refocusing on regional cooperation

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Refocusing on regional cooperation Electricity Market Day 5 April 2016 Jukka Ruusunen, President and CEO, Fingrid Oyj

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Page 1: Refocusing on regional cooperation

Refocusing on regional cooperation

Electricity Market Day 5 April 2016Jukka Ruusunen, President and CEO, Fingrid Oyj

Page 2: Refocusing on regional cooperation

Three levels in decision making

NationalEuropean Regional

Page 3: Refocusing on regional cooperation

Regional decision making today

Transmission system operators• Electricity market development in

cooperation with Nord Pool• Cooperation in power system

operation 24/7• Development of the transmission grid

Political decision making• Nordic structure exists• Content: "political support" for regional

cooperation

The Nordics: Organisational setup

A Nordic Advisory Board – bringing the stakeholders better together?

Source: Deputy Permanent Secretary Christian Pilgaard Zinglersen Danish Ministry of Energy, Utilities and Climate

Page 4: Refocusing on regional cooperation

Transmission system operators have agreed a common strategy

System operation Market facilitation

System development

New technologiesCommon tools

Highly efficient and secure Nordic green

power system

Ensuring a future robust Nordic power system1

Maintaining current high level of security of supply2

Market to better support the adequacy3

Empowering consumers4

Strong Nordic voice in EU5

Page 5: Refocusing on regional cooperation

RSC is a service providerRegional Benefits

• Transmission capacity and security of supply calculation

• Coordination of outages

• Short term adequacy analyses

• More efficient use of transmission capacity

• More efficient recognition of security of supply risks

• Transmission system operators are responsible and decide

• RSC is not a regional control center

Regional cooperation in system operationRegional Security Coordination (RSC)

Page 6: Refocusing on regional cooperation

Regional cooperation in system operation

Nordic RSC will be established in Copenhagen• Operations start by the end

of 2017• ”Joint office" -model• About 10 people.

Regional Security Coordination (RSC)

Page 7: Refocusing on regional cooperation

Re-evaluation of yearly maintenance andoutage practices

Strengthening anddevelopment of

own HVDC-knowledge

Enhanced disturbance clearing including

backup from Fingrid's and service providers'

experts

New maintenance contracts with service

providers

Improving availability of HVDC connections

Goal: operating model that answers to the system and market

challenges of four HVDC connections

Page 8: Refocusing on regional cooperation

!BUT:

Actions of transmission system operators is not enough!

Page 9: Refocusing on regional cooperation

Energy political decision making lacks the regional dimension

We must aim for Nordic andBaltic Sea solutions

In a common market you cannot make

functioning energy policy from a national

perspective only!

Commission has emphasizedthe significance of regional

cooperation as part ofEuropean development

In a common market the impacts of

national energy policies cross country borders

We need a strongpolitical commitment

for regional goals

Page 10: Refocusing on regional cooperation

Suggestion from the Nordic transmission system operators to develop regional cooperation

"Nordic Advisory Board”• Politically chaired• Wide participation from stakeholders• Regional harmonization of the main

principles in national energy policies Do we continue with the market based

approach? Subsidy schemes for renewables Possible capacity mechanisms Regional infrastructure projects

Page 11: Refocusing on regional cooperation

NationalEuropean Regional

• Emissions trading scheme, European goals for renewables

• Main principles of the electricity market

• European infrastructure projects

• Renewable energy support schemes

• Capacity mechanisms• More detailed

electricity market rules• Regional infrastructure

projects

• Energy mix• Energy taxes

The three level model is developing – next step?

Page 12: Refocusing on regional cooperation

Fingrid Delivers. Responsibly.