© vattenfall ab the swedish power market presented for invest in sweden agency and sun microsystems...
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![Page 1: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/1.jpg)
© Vattenfall AB
The Swedish Power Market
Presented for Invest in Sweden Agency and Sun Microsystems
Stockholm 20 March, 2009
Sandra Grauers Nilsson, Vattenfall Power Consultant
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© Vattenfall AB 2
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
![Page 3: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/3.jpg)
© Vattenfall AB 3
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
![Page 4: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/4.jpg)
© Vattenfall AB 4
Total energy supply in Sweden 1973–2007
Source: Swedenergy
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© Vattenfall AB 5
Electricity generation in Sweden by power type, TWh/year
Source: Swedenergy
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© Vattenfall AB 6
Installed wind power generation capacity in MW 2002-2007
Source: Swedenergy
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In 2006, 97% of the electricty production was CO2-free
Source: Swedish Energy Agency
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© Vattenfall AB 8
Development of renewable electricity generation 2000–2007
Source: Swedenergy
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Emissions of CO2 equivalents in the world, tonnes per capita
Source: Swedish Environmental Protection Agency
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Ownership of electricity generation capacity
Source: Swedenergy
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Changes in ownership of electricity generation 1996-2007
Source: Swedenergy
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© Vattenfall AB 12
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
![Page 13: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/13.jpg)
© Vattenfall AB 13
The Nordic Market - four countries
050
100150
Finland
050
100150
Sweden
050
100150
Norway
050
100150
Denmark
Wind powerGas turbinesCondensingCombined heat and powerNuclear powerHydro power
• 14 million customers, 73.000 MW, 390 TWh/year
• Full regulated TPA (third party access)
• National Grid companies, TSOs
• Some 350 power generating companies, 450 supplying companies and 550 regulated distribution companies
• The Nordic Power Exchange - Nord Pool• Spot Market
• Futures Markets
• (EUA, CER
• Green certificates)
Production capacity a normal year, TWhSource: Swedenergy
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The Nordic Market
• Generation in Sweden, The Nordic region, Europe
• The 400/200 kV grid
EU 27 +Norway~ 3000 TWh
Otherrenewables
Net imports
Hydro
NuclearFossil fuelsThe NordicCountries ~ 380 TWh
Sweden ~ 150 TWh
Source: Swedenergy
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Markets for electricity trade
Source: Swedenergy
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© Vattenfall AB 16
The Nordic Power Exchange – traded volumes, TWh/year
Clearing - (OTC)
Futures
Elspot
Source: Swedish Energy Agency
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Electricity consumption and price in the Nordic countries
SEK/MWh
340
350
360
370
380
390
400
dec-96 jun-98 dec-99 jun-01 dec-02 jun-04 dec-05 jun-07 dec-08
0
100
200
300
400
500
600
700
800
900
1000
Norden, TWh
Systempris, SEK/MWh
Source: Swedenergy
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Nordic spot prices – hydro power reservoirs
TWh, EUR/MWh, EUR/ton
-30
-10
10
30
50
70
90
110
130
jan-00 jan-01 jan-02 jan-03 jan-04 jan-05 jan-06 jan-07
"Överskott" "Underskott" Systempris Nord Pool, €/MWh EUA, €/ton
Source: Swedenergy
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The Nordic Power SystemProduction capability, normal year
CHPIndustrial
Hydro power (normal year)
CHPDistrictheating
Gas turbine
Wind power
0 40 80 120 160 200 240 280 320 360 400
Oil condensingpower
Incrementaloperating costs
Electricity consumption
Nuclear power
Coal condensingpower
Source: Swedenergy
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The Nordic Power SystemProduction capability, dry year
00 50 100 150 200 250 300 350 400
2) Less supply
1) Less Hydro Power
3) Higher production costs
Incrementaloperating costs
Söre/kWh
Source: Swedenergy
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© Vattenfall AB 21
Runoff variations in relation to normal year runoff 1952−2007
Source: Swedenergy
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© Vattenfall AB 22
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
![Page 23: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/23.jpg)
23
Electricity prices in Europehouseholds 2 500-5 000 kWh/year, 2:nd half 2007
EUR/kWh
Source: Eurostat
0
0,05
0,1
0,15
0,2
0,25
0,3
eu
27
ea
12
Bu
lga
ria
La
tvia
Es
ton
ia
Lit
hu
an
ia
Gre
ec
e
Cro
ati
a
Ma
lta
Cze
ch
Re
pu
blic
Slo
ve
nia
Ro
ma
nia
Fin
lan
d
Fra
nc
e
Hu
ng
ary
Slo
va
kia
Po
lan
d
Sp
ain
Un
ite
d K
ing
do
m
No
rwa
y
Po
rtu
ga
l
Cy
pru
s
Lu
xe
mb
ou
rg
Sw
ed
en
Au
str
ia
Be
lgiu
m
Ne
the
rla
nd
s
Ire
lan
d
Ge
rma
ny
Ita
ly
De
nm
ark
Moms
Skatt
Energi+nät
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Källa: 24
Electricity prices for the industry20-500 MWh/year, incl network and taxes, 2:nd half 2007
EUR/kWh
Eurostat
0
0,05
0,1
0,15
0,2
0,25
eu
27
ea
12
Es
ton
ia
Sw
ed
en
Bu
lga
ria
Fin
lan
d
La
tvia
Fra
nc
e
No
rwa
y
Cro
ati
a
Lit
hu
an
ia
Gre
ec
e
Po
rtu
ga
l
Lu
xe
mb
ou
rg
Ro
ma
nia
Cze
ch
Re
pu
blic
Po
lan
d
Ne
the
rla
nd
s
Slo
ve
nia
Sp
ain
Ma
lta
Au
str
ia
Un
ite
d K
ing
do
m
Be
lgiu
m
Slo
va
kia
Hu
ng
ary
Ire
lan
d
Ge
rma
ny
Cy
pru
s
Ita
ly
De
nm
ark
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© Vattenfall AB 25
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
![Page 26: © Vattenfall AB The Swedish Power Market Presented for Invest in Sweden Agency and Sun Microsystems Stockholm 20 March, 2009 Sandra Grauers Nilsson, Vattenfall](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551a8f555503466b3a8b4e57/html5/thumbnails/26.jpg)
© Vattenfall AB 26
Production and sales in competition
Transmission and distribution as a monopoly
Two Separate Legal Entities
Source: Swedenergy
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© Vattenfall AB 27
Electricity network regulation should aim to achieve...
• Efficient operation of the national grid as well as the regional and local networks
• Reasonable tariffs vs. service provided
• Competition in sales of electricity by creating non-discriminatory conditions for all
Source: Swedenergy
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© Vattenfall AB 28
Structure of Network Utilities in Sweden
• National Grid, Svenska kraftnät - 400-220 kV
• Regional networks - 10 operators - 40-130 kV
• Local networks - 180 operators < 40 kV, 5.3 million customers, average 29.000 cust./co.
Source: Swedenergy
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© Vattenfall AB 29
The deregulated electricity market
Grid
Generator
Generator
Generator
Market Place
Supplier
Trader
Customer Customer Customer
CompetitionMonopoly
Regional net
Local net
Customer
TSO
Production Consumption
Customer
Supplier
Source: Swedenergy
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© Vattenfall AB
Thank you!
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© Vattenfall AB 31
Extra material
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© Vattenfall AB 32
Storage levels in the regulating reservoirs
Source: Swedenergy
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© Vattenfall AB 33
Energy consumption by user (Statistics Sweden)
2003 2004 2005
TWh TWh TWh %
I ndustry ......................... 154 158 156 39
Transport ...................... 95 99 101 25
Housing, services, etc. .. 154 147 145 36
TOTAL ........................... 403 404 402 100
Source: Swedenergy
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© Vattenfall AB 34
The residential and service sector has abandoned oil for electricity and district heating..
Source: Swedish Energy Agency
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© Vattenfall AB 35
..and the base for district heating has gone from fossil fuel to biomass
Source: Swedish Energy Agency
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Simultaneously, industry has switched to biomass and electricity
Source: Swedish Energy Agency