The benefits of european TSOs cooperation, Peder Ø. Andreasen, President of the ENTSO-E, Sähköverkko 2015

1. inside ENTSO-E
The benefits of European TSOs’
3rd November 2015
Peder Ø. Andreasen
COOPERATION
Customer Day
Fingrid

2. Click to edit Master title styleQuick facts about ENTSO-E

3. Click to edit Master title styleThe 2030 EU targets and the electricity transmission system
>45 % of RES
generation in the
electricity transmission
system in 2030
+27%
energy
efficiency
-40% CO2
emissions
27%
Renewable
Energy
Sources
10% by
2020
15% by 2030
Interconnection targets
BUT
regional differences & needs
must be considered
(…Finland is on track)

4. Click to edit Master title styleThe Ten Year Network Development Plan (TYNDP ) …
…and identifies & analyses
project- candidates with
Pan-European relevance
TSO cooperation
platform
Stakeholders’
involvement
Transparency
Standard
Cost Benefit
Analysis approach
Drivers
Bottle
necks
Adequac
y
Market
prices
Targets
Projects
… tells about:

5. Click to edit Master title styleMain Findings of the TYNDP14
Up to €150 billion for projects
of pan-EU significance by 2030
(1-1.5 €/MWh, about 1 % of
bill)
Reduction of 2 to 5 €/MWh for
bulk power prices by 2030
Up to 50,000 km of new or
refurbished grid investments
(23.000 km new overhead
lines)
Accommodating up to 60 % RES
of total consumption in 2030
Mitigation of 20 % of CO2
emissions for the European
power sector
Optimised land use:
the crossed urbanised areas
account for less than 4 % of the
total km of lines
-100%
-80%
-60%
-40%
-20%
0%
0
100
200
300
400
500
600
700
800
900
Vision1 Vision2 Vision3 Vision4
CO2emissions[Mt]-CO2reduction
comparedwith1990[%]
CO2emissionsvolumesandreductionsin
comparisonwith1990throughthe2030Visions
The TYNDP-projects help to fulfil the EU’s energy policy targets

6. Click to edit Master title styleTYNDP14: Larger, more volatile flows over larger distances
Main bottlenecks
- locations and types -
4 electric peninsulas

7. Click to edit Master title styleInternational Market flows in 2030 - TYNDP14
- Annual marginal electricity production costs per country (grey)
- Average hourly marginal cost differences between countries (blue)
Green & international (”Vision 4”)Green & national (”Vision 3”)

8. Click to edit Master title styleOutlook TYNDP16: - The Regional Investment Plan 2015 -
1. New interconnectors
2. North-South Flows
3. Arctic Consumption
4. Baltic Integration
5. Nuclear and Thermal
Decommissioning
https://consultations.entsoe.eu/system-development/regional-investment-plans/consult_view
Key Drivers for Regional Grid Development:

9. Click to edit Master title styleOutlook TYNDP2016: Result of common planning studies
Target capacities  Project identification
Reconfimed
from TYNDP14
New for
TYNDP16
Scenarios &
Assumptions
Market
Studies
Network
Studies
List of
Project
Candidates
Market-based target capacities
under high RES conditions
Time Horizon
2030
MW
MW
MW
MW

10. Click to edit Master title styleEU Interconnection Targets:
Interconnector Capacities by 2020 with present projects underways
10 % by 2020
15 % by 2030
EU intends - via PCI projects – to reach the targets.
ENTSO-E recommends more individual targets.
currently,
IT, ES, PT, UK, IE, PL, RO
and others are < 10%)

11. Click to edit Master title styleToolbox for efficient large- scale RES integration
• Strong transmission grids and
interconnectors
• Coherent international electricity markets
• Flexibility in the entire value-chain from
producer to consumer
• Specialized operational planning tools for
TSOs – forecasting etc.
Electricity markets help to
efficiently dispatch across borders
and large distances

12. Click to edit Master title styleMarket Coupling in Europe – Status and next steps
Belgium, France,
Netherlands (TLC)
Price coupling since 2006
Nordic region-
Germany (operated by
EMCC)
Volume coupling since
November 2009
CWE-Nordic region
(+ Estonia)
Flow calculated by EMCC
Prices calculated by PXs
Interim solution NWE:
Interim Tight Volume
Coupling (ITVC) since
November 2010
Central West Europe
(CWE)
Price coupling since
November 2010
Nordic Region Price coupling since 1999
(Eastern Denmark 2000)
North West Europe
(NWE) - One price
calculation for entire
area
Price coupling since
February 2014 = target
model
Nordic region– SwePol/
Nordic region-Lithuania/
Nordic region-Latvia
Price coupling since
Dec. 2010 / June 2012/
June 2013
Price coupling since
May 2014
NWE+SWE = MRC
(multi regional coupling)
One price calculation
MRC + Italian borders Price coupling since
February 2015
4M – not yet coupled
to MRC
Price coupling since
November 2014

13. Click to edit Master title styleDenmark – example for relying on interconnections
January 2014
13-19 January 2014
62 %*
Sunday 19 Jan
105 %*
2014
39 %*
Øresund
132 kV
Existing interconnectors
Decided Interconnectors
Tyskland
Norge
Kriegers FlakCOBRAcable
700 MW
Kassø-Tjele
Sverige
Skagerrak
1, 2, 3 og 4
1.700 MW
Konti-Skan
1&2
720 MW
Øresund
400 kV
1.300 MW
600 MW
Horns Rev 1+2
Rødsand
Storebælt
600 MW
Kontek
600 MW
Aggersund
Lillebælt
1
3
Possible Interconnectors
DE–DK1
Anholt
Viking Link
700 - 1400 MW
Horns Rev 3
1.500 MW /
1.780MW
Gas projects
* % of consumption

14. Click to edit Master title styleNetwork Codes under Development
• Requirements for Generators (RfG)
• Demand Connection Code (DCC)
• HVDC Connection Code (HVDC)
Connection
Related
Codes
• Operational Security Network (OS)
• Operational Planning & Scheduling (OPS)
• Load Frequency Control & Reserves (LFCR)
• Emergency and Restoration (ER)
System
Operation
Related
Codes
• Capacity Allocation & Congestion Management (CACM)
• Forward Capacity Allocation (FCA)
• Balancing Network Code (EB)
Market
Related
Codes
Adopted
Prepared for
Member State discussion/voting
Recommended for adoption
Drafting
Will be merged to one guideline:
”Guideline on Transmission
System Operation”

15. Click to edit Master title styleThe Energy Union - Main Points
• Citizens at the core of the Energy Union
• The Internal Energy Market
• Seamless European Regulation is needed
• Yes to regional co-operation

16. Click to edit Master title style
Thank you for your attention
Peder Ø.
Andreasen
ENTSO-E President
PQA@energinet.dk