Nord Pool Spot has received the following information from Energinet.dk:
The Link has a capacity of 600 MW. Below the market framework that applies from 8 March 2011 is outlined.
Still two elspot areas
The commissioning of the Great Belt Power Link will not change the fact that there will still be two bidding areas in Denmark, DK1 and DK2, and that notifications, etc., must be submitted separately.
Spot market
All the capacity available in the Great Belt Power Link will be placed at the disposal of Nord Pool Spot's Elspot market - ie there will be no capacity reservation in relation to the spot market.
The transfer loss is 10 MW when the Link operates at full load, and the loss will be covered in accordance with the same principle that applies to the Skagerrak interconnection. The flow direction in the Link is expected to be eastbound most of the time, which means that the Elspot trading capacities will normally be 590 MW in the eastbound direction (DK1 -> DK2) and 600 MW in the westbound direction (DK2 -> DK1).
In pursuance of the system operation agreement in force in the Nordic area, trading via the Great Belt Power Link will be subject to a ramping restriction. The ramping restriction means that the flow in the Link cannot be changed by more than 600 MW from one hour to the next.
Intraday market
Any remaining capacity available after the spot market will be placed at the disposal of Nord Pool Spot's Elbas market, however 300 MW (from east to west) will be reserved on the Great Belt Power Link, if possible, to ensure access to reserves in Eastern Denmark.
Trading in the Elbas market will be subject to a ramping restriction, the purpose of which is to ensure that the total flow in the Link does not change by more than 600 MW from one hour to the next.
Regulating power market
Any remaining capacity on the Great Belt Power Link will be used by Energinet.dk for exchange of regulating power and imbalances in accordance with the same principle that currently applies to the DC links between Western Denmark and Norway/ Sweden.
Manual reserves
In normal situations, the purchase of manual reserves will be reduced by 300 MW in Western Denmark, and approx. 600 MW of manual reserves will be maintained in Eastern Denmark. This is in line with the consequences described in "Elektrisk Storebæltsforbindelse, Hovedrapport 2005" (Great Belt Power Link, Main Report 2005).
Any other initiatives to ensure additional reserve capacity to Eastern Denmark are not expected in 2011.
In situations where the spot market has resulted in the flow in the Great Belt Power Link exceeding 300 MW from east to west, Energinet.dk will consider the necessity to extraordinarily buy up to 300 MW manual reserves in Western Denmark in the afternoon, ie after the spot market has closed.
In situations where the Great Belt Power Link is out of operation, manual reserves will be purchased in Western Denmark in the normal way.
Other reserves
Technically, it will be possible to exchange frequency control reserves across the Great Belt - ie installations in Western Denmark can supply frequency control reserves to Eastern Denmark, while installations in Eastern Denmark can supply frequency control reserves to Western Denmark. This facility will not be available at the time when the Great Belt Power Link is commissioned.
In autumn 2010, Energinet.dk will examine the concept in more detail and inform the market before the end of 2010 whether and when this facility will be available.
The report can be downloaded from Energinet.dk's website.
Additional information
For additional information about this, please contact Mr Henning Parbo ([email protected]) or Ms Louise Overvad Jensen ([email protected]).
Lysaker, 7 March 2011 16:20 CET