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30 May 2013 13:00

No. 30/2013 - Future NTCs on the NorNed and the Skagerrak interconnectors

Nord Pool Spot has received the following information from Statnett:

Statnett has sent UMMs on the maximum NTCs on the Skagerrak connection (NO2-DK1) and NorNed (NO2-NL). When SK4 is in operation the maximum NTC in Elspot for the Skagerrak-connection will be 1600 MW. In addition 100 MW will be reserved for selling reserves. According to the plan, SK4 will be in operation from December 2014. The maximum NTC on NorNed will still be 700 MW. The maximum NTCs on the interconnectors will thus be 2300 MW in total in both directions.

Statnett is putting every effort into providing as high NTCs as possible to the market. In the "Områdestudie Sørlandet" from 2011 the capacity in the Norwegian grid was analyzed. The conclusion was that the Western- and the Eastern corridors have to be upgraded before the DC-connections can be fully utilized. In March 2013 Statnett received a license to build and upgrade the Eastern corridor, and according to the plan this project will be finalized before SK4 is put into operation. When the Eastern corridor is finalized, Statnett expect no reductions in import capacities in situations with no outages in the grid. However, there will be periods with reduced export capacities. The sum of reductions in trading capacity is expected to be up to 400 MW in total on NorNed and Skagerak. As a result the total NTC for export will vary between 1900 and 2300 MW in periods with no outages in the grid.

The size and duration of the reductions will depend on a number of variables; the availability of system protection, flow pattern in the different corridors towards the DC-cables and the availability of production capacity close to the DC-connections. The reductions are expected to appear most frequently in periods with high production in western part of Norway, export to Sweden (NO1-SE3) and on NorNed and Skagerrak, combined with low production in Southern part of Norway.

Based on the market analysis performed in connection with the "Områdestudie Sørlandet", Statnett find that export has to be reduced due to congestions in the grid approximately 20% of the hours in an average year. 20% only includes the hours where the reductions have direct impact on the market prices. The total number of hours with reduced NTC will be higher for two main reasons: 

  1. Export capacity will also be reduced in hours where the reductions have no direct impact on the market prices, for instance in import situations.
  2. NTCs for the Day-ahead market are based on a prognosis of the flow for the following day. To handle the uncertainty related to this prognosis, margins are required to be sure that system operation can be performed with the security standards following from the N-1 criteria. If the reduction turns out to be unnecessary, capacity will be given to Elbas.

The NTC reductions are done in line with the principles in the document "Principles for determining the transfer capacities in the Nordic power market", published on nordpoolspot.com.

Reductions due to reconstructions and maintenance work in the grid are not included in this calculation, and will be published in separate UMMs.

The above reductions are expected to be needed in the period from the SK4 is put into operation at the end of 2014, until the planned increase of capacity in the Western corridor from Kristiansand to Saurdal is completed. Provided that the necessary permissions are given, the building of Western corridor is planned to be finalized in 2018.

In order to minimize the reductions, Statnett is analyzing and developing different short and long term measures. This includes flowbased market coupling, system protections schemes etc.

Lysaker, 30 May 2013

For further information, please contact Statnett:
Tom Tellefsen, Vice president, System operation and analysis, phone + 47 23 90 36 78
Idar Gimmestad, Department manager, National Control center, phone + 47 23 90 32 89


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