Electricity Market Day 5 April 2016 Jukka Ruusunen, President and CEO, Fingrid Oyj

1. Refocusing on regional cooperation
Electricity Market Day 5 April 2016
Jukka Ruusunen, President and CEO, Fingrid Oyj

2. Three levels in decision making
NationalEuropean Regional
DK1
F

3. Regional decision making today
Transmission system operators
• Electricity market development in
cooperation with Nord Pool
• Cooperation in power system
operation 24/7
• Development of the transmission grid
Political decision making
• Nordic structure exists
• Content: "political support" for regional
cooperation
The Nordics: Organisational setup
A Nordic Advisory Board – bringing the
stakeholders better together?
Source: Deputy Permanent Secretary Christian Pilgaard Zinglersen
Danish Ministry of Energy, Utilities and Climate

4. Transmission system operators have agreed
a common strategy
System operation Market facilitation
System
development
New technologies
Common tools
Highly efficient and
secure Nordic green
power system
Ensuring a future robust
Nordic power system1
Maintaining current high level of
security of supply
2
Market to better support the
adequacy3
Empowering consumers4
Strong Nordic voice in EU5

5. RSC is a service
provider
Regional Benefits
• Transmission capacity
and security of supply
calculation
• Coordination of
outages
• Short term adequacy
analyses
• More efficient use of
transmission capacity
• More efficient
recognition of security
of supply risks
• Transmission system
operators are
responsible and
decide
• RSC is not a regional
control center
Regional cooperation in system operation
Regional Security Coordination (RSC)

6. Regional cooperation in system operation
Nordic RSC will be
established in Copenhagen
• Operations start by the end
of 2017
• ”Joint office" -model
• About 10 people.
Regional Security Coordination (RSC)

7. Re-evaluation of yearly
maintenance and
outage practices
Strengthening and
development of
own HVDC-knowledge
Enhanced disturbance
clearing including
backup from Fingrid's
and service providers'
experts
New maintenance
contracts with service
providers
Improving availability of HVDC connections
Goal:
operating model that answers to the system and market
challenges of four HVDC connections

8. !
BUT:
Actions of transmission system
operators is not enough!

9. Energy political decision making lacks the
regional dimension
We must aim for Nordic and
Baltic Sea solutions
In a common market
you cannot make
functioning energy policy
from a national
perspective only!
Commission has emphasized
the significance of regional
cooperation as part of
European development
In a common market
the impacts of
national energy policies cross
country borders
We need a strong
political commitment
for regional goals

10. Suggestion from the Nordic transmission system
operators to develop regional cooperation
"Nordic Advisory Board”
• Politically chaired
• Wide participation from stakeholders
• Regional harmonization of the main
principles in national energy policies
 Do we continue with the market based
approach?
 Subsidy schemes for renewables
 Possible capacity mechanisms
 Regional infrastructure projects

11. NationalEuropean Regional
• Emissions trading
scheme, European
goals for renewables
• Main principles of the
electricity market
• European
infrastructure projects
• Renewable energy
support schemes
• Capacity mechanisms
• More detailed
electricity market rules
• Regional infrastructure
projects
• Energy mix
• Energy taxes
The three level model is developing – next step?

12. Fingrid Delivers. Responsibly.