1

NorNed Submarine Cable

Conference on Electric Cables Algeria 12 November, Algiers

Svein S. Pedersen, Statnett SF

Vice Precident

2

Statnett in brief

•The Norwegian Transmission System Operator

•Established 1992

•Owns and operates one national control centre and three regional control centres

•Owns approx. 9700 km power lines and 130 transformer stations. 420 kV, 300 kV, 132 kV AC. 350 kV DC

•Owns and operates interconnections to four neighbouring countries

•Number of employees : 575

•Turnover 2004: 800 mill USD

•Statnett SF is a state-owned enterprise administrated by the Ministry of Petroluem

and Energy

3

Ongoing Submarine Cable Projects in Statnett

Statnett Projects• NorNed: Norway- Netherlands,

450 kV HVDC, 580 km, 700 MW. 2 core cable and 2 single cables• Ormen Lange, Norway

420 kV HVAC, 4 km, 1000 MW. First 420 kV PEX insulated submarin cable

External Projects• Mallorca-Ibiza, Spain. 2 cables: Mallorca-Ibiza and Ibiza-

Formentera

150 kV HVDC/132 kV HVAC and 66 kV HVAC, 117 and 24 km, 100 MW and 50 MW resp.

• Valhall Offshore Platform, Norway-North Sea.

150 kV HVDC light, 290 km, 80 MW. with integrated return conductor

4

Statnett

The NorNed project – some facts

• 700 MW HVDC cable between Norway (Feda) and the

Netherlands (Eemshaven)

• TSO cooperation between Statnett and TenneT

– Investment decision end 2004

– Regulated interconnector - included in main grids

– Market coupling - Nord Pool and APX

• Cost estimate appr. € 500 mill

• 15-20 % increase in Norway’s import/export

capacity

• In operation from 2007/2008

5

Scope is to build and install 580 km submarine cable and two converter installations

Feda Eemshaven

Strømretter N

Strømretter NL

Sjøkabel

580 km

Submarine cable

Converter Converter

BREMERHAVENWILHELMSHAVEN

EMDENLAUWBERSOOG

EMSHAVEN

ESBJERG

FEDA

FARSUND

FLEKKEFJORD

KRISTIANSAND

DENMARK

NORWAY

GERMANY

THE NETHERLANDS

LISTA

VIKING CABLE

PRE-ROUTING REPORT

NORWAY - GERMANY

DRAFT REPORT

ROUTE PROJECT

APPENDIX A1

6

History

• Planning started 1994– Based on power exchange agreement between

Statkraft and Sep (NEA)

– Statnett responsible for the northern half of the cable

• Statkraft/NEA agreement terminated January 2004• Statnett and TenneT developed ”new NorNed”

– New parties

– New business model

– ”Old” licences, contracts etc

7

NorNed will be valuable for both countries

• Markets with different quite characteristics– Thermal vs hydro

– Different price structures (day, season, year)

• Price differences leading to high trade income

– Improvement in market functionality and security of supply

8

Energy in Norway and The Netherlands

• Different challengesNorway

Hydro

Other

The Netherlands

Hydro

Gas

Coal

Nuclear

Wind

Other

The Netherlands:Enough capacity in peak hours

Norway:Enough energy indry years

Flow to NL at peak hours

Flow to Norway atoffpeak hours, more in dry years

• Trade is beneficialDaglig variasjon i nederlandsk forbruk

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

MW

06.jan.04

06.jul.04

Daglig variasjon i forbruk i Norge

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

MW

06.01.2004

06.07.2004

Norwegian daily consumption Dutch daily consumption

Winter

Summer

9

Great variation in generation in Norway

Normal

Wet years

Dry years90

10

TWh

120

150

Import

Export

Today’s grid can import 15-20 TWh in dry years.We need 10-15 TWh in increased capacity.High prices will reduce consumption in dry years.

125

25

35

Consumption

10

90

TWh

150

Import

Export

Normal

Wet years

Dry years

New generation

Consumption

10

TWh

100

160

Normal

Wet years

Dry years

120

Great variation in generation [cont.]

125 125

35

25

11

NorNed will generate large trading revenues

• … unlike most grid investments• … because the prices vary in totally different patterns

Kraftpriser 2/ 2 - 8/ 2, 2004

0

100

200

300

400

500

600

700

800

1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106

113

120

127

134

141

148

155

162

NO

K/M

Wh

Nederland Norge Differanse

Power prices

12

NorNed will increase market liquidity

• Increased supply to the Dutch market at peak hours will reduce peak prices– More competition to existing generators, more fair

prices to consumers

– Reduced frequency of price spikes. Will in itself contribute to increased liquidity because of lower risk exposure for traders

– More stable prices will reduce the exposure to high imbalance costs. Will be a benefit for potential ”independent” investors in new generation

Source:APX

13

NorNed will improve security of supply

• Public and political concern for security of supply (SoS)• Many sources and scenarios can lead to low SoS• NorNed represents a diversified, alternative source of supply

for both Norway and The Netherlands• Norway will benefit from import of energy in dry years• The Netherlands will benefit from import of power capacity in

peak hours– Norway is able to deliver

– New capacity (MW) can be installed at low cost in existing hydro stations

• The Nordic region has proven expeience from DC-links– DC is preferential, because flows can be fully controlled

14

NorNed is environmentally friendly

• Many environmental benefits– Import of green hydro power from Norway

• NorNed will reduce spill of water and stimulate to new investments

– NorNed facilitate development of renewables• Wind power in NL will benefit from quick regulating ability

of the hydrosystem• Possibility to build more wind power in Norway (where

there is more wind and less people)

– Reduced CO2-emissions from Dutch generators • More efficient use of plants because of reduced daily

variation in output from plants

• Few environmental problems– Neglible visual impact, no emissions, no pollution

to sea, neglible magnetic field from two-core cables

15

Business model

• NorNed will be part of the main grid• Costs and income split 50/50 between Statnett and

TenneT– Costs covered by main grid tariff, subject to ordinary

regulation

– Income included in Statnetts allowed income

– Expected net reduction in tariff about 10 mill €/year

• Day ahead trade through market coupling– Capacity utilization determined by price differences in

day ahead markets

• System services traded by TSOs– Reserve power

– Emergency reserves

16

A new standard ?

1. Process– Cooperation between independent TSOs

– Decision based on cost/benefit evaluation

2. Regulated interconnector, included in the main grid

3. Market coupling

An innovative solution in a European context …– in line with EU preferences

… and still well known within Nordel

17

European perspective

The Nordic market

The British market

The Iberian market The Italian

market

The South-East European market

The Baltic market

The Core market

18

Concluding remarks

• The project has a sound business modell

• The fundamentals in the energy markets will make this a profitable investment for both countries

• A good cooperation between the Dutch and Norwegian Transmision System Operaters

19

Norway and Submarine Cables

• Between 1400 and 1500 submarine cables in Norway• The oldest one in function was installed 1930• Statnett has today appr. 500 km of submarine cables• Until year 2000, Statnett had its own cable laying vessel,

“Skagerrak”• Statnett has operated HVDC submarine cables since 1976 • Nexans factory for submarine cables is placed in Norway

20

NorNed kabel HVDC ConvertersThyristor Valve

Thyristor

Thyristor module

Thyristor valve 6 valves, each appr 15m height

21

NorNed kabel HVDC Converters Transformers

3 Transformer units Each side (Spares in addition)

22

NorNed kabel HVDC Converters Shunt capacitors and filters

AC harmonic filters

DC smoothing reactor

23

Location of Converter Site

Site

Tunnel

24

Site Preparation Scope (approximate /preliminary figures)

• Clearing of 25,000 m2 wood and vegetation• Removal of 80,000 m3 till and soil• Blasting of 60,000 m3 rock• Filling and compaction of 55,000 m3 rock mass• 1 km road construction• Drainage trenches• Retaining walls• Erosion protection• Landscaping

25

Tunnel route

26

Microtunnels

27

N102/N103 HVDC Cable Supply- Shallow Section

• Scope: Overview

28

HVDC Cable Supply- Shallow Section

• Supply:– 270 km of two core mass-

impregnated cable (2x790 mm2)

29

N102/N103 HVDC Cable Supply- Shallow Section

• Supply:

– 2 x150 km of single core mass-impregnated cable (1x700 mm2)

30

N102/N103 HVDC Cable Supply- Shallow Section

31

Scope of Work

• Engineering• Sea trials deep trenching• Sea trials laying vessel• Pre-lay survey and route preparations• Pre-lay dredging (Dutch nearshore)• Cable laying• Trenching and as-trenched survey• Rock dumping and as-dumped survey• As-built documentation

32

MAIN CHALLENGES

• Microtunnels landfall Norway

• Narrow and deep Fedafjord

• Deep Norwegian Trench

• Some areas with hard seabed in the flat and shallow sections further south

• Several crossings

• Intense trawling in the south

• Ship lane crossings

• Instable seabed Eems Estuary

• Schedule restrictions Waddensea

• Shallow area 20 km from landfall

• Dike crossing Dutch landfall

33

Crossings

WEST BANK

MONKEY BANK

TURBOT BANK

LITTLE FISHER BANK

OLDELBEVALLEY

HORNS REV

WADDENZEE

TyCom

UK DENMARK 4

BORKUM

SCHIERMONNIKOOG

ALTE MELLUMWANGEROOGE

HELGOLAND

NORDERNEY

SCHARHÖRN

SYLT

GERMANY

THE NETHERLANDS

DENMARK

NORWAY

KRISTIANSAND

FLEKKEFJORD

LISTA FARSUND

EMDEN

WILHELMSHAVEN

BREMERHAVEN

EEMSHAVEN

LAUWERSOOG

KVINESDAL

CUXHAVEN

BRUNSBÜTTEL

KP 25

KP 50

KP 75

KP 100

KP 125

KP 150

KP 175

KP 200

KP 225

KP 250

KP 275

KP 300

KP 325

KP 350

KP 375

KP 400

KP 425

KP 450

KP 475

KP 500

KP 525

KP 550

KP 575

58 N

57 N

56 N

55 N

54 N

5 E

6 E

7 E

8 E

E 6

00 0

00

E 7

00 0

00

E 8

00 0

00

E 9

00 0

00

N 6 000 000

N 6 100 000

N 6 200 000

N 6 300 000

N 6 400 000

-100

-200-300

-400

-500

-100

-40

-40

-40

-40

-50

-50-50

-90

-80

-70

-60

-50

-50

DENMARK

NORNED KABEL HVDC PROJECT

OVERVIEW MAP

CABLE ROUTE EEMSHAVEN - FEDA

LEGEND

TELECOM CABLE IN USE

PLANNED TELECOM CABLE

HVDC CABLE IN USE

GAS PIPELINE

OIL PIPELINE

EUROPEAN DATUM (ED 50)

UTM ZONE 31

PRINTED: 15.03.04

ATLANTIC CROSSING

0 10 20 30 40 50 60 70 80 90 100 km

34

Landfall operation

35

ROV BASED WATER JETTING TRENCHER

36

ROCK DUMPING VESSEL