future energy markets: how and where?
TRANSCRIPT
Future energy markets: how and where?
Vaasa Energy Week
22.3.2017, Satu Viljainen
The Nordic power system faces many challenges
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Frequency is the heartbeat of the power system
Control room operators' task is to keep the frequency within predefined limits
Frequency of the Nordic power system is deteriorating
If frequency falls outside the limits, the risk of system collapse increases
Generation structure in the Nordics is becoming more variable and import-dependency increases
Cold winter days with tight demand-supply can be challenging especially in case of failures
NORWAY
P 26 800
C 25 000
B 1 800
FINLAND
P 11 600
C 15 100
B - 3 500SWEDEN
P 27 200
C 27 400
B - 200
DENMARK
P 4 900
C 6 100
B - 1 200
Cold winter day in 1 of 10 winters
NORDIC MARKET TOTALP = Available capacity for market, TSO reserves excluded
*) 70 500
C = Peak demand **) 72 100
B = Balance without power exchange - 1 600
Most of the inertia in the Nordic system comes from thermal power plants
Inertia resists frequency changes - small inertia means higher risk of blackouts
Small inertia
Normal inertia
Frequency
Time
Fault, e.g. tripping of a large production unit
Generation inadequacy has started to cause concerns elsewhere too
Source: Bloomberg news, 17 January 2017
Source: The Sydney Morning Herald, 10 February 2017
A new German word "Dunkelflaute" has entered the electricity market vocabulary this year
Source: Die Welt, 2 February 2017
Everyday challenge in today's markets already: balancing the variable supply and demand
Long-term challenge that remains: how to develop seasonal storage that makes economic sense?
Building more transmission lines will help
But grid expansion can sometimes be extremely challenging – the German example
Montel News, 16 November 2016:
730km of the needed 7,900km has been built since 2009
Issues to solve: how to make the markets work and fit for renewables
Network Codes and Guidelines
Clean Energy Package
Energy transition
18
Ensuring non-distorted price-formation and making use of decentralized knowledge
Increasing trade close to real-time creates opportunities for balance service providers
Both generators and consumption are active in the balancing and reserve power
markets in Finland
Criteria for balance service providers: does it start, how fast does it ramp, how long does it last?
Frequency containment reserve for disturbances,220 - 265 MW
(1200 MW in the Nordics)
Frequency containment reserves for normal operation,140 MW
(600 MW in the Nordics)
Automatic frequency restoration reserve,70 MW
(300 MW in the Nordics)
Balancing power markets, balancing capacity markets, reserve power plants
880 – 1100 MW
Activation During large frequency deviations
All the time During predefined hours
On request
Ramping In seconds In a couple of minutes In a couple of minutes In 15 minutes
Future electricity: cost-efficient, green and secure
Thank you for your interest!Questions?