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Fingrid Current 5 April 2017

Presentation recordings are published at: www.fingrid.fi/en/news/events

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Panel Discussion:Bringing flexibility to the market

Riina Heinimäki

Senior Expert, Finnish Energy

Matti Rautkivi

General Manager, Market Development,

Wärtsilä North America Inc.

Jonne Jäppinen

Manager, Power System Operations,

Fingrid Oyj

Asta Sihvonen-Punkka

Senior Vice President, Markets, Fingrid Oyj

Moderator

Janne Happonen

Development Manager, Fortum Oyj

In Fortum’s groundbreaking VPP household loads are sold to balance the system in the Frequency Containment Reserve (N)

Demand response from DSOs’ and suppliers’ point of view• A level playing field in all markets• Balance responsibility is a key issue for the

functioning of electricity markets• There isn’t only one market, but different market

places• Aggregation is a prerequisite for small customers’

participation– Aggregation ≠ independent aggregator

• Clear roles and responsibilities• Cost-effectiveness and market-based approach • A customer can be engaged in and empowered by

products and services • Information is a useful steering mechanism to add

acceptance of demand response

5.4.2017Heinimäki

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© Wärtsilä INTERNAL

MARKET DRIVEN NEED FOR FLEXIBILITY IN NORTH AMERICA

26 April 2016 Operation and Maintenance5

2/3 OF NEW INSTALLATIONS WERE RENEWABLES IN 2016

20 YEAR WIND CONTRACT 18 $/MWH AND SOLAR 29 $/MWH

MARKET RULES TO INCENTIVIZE FLEXIBILITY (FERC 825) BY SHORTENING TRADING INTERVALS AND INCREASING PRICE VOLATILITY

MARKET DRIVEN DEMAND FOR FLEXIBLE CAPACITY

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The Finnish reserve markets– participation from both supply and demand

Frequency Containment Reserve for Disturbances:220–265 MWNordic countries total: 1,200 MW

Frequency Containment Reserve for Normal Operation:138 MWNordic countries total: 600 MW

Automatic Frequency Restoration Reserve:70 MWNordic countries total: 300 MW

Joint Nordic Balancing Power Markets

Activated During major frequencydeviations

Continuously available Available at specific hours Activated when required

Response time

Seconds Minutes Minutes 15 minutes