8/2/2019 e09 Nr Norway-En[2]

1/19

Statnett

Operation and Controlof

the Norwegian and Nordic

Power System

Ole Gjerde

Statnett SF

Grid Operations Division

9th International Workshop on Electric Power Control Centers

Hotel Ullensvang

10 13 June 2007

8/2/2019 e09 Nr Norway-En[2]

2/19

Statnett

Content of presentation

Facts about the Norwegian Power System

Liberalization in the Norwegian Electricity Market

Operational Challenges

Nordic Co-operation

Nordic Electricity Market

The Transmission System Operation Agreement

Cross-border Trading Nordic Power System Operation

8/2/2019 e09 Nr Norway-En[2]

3/19

Statnett

Facts about Norway

N o r w a y :

3 2 4 0 0 0 k m 2

N o r t -So u t h : 2 5 0 0 k m

4 . 5 m i l l . i n h ab i t a n t s

Peak Load : 23 05 4 MW

I ns ta l l ed Capaci t y :

2 8 5 0 0 M W

H yd r o : > 9 9 %

Consum p t ion : 125 TW h

8/2/2019 e09 Nr Norway-En[2]

4/19

Statnett

Large variations in precipitation in the

Norwegian hydro system

Consumption120 TWh Normal

150 TWh Wet

year

90 TWh Dryyear

Imports needed 30 TWh in dry year

Exports needed 30 TWh in wet year

Existing grid can import15-20 TWh in a dry year

Needed 10-15 TWh increasedimport capacity

8/2/2019 e09 Nr Norway-En[2]

5/19

Statnett

Liberalization in the NorwegianElectricity Market

Market opening started in the late 1980s.

Overcapacity both in generation and transmission

Economical analysis indicated market couldimprove efficiency in sector Political will to introduce market solutions

New Energy Act into force 1 January 1991

The incumbant electricity companyStatkraftverkene were (1992) split into:

Transmission System Operator; Statnett Geaneration company; Statkraft

Full Market opening 1992

Power Exchange 1993

8/2/2019 e09 Nr Norway-En[2]

6/19

Statnett

Operational challenges in theNorwegian Power System

Wide area, long distances, regional differences

The hydro dominance and variation in inflow

Inability to develop new capacity for a long periode Political reasons Environmental reasons

First gas fired power station in Norway in operation

this autumn; 420 MW

8/2/2019 e09 Nr Norway-En[2]

7/19

Statnett

Nordel - the co-operation Organization

between the Nordic TransmissionSystem Operators

Nordel mission

To promote the establishment of a seamlessNordic electricity market as an integral part of the

North West European electricity market AND

Maintain a high level of security in the Nordic

power system

8/2/2019 e09 Nr Norway-En[2]

8/19

Statnett

Objectives for Nordel co-operation

Develop an adequate and robust transmission system to meet

the needs of the North West European electricity market

Seamless and efficient management of the daily operations

- Secure operations

- Efficient use of resources across borders- Security of supply at least on existing level

Enhance efficient functioning of the North West European

electricity market by taking initiatives for harmonisedapproaches in the market design

- Larger and more liquide markets

- Improve predictability of TSO operation

8/2/2019 e09 Nr Norway-En[2]

9/19

Statnett

Nordel Three main TSO Processes

Adequacy of the transmission

system

Adequacy of the transmission

system

Nordic planning and connection

codes

Nordic grid plans

Priority interconnector investments

System operationSystem operation

Obligations for ancillary

services

Nordic regulating power

market

Market design

and operation

Market design

and operation

Spot- trade Intra day trade

Market monitoring

Co- ordinated implicit auction

Princples for congestion mgmt

Nordic system operation agreement

Operational security standards

Operational data platform

Co-ordinated outage planning

Nordic power and

energy balances

Common simulation tool

Market transparency Balance management

8/2/2019 e09 Nr Norway-En[2]

10/19

Statnett

Current Nordic Electricity Situation

Capacity 92 600 MW

Consumption400 TWh

Peak load 70 000 MW

Inhabitants24 mill.

Generation mix averagelast 5 years

Hydro (55%)

Nuclear (23%)

Thermal (20%)

Renewable (2%)

Finland, Sweden,Norway and EasternDenmark, one

synchronous area Western Denmark

connected by HVDClinks to the rest of theNordel system.Synchronously

connected to UCTE Interconnection

capacity internallybetween 8000 and9000 MW

Interconnections tocontinental Europeand Russia withcapacity of 4500 MW

EST

LV

LT

RUSBY

RUS

DK

D

NLPL

1220

3220036000

1000

550

155001100

650

13501700

6000600

800

1400

3000

600600

50

APX EEX PPX

1200

8/2/2019 e09 Nr Norway-En[2]

11/19

Statnett

F

Hydro based inNorth West

Thermal inSouth East

Nordic Generation Capacity Mixture

Hydro

Thermal

8/2/2019 e09 Nr Norway-En[2]

12/19

Statnett

Liberalization in the Nordic Electricity Market

SWEDEN Electricity Market Act, Jan 1996 Full market opening 1999 Nord Pool Sweden-Norway 1996

FINLAND Electricity Market Act, June/Nov 1995 Full market opening 1998 Part of Nord Pool area 1998

DENMARK Electricity Act, 1998 Energy act amandment, June 1999 Full market opening Jan 2003 Nord Pool West Denmark 1999, East Denmark 2000

NORWAY Energy Act, Jan 1991 Full market opening 1992

Power Exchange 1993 Nord Pool Norway-Sweden 1996

Rapid electricity market opening in the 1990s.

8/2/2019 e09 Nr Norway-En[2]

13/19

Statnett

Market Structure in the Nordic

Electricity Market

8/2/2019 e09 Nr Norway-En[2]

14/19

Statnett

Forming a Nordic Power Market

Requ i remen ts :

Co-oper a t i on be t w een a l l f ou r Nord i c TSOso n i ssu e s r e q u i r e d t o f o r m o n e co m m o nm a r k e t .

Fo r m a l f r a m e w o r k r eg u l at e d i n ana g r e e m e n t

I n t e r -Nord i c Transm ission Sys tem

Opera t ion Agreem en t

Statnett Fingrid Svenska KraftntEnerginet.dk

8/2/2019 e09 Nr Norway-En[2]

15/19

Statnett

The Transmission System

Operation Agreement

Main elements in the TSOA:

Security standards

Balance management standards

Information exchange

System protection schemes

Ancillary services

Principles for joint operation between the different

subsystems

Congestion management/Managing capacity limitations

Rules for power shortage

Joint operation with other systems

8/2/2019 e09 Nr Norway-En[2]

16/19

Statnett

Trading Capacity in the Nordic Market

(NTC)

550

1000

650/610

1300/1700

600 550

100

15001100

1100

800

1000

120

1300

2050

400

600

50

100

60

1200 600

950

2000

Existing capacity

01.01.2007

8/2/2019 e09 Nr Norway-En[2]

17/19

Statnett

Cross-border Exchange Capacity

84 %

28 %24 %

18 %

23 %

16 %

6 % 7 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

Denmark

Sweden

Finland

Norway

France

Germany

England

Nordic

Percentageofma

x.consumption(MW

)

8/2/2019 e09 Nr Norway-En[2]

18/19

Statnett

Nordic Power System Operation

1

Nordic TSO co- operation

Adequacy of thetransmission

systeminthelongterm

Adequacy of thetransmissionsysteminthelongterm

Nordicplanningandconnection

codes

Nordicgridplans

Priorityinterconnectorinvestments

SystemoperationSystemoperation

Obligationsfor system

services

Nordicregulationpower

market

Market operationMarket operation

Spot - t ra de Intradaytrade

Marketmonitoring

Co- ordina t e dimplicit a uc tion

Nordicsystemoperationagreement

Operationalsecuritystandards

Operationaldataplatform

Co- ordina t ed out age pla nning

Nordicpowerand

energybalances

Commoncalculationtool

Transparent marketinformation

Ba lanc e ma nage ment

Firmnessofday- ahead

tradingcapacity

National by the TSOs

- Transmission and disturbance management

- System responsibility

- Day-ahead transmission capacities

- Monitoring of the performance

Regional by Nordel

- Operation Code / Principles for the Nordic system- Power balance and load frequency control

- Regulating power market and market for operationalreserves

- Congestion management

- Exchange and publication of operational information

European by ETSO

- Security of Supply Directive/standards

Multiregional by the TSOs

- Operation of the cross-border interconnections- Utilisation of the operational reserves

8/2/2019 e09 Nr Norway-En[2]

19/19

Statnett

The roles of

Nord Pool Spot, Participants and the

System Operators

Producen te rD is t r i bu t re r

N e te j e re

Traders

Broke rs

S to r i n d u s t r i

Organ ise r ing og d r i f tE l te rm in

Elspot

Elbas

Dr i f t ss i kke rhedSys temt jenes te r

R e g u l e r k ra f tm a rk e d

Ba lanceaf regn ing

Bud til Elspot -og Elbasmarkederne

Netkapacitet

Spothandel

Beordring af op- og

nedregulering

ProduktionsplanerBud til regulerkraft -markedet

Genera to rsD i s t r i b u to r s

Gr id Ow ners

Traders

Broke rs

Large-scale indu s t r ies

Organ iza t i on and ope ra t i onE l te rm in

Elspot

Elbas

Secur i tyAnc i l la ry Serv ices

Regu la t i ng Pow er Marke t

Se t t l emen t o f imb a lances

Spo t Marke t B ids-

Gr id Capac i t ies

Spot Schedu les

Pow er Exchange

Ac to rs

Or der in g o f u p- o r

d o w n r e g u l at i o n s

Genera t ion Schedu lesB ids in Regu la t i ng Pow er-Marke t

Sys tem Opera t o r(1)

(2)

(4)

(3)

(5)