attached presentation gives an overview
TRANSCRIPT
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Statnetts System
Operations
and Market
Development Plan
2014-20
Statnett 2015-04-28 httpSMUP 2014-2020pdf
Contents
1 About Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash background
3 System operations today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measureshttpSMUP 2014-2020pdf
This is Statnett
bull Statnett is the Transmission System Operator in the
Norwegian power system
bull Statnett is a state enterprise owned by the Norwegian
state through the Ministry of Petroleum and Energy
bull Statnett is responsible for maintaining the balance in
the Norwegian power system and has the overall
supervision responsibility and physical control in the
Norwegian power system
bull Statnett operates and owns about 11 000 km of lines
and cables and approximately 150 transformer
stations throughout Norway
bull Operations are monitored 277365 from one national
control center and three regional control centers
bull Statnett is also responsible for interconnectors to
Sweden Denmark and the Netherlands
The future is electric
- 420 kV
- 300 kV
- 132 kV
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Our main objectives
bull Ensuring a stable and secure
supply of electricity by coordinating
production and consumption
bull Ensuring long-term quality of supply
by developing the Norwegian main
grid
bull Offering equal access to the main
grid to all market players
bull Ensuring available transmission
routes by means of good
maintenance practices
The future is electric
Our strategy
Security of supply
Maintaining security of supply
through operations
development monitoring and
preparedness
Climate
To facilitate the realisation
of Norways climate goals
Value creation
To facilitate value creation
for our customers and
Norwegian society at large
The future is electric
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 2: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/2.jpg)
Contents
1 About Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash background
3 System operations today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measureshttpSMUP 2014-2020pdf
This is Statnett
bull Statnett is the Transmission System Operator in the
Norwegian power system
bull Statnett is a state enterprise owned by the Norwegian
state through the Ministry of Petroleum and Energy
bull Statnett is responsible for maintaining the balance in
the Norwegian power system and has the overall
supervision responsibility and physical control in the
Norwegian power system
bull Statnett operates and owns about 11 000 km of lines
and cables and approximately 150 transformer
stations throughout Norway
bull Operations are monitored 277365 from one national
control center and three regional control centers
bull Statnett is also responsible for interconnectors to
Sweden Denmark and the Netherlands
The future is electric
- 420 kV
- 300 kV
- 132 kV
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Our main objectives
bull Ensuring a stable and secure
supply of electricity by coordinating
production and consumption
bull Ensuring long-term quality of supply
by developing the Norwegian main
grid
bull Offering equal access to the main
grid to all market players
bull Ensuring available transmission
routes by means of good
maintenance practices
The future is electric
Our strategy
Security of supply
Maintaining security of supply
through operations
development monitoring and
preparedness
Climate
To facilitate the realisation
of Norways climate goals
Value creation
To facilitate value creation
for our customers and
Norwegian society at large
The future is electric
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 3: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/3.jpg)
This is Statnett
bull Statnett is the Transmission System Operator in the
Norwegian power system
bull Statnett is a state enterprise owned by the Norwegian
state through the Ministry of Petroleum and Energy
bull Statnett is responsible for maintaining the balance in
the Norwegian power system and has the overall
supervision responsibility and physical control in the
Norwegian power system
bull Statnett operates and owns about 11 000 km of lines
and cables and approximately 150 transformer
stations throughout Norway
bull Operations are monitored 277365 from one national
control center and three regional control centers
bull Statnett is also responsible for interconnectors to
Sweden Denmark and the Netherlands
The future is electric
- 420 kV
- 300 kV
- 132 kV
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Our main objectives
bull Ensuring a stable and secure
supply of electricity by coordinating
production and consumption
bull Ensuring long-term quality of supply
by developing the Norwegian main
grid
bull Offering equal access to the main
grid to all market players
bull Ensuring available transmission
routes by means of good
maintenance practices
The future is electric
Our strategy
Security of supply
Maintaining security of supply
through operations
development monitoring and
preparedness
Climate
To facilitate the realisation
of Norways climate goals
Value creation
To facilitate value creation
for our customers and
Norwegian society at large
The future is electric
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 4: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/4.jpg)
Our main objectives
bull Ensuring a stable and secure
supply of electricity by coordinating
production and consumption
bull Ensuring long-term quality of supply
by developing the Norwegian main
grid
bull Offering equal access to the main
grid to all market players
bull Ensuring available transmission
routes by means of good
maintenance practices
The future is electric
Our strategy
Security of supply
Maintaining security of supply
through operations
development monitoring and
preparedness
Climate
To facilitate the realisation
of Norways climate goals
Value creation
To facilitate value creation
for our customers and
Norwegian society at large
The future is electric
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 5: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/5.jpg)
Our strategy
Security of supply
Maintaining security of supply
through operations
development monitoring and
preparedness
Climate
To facilitate the realisation
of Norways climate goals
Value creation
To facilitate value creation
for our customers and
Norwegian society at large
The future is electric
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 6: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/6.jpg)
Key figures
Norway
Yearly production
1401 TWh (2014)
Yearly consumption
1248 TWh (2014)
Max production
26 512 MWhh (Jan 2015)
Max load
24 180 MWhh (Jan 2013)
Fremtiden er elektrisk
-3
-2
-1
0
1
2
3
2010 2011 2012 2013 2014TW
h
Norwegian net exchange per month 012010 ndash 122014
0
50
100
150
200
Norway Sweden Finland Danmark
TW
h
Nordic power production 2012
Wind Hydro Nuclear Thermal
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 7: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/7.jpg)
In short
Everything is dependent on electricity
The future is electric
The power system is a balancing act
We are building the next generation power system
The future is electric
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 8: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/8.jpg)
Contents
1 This is Statnett
2 The System Operations and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 9: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/9.jpg)
SMUP communicates important trends
and high priority measures towards 2020
bull Outlines priorities and plans for system
operations development towards 2020bull Ongoing measures
bull Central trends and their consequences
bull High priority measures
bull Important contribution in the dialogue with
the energy industry and stakeholdersbull Regular dialogue meetings
bull Downloadable from Statnett web site
bull Update every second year
bull The SMUP and the Grid Development Plan
(NUP) constitute the correlated plans for
realization and operation of the electricity
system of tomorrow
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 10: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/10.jpg)
Contents
1 This is Statnett
2 The System Operation and Market Development Plan (SMUP)
3 System operation today
4 Future development trends and consequences for system
operation
5 Short term and long term measures
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 11: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/11.jpg)
Increasing complexity and risk
bull Faster larger and more frequent changes in generation
and flowsbull The frequency quality is not satisfactory
bull Secure system operation is becoming more challenging
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 12: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/12.jpg)
The Nordic frequency quality is not
satisfactory today
The largest frequency deviations occur
morning and evening with large
changes in production demand and
HVDC exchange
The main cause is considered to be
structural imbalances
Number of minutes per week outside 499-501 Hz
Number of incidents per day
outside 499-501 Hz
(average for 2009-2010)
The frequency quality measures the
balance between production and
consumtpion
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 13: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/13.jpg)
What are Structural Imbalances(Deterministic Frequency Deviations)
bull Structural imbalancesbull Imbalances within an hour due to a repetitive and
predictive mismatch between generation demand
and exchange mainly caused by
13
tn tn+1
Frequency Demand
Generation
Bilateral or market trade with hourly resolution or longer
Hourly resolution in plans for generation and exchange
Administrative rules for HVDC exchange
Note Nobody can be blamed for the structural imbalances nobody is
doing anything wrong to cause the imbalance
bull Stochastic imbalancesbull Imbalances caused by sudden and unpredictable events during operation
Outages and other contingencies
Forecast errors
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 14: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/14.jpg)
Simplified illustration of imbalance types
Fremtiden er elektrisk
Source NC LFCampR supporting document
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 15: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/15.jpg)
Existing operator tools
bull General requirements
ndash The Regulations for System Responsibility and NordPool Spot both require
energy balance per hour
ndash Hourly balances are monitored in the Balance Settlement
bull Structural imbalances within an hour
ndash In the planning phase Administrative requirement for quarterly schedules
when generation schedules change more than a given thresholds
ndash During operation TSO can shift schedules with up to +-15 min from plan
bull Stochastic imbalances (during operation)
ndash Automatic reserves FCR and FRR-A
ndash Manual reserves Regulating Power Market (FRR-M)
ndash Frequency operated system protection
Note Automatic reserves are also influenced by the structural imbalances
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 16: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/16.jpg)
Planning phase Operation phase
Frequency (Hz)
Reserve
procure-
ment
RKOM
FCR
FRR-A
Bilat
Elspot
Trade
Elspot
clearing
F
C
R
F
R
R
A
Elbas
Trade
Elbas
clearing
Gate Closure
RPM and
schedulesOutage
occurs
45 min
lock
-1 hour
Gate Closure
12 - 36 h
Primary
control
FCR-ND
Secondary
control
FRR-A
Tertiary control
FRR-M
Control Automatic Automatic Manual
Product
Frequency
activated
reserve
Frequency
activated
reserve
Regulating Power (RK)
AcquisitionMarket +
Base delivery
Market based
(since 2013)
RegPower Market
Option Market
PaymentMarket price
CompensnMarket price Market price
Automatic and Manual reserves
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 17: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/17.jpg)
How different reserves balance the system
Fremtiden er elektrisk
tid
EffektMW FCR
FRR-A
RK
FCR
(Primary
response)
FRR-A
(Secondary
response)
FRR-M
(Tertiary response)
Objective Stabilise frequency Restore frequency to
50 Hz
Replace FCR and
FRR
Congestion
management
Controller
location
Decentralised at
power plant
Centralised at TSOrsquos
control center
Manually instructed by
TSO to reserve
provider
Control parameter Frequency (Hz) Frequency (Hz) Imbalance (MW)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 18: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/18.jpg)
Increasing complexity and risk
bull Major changes in the operational situationbull New records and more extreme situations
bull Several years with constrained energy situation in regions
bull Extreme weather conditions more frequent with
major consequences for system operation
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 19: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/19.jpg)
System operation driven by extremeshellip
Recent records
Max production 26346 MW (23 Jan 2015)
Peak demand 24180 MW (24 Jan 2013)
2014 (March-May)
The warmest spring since
registrations started in 1900
2010
The coldest year in 70 years
2011 130 of normal
precipitation during January-
October ndash wettest year since
registrations started in 1900
Winter 200910
The driest since 1900
Only 52 of normal
precipitation (Decndash Febr)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 20: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/20.jpg)
Increasing complexity and risk
bull Several areas have several hours in N-0 operation
bull Local challenges with small scale generation
bull Smaller operational margins make maintenance challenging
No of hours outside N-1 operation (2012)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 21: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/21.jpg)
Necessary improvements
ndash challenging construction phase
bull Major development projects need periodical
disconnections bull Adding to challenges from increased reinvestments
and maintenance in coming years
bull Measures to reduce consequences bull Good planning coordination and communication
bull Minimize disconnection times
bull Use more of the year for revisions and maintenance
bull Live wire work smart switching by-looping and
advanced system protection schemes
bull Generation curtailment
Development and maintenance must be done
without compromising operational security
but considerably reduced spot market capacity is to
be expected
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 22: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/22.jpg)
Increased cost for system operation reflects
increased value creation
The costs have increased last years and growth is expected to continuebull Frequency quality must be improved
bull Increasing imbalances
bull Increased demand for flexibility in the Nordic market
bull More market based solutions
Focus on limiting the
increase in system
operation cost
bull Verify delivery of reserves
bull More efficient purchase and
dynamic volumes of reserves
bull Better procedures for revision
planning and reduced
disconnection times
Development of system operation cost 2003-13
Primary reserves
Secondary reserves
Tertiary reserves
Special regulation
Other cost
MN
OK
year
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 23: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/23.jpg)
Contents
1 This is Statnett
2 The System Operation and
Market Development Plan
(SMUP) ndash what and why
3 System operation today
4 Future development trends
and consequences for
system operation
5 Short term and long term
measures
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 24: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/24.jpg)
The power system is changing
Fremtiden er elektrisk
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 25: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/25.jpg)
Main development trends that will influence
the operation of the Nordic power system
bull Changes in European generation mix
Less predictable and less controllable renewable energy
Installed capacity (GW)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 26: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/26.jpg)
Main trends influencing the
Nordic power system
bull European market orientation
and integration
bull Price coupling Day-Ahead for
West Europe
bull Common European Intra-day
marked under development
Implementation 2017
bull New joint European rules
Network Codes
Seller
Buyer
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 27: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/27.jpg)
Implementation of new European Codes in
Nordic System Operation Agreement (SOA)
bull 10 Network Codes in progressbull 3 planning codes (RfG DCC HVDC)
bull 3 market codes (CACM FCA EB)
bull 4 operational codes (OS OPS LFCampR ER)
bull Covering a very broad range of issues
that will influence system operation
bull Major work in the coming 2-3 yearsImplementation 2015-2021
bull The Network Codes will become
Norwegian law
bull Nordic cooperation is crucial
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 28: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/28.jpg)
The future is electric
Network Code Status
October 2014wwwentsoeeu
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 29: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/29.jpg)
Transition from centralized to
decentralized power system
bull Strongly reduced cost forbull Wind and solar
bull Battery technology
bull Electric vehicles
bull Introduction of AMS in
2019
bull Establishing Data Hub
bull New possibilities for
system control at lower
voltages
bull Requires further
technology development
and good market solutions
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 30: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/30.jpg)
bull Large amounts of new renewable generation in the Nordic region Large generation surplus
New operational characteristics
Wind Hydro Nuclear Thermal Demand
Denmark Finland Norway Sweden
Main trends influencing the
Nordic power system
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 31: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/31.jpg)
bull Closer integration with Europe through several new interconnectors
Main trends influencing the
Nordic power system (44)
Denmark FinlandNorway SwedenNordic
Baltic
Poland
Germany
Netherlands
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 32: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/32.jpg)
HVDC capacity
developments
up to 2020
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 33: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/33.jpg)
Larger and more rapid changes in power
flow to be handled during operation
bull Substantially increased transmission capacity to Continental Europe
bull Changed operational patterns within the dayweek to match price
differences to Continental Europe
Larger and faster changes in power flow to be handled during operation
Power exchange typical winter week (MWhh)
Current interconnectors
wPlanned interconnectors
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 34: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/34.jpg)
Increased risk and more challenging
operations due to increased imbalances
bull Efficient use of the HVDC interconnectors requires faster changes in flow
direction and ramping throughout the hour This will increase the structural
(deterministic) imbalances during the hour
bull More small-scale and wind power generation give increased uncertainty in
available generation and increase the stochastic imbalances
Increased imbalances reduce the frequency quality further This is not an
acceptable development
Current imbalance Future imbalance
Load and exch
Generation
Imbalance
Max imbalance
Hour 1Hour 1 Hour 2Hour 2Time Time
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 35: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/35.jpg)
Intermittent generation offers less
support to the system
bull Increasing shares of wind power in the
Nordic system
bull More small-scale hydro in Norway
bull Small-scale generators have different
characteristics than reservoir hydro
power and they are usually connected to
the distribution grid
bull Little or no contribution tobull Frequency control
bull Stabilization of oscillations
bull Voltage stability
bull Short circuit capacity
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 36: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/36.jpg)
More frequent periods with limited access to
support capabilities
bull Wind and small-scale generation nuclear power and import will cover a
major part of the Nordic demand during the summer in 2020
bull During summer periods there might be very few large-scale hydro
generators in operation
The system will have less flexibility reduced access to controllable
resources and challenges with short circuit capacity and stability
Flexible and intermittent generation in South Norway (MWhh)
Night hours (1-6) dry year scenario 2020
Intermittent
Flexible
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 37: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/37.jpg)
Need for more data
bull We need more data on system inertia bull Real-time estimate of inertia
bull Define inertia limits
bull Measures against low inertia
bull Possible contribution from new resources bull Automatic reserves from large industry
bull Smart grids
bull Pilot project in Northern Norway
bull Aggregation services
bull Smart metering - market solution for load
bull Take into account that an instrument can meet
multiple needs Minimum requirements for Primary
(FCR) and Secondary (FRR-A) reserves will also
contribute to system inertia
Fremtiden er elektrisk
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 38: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/38.jpg)
The challenges of system operation
will be enhanced in the future
bull Extended transmission capacity to other power systemsbull further reallocation of hydropower production
bull larger changes in the power flow on the DC cables throughout
the day
bull Flow changes in the mornings and evenings will be significantly
larger than today
bull More intermittent RES in Europe
Fremtiden er elektrisk
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 39: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/39.jpg)
Contents
1 This is Statnett
2 The System operation and
Market Plan (SMUP) ndash what
and why
3 System operation today
4 Future development trends
and consequences for system
operation
5 Short term and long term
measures
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 40: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/40.jpg)
New possibilities and increased challenges
require new measures
Main driversbull Challenging operation and increasing
risk
bull Expanded and reinforced central grid
bull Changes in European generation mix
bull European integration and grid codes
bull New technology and new solutions
Possibilitiesbull Improved operational security (N-1)
bull Increased value creation through more
trade and better exploitation of resources
bull Offer increased flexibility and contribute to
reach climate targets
bull New ldquosmartrdquo solutions for system
operation
Challengesbull Larger and more frequent flow changes
bull Increased imbalances
bull Increased competition for flexibility
bull Periods with insufficient reserves and
system support
bull Increased system operation costs
Measuresbull Ensure sufficient functionality in the
system (through requirements and
market solutions)
bull Improve energy market and trade
solutions
bull Reduce structural imbalances
bull Further development of balancing
services
bull Increased real time information smart
solutions and more automation
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 41: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/41.jpg)
1 Ensure sufficient functionality in the system
bull Ensure operation of
units with necessary
functionality
bull Better control of
deliveries
bull Reduce risk and
improve frequency
quality
bull Reduce costs of
reserves and ENS
Objectives bull Require new functionality adapted to
future challengesbull Requirements for small scale hydro
bull New requirements for reservoir hydro
bull Verify functionality before
commissioning new units
bull Verify functionality in existing units
bull Test response and verify frequency and
voltage support in existing units
bull Specific investments to maintain
voltage quality and short circuit capacity
bull Tuning response to reduce system
oscillations
Possible measures
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 42: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/42.jpg)
2 Improve energy market and trade solutions
bull Include losses in market algorithm for
HVDC connections
bull Flow based market coupling
bull Allocate capacity on HVDC connections
based on socio-economic profitability
bull Continuousfaster ramping on HVDC
connections to change flow direction
faster
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Good utilization of
resources
bull Increased value
creation
bull Cost effective solutions
for both energy and
reserve markets
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 43: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/43.jpg)
3 Reduce structural imbalances
bull Reduce time resolution in generation
scheduling (1 hour -gt 15 min)
bull More flexible schedule shifts during the
hour
bull New market(s) for shorter term reserves
to capture different flexibility costs (eg
15 min resolution in Elbas)
bull Ancillary service for ramping
bull Finer time resolution in all energy
markets in the longer term (Nordic and
European)
bull Secure and efficient
operation
bull Good utilization of
resources and
increased value
creation by enabling
continuous ramping of
interconnectors
bull Market solutions better
adapted to power
system physics
Objectives Possible measures
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 44: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/44.jpg)
4 Further development of balancing services
bull General improvement of market designs Shorter blocks more frequent purchase coordinated
acquisition
bull Adapt generation schedules during the hour
bull Primary reserve FCR Verify unit responses development to Nordic market
bull Secondary reserve FRR-A Dynamic volumes development to Nordic market
bull Tertiary reserve FRR-M Short term Reduce minimum size of bids introduce
electronic activation of bids
Long term Full Nordic harmonizing
bull FRR-M option market (RKOM) Better transparency and efficiency
Include down-regulation during low load
bull More providers of frequency activated reserves
bull Secure operation
bull Better frequency
quality
bull Reduce structural
imbalances
bull Ensure sufficient
amounts of
reserves
bull Better control of
deliveries
Objectives
Possible measures
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 45: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/45.jpg)
5 Increased real time information smart
solutions and more automation
bull Advanced solutions for supervision
and control of the system
bull Enhanced flexibility also from demand
bull Northern Norway Pilot to test solutions
bull New control center and market
systems
bull Increased automation of reserves and
balancing
bull Better forecasting of wind and small-
scale hydro power
bull Safe operation with
faster changes and
increased
complexity
bull Increased system
control
bull Better and faster
decisions
bull Increased efficiency
Objectives Possible measures
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 46: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/46.jpg)
New technology enables smarter operation
Fremtiden er elektrisk
Better communication tools
More accurate metering
Real time data
Better control systems
Better modelstools for
analysis and conclusion
bull RampD at several areas
bull Pilot testing of demand side response
Better monitoring and status reports
Better decision support
More automatic controlbull System protection
bull Automatic reserves (FRR-A)
bull Automating balance regulation
More flexibility bull Utilizing demand side response by
automatic control
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 47: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/47.jpg)
Influencing factors
bull Implementation of new Network Codes bull Exact content and consequences of new codes are not finalized
bull Nordic harmonization of solutionsbull Nordic cooperation is crucial for new solutions for system operation
Joint Nordic challenges require joint Nordic solutions
bull New solutions require broad Nordic consensus ndash might take long time
bull New European Network Codes implemented in new Nordic System
Operation Agreement (SOA)
bull New products and processes require new IT solutionsbull New operation and market systems are under implementation
bull Will give increased flexibility when operational
bull Everything cannot be solved simultaneously
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 48: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/48.jpg)
Realizing next generation power system
A secure power system requires proper functionality adequate balancing resources and reliable deliveries
Market design closer to physical system
New solutions to reduce imbalances
Better utilization of new and existing technology Smart solutions Demand Side Management
Nordic cooperation and common Nordic solutions is crucial
Fremtiden er elektrisk
The future is electric
![Page 49: attached presentation gives an overview](https://reader033.vdocument.in/reader033/viewer/2022051717/58a2f6041a28ab366e8bace6/html5/thumbnails/49.jpg)
The future is electric