Seminar on Renewable Energy Technology implementation in Thailand
Experience transfer from Europe co-organised by
the Delegation of the European Union to Thailand and the Department of Alternative Energy Development and
Efficiency, Ministry of Energy
Electricity Transmission System Design:
European Ten Years Network Development Plan, Towards a European Electricity Market & The Danish Wind Case
Peter Jørgensen, VP, Energinet.dk
4 October 2012
1 4 October 2012
Agenda
1. European Transmission System Planning – ENTSO-E’s Ten Year Network Development Plan
2. Towards a European Electricity Market – From national to Pan-European Markets
3. The Danish Case: – Achieving 28% Wind Power and preparing for 50% by 2020
2 4 October 2012
3
Location of Energinet.dk
Energinet.dk
4 October 2012
Facts about Energinet.dk
• Independent public enterprise under the Danish Ministry of Climate and Energy
• Owns and operates the electricity and natural gas transmission systems and a natural gas storage
• Co-owns Nord Pool Spot, Nord Pool Gas and the European Market Coupling Company
• The consumers contribute to our activities through tariffs charged to their electricity and gas bills
• Our finances are based on a break-even principle
4 4 October 2012
5
Core Tasks for Energinet.dk
• Ensure short- and long-term security of supply
• Ensure well-functioning markets
• Ensure well-functioning emergency preparedness
• Build, own, operate and maintain gas and electricity transmission grids
4 October 2012
Agenda
1. European Transmission System Planning – ENTSO-E’s Ten Year Network Development Plan
2. Towards a European Electricity Market – From national to Pan-European Markets
3. The Danish Case: – Achieving 28% Wind Power and preparing for 50% by 2020
6 4 October 2012
ENTSO-E’s Ten Year Network Development Plan
TYNDP 2012
4 October 2012
Energy policy goals
• Sustainability/GHG:
More renewables, further from the loads
More heating and mobility with electricity
• Competitiveness/market integration:
More long-distance flows
• Security of supply
More optimal resources sharing
European transmission grid – key role in reaching the EU policy goals
4 October 2012
ENTSO-E - Where are we heading to?
4 October 2012
Why a Ten-Year Network Development Plan?
Regulation (EC) 714/2009:
“In order to ensure greater
transparency regarding the entire
electricity transmission network in
the [Union], the ENTSO for Electricity
should draw up, publish and
regularly update a non-binding
[Union]-wide ten-year network
development plan”
4 October 2012
EU-TYNDP
• Generation adequacy outlook
5 yr up to 15yr ( 2025!)
• modelling integrated networks
• Scenario development
• Assessment of resilience
• Based on reasonable needs of
system users
• Identify investments gaps
• Review barriers to increase
cross border capacities arising
from approval procedures
Nat. TYNDPs
• Existing and forecast supply
demand
• Efficient measures to
guarantee adequacy & SoS
• Indicate main transmission
infrastructure to be built
• Based on reasonable
assumptions about evolution
of generation
• Supply consumption and
exchanges
Regulators check consistency
Take into account
Build on nat. gen. adequacy
Outlooks and invest. plans
The 3rd Package defines the TYNDP
Regional
Investment
Plans
4 October 2012
The TYNDP 2012 package
• non-binding
• updated every 2 years
• based on common market and network studies
• generation adequacy outlook
a vision for the European extra high
voltage grid
• Ten-Year Network Development Plan
• Scenario Outlook and Adequacy Report
• 6 Regional Investment Plans
a comprehensive document suite that
includes
Consultation: 1 Mar - 26 Apr.
Final release: 5 July 2012
www.entsoe.eu
4 October 2012
Overall schedule TYNDP 2012
Jun 2010
Jan 2011
2010 2011 2012
March 2012
Jun 2012
TYNDP 2010
NREAPs
New 202020
scenario
6 RgIPs + TYNDP reports
SOAF 2012 report Workshop
Methodologies
& assessment
criteria
SAF 2011
Final
reports
Jun 2011
Scenarios
Consultation
Dec 2011
Regional
workshops
RgIP &
TYNDP
results
4 October 2012
High level of interaction with our stakeholders and members
ENTSO-E external workshops (10)
Acer ENTSO-E meetings (8)
ENTSO-E internal workshops (11)
29 Internal/ external
workshops for the
TYNDP 2012
TYNDP stakeholders working group
2013- 2014
TYNDP 2014
2010 2012 2011
4 October 2012
A dense 2-year long study process
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
1 25 49 73 97 121145169193217241265289313337361385409433457481505529553577601625649673697721
May 2020
DE - Correlation between wind and spillage time-series
spillage
wind
solar
[MW]
Wind; 157Hydro ROR;
60
Hydro STOR;
57
Solar; 36
NUCLEAR;
501
LIGNITE; 4
COAL; 0CCGT; 70
Peak Generation;
0
Miscellaneous; 95
Total Hydro;
116
Annual generation CSW Region (TWh) -EU202020 - Grid 2012
-4 000
-3 000
-2 000
-1 000
0
1 000
2 000
3 000
4 000
0 2000 4000 6000 8000
MW
Hours
Duration curve of market flows in 2020 DE-AT
4 775 GWh
14 427 GWh
Export DE -
Import DE -
26 % of the time at maximum
10 % of the time at maximum
• Scenario elaboration & validation
• Market studies
• Network studies
• Project identification & valuation
• Reports compilation
at stake
timely delivery
consistent results
limited resources
4 October 2012
Main deliverables TYNDP 2012
NTCs
2010
G/L dev. areas
+ technical needs
Proposed
projects
Grid transfer
capability increases
Market
studies
Network
studies
202020
in 2020
(+)
Transmission
adequacy
Expected bulk
flow patterns
4 October 2012
Renewable energies boom – by 2020 provides 38% of the
electricity demand
1/3 of present generation capacity to be replaced to meet demand in the coming decade
Peak load growth
Grid length development
4 October 2012
Around 100 bottlenecks in the transmission system by 2020
RES is triggering
80% of assets growth
4 October 2012
2020 Europe – 17% increase in infrastructure
By end 2016 2017 and beyond
4 October 2012
2020 Europe – additional 52300 km lines
4 October 2012
About €100 billion in the coming 10 years
• €100 billion
investment on grids…
• 1.5-2 €/MWh in
Europe over the 10-
year period,
• 2% of the bulk
power prices,
• less than 1% of the
total end-users’
electricity bill
billion € billion €
Austria 1.1 Ireland 3.9
Belgium 1.9 Latvia 0.4
Bosnia-Herzegovina 0.0 Lithuania 0.7
Bulgaria 0.2 Luxembourg 0.3
Croatia 0.2 Montenegro 0.4
Czech Republic 1.7 Netherlands 3.3
Cyprus 0.0 Norway 6.5
Denmark 1.4 Poland 2.9
Estonia 0.3 Portugal 1.5
Finland 0.8 Romania 0.7
France 8.8 Serbia 0.2
FYROM 0.1 Slovakia 0.3
Germany 30.1 Slovenia 0.3
Greece 0.3 Spain 4.8
Hungary 0.1 Sweden 2.0
Iceland 0.0 Switzerland 1.7
Italy 7.1 United Kingdom 19.0
Total ENTSOE perimeter 104
4 October 2012
TYNDP - Multi-criteria projects assessment
4 October 2012
A direct support to the European Energy policy goals
Social and economic welfare
<30M€/y
<30M€/y (and additionally
includes direct connection of new generation)
30 - 100M€/y
30 - 100M€/y (and additionally
includes direct connection of new generation)
>100M€/y
RES integration
neutral
direct RES connection <500 MW
direct RES connection >500 MW
Accomodation of inter-area
flows triggered by RES
Security of Supply
minor(no specific need)
medium(solved <10 years)
high (solved>10 years)
CO2 mitigation
neutral
mitigation<500 Kt/ymitigation>500 Kt/y
4 October 2012
Technical resilience
minor
medium
high
Flexibility
minor
medium
high
Losses variation
higher losses
no clear trend
lower losses
Projects with high technical performances
Additional
investment
reduces overall
losses
4 October 2012
1. Permitting and public acceptance
Slow and cumbersome permitting procedures the main obstacle for delivering
investments
Public acceptance cannot be improved by TSOs alone
2. Legislative implementation
– Some compatibility among the 27 MS energy policies
– Some stability in EU legislation
3. Attractive financing framework
“real” return in line with similar risk profiles businesses
incentives for activities “really” managed by TSOs
legislation and regulation in line with 20 to 50 years assets
Building the necessary infrastructure – 3 main problems
4 October 2012
A timely legislative initiative addressing the most urgent issues
• Huge step forward to streamline permitting procedures
• Positive but unfocused effort to facilitate investments on the transmission
grid
• Cost-allocation is just part of the overall picture – cost-benefit analysis
not a panacea
• Incentivizing TSOs to deliver on time should be the priority
• Regional approach for decision making with TYNDP as the main starting
point – Projects of Common Interest
Energy Priorities Regulation – helping the grid development
4 October 2012
A 10-year plan to meet EU 202020 goals
> 100 projects, 52 300 km, approx. €104 bn of investments
• Notwithstanding non pan-European significance projects
+1.3% per year grid length development despite a major upcoming shift in generation mix to accommodate wider, stronger, more volatile power flows
• One third of the present generation capacity to be built in the coming decade (i.e. +3% per year)
A solid basis for the Project of Common Interest selection
Social acceptance is still the major challenge!
• 1 in TYNDP 2010 investment projects are delayed because of longer than expected authorization procedures
4 October 2012
Agenda
1. European Transmission System Planning – ENTSO-E’s Ten Year Network Development Plan
2. Towards a European Electricity Market – From national to Pan-European Markets
3. The Danish Case: – Achieving 28% Wind Power and preparing for 50% by 2020
28 4 October 2012
European agreement on target models
• The target models form the basis for common European day ahead and
intraday markets to ensure the development of the internal energy
market
An expert group led by the
European regulators agreed in 2010
on target models for day ahead and
intraday in Europe
29 4 October 2012
Target model: European-wide single price coupling 2014
• One price calculation for the entire area
• Cooperation between TSOs and Power Exchanges
30 4 October 2012
Regional pilot project i North West Europe – status and next step
1 Step: interim
solution
Nordic area – central
West Europe
November 2010
Interim Tight
Volume Coupling
(ITVC), based on the
EMCC model
Austria coupled to
Germany
Estonia coupled to
Nordic area – April
2010
Poland coupled to
Nordic area – Dec.
2010
GB price coupled to
Netherlands via
BritNed – April 2011
2. step: Enduring
solution
Price coupling
Expected end of 2012
North West Europe
(NWE)
31 4 October 2012
Interim regional solution based on volume coupling
Volume coupling implemented on all
interconnectors between the Nordic
area and CWE in November 2010
• Two separate calculations, where volume
and price is calculated by two different
algorithms
32 4 October 2012
Enduring solution based on price coupling
Why price coupling?
Optimal use of interconnectors – capacity is used efficiently
• One calculation for the entire area – less risk for adverse flows
• Social welfare optimisation
Requirement in future European regulation
Framework Guideline
Capacity Allocation
and Congestion
Management
prepared by the
European
regulators (ACER)
(29 July 2011)
Network code
Capacity Allocation
and Congestion
Management
prepared by the
European TSOs
(ENTSO-E)
(September 2012)
The Commission
adopts the
Network Codes
(Comitology)
(Start 1 Q 2013)
Regulation
(Legally
binding
codes)
33 4 October 2012
PX Market Coupling Initiative
• The power exchanges play an important part in the future
European market coupling solution
• 6 PXs (APX-ENDEX, Belpex, EPEX Spot, GME, OMEL og Nord Pool Spot)
have agreed on a solution for the implementation of price
coupling
Price Coupling of Regions (PCR)
• Common algorithm, common core systems and procedures, joint PX governance
• Decentral solution where all PXs implement the algorithm
• Responsibility for the calculation rotates between the PXs
• Pre-coupling og post-coupling
will be handled locally
• ACER has asked ENTSO-E to assess efficiency, manageability and reliability of the PCR-solution
34 4 October 2012
ENTSO-E Regional NWE intraday project
Regional intraday implementation
project as frontrunner for a
common European intraday market
2012 – interim solution
2014 – enduring solution: the target model
• Shared order book – to be provided with bids from all PXs
• Sophisticated products to replace OTC trade
• Capacity management module to handle real-time information on available x-border capacity
• Automatic matching of all bids by one unique algorithm
35 4 October 2012
Agenda
1. European Transmission System Planning – ENTSO-E’s Ten Year Network Development Plan
2. Towards a European Electricity Market – From national to Pan-European Markets
3. The Danish Case: – Achieving 28% Wind Power and preparing for 50%
by 2020
36 4 October 2012
37
From primary to local generation
The Danish electricity system – development and policy
Danish Energy Agreement , March 2012:
• Higher energy efficiency
• Biomass and heat pumps for district heating
• RES conversion in buildings and industry
• Smart Grids and new interconnectors
• Improved framework for biogas
• Electricity and biomass in transportation
• Wind power
• Offshore: +1,000 MW
• Near-shore: + 500 MW
• On-shore: + 500 MW
• Long term goal: 100% renewable by 2050
28% wind power in 2011
50% wind power by 2020
Political vision (Government platform):
• 100% renewable electricity and heating sectors by 2035
The Danish Electricity System today
4 October 2012
38
Power balance Jan. 2011
Two synchronous areas
Primary power station
Local CHP plant
Wind turbines
950/1000 MW 680/740 MW
600 MW
950/1500 MW
Consumption 1400 - 3700 MW
Primary power stations 3400 MW
Local CHP plants 1860 MW
Wind turbines 2840 MW
Consumption 900 - 2700 MW
Primary power stations 3800 MW
Local CHP plants 640 MW
Wind turbines 960 MW
West:
East:
1300/1700 MW
import/export [MW]
600 MW
4700 MW
1600 MW
The Danish Electricity System today
4 October 2012
39
The Danish Electricity System today
4 October 2012
40
Wind power already exceeds hourly demand today!
% Wind power as percentage of consumption in Denmark West, 2010
0
20
40
60
80
100
120
jan-2010 feb-2010 apr-2010 jun-2010 jul-2010 sep-2010 okt-2010 dec-2010
Wind Energy coverage in DK West: 28%
The Danish Electricity System today
4 October 2012
41
System balancing today
Large market area:
• Robust international transmission grid
• Coherent electricity markets
Flexible generation system:
• Coal fired power plants operating down to 10% of rated output
• Combined heat and power plants with heat accumulators and electric boilers
• Grid codes ensure capability of wind farms to support the system
Efficient system operation procedures and tools:
• Specialized IT-systems for forecasting, system balancing and handling of distributed generation
The Danish Electricity System today
4 October 2012
42
The four market places:
• Spot (day-ahead)
• Intraday
• Regulating power
• Reserves
The electricity market
Electricity-
system Consump-
tion
Production
regulation
Non-
regulating
production
Import
Export
10 l
The Electricity Market
4 October 2012
43
The phases of the daily power market
Bids to Nord Pool’s spot market
Operating day
Bids to the regulating market
TSO maintains physical balance with regulating power
13:00 15:00
Operation Settlement
Bids to the intraday market
12:00
Prices and volumes published by Nord Pool
Operational schedule send to Energinet.dk
Day ahead
Trade
The Electricity Market
4 October 2012
44
The regulating market - bridging the financial and physical system
• Regulating power bids listed in price order
• Up and down regulation bids are activated by TSO in accordance
with price list
• Marginal bid in one hour determines the price for all suppliers
Financial system
Physical system
Regulating power
The Electricity Market
4 October 2012
45
Prices in the regulating market
0
10
20
30
40
50
60
70
80
jan-
03
apr-
03
jul-
03
okt-
03
jan-
04
apr-
04
jul-
04
okt-
04
jan-
05
apr-
05
jul-
05
okt-
05
jan-
06
apr-
06
jul-
06
okt-
06
jan-
07
apr-
07
jul-
07
okt-
07
EUR/MWh
Spot price
Up-regulation price
Down-regulation price
The Electricity Market
4 October 2012
46
Wind Power Forecast Challenges
Having 3,2 GW wind power installed in
the system, a change of 1 m/s in wind
speed can result in a change of 450
MW power production.
The meteorological forecasts rarely
agree and we constantly look for the
best combination.
Wind Power Forecasting
4 October 2012
47
Wind Power Forecast Challenges
A weather front passing the
country 30 min late can easily
mean a lack of several 100 MW
Off shore production can result in
very steep production ramps
Wind Power Forecasting
4 October 2012
48
Wind power forecasting
Two forecasting tools are used – one external and one internal:
• External forecast:
• Combined forecast based on 4 meteorological prognoses.
• 0-48 hour forecast
• Hourly update
• Internal forecast:
• Combined forecast based on 3 meteorological prognoses.
• Day ahead (12-36 hour) and short term (0-6 hour) forecast
• Several updates pr. hour
We are constantly improving and looking
for new competitive forecast providers!
Wind Power Forecasting
4 October 2012
49
Balancing and Grid security
•Operational Planning System:
•providing information on imbalances in the coming hours on
the basis of forecasts, generation plans and on-line
measurements
•Distributed Generation Management System (DGM):
•providing the basis for forecasting renewable generation and
grid security calculations - load flow
Energinet.dk has developed two essential IT systems to manage the large amount of sustainable generation:
System Operation
4 October 2012
50
Operational Planning System
Providing on-line up-dated forecast for system imbalances:
Predicted Balance
System Operation
4 October 2012
51
Operational Planning System
• Imbalance = Consumption - Wind Power - Local CHP
- Primary Power Stations +/- Exchange
• Consumption, Wind Power and a minor share of Local CHP are based on
regularly up-dated forecasts
• Primary Power Stations, most Local CHPs and Exchange are based on
schedules send and continuously updated by the market players
• The dispatcher buys and sells regulating power from the regulating
market to bring the imbalance close to zero
• Remaining minor imbalances are balanced by automatic reserves
System Operation
4 October 2012
52
Distributed Generation Management System
• 6300 generators on 4600
‘plants’
• 18 Balance Responsible
Parties for Production (PBR)
• 4525 plants without
individual schedules
• 75 plants with individual
schedules
Primary power stations
Local CHP plants
Wind turbines
System Operation
4 October 2012
53
DGM in real time mode – generation forecast
Area 1
Area 2
Balancing area
Substation 1
Substation 2
Substation 3
A B B A A B A A A PBR
Dire
ctio
n o
f data
flow
System Operation
4 October 2012
54
DGM in offline mode - for grid security calculation
Area 1 Area 2
Substation 1 Substation 2 Substation 3
Forecast models
Dir
ection o
f data
flo
w
System Operation
4 October 2012
Instruments to effectively integrate large amounts of fluctuating renewable energy in the power system
50% ?
50% Wind
Smart Grid to implement intelligence in the power system
Production Instruments
Strong transmission grid and interconnections - and well functioning energy markets
Flexibility in production and consumption. Close integration with the heat, gas and transportation sector
+
+ By 2020
55
Preparing for 50% wind power
4 October 2012
56
Grid planning is long term!
available sites for 4.6 GW offshore wind power
Preparing for 50% wind power
4 October 2012
57
Development of the transmission grid
• Interconnector projects
• Reinforcement and reconfiguration of transmission grid
• Last new overhead line
• Underground cabling
• Combined offshore wind farm connection and interconnector
• First offshore grid!
Preparing for 50% wind power
4 October 2012
58
50% of electricity demand
Coherent and flexible energy systems
electricity
energy
Preparing for 50% wind power
4 October 2012
59
Integration of energy systems – synergy between gas and electricity
• Substantial storage capacity in the gas system
Competitive peak-load capacity from RE-Gas
Optimal use of bio resources
Preparing for 50% wind power
4 October 2012
60
Smart Grid – puzzle
to the future RES
electricity system
Smart Grid is
the future
4 October 2012
61
EDISON – Large scale EV project in Denmark
Electric vehicles in a Distributed and Integrated market using Sustainable energy and Open Networks
Electric Vehicle
Power Exchange
Balance Responsible
Power Dealer
4 October 2012
EcoGrid EU – a prototype for the future energy system
• Demonstration of an electricity
system with more than 50%
wind power and demand
flexibility to optimize the
utilization of RES
• Bornholm is a unique place for
testing
• 2.000 costumers will participate
• Test of a 5-minute local markets
• Test of new market products
• Co-operation with other Smart
Grid projects on the island
• Local support – Bright Green
Island vision
62
Preparing for 50% wind power
4 October 2012
63
Preparing for 50% wind power
4 October 2012
64
Conclusions
• A strong international transmission grid
• to trade and balance in a wide geographical area
• Efficient international electricity markets
• with clear price signals and trading close to real-time
• Coherent energy systems
• electricity, gas, heating and transportation - to increase flexibility and economic
efficiency and reduce environmental impact
• High flexibility in generation and demand
• with technical connection requirements for all resources – Grid Codes
• A revised power system control architecture
• improved control and observability of distributed resources - SmartGrids
Efficient integration of large-scale wind power through:
Efficient solutions through Pan-European coordination!
4 October 2012
65
Thank you for your attention! www.energinet.dk 4 October 2012