Off h id d l tOffshore grid developments

20 j 2011 Kj t H l St t tt20 jan. 2011 Kjartan Hauglum, Statnett

VisionAA

Possible offshore development

ap

2020 -2040Phase 1Phase 2Phase 3

24. januar 2011 2

Statnetts mission towards 2030To build the next generation high voltage power grid-To build the next generation high voltage power grid

2010 2015 20302010 2015

• An integrated Norwegian 420kVpower grid

• Our strategic actions and investments on short termS it f l

• Today's grid with regional challengesG id d l t t i • Increased renevable production

• Increased interconnector capacity and a more integrated power market

• Security of supply, new renewables and increased exchange with our neighbors

• Grid development to improve security of supply and utilization of national resources

Offshore wind areas for possible development

Areas 50- 60 km from connection points will normally use AC

Floating windparks

Fixed windparks

Areas more than 50-60 km offshore will60 km offshore will normally use DC

2011-01-24 4

Planned interconnectorsSydVest-link yCable toSouth of Sweden

NSNCable to England

NorNed 2 Cable to the Netherlands

Skagerak 4 Cable to DenmarkCable to the Netherlands

NORD.LINK Cable to Germany

Cable to Denmark

1/24/2011 5

Cable to GermanyNorGerCable to Germany

ENTSO-E: a trans-European network

• Fully operational since July 2009• Fully operational since July 2009

• Represents 41 TSOs from 34countries

• 525 million citizens served• 828 GW generation• 305,000 Km of transition lines305,000 Km of transition lines

managed by the TSOs• 3,400 TWh/year demand• 400 TWh/year exchanges400 TWh/year exchanges

• Replaces former TSO organisations: ATSOI, BALTSO, RTSO, NORDEL, UCTE UKTSOAUCTE, UKTSOA

European Network of Transmission System Operators for Electricity

ENTSO-E –

The structure

ENTSO-E: The System Development Committee (SDC)

Upcoming ENTSO-E Conference

• “Towards electricityTowards electricity infrastructure for a carbon neutral E ”Europe”

• Brussels, 10-11 February Confirmed speakers include:Brussels, 10 11 February 2011

• More information and

Tamas FELLEGI, Minister for Energy, Hungarian Presidency

Günther OETTINGER, EU Energy Commissioner

• More information and registration at:

Connie HEDEGAARD, EU Climate Action Commissioner

Claude TURMES MEP, MEP, ITRE Member

Arthouros ZERVOS, President, EWEA, EREC and CEO, Public Power Corp

• www.entsoe-event.eup

Alberto POTOTSCHNIG, Director, ACER

Heinz HILBRECHT, Director, Security of Supply, Energy Markets & Networks, EC

Daniel DOBBENI ENTSO E President and CEO ELIADaniel DOBBENI, ENTSO-E President and CEO, ELIA

EU - Energy Infrastructure PackageEU Energy Infrastructure Package

• In the electricity sector four EU priority corridors are identified:

• An offshore grid in the Northern Seas and connection to Northern and• An offshore grid in the Northern Seas and connection to Northern and Central Europe to transport power produced by offshore wind parks to consumers in big cities and to store power in the hydro electric power plants in the Alps and the Nordic countriesplants in the Alps and the Nordic countries.

• Interconnections in South Western Europe to transport power generated from wind, solar, hydro to the rest of the continent. C ti i C t l E t d S th E t E t th i• Connections in Central Eastern und South Eastern Europe, strengthening the regional network.

• Integration of the Baltic Energy Market into the European market.

N th S C t i Off h G id I iti tiNorth Seas Countries Offshore Grid Initiative

2011-01-24 11

North Sea Countries Offshore Grid Initiative

s e t by MoU s i gned by

ENTSO‐E MINISTERS COMMISSION ERGEG

d

Steering Committee

Programme Board

Working WorkingWorking

Committee

WorkingGroup 1

WorkingGroup 3

WorkingGroup 2

Head NL - DK Grid configuration and integration

Head UK - IRLMarket and regulatory issues

Head FR - GEPlanning and authorization

NSCOGI supportNSCOGI supportEuropean Commissioner for Energy Günther Oettinger welcomed the agreement. "The

ff h id i th N th S d it ti t th d t l E h boffshore grid in the North Sea and its connection to northern and central Europe has been identified as one of the priorities in matters of electricity," he said in a statement."It is very encouraging to observe that today EU member states and Norway are taking this significant step ahead by signing the Memorandum of Understanding," he added.g p y g g g,

Daniel Dobbeni, president of the Network of Transmission System Operators for Electricity(ENTSO-E) described the initiative as "a significant step in the direction of regional cooperation(ENTSO E), described the initiative as a significant step in the direction of regional cooperation with a shared vision, concrete objectives and an ambitious, but also pragmatic action plan"."It is based on a common understanding on the potential of the renewable energy sources of the North Seas in contributing to the EU Energy Policy goals," he stated, adding that ENTSO-E would be signing a letter of intent to collaborate on the project.

Time lineTime line2011‐06‐30: 

WG1* baseline study

* analysis on gridconditions

* progress report

2012‐06‐30:

costs & benefits

2012‐12‐30:

case studyreport

2011 06: 2011 122012‐06:

WG2

2011‐06:

* identification of market/regulatory

barriers

* progress report

2011‐12:

proposals for equitablyshared

cost/benefits

* proposals common regulatoryapproach to anticipatory investment

* proposals to addressmarket/regulatory barriers

* Proposals market mechnaisms Proposals market mechnaisms

WG32011‐06‐30: 

progress report to coordinators

2011‐12‐30:

common procedural guidelines as recommendation

Offshore grid is technically feasible, but…

• Multi terminal VSC HVDC has not yet been delivered

• Only one contractor with a fixed (jacket) offshore project in operation

• DC breakers need development

• Hi h l i VSC AC/DC t• High losses in VSC – AC/DC converters

• Deliveries from different suppliers have to interact in the same grid

• Technical operation of onshore grid very demanding with more interconnectors

Offshore grid – regulatory challenges

• Different framework in different countries

• Developer prioritize areas with the most profitable solutions

• Some regulators do not allow direct energy flow from national renewable power plants directly to another nation

• Protectionist development – every nation and supplier eager for own industry development

• Different set of rules for grid connection

• Grid development onshore caused by offshore wind – who pays?

16

Norway has……No w y s……

• …large amount of resources from renewable energy…

• …and a flexible hydro power y psystem well suited for supply balancing services to Europe and hereby reduce the CO2

i iemission

• …competence on subsea cables and are willing to build

2011-01-24 17

Offshore power grid- some reflections

• Focus for the time being is national targets• Focus for the time being is national targets

• Modular development from national development in the southern part p p pof the North Sea

• Diff h i l d d d k b h d f h• Different technical standards and markets at both ends of the interconnectors

• Electrification of oil and gas installations may contribute to development of an offshore power grid on Norwegian shelf

• Offshore wind may be a driver if the society is willing to pay the price, subsidies included

2011-01-24 18

• The Dutch lose faith in windmills• Karel Beckman and Alexander Haje

• The new Dutch right-wing government has announced a radical overhaul of Dutch energy policy. It is cutting

b idi f f f bl d i llsubsidies for most forms of renewable energy drastically, and is even putting an end to all subsidies for offshore wind, solar power and largescale biomass. It has also announced a warm welcome for new nuclear power stations – the first time a Dutch government has done so since the Chernobyl-disaster in 1986. However, not all is y ,lost for the renewable energy sector: the cabinet is still brooding on a long-term strategy and a “Green Deal” that might yet put the Netherlands back on a “greener” coursemight yet put the Netherlands back on a greener course.

2011-01-24 19

Main message

• Not very likely that we will have an international offshore grid before 2020• Will slowly emerge from national development

• Offshore grid are technically feasible but very demandingg y y g• Complicated structures with many countries involved – standardization and harmonization is

needed

• Offshore TSOs not nominated in several countries

• The value of flexible Norwegian hydropower for balancing and storage will increase with more interconnectorsincrease with more interconnectors

• Statnett works actively through ENTSO-E related to interconnectors, a possible future offshore grid and European market developmentpossible future offshore grid and European market development

• Offshore grid will become a reality when the drivers are strong enough

24. januar 2011 20

VisionAA

Offshore 2020 -2040a

24. januar 2011 21