Energinet.dk and the Danish Energy System

Transcription

1 Energinet.dk and the Danish Energy System South African delegation Fredericia, 22 October 2015 Peter Jørgensen, Vice President 22 October 2015 Energinet.dk and the Danish Energy System 1

2 Agenda Introduction to Energinet.dk The Danish Electricity System with 40% wind power The Green Transition towards independence of fossil fuels 22 October 2015 Energinet.dk and the Danish Energy System 2

3 Facts about Energinet.dk TSO for electricity and gas in Denmark Independent public enterprise under the Danish Ministry of Climate, Energy and Building Owns and operates the electricity and gas transmission systems Co-owns electricity and gas spot exchanges Approx. 800 employees Annual revenue: approx. DKK 10 billion US$ 1.5 billion The consumers contribute to our activities through tariffs Our finances are based on a break-even principle non-profit! Investment decisions are based on socio-economic welfare criteria 22 October 2015 Energinet.dk and the Danish Energy System 3

4 Core tasks for Energinet.dk Ensure short- and long-term security of supply for electricity and gas Ensure well-functioning markets for electricity and gas Own, operate, develop and maintain the gas and electricity transmission grids 22 October 2015 Energinet.dk and the Danish Energy System 4

5 Political framework targets and commitments Europe is in the middle of a historic transition of the energy system Denmark has a leading position 2020: Wind power will constitute 50% of the electricity consumption 2050: Denmark must be independent of fossil-fuels Strategic commitments of Energinet.dk: - Security of supply - Efficient green transition - Healthy investment climate 22 October 2015 Energinet.dk and the Danish Energy System 5

6 Energy consumption in Denmark towards 2050 The Green Energy Transition in Denmark is primarily based on: 1. Highly increased energy efficiency specially through electrification 2. Much more fluctuating power production from specially wind and sun/waves Based on figure from the Danish Government s plan: Our Future Energy 22 October 2015 Energinet.dk 6 and the Danish Energy System

7 Parallel developments - towards renewable energy and open markets From primary coal fired to local CHP and wind power 2000 From vertically integrated monopoly to competitive electricity market Generation Generation Trade Transmission Distribution Transmission System Operator Distribution 22 October 2015 Energinet.dk and the Danish Energy System 7

8 Development of Wind Power and PV in Denmark Drivers: Attractive feed in tariffs/ guaranteed prices Favorable grid connection conditions 22 October Energinet.dk and the Danish Energy System

9 MW The Danish electricity system - January 2015 Capacity Primary power station Local CHP plant Wind turbines import/export [MW] 1650/1700 MW 680/740 MW Demand 1300/1700 MW 600 MW Wind Power/Demand 2014: 39% 1500/1780 MW 600 MW 22 October 2015 Energinet.dk and the Danish Energy System 9

10 One week in September % wind power 22 October 2015 Energinet.dk and the Danish Energy System 10

11 Flexibility in the electricity system - hourly dispatch 31 August 6 September October 2015 Energinet.dk and the Danish Energy System 11

12 Spot price, wind power and market dynamics 22 October Energinet.dk and the Danish Energy System

13 Main means to integrate wind power so far Strong transmission grids and interconnectors International electricity market Flexible generation system Specialized operational planning tools 22 October 2015 Energinet.dk and the Danish Energy System 13

14 Planned and ongoing transmission projects Norge Existing interconnectors Decided Interconnectors Offshore Wind Farms: Horns Rev 3 Kriegers Flak Coast-near OWFs Skagerrak 1, 2, 3 og MW Konti-Skan 1&2 720 MW Possible Interconnectors Embellishment projects underground cab Synchronous compensator Coast-near OWFs Gas projects Aggersund Interconnectors: COBRA DK1-Tyskland Øresund Kriegers Flak Viking Link Horns Rev 3 Horns Rev 1+2 Viking Link MW Ll. Torup Kassø-Tjele Vejle Ådal Lillebælt Anholt Storebælt 600 MW Øresund 400 kv Køge Bugt mm. Øresund 132 kv MW Sverige Biogas 600 MW COBRAcable 700 MW DE DK MW / 1.780MW Kriegers Flak Rødsand Kontek 22 October 2015 Tyskland 600 MW 14

15 Strong transmission grids and interconnectors ENTSO-E Ten Year Network Development Plan: New RES 50,000 km of new or refurbished grid investments (23,000 km of new overhead lines) billions of grid investments by 2030 = /MWh in wholesale power prices =>Reductions 2-5 /MWh in bulk power prices 22 October 2015 Energinet.dk and the Danish Energy System 15

16 Market Coupling in Europe status and next step Nordic Region Price coupling since 1999 (Eastern Denmark 2000) Belgium, France, Netherlands (TLC) Nordic region-germany (operated by EMCC) Price coupling since 2006 Volume coupling since November 2009 Central West Europe (CWE) CWE-Nordic region (+ Estonia) Flow calculated by EMCC Prices calculated by PXs Price coupling since November 2010 Interim solution NWE: Interim Tight Volume Coupling (ITVC) since November 2010 Nordic region SwePol/ Nordic region-lithuania/ Nordic region-latvia North West Europe (NWE) - One price calculation for entire area NWE+SWE = MRC (multi regional coupling) One price calculation MRC + Italian borders 4M not yet coupled to MRC Price coupling since Dec / June 2012/ June 2013 Price coupling since February 2014 = target model Price coupling since May 2014 Price coupling since February 2015 Price coupling since November October 2015 Energinet.dk and the Danish Energy System

17 Extreme flexibility of coal fired Combined Heat and Power Plants Operational range: % Source: Dong Energy 22 October 2015 Energinet.dk and the Danish Energy System 17

18 Network Codes under development Connection Related Codes Requirements for Generators Demand Connection Code HVDC Connection Code Connection Procedures (RfG) (DCC) (HVDC) (CP) System Operation Related Codes Operational Security Network (OS) Operational Planning & Scheduling (OPS) Load Frequency Control & Reserves (LFCR) Operational Procedures in an Emergency (EP) Staff Training (ST) Market Related Codes Capacity Allocation & Congestion Management Forward Capacity Allocation Electricity Balancing (CACM) (FCA) (EB) 22 October 2015 Energinet.dk and the Danish Energy System 18

19 ENTSO-E Network Codes Connection Codes Market Codes Operational Codes 22 October

20 Challenges Having 4,9GW wind power installed in the system, a change of 1 m/s in wind speed can result in a change of > 650 MW generation The meteorological forecasts rarely agree on the same wind speed. Thus we constantly look for the best combination. 22 October Energinet.dk and the Danish Energy System

21 Operational system balancing and grid security Energinet.dk has developed two specialized IT systems to manage the large amount of variable renewable generation: Operational Planning System providing information on imbalances in the coming hours on the basis of forecasts, up-dated generation plans, on-line measurements and DGM input Distributed Generation Management System (DGM) providing the basis for forecasting renewable generation and grid security calculations (load flow) 22 October 2015 Energinet.dk and the Danish Energy System 21

22 Wind Power Forecasting + on-line measurements! 22 October 2015 Energinet.dk and the Danish Energy System 22

23 Operational Planning Tool - continously updated schedules and forecasts Actual prediction Forecast day-a-head Scada measurement and up-scaling 22 October 2015 Energinet.dk and the Danish Energy System 23

24 Operational Planning Tool - Predicted imbalance on-line up-dated Closing the gap before the operating hour Predicted Imbalance 22 October 2015 Energinet.dk and the Danish Energy System 24

25 Résumé: Main means to integrate wind power so far Strong transmission grids and interconnectors International electricity market Flexible generation system Specialized operational planning tools 22 October 2015 Energinet.dk and the Danish Energy System 25

26 Consumer prices in Denmark Jan 2015 * 2.29 DKK/kWh~ 0.31 /kwh 1.14 DKK/kWh~ 0.15 /kwh * 75% industrial processes 22 October 2015 Energinet.dk and the Danish Energy System 26

27 Green transition 22 October 2015 Energinet.dk and the Danish Energy System 27

28 Energy consumption in Denmark towards 2050 The Green Energy Transition in Denmark is primarily based on: 1. Highly increased energy efficiency specially through electrification 2. Much more fluctuating power production from specially wind and sun/waves Based on figure from the Danish Government s plan: Our Future Energy 22 October 2015 Energinet.dk and the Danish Energy System 28

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30 Means to increase the flexibility of the energy system Balance in a large and diversified system Activate DSR, substitute fossil fuels and create flexibility Substitute fossil gas and store wind power in gas system 22 October 2015 Energinet.dk and the Danish Energy System 30

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33 Costs for the Green Transition in Denmark +8% 22 October 2015 Energinet.dk and the Danish Energy System 33

34 Energinet.dk Energy Consultancy Part of the Energinet.dk group with access to core TSO competences International advising, training and knowledge sharing without costs for the Danish electricity and gas consumers 22 October 2015 Energinet.dk and the Danish Energy System 34

35 Read more at energinet.dk 22 October 2015 Energinet.dk and the Danish Energy System 35