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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
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Agenda
• Introduction to Energinet.dk
• The Danish Electricity System with 40% wind power
• The Green Transition towards independence of fossil fuels
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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
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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
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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
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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”
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Energinet.dk
and the Danish Energy System
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
Transmission
Distribution
22 October 2015
Generation
Trade
Transmission System Operator
Distribution
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Development of Wind Power and PV in Denmark
Drivers:
• Attractive feed in tariffs/ guaranteed prices
• Favorable grid connection conditions
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The Danish electricity system
Primary power station
Local CHP plant
- January 2015
Wind turbines
import/export [MW]
Capacity
MW
1650/1700 MW
680/740 MW
Demand
1300/1700 MW
600 MW
Wind Power/Demand 2014: 39%
600 MW
1500/1780 MW
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One week in September 2015
- 56% wind power
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Flexibility in the electricity system
- hourly dispatch 31 August – 6 September 2015
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Spot price, wind power and market dynamics
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Main means to integrate wind power – so far
•
•
•
•
22 October 2015
Strong transmission grids and interconnectors
International electricity market
Flexible generation system
Specialized operational planning tools
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Planned and ongoing transmission projects
Norge
Existing interconnectors
Decided Interconnectors
Skagerrak
Possible Interconnectors
1, 2, 3 og 4
Offshore Wind Farms:
• Horns Rev 3
• Kriegers Flak
• Coast-near OWFs
Embellishment projects – underground cab
1.700 MW
Synchronous compensator
Konti-Skan
1&2
Coast-near OWFs
720 MW
Gas projects
Aggersund
Interconnectors:
• COBRA
• DK1-Tyskland
• Øresund
• Kriegers Flak
• Viking Link
Sverige
Ll. Torup
Anholt
Øresund
400 kV
Horns Rev 3
Kassø-Tjele
1.300 MW
Vejle Ådal
Horns Rev 1+2
Øresund
132 kV
Storebælt
600 MW
Viking Link
700 - 1400 MW
Køge Bugt mm.
Lillebælt
Biogas
COBRAcable
700 MW
600 MW
Kriegers Flak
DE–DK1
1.500 MW /
1.780MW
Rødsand
Kontek
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Tyskland
600 MW
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Strong transmission grids and interconnectors
ENTSO-E Ten Year Network Development Plan:
•
50,000 km of new or refurbished grid
investments (23,000 km of new overhead lines)
•
110-150 € billions of grid investments by 2030
New RES
= 1-1.5 €/MWh in wholesale power prices
=>Reductions 2-5 €/MWh in bulk power prices
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Market Coupling in Europe
– status and
next step
Nordic Region
Price coupling since 1999
(Eastern Denmark 2000)
Belgium, France,
Netherlands (TLC)
Price coupling since 2006
Nordic region-Germany
(operated by EMCC)
Volume coupling since
November 2009
Central West Europe
(CWE)
Price coupling since
November 2010
CWE-Nordic region
(+ Estonia)
Flow calculated by EMCC
Prices calculated by PXs
Interim solution NWE:
Interim Tight Volume
Coupling (ITVC) since
November 2010
Nordic region– SwePol/
Nordic region-Lithuania/
Nordic region-Latvia
Price coupling since
Dec. 2010 / June 2012/
June 2013
North West Europe
Price coupling since
(NWE) - One price
February 2014 = target
calculation for entire area model
22 October 2015
NWE+SWE = MRC (multi
regional coupling)
One price calculation
Price coupling since
May 2014
MRC + Italian borders
Price coupling since
February 2015
4M – not yet coupled
to MRC
Price coupling since
November 2014
Energinet.dk and the Danish Energy System
Extreme flexibility of coal fired Combined
Heat and Power Plants
Operational
range:
10–100%
Source: Dong Energy
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Network Codes under development
Connection
Related
Codes
•
•
•
•
System
Operation
Related
Codes
•
•
•
•
Market
Related
Codes
22 October 2015
Requirements for Generators
Demand Connection Code
HVDC Connection Code
Connection Procedures
(RfG)
(DCC)
(HVDC)
(CP)
Operational Security Network
(OS)
Operational Planning & Scheduling (OPS)
Load Frequency Control & Reserves (LFCR)
Operational Procedures in an Emergency
(EP)
• Staff Training
(ST)
• Capacity Allocation & Congestion
Management
• Forward Capacity Allocation
• Electricity Balancing
Energinet.dk and the Danish Energy System
(CACM)
(FCA)
(EB)
18
ENTSO-E Network Codes
Connection
Codes
Market
Codes
Operational
Codes
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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.
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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)
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Wind Power Forecasting
+ on-line measurements !
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Operational Planning Tool
- continously updated schedules and forecasts
Actual prediction
Forecast day-a-head
Scada measurement and up-scaling
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Operational Planning Tool
- Predicted imbalance – on-line up-dated
Closing the gap before the
operating hour
Predicted Imbalance
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Résumé:
Main means to integrate wind power – so far
•
•
•
•
22 October 2015
Strong transmission grids and interconnectors
International electricity market
Flexible generation system
Specialized operational planning tools
Energinet.dk and the Danish Energy System
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Consumer prices in Denmark
Jan 2015
*
2.29 DKK/kWh~ 0.31 €/kWh
1.14 DKK/kWh~ 0.15 €/kWh
* 75% industrial processes
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Green transition
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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
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Means to increase the flexibility of the energy system
Balance in a
large and
diversified
system
22 October 2015
Activate DSR,
substitute fossil
fuels and create
flexibility
Energinet.dk and the Danish Energy System
Substitute fossil
gas and “store”
wind power in
gas system
30
2014
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Danish Energy
System
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2050
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Costs for the Green Transition in Denmark
+8%
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Energinet.dk Energy Consultancy
•
•
22 October 2015
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
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Read more at
energinet.dk
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