 18 years of experience spanning IT consulting and the grid software industry, Minh has led major projects and product initiatives across Europe and North America. He is passionate about delivering innovative solutions that empower market and system operators to accelerate their energy transition journey.