inside ENTSO-E

The benefits of European TSOs’

3rd November 2015

Peder Ø. Andreasen

COOPERATION Customer DayFingrid

Click to edit Master title styleQuick facts about ENTSO-E

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

BUTregional differences &

needs must be considered(…Finland is on track)

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

TransparencyStandard

Cost Benefit Analysis approach

DriversBottlenecks

Adequacy

Market prices

Targets

Projects

… tells about:

Click to edit Master title styleMain Findings of the TYNDP14Up 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

100200300400

500600700

800900

Vision 1 Vision 2 Vision 3 Vision 4

CO2 em

issio

ns [M

t]

-CO

2 re

ducti

on

com

pare

d with

199

0 [%

]

CO2 emissions volumes and reductions in comparison with 1990 through the 2030 Visions

The TYNDP-projects help to fulfil the EU’s energy policy targets

Click to edit Master title styleTYNDP14: Larger, more volatile flows over larger distances

Main bottlenecks - locations and types -

4 electric peninsulas

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”)

Click to edit Master title styleOutlook TYNDP16: - The Regional Investment Plan 2015 -

1. New interconnectors2. North-South Flows3. Arctic Consumption4. Baltic Integration5. Nuclear and Thermal

Decommissioning

https://consultations.entsoe.eu/system-development/regional-investment-plans/consult_view

Key Drivers for Regional Grid Development:

Click to edit Master title styleOutlook TYNDP2016: Result of common planning studiesTarget capacities Project identification

Reconfimed from TYNDP14New for TYNDP16

Scenarios &

Assumptions

Market Studies

NetworkStudies

List of Project

Candidates

Market-based target capacitiesunder high RES conditions

Time Horizon 2030

MW

MWMW

MW

Click to edit Master title styleEU Interconnection Targets: Interconnector Capacities by 2020 with present projects underways

10 % by 202015 % 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%)

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

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 sinceMay 2014

NWE+SWE = MRC (multi regional coupling)One price calculation

MRC + Italian borders Price coupling since February 2015

4M – not yet coupledto MRC

Price coupling since November 2014

Click to edit Master title styleDenmark – example for relying on interconnectionsJanuary 2014

13-19 January 2014

62 %*

Sunday 19 Jan105 %*

2014

39 %*

Øresund 132 kV

Existing interconnectors

Decided Interconnectors

Tyskland

Norge

Kriegers FlakCOBRAcable700 MW

Kassø-Tjele

Sverige

Skagerrak1, 2, 3 og 41.700 MW

Konti-Skan1&2720 MW

Øresund 400 kV1.300 MW

600 MW

Horns Rev 1+2

Rødsand

Storebælt600 MW

Kontek600 MW

Aggersund

Lillebælt

13

Possible Interconnectors

DE–DK1

Anholt

Viking Link700 - 1400 MW

Horns Rev 3

1.500 MW / 1.780MW

Gas projects

* % of consumption

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 Operatio

n Related Codes

• Capacity Allocation & Congestion Management (CACM)

• Forward Capacity Allocation (FCA)

• Balancing Network Code (EB)

Market Related Codes

AdoptedPrepared for Member State discussion/votingRecommended for adoptionDrafting

Will be merged to one guideline: ”Guideline on Transmission System Operation”

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

Click to edit Master title style

Thank you for your attention

Peder Ø. AndreasenENTSO-E PresidentPQA@energinet.dk