Transcript European Grid Development, Market Development and

European Grid Development, Market
Development and Renewable Energy
International Energy Conference
Copenhagen, 12 March 2008
Peter Jørgensen
Vice President, Planning
12 March 2008
New Tasks, New Tools
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Agenda
Third Package - Infrastructure Development
Unique Role of TSO’s
From National to Regional and European Planning
From Planning to Investment Decisions – Incentives and Criteria’s
Public Authorization Procedures
12 March 2008
New Tasks, New Tools
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Third Liberalization Package
- infrastructure development
Unbundling
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Avoid distorted investment incentives within integrated companies
Strong national regulators
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Review investment plans of TSOs
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Monitor network security and reliability
ACER – Agency for the Cooperation of Energy Regulators
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Perform regulatory oversight of ENTSO – 10-year investment plans
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Decide on regulatory regime applicable to infrastructure
ENTSO – European Network of Transmission System Operators
12 March 2008
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Identify, manage and finance research and innovation
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Coordinate grid operation according to agreed codes
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Perform investment planning – coordinated long term planning
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Prepare system adequacy forecasts for summer, winter and long term
New Tasks, New Tools
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Responsibility of TSO’s
- from long term planning to real-time operation and settlement
-25 year
-1 year
-1 month
-1 week
-1 day
Real-time
Operation
Planning and R&D
Building and maintenance of infrastructure
System operation
Market operation and settlement
Unique strength of TSOs to embrace the full responsibility!
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New Tasks, New Tools
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From National to Regional Planning
- the Nordel example
3 Nordic Grid Master Plans in last 10 years
Reinforcements in 5 prioritized cross
sections proposed in 2004
- Comprehensive analysis based on common
data and models
- 4 projects decided – 1 pending
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12
10
2
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Nordic Grid Master Plan 2008
- Nordel Scenarios for 2015 and 2025
- Proposals for internal and external
reinforcements
4
1
Sweden
17
Finland
8
17
5
17
28
3
Norway
11
Great Britain
15
26
25
7
23
6
13
Denmark
24
14
16
20
31
Netherlands
27
21
22
19
Poland
30
Balticum
Germany
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New Tasks, New Tools
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Nordic Grid Master Plan
Market functioning
- Price formation in the integrated
NordPool spot market – statistics
and modeling
Security of supply
- power and energy balances –
statistics and modeling
- margins to market failure and
system failure – statistics and
modeling
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New Tasks, New Tools
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Nordic Grid Master Plan
Reinforcements
- Internal and external
reinforcements analyzed
- Reinforcement of external Nordic
interconnections in general shows a
positive cost-benefit
Investments
- Level for infrastructure investments
will be tripled
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New Tasks, New Tools
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Danish Grid Development
Major reinforcements will be
triggered by international
power market and off-shore
wind
Alternative 1
Norge
Sweden
Skagerrak
SK 1&2
SK 3&4
Konti-Skan
KS 1&2
Vester Hassing
Glentegård
Ishøj
København
Ferslev
OVerloaded connections
Overload > 150 %
Overload > 125 <= 150 %
Overload <= 125 %
Tjele
Idomlund
Urgent need for:
Askær
- New guidelines on the use of
overhead lines/underground
cables
- Efficient and faster public
authorisation procedures
12 March 2008
Trige
New Tasks, New Tools
Endrup
Sweden
Gørløsegård
Hovegård
Landerupgård
Herslev
Storebælt
Bjæverskov
SB 1&2
Fraugde
Kingstrup
Kassø
Germany
Kontek
Rødsand
Germany
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Detected Bottlenecks during n-1 conditions of UCTE
“Scenario North”
source: EWIS study
Obvious need for planning and investment decisions on European level!
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New Tasks, New Tools
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From planning to investment decisions
- incentives and criteria’s for investment decisions
New interconnector capacity may cause
considerable redistribution of wealth
compared to the net socio-economic
benefit - distributed in several countries!
Gen
Con
Cap Net
Optimal interconnector capacity differs
significantly between private and socioeconomic welfare criteria’s
Regulation, allocation of congestion rents & compensation mechanisms must
support socio-economic optimal investments on regional/European level!
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New Tasks, New Tools
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Summary
Some basic prerequisites for the timely development of
infrastructure to support a well-functioning European electricity
market, security of supply and massive integration of RES are:
Efficient TSO-cooperation on European and regional level
- coordinated and qualified planning procedures and investment decisions
Strong national and European regulation
- investment criteria’s based on socio-economic welfare
- incentives for investments supporting goals on regional and European
level
Politically supported guidelines for new infrastructure
Efficient public authorization procedures
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New Tasks, New Tools
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