The annual 3-year outlook for the balances of the Nordic power system has been published by Nordel. Both the power and energy balances are positive. The balances reflect the adjusted consumption forecasts primarily due to the financial crisis and new, planned production capacity in the Nordic region. The Nordic electricity system will be able to meet the estimated consumption and the corresponding typical power demand pattern even without imports under both average and low inflow conditions for hydropower production. The energy balance in 2012 is expected to be better than the former Nordel estimates. The annual electricity consumption in the Nordic market (excl. Iceland) is estimated to grow to about 398 TWh by the end of 2012 from 396 TWh in 2008 (not temperature corrected, including electrical boilers). The consumption for Iceland was in 2008 16 TWh and is estimated to grow to about 19 TWh. The production in the Nordic market (excl. Iceland) in a year with normal conditions is estimated to be 414 TWh in year 2012. Investments in production capacity before the end of 2012 are estimated to increase the installed production capacity by about 7 000 MW. In order to meet the energy demand in extremely low inflow conditions the Nordic power system needs to import from neighbouring countries. Some areas in Norway can be exposed to a risk of rationing in case of extremely low precipitation.