9th International Workshop on Electric Power Control Centers Hotel Ullensvang 10 13 June 2007

Operation and Control of the Norwegian and Nordic Power System

Ole Gjerde Statnett SF Grid Operations Division

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

Statnett

Facts about Norway

Norway: 324 000 km2 Nort-South: 2500 km 4.5 mill. inhabitants Peak Load: 23054 MW Installed Capacity: 28500 MW Hydro: >99 % Consumption: 125 TWh

Statnett

Large variations in precipitation in the Norwegian hydro system

150 TWh Wet year
Statnett Exports needed 30 TWh in wet year

120 TWh Normal 90 TWh Dry year

Consumption
Imports needed 30 TWh in dry year

Existing grid can import 15-20 TWh in a dry year Needed 10-15 TWh increased import capacity

Liberalization in the Norwegian Electricity Market

Market opening started in the late 1980s. Overcapacity both in generation and transmission Economical analysis indicated market could improve efficiency in sector Political will to introduce market solutions New Energy Act into force 1 January 1991 The incumbant electricity company Statkraftverkene were (1992) split into: Transmission System Operator; Statnett Geaneration company; Statkraft Full Market opening 1992 Power Exchange 1993

Statnett

Operational challenges in the Norwegian Power System

Statnett

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

Nordel - the co-operation Organization between the Nordic Transmission System Operators Nordel mission
To promote the establishment of a seamless Nordic 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
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 harmonised approaches in the market design - Larger and more liquide markets - Improve predictability of TSO operation

Statnett

Nordel Three main TSO Processes

Statnett

Adequacy of the transmission Adequacy of the transmission system system

Nordic planning and connection codes Nordic grid plans Priority interconnector investments

Nordic power and energy balances Common simulation tool

System operation System operation

Nordic system operation agreement Operational security standards Operational data platform Co-ordinated outage planning

Obligations for ancillary services Nordic regulating power market

Market design Market design and operation and operation

Spot- trade Intra day trade Market monitoring Co- ordinated implicit auction Princples for congestion mgmt

Market transparency Balance management

Current Nordic Electricity Situation

Finland, Sweden, Norway and Eastern Denmark, one synchronous area Western Denmark connected by HVDC links to the rest of the Nordel system. Synchronously connected to UCTE Interconnection capacity internally between 8000 and 9000 MW Interconnections to continental Europe and Russia with capacity of 4500 MW
600 1100 1500 5

120 2

50

Capacity 92 600 MW Statnett Consumption 400 TWh Peak load 70 000 MW

3600 0 3200 2 1400 550 300 0

Inhabitants 24 mill.
RUS

1000 650

EST LV LT RUS BY
600

Generation mix average last 5 years Hydro (55%) Nuclear (23%) Thermal (20%) Renewable (2%)

1200

D K

1350 1700

800 600

600 0

NL APX D

PL EEX PPX

Nordic Generation Capacity Mixture

Statnett

Hydro

Hydro based in North West

F

Thermal in South East

Thermal

Liberalization in the Nordic Electricity Market

Rapid electricity market opening in the 1990s.
NORWAY Energy Act, Jan 1991 Full market opening 1992 Power Exchange 1993 Nord Pool Norway-Sweden 1996 FINLAND Electricity Market Act, June/Nov 1995 Full market opening 1998 Part of Nord Pool area 1998 SWEDEN Electricity Market Act, Jan 1996 Full market opening 1999 Nord Pool Sweden-Norway 1996 DENMARK Electricity Act, 1998 Energy act amandment, June 1999 Full market opening Jan 2003 Nord Pool West Denmark 1999, East Denmark 2000

Statnett

Market Structure in the Nordic Electricity Market

Statnett

Forming a Nordic Power Market

Requirements: Co-operation between all four Nordic TSOs on issues required to form one common market. Formal framework regulated in an agreement

Statnett

Energinet.dk

Statnett

Fingrid

Svenska Kraftnt

Inter-Nordic Transmission System Operation Agreement

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
Statnett

Trading Capacity in the Nordic Market (NTC)

Existing capacity 01.01.2007
1300 1100 100 120 50 60

Statnett

1500 1100

100 1000 400 550 2000 2050

1000 950 650/610 1300/1700 1200 800 600 600 550 600

Cross-border Exchange Capacity

90 % Percentage of max. consumption (MW) 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0%

84 %

Statnett

28 % 24 % 18 % 23 % 16 % 6% 7%

Denmark

Germany

Norway

England

Sweden

Finland

France

Nordic

Nordic Power System Operation

Nordic TSO co operation -

Nordic planning and connection codes Nordic grid plans Priority interconnector investments

Nordic power and energy balances Common calculation tool

Adequacy of the transmission Adequacy of the transmission system in the long term system in the long term

Nordic system operation agreement Operational security standards Operational data platform Coordinated outage planning

market

Obligations for system services Nordic regulation power

System operation System operation

Statnett

Spot -

trade Market monitoring

Transparent market information Balance management ahead

Intra day trade Co ordinated implicit auction

Market operation Market operation

Firmness of day trading capacity

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 operational reserves - Congestion management - Exchange and publication of operational information Multiregional by the TSOs
- Operation of the cross-border interconnections - Utilisation of the operational reserves

European by ETSO
- Security of Supply Directive/standards

The roles of

Nord Pool Spot, Participants and the System Operators

Power Exchange
Organization and operation Organisering og drift Eltermin Elspot Elbas

(1)
Grid Capacities Netkapacitet Spot Schedules Spothandel

System Operator
Security Driftssikkerhed Ancillary Services Systemtjenester Regulating Power Market Regulerkraftmarked Settlement of imbalances Balanceafregning

Statnett

(2)
Bud til Elspot - Bids Spot Market og Elbasmarkederne

(3)

(5)
Generators Producenter Distributors Distributrer Grid Owners Netejere Traders Brokers Large-scale Storindustri industries

Ordering of op- or Beordring af up- og down regulations nedregulering

(4)

Generation Schedules Produktionsplaner Bids in Regulating Bud til regulerkraft -Power Market markedet

Actors