Under the agreement, the pair will develop market and clearing services for a spot and cash-settled exchange that should launch in the second quarter of next year. Nasdaq OMX Commodities will be responsible for the market's trading and clearing technology, while Nord Pool Spot will oversee its operations.
Anthony Belchambers, the FOA's chief executive, said the organization had considered a number of high-quality submissions for the market, but the "experience and resources" of Nasdaq OMX Commodities had won the unanimous backing of its Market Participation Project Board.
The consortium will now establish a new base in London as it starts to coordinate the creation of the exchange.
Geir Reigstad, head of Nasdaq OMX Commodities, said its "wealth of experience" would deliver the FOA's key objectives of increasing access, participation and liquidity in order to improve the power market's efficiency.
Elsewhere, Nasdaq OMX's analysis tool Market Replay has won the enterprise section of the 2008 Adobe Max Awards.