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Electricity Market Day 2015 - Jukka Ruusunen, Fngrid - Fingrid as a market facilitator
1. Fingrid as a market facilitator
Electricity Market Day, 28 April 2015
Jukka Ruusunen, President & CEO, Fingrid Oyj
2. Why?
Functioning of physical power markets is conclusively dependent on
the activities of the transmission system operators!
Basis of the foundation of the company!
Electricity Market Act:
"Transmission system operator must
develop its activities so that prerequisites
for efficient markets are secured."
3. European requirements for transmission system operators
Promote market
functioning
Must be members
of ENTSO-E
Cooperate closely in:
transmission capacity
calculation and
allocation, congestion
management, balance
management, reserve
trade, publication of
market information,
etc.
Plan together the
transmission grid
according to market
needs
Establish market
places in
cooperation with
power exchanges
In these issues to follow
detailed common grid codes!
Unbundled from
generation and
sales
4. Fingrid creates framework for efficient operation of electricity markets
Investments
• Cross-border connections and internal
national connections
• Connection of generation and demand
into the market
Market operation
• Transmission capacity allocation
• Congestion management and timing of outages
• Balance service
• Publishment of market information
• Data exchange and DataHub
Development of electricity
markets
• Improvement of the market mechanism
• Regional integration
• International harmonization of market rules
• Cooperation of power exchanges
5. Seeking a balance!
Security of supply vs markets
"Security of supply is better, if
we give less transmission
capacity into the markets."
National interests
"Why should I build more
transmission capacity into a
country that has a higher
electricity price?"
Customers' conflicting
interests
End users: "Price down."
Generators: "Sufficient price
from investment point of view."
Company vs society
Negative incentive: congestion rent
an income for a transmission system
operator. Market promotion creates
costs.
7. POWER
SYSTEM
OPERA-
TIONS
ICT HR AND
COMMU-
NICATI-
ONS
Personnel and competence
Fingrid Oyj
Adequacy of transmission system
System operation
Promotion of market functioning
Finance and business development
Customers
ASSET
MANAGE
MENT
Organization ...
GRID
SERVICES
AND
PLANNING
MARKETS FINANCE
AND
TREASURY
8. ... together with measurement and bonus system
Strategic meters – part of the bonus system for everybody working at Fingrid!
9. Fingrid benefits from efficient operation of markets
"The invisible hand of the market"
works for Fingrid:
• balancing supply and demand
• efficient use of cross-border connections
Procurement from international
markets at a market price
• loss power
• balance power and reserves
10. Future
What is Fingrid's role
as a promoter of
wholesale markets?
What is Fingrid's role
as a promoter of retail
markets?
What happens if the
"invisible hand" is not able
to balance the markets?