The Nordic power system is increasingly challenged by deteriorating frequency due to variable generation and rising import dependency, particularly during cold winters. Balancing supply and demand has become a daily issue, with concerns over system adequacy and the need for more seasonal storage solutions. Future developments aim to ensure cost-efficient, green, and secure electricity generation while adapting market structures for increased renewables integration.

1. Future energy
markets: how and
where?
Vaasa Energy Week
22.3.2017, Satu Viljainen

2. The Nordic power system faces many
challenges
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3. Frequency is the heartbeat of the power system

4. Control room operators' task is to keep the
frequency within predefined limits

5. Frequency of the Nordic power system is
deteriorating

6. If frequency falls outside the limits, the risk of
system collapse increases

7. Generation structure in the Nordics is becoming
more variable and import-dependency increases

8. Cold winter days with tight demand-supply can
be challenging especially in case of failures
NORWAY
P 26 800
C 25 000
B 1 800
FINLAND
P 11 600
C 15 100
B - 3 500
SWEDEN
P 27 200
C 27 400
B - 200
DENMARK
P 4 900
C 6 100
B - 1 200
Cold winter day in 1 of 10 winters
NORDIC MARKET TOTAL
P = Available capacity for market,
TSO reserves excluded
*) 70 500
C = Peak demand **) 72 100
B = Balance without power exchange - 1 600

9. Most of the inertia in the Nordic system comes
from thermal power plants

10. Inertia resists frequency changes - small inertia
means higher risk of blackouts
Small inertia
Normal inertia
Frequency
Time
Fault, e.g. tripping of a large production unit

11. Generation inadequacy has started to cause
concerns elsewhere too
Source: Bloomberg news, 17 January 2017
Source: The Sydney Morning Herald, 10 February 2017

12. A new German word "Dunkelflaute" has entered
the electricity market vocabulary this year
Source: Die Welt, 2 February 2017

13. Everyday challenge in today's markets already:
balancing the variable supply and demand

14. Long-term challenge that remains: how to develop
seasonal storage that makes economic sense?

15. Building more transmission lines will help

16. But grid expansion can sometimes be extremely
challenging – the German example
Montel News, 16 November 2016:
730km of the needed 7,900km has been built since 2009

17. Issues to solve: how to make the markets work
and fit for renewables
Network Codes and
Guidelines
Clean Energy
Package
Energy transition

18. 18
Ensuring non-distorted price-formation and
making use of decentralized knowledge

19. Increasing trade close to real-time creates
opportunities for balance service providers
Both generators and consumption are
active in the balancing and reserve power
markets in Finland

20. Criteria for balance service providers: does it
start, how fast does it ramp, how long does it last?
Frequency
containment reserve
for disturbances,
220 - 265 MW
(1200 MW in the Nordics)
Frequency
containment reserves
for normal operation,
140 MW
(600 MW in the Nordics)
Automatic frequency
restoration reserve,
70 MW
(300 MW in the Nordics)
Balancing power
markets, balancing
capacity markets, reserve
power plants
880 – 1100 MW
Activation During large frequency
deviations
All the time During predefined
hours
On request
Ramping In seconds In a couple of minutes In a couple of minutes In 15 minutes

21. Future electricity: cost-efficient, green and secure
Thank you for your interest!
Questions?