bottlenecks – projects of nordic interest
TRANSCRIPT
Bottlenecks – projects of Nordic interestChallenges and opportunities facing the future Nordic electricity market
Jussi Jyrinsalo
Key drivers for Nordic projects
1. Increasing energy and regulation power exchange with the continent
2. Internal transmission needs due to surplus in north and deficit/export in south
3. Potential for consumption growth in the arctic, mainly Norway
4. Integrating the Baltic States5. Nuclear and thermal decommissioning in
south of Sweden/Finland
Regional grid planning in ENTSO-E
Projects in the 2014 pan-European plan (TYNDP) and new project proposals for TYNDP 2016 studies
Mid Term 2014-2018 Long term 2019-2030
Evaluating the market benefits of cross-border investments
• Market simulation tools and joint models are used by all regional groups.
• The total market benefit is calculated with and without the investment, consisting of:
– consumer surplus– producer surplus– congestion income– grid losses.
• You have large positive and negative benefits, the sum being much smaller: large uncertainties in results.
• Problem: the Nordic projects do not give enough market benefits compared to the ones towards the continent, where price differences and volumes are and will be bigger
• The Nordic system benefits/problems still need to be better monetized
• Especially the last one is currently being jointly studied => what is the true value of a secure Nordic power system (being very small compared to the continent)?
Should we have more Nordic projects in TYNDP?
Trends that challenge the security of the Nordic system
Adequacy of generation capacity
2015 2025
Inertia to support system stability
2015 2025
System flexibilityto back-up RES
20252015
need
Note: more and more interconnections towards the RES dominated continental Europe will create large and frequent changes in power and affect the stability of the Nordic system
available capacity
Selected priority areas for Nordic TSO cooperation
Systemoperation
Marketfacilitation
Systemdevelopment
New technologies,common tools
Highly efficient
and secureNordic green
power system
Ensuring a future robustNordic power system1
Maintaining current high level of security of supply2
Market to better support the adequacy3
Empowering consumers4
Strong Nordic voice in EU5
1. Ensuring a future robust Nordic power system
Pursue solutions that have socio-economic benefits for the Nordic
region as a whole
Take advantage of new technologies to develop
smart solutions
From grid planning to system planning
Optimize the use of the existing Nordic system
TSOs can agree on regional solutions but final decisions often by entities with national focus
Challenge: lack of competent regional structures and procedures (cf. national or EU-level)
How to enhance regional decision making and implementation?
Purpose: to assess regional tasks and, if mutually agreed,
to commit to promote
implementation
Need for a regional high-level forum bringing together
all relevant stakeholder groups
Cf. Florence Forum,
Pentalateral Forum