Challenges of the green transition in Denmark

05.11.2020

In Denmark, as in Europe in general, the energy transition presents new and challenging tasks for the players in the energy sector. To improve the information basis and to prepare adequately for these challenges, TSCNET customer Energinet, the Danish transmission system operator (TSO), has created two reports on long-term development needs in the Danish energy system. There are two reports, as Energinet is not only the national TSO for electricity, but also for gas.

The forecasts in “Long-term Development Needs in the Power Grid” are similar to those of other European TSOs and allow similar conclusions. Not surprisingly, Denmark, as a world leader in renewable energy, needs to make even greater efforts to integrate these amounts of energy from renewable sources. In concrete terms, the TSO expects that by 2040 the maximum generation of wind turbines and solar cells could increase from 7.4GW today to perhaps 26GW. Such a tripling or quadrupling will cause problems for the current high-voltage grid, which is not designed to transmit such large amounts of energy.

Some challenges may not be due for 10-20 years, but others are already on the doorstep. In some places in Denmark, large-scale local production from wind and solar energy is already putting a considerable strain on the power grid. Hanne Storm Edlefsen, Head of the Strategic Planning division in Energinet Elsystemansvar, the TSO’s electricity system operator branch, emphasises the need for cooperation at all economic, political, and social levels to make the green transition a success and, for example, to ensure that “a doubling of electricity demand does not mean twice as many power pylons and overhead lines”.

The analyses show, among other things, the locations in Denmark where high-voltage grid extensions are required, either as underground cables or overhead lines. However, Edlefsen also points to other solution approaches beyond mere expansion: The proper placement of wind farms or large photovoltaic systems can reduce the need for grid reinforcement. And electrolysis plants of the future, which convert green electricity into hydrogen and other green fuels, could be located close to major green generation units so that electricity need not be transported across the country.

Energinet has presented two reports on the Danish long-term development needs in the power grid and in the gas system (picture: Energinet)

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> See Energinet press release (html)
>Open report on needs in the power grid (pdf, 7.42MB)

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Middle Axis increases capacity sevenfold

27.10.2020

Since the 60s of the 20th century, a 220kV overhead line has been in operation between Hamburg and Denmark, thus crossing Schleswig-Holstein, the northernmost of the German federal states, in its entirety. Schleswig-Holstein is a true “wind power state” in terms of generation, but consumes very little energy in comparison to the southern and western German states. The green electricity produced here therefore has to be transmitted to the centres of consumption. As a result of the energy transition with increasing shares of wind energy, the capacity of the old line has long since been insufficient, resulting in grid bottlenecks. The Dutch-German transmission system operator (TSO) TenneT, whose control area includes the state between the North and the Baltic Sea, thus has replaced the old line with a new 380kV line capable of transmitting seven times as much green electricity.

The new overhead line is called Middle Axis (“Mittelachse”), as it is flanked by two other line projects of the TSCNET shareholder, the East-Coast-Line and the West-Coast-Line. On the Danish side of the border, the Danish TSCNET customer Energinet continues the Middle Axis from Frøslev to the Kassø substation, thereby increasing the electricity trading capacity between Denmark and Germany. On 21 October, TenneT put officially into operation the two northern sections of the Middle Axis between the Audorf substation near Rendsburg and the border with Denmark. With a symbolic push of a button at the substation Handewitt near Flensburg, Thomas Bareiß, Parliamentary State Secretary at the German Federal Ministry for Economic Affairs and Energy, Jan Philipp Albrecht, Minister of Energy, Agriculture, the Environment, Nature and Digitalisation of Schleswig-Holstein, Henrik Riis, CEO of Energinet-Eltransmission, and TenneT COO Tim Meyerjürgens connected the new 82 kilometres long power line to the grid.

The southern section of the Middle Axis from Hamburg/North to Audorf with a length of 70 kilometres was commissioned by TenneT in early 2018. Since 2015, a total of 388 new pylons have been erected along 152 kilometres between Hamburg/North and the border with Denmark, including the required substations Audorf/South, Schuby/West and Handewitt. The extension of the line by Energinet across the border by 30 kilometres into the Danish grid area increases security of supply for both the German and Danish electricity markets and enables the exchange of renewable energy between the two countries.

Tim Meyerjürgens explained: “With the 82 kilometres from Audorf to the Danish border, we are completing the important Middle Axis in the energy transition region of Schleswig-Holstein for the transmission of electricity from renewable sources between the river Elbe and Denmark.” Henrik Riis added: “The Middle Axis is a tremendous success, and it provides a new, continuous electricity highway that runs all the way from Denmark to Hamburg and on to Lower Saxony across the river Elbe. A strong cross-border infrastructure and well-functioning energy markets are essential for all of us – both at national and European level – to shape a future with high security of supply, large amounts of renewable energy and an efficient green energy transition.”

TenneT and Energinet commissioned the northern section of the Middle Axis, a new 380kV line from Denmark to Hamburg (picture showing from right to left Thomas Bareiß, Henrik Riis, Tim Meyerjürgens and Philipp Albrecht at the far left: TenneT)

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> See TenneT press release, in German (html)

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Combined Grid Solution inaugurated

20.10.2020

On 20 October, the world’s first hybrid offshore interconnector was ceremoniously put into operation: the Danish-German Combined Grid Solution (CGS). This interconnector in the Baltic Sea links the transmission grids of two countries via national offshore wind farm grid connections. For this purpose, two submarine cables with a length of merely 25 kilometres and a capacity of approx. 200MW each were laid between the offshore transformer platforms of the German wind farm Baltic 2 and the Kriegers Flak wind farm in the Danish part of the Baltic Sea, which is currently under construction. The CGS – a joint project of TSCNET shareholder 50Hertz, one of the four German transmission system operators (TSOs), and TSCNET customer Energinet, the TSO from Denmark – thus not only connects the platforms with each other but also the existing onshore connections of the wind farms. This allows the transmission of offshore wind power to Denmark or Germany and also cross-border electricity trading.

The official opening ceremony, which took place on site in the German capital of Berlin as well as digitally, was attended by Peter Altmaier, German Federal Minister for Economic Affairs and Energy, Dan Jørgensen, the Danish Minister for Climate, Energy and Utilities, as well as Kadri Simson, EU Commissioner for Energy. With their appearance, these high-ranking political representatives acknowledged the CGS as a technical innovation with model character for future offshore power grids. The hybrid nature of CGS is that it is the first electricity interconnector between two countries, that not only provides capacity for electricity trading, but also transports offshore wind energy onshore – in both directions. The costs of the binational EU-funded project amount to around €300m.

A technical obstacle had to be solved in the realisation of CGS: Because the transmission grids in eastern Denmark and Germany do not operate synchronously, it was necessary to install a back-to-back converter at the 50Hertz substation in Bentwisch near the port city of Rostock in the federal state of Mecklenburg-Western Pomerania. The device converts the incoming AC into DC and immediately back. Only in this way is it possible for electricity to flow smoothly from Denmark to Germany and vice versa. But CGS has not only hardware but also software components. The central digital control unit of the system is the Master Controller for Interconnector Operation (MIO), located in the 50Hertz control centre near Berlin. The MIO balances market requirements with offshore electricity production, which depends on wind conditions in the Baltic Sea. Its main function is to ensure optimum use of the CGS while preventing any overload of the line and the operating facilities in the substation.

Stefan Kapferer, CEO of 50Hertz, commented at the inauguration: “With this project, 50Hertz and Energinet are pioneering the efficient integration of offshore wind farms into the cross-border European electricity market. It offers us several effective options to balance the frequency and voltage of our transmission grids at all times, to deal with the integration of renewable energy sources with more flexibility and to increase the stability of the overall system.” Thomas Egebo, CEO of Energinet, added: “The CGS is not only a very important milestone in reaching Denmark’s ambitious goal of a 100 percent green power system in 2030. The groundbreaking project also delivers an important building block for decarbonising the rest of the society.”

The Danish-German Combined Grid Solution has been ceremoniously put into operation (illustration uses photos of 50Hertz, one of which shows Minister Altmeier)

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> See 50Hertz press release (html)
> See Energinet news release (html)
> Watch CGS inauguration film (YouTube)

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High supply security and high share of renewables in Denmark

16.09.2020

Denmark is a world leader in the supply of electricity from renewable sources. 2019 is yet another record year in this respect, according to the annual statement on the security of electricity supply presented by TSCNET customer Energinet, the Danish transmission system operator (TSO). The availability rate of electricity of 99.996% of the time, which the report reveals, is already impressive, but so is the share of renewables in the Danish electricity grid, which reached 50% last year.

The integration of such extensive and increasing wind and solar energy capacities, more electricity interconnectors, or the harmonisation of markets and grid operation through EC regulations – all these have an impact on the Danish security of supply. Therefore, the high level is not a sure-fire success and, according to Energinet’s CEO Søren Dupont Kristensen, is due to the TSO’s immense efforts: “In the last decade, we have taken enormous steps in the energy transition. For example, wind and sun accounted for less than 20% of electricity in Denmark in those days, whereas today it accounts for over 50%. At the same time, we still have a remarkably high level of supply security. However, this continued high level of supply security does not come by itself, which is why we are paying close attention to the challenges that an ageing electricity grid poses, including an increasing risk of power shortage.”

For 2030, Denmark has set a target of 100% electricity from renewables with a 70% reduction in CO2 emissions. This can only be achieved with a comprehensive sector coupling, as Energinet declares – and, because of the increasingly decentralised electricity generation, through consistent and adequate expansion of the electricity grids. Søren Dupont Kristensen assures that Energinet will take all measures to maintain Danish security of supply at a comparable high level over the next ten years.

Energinet has presented its statement on the Danish security of electricity supply in 2019 (picture: Pixabay)

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> See Energinet press release, in Danish (html)

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New Local Implementation Project under SIDC

09.07.2020

European transmission system operators (TSOs) are committed to the European Energy Union by collectively working towards an integrated European electricity market. A key component for market integration is cross-border Single Intraday Coupling (SIDC), which was introduced as XBID in June 2018. SIDC is designed to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. Currently, the markets of 22 countries are coupled through SIDC: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, and Sweden. With the inclusion of the Slovakian Nominated Electricity Market Operator (NEMO) OKTE and TSCNET shareholder SEPS, the TSO from Bratislava, the project also extends to Slovakia.

Within the framework structure of the SIDC, Local Implementation Projects (LIPs) provide for the expansion of the market coupling, and a new project has now been established as LIP 17. The NEMOs and TSOs from the Czech Republic, Hungary, Poland, and Slovakia – the TSCNET shareholders ČEPS, MAVIR, PSE, and SEPS – have proposed to implement SIDC across the borders between Slovakia-Czechia, Slovakia-Hungary, and Slovakia-Poland. The SIDC Steering Committee approved on 7 July and the LIP 17 roadmap will now be elaborated in more detail.

The SIDC solution comprises a common IT system with a shared order book, a capacity management module, and a shipping module. In addition to the TSOs mentioned above, the TSCNET shareholders 50Hertz, Amprion, APG, ELES, HOPS, TenneT, Transelectrica, and TransnetBW as well as the TSCNET customers Creos from Luxembourg and Energinet from Denmark are also part of SIDC.

A new LIP for the introduction of intraday trading across the borders of Czechia, Hungary, Poland, and Slovakia has been established under SIDC

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> See MAVIR press release (html)
> See PSE press release (html)
> See SEPS press release (html)

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Successful start of FCR auctions

01.07.2020

The cooperation on regional procurement and exchange of frequency containment reserve (FCR) is a voluntary initiative of eight transmission system operators (TSOs): the six TSCNET shareholders 50Hertz, Amprion, and TransnetBW from Germany, APG from Austria, Swissgrid from Switzerland, and the Dutch-German TSO TenneT, as well as Elia from Belgium and the French TSO RTE. The FCR project is the first regional cooperation for a common market based on the methodology for the exchange of control reserves set out in the EU Guideline on Electricity Balancing. Within the scope of a cooperation model with Amprion, the Luxembourg TSCNET customer Creos is also involved.

The next milestone in the development of the largest European market for primary balancing power reserve has now been reached, as the first D-1 auction for FCR with 4-hour products was successfully conducted on 30 June 2020. This means, the FCR cooperation reduces the product length from one day to four hours and thus the market for primary balancing power is brought closer to real time.

Due to stronger competition between service providers and technologies, the joint auction allows TSOs to procure FCRs at minimum cost to end-users while offering a large common market for all providers of balancing services. It also increases the market attractiveness for short-term flexibility, limits price volatility and improves the security of grid operation by executing cross zonal procurement of FCR. The FCR market, already the largest in Europe, will be extended to western Denmark and Slovenia in the first quarter of 2021, so that with Energinet and ELES two further TSCNET shareholders will broaden the project.

The FCR cooperation successfully conducted the first D-1 auction for FCR with 4-hour products 

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> See Swissgrid news release (html)

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Luxembourg integrated into FCR cooperation

01.06.2020

Eight central European transmission system operators (TSOs) cooperate in the regional procurement and exchange of Frequency Containment Reserve (FCR). Their joint FCR project is the first regional cooperation in Europe to implement market harmonisation in accordance with the EU Guideline on Electricity Balancing. The participating TSOs are APG, 50Hertz, Amprion, TransnetBW, and Swissgrid – the Austrian, German and Swiss TSCNET shareholders –, the Dutch-German shareholder TenneT as well as the Belgian TSO Elia and the French TSO RTE. It is intended to extend the joint FCR procurement towards western Denmark, so that the central European TSOs are supplemented by Energinet from Denmark as a non-active member.

Luxembourg was missing in the cooperation so far, but cross-border primary control reserve (PCR) between Germany and Luxembourg is now also possible: Since 1 June 2020, balancing service providers (BSPs) from Luxembourg are participating in the joint tender for FCR cooperation. For this purpose, the TSO Amprion, whose German control area is bordering the Grand-Duchy, and the Luxembourgian TSCNET customer Creos have developed a cooperation model. Under this model, Amprion assumes the role of the connecting TSO, carries out the prequalification of the BSPs, concludes the framework agreement for PCR, and takes over the settlement with the BSPs from the Creos control area.

Since Amprion and Creos operate a joint load-frequency-control area, a pooling of technical units within this common area is permissible. Thus, a pool can include Luxembourgian as well as German units that provide balancing services. This means that a BSP may combine generation units or controllable consumer loads from both countries and offer them collectively on the PCR market.

The central European FCR cooperation was extended to Luxembourg (picture: Cedric Letsch)

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> See Amprion press release, in German (html)

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Nordic Power Solutions Report

29.04.2020

The Nordic transmission system operator (TSOs) of Finland, Norway, Sweden, and the Danish TSCNET customer Energinet have updated their 2018 report “Solutions for a changing Nordic power system”. The Solutions Report 2020 provides an overview of the joint Nordic TSO projects that have been identified as crucial to address the challenges in the Nordic energy system.

As in the rest of Europe, the Nordic power system is undergoing the most significant changes since the liberalisation of the electricity markets, and here, too, these changes are mainly based on a new power generation mix with volatile generation and distributed resources. The Power Solutions Report 2020 draws a common picture of the progress of the new solutions in the Nordic power system that respond to these changes. In addition to reporting on the projects, the report also features comments from stakeholders on the tasks and the challenges they still see in the Nordic power grid.

Energinet and the other Nordic TSOs have published their joint Nordic Power Solutions Report 2020 (picture: Bo Kamstrup, Pixabay)

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> See Energinet press release (html)
> Open Nordic Power Solutions Report (pdf, 10.62MB)

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Launch of the Equigy balancing platform

25.04.2020

To ensure the stability of the grid frequency, transmission system operators (TSOs) all over Europe respond to the increasingly volatile generation of energy from renewable sources and to the loss of reactive power from large power plants. The challenge of keeping production and consumption in balance does not stop at national borders, for which reason the TSCNET shareholders Swissgrid, the TSO from Switzerland, and TenneT, the Dutch-German TSO, are cooperating with the Italian TSO Terna in the crowd balancing platform Equigy. The platform is based on blockchain technology and the internet of things. It is conceived as digital link between the so-called TSO ancillary service markets and the market players that deliver balancing services. TSCNET customer Energinet, the Danish TSO, has formally expressed its intention to join the consortium, which would extend Equigy’s roll-out to Denmark.

With their cross-border cooperation, the consortium of Swissgrid, TenneT, and Terna wants to set a new electricity-balancing standard, improve the integration of renewables, and provide more flexibility to reduce the renewables’ random impact on the grid. As with previous, regionally limited balancing projects, Equigy aims to unlock flexibility by actively involving small and distributed consumer-based generation and consumption units in grid stabilisation. This involvement enables owners of small-scale assets to play a key role in the transformation of the energy sector by optimising their interaction with the grid. Since Equigy processes multiple small transactions, it requires a secure and scalable solution that ensures trust and transparency between all parties involved. The common vision of the participating TSOs is clear: Millions of households will stabilise the electricity grid in the future.

Open and free of charge
Equigy is based on block chain technology to execute transactions from millions of individual systems securely, cost-effectively, and transparently. This creates a single, immutable, and secure data source from which all parties can benefit. Precise rules and regulations allow consumers, businesses, and manufacturers to easily market the flexible capacity of electric vehicles, household batteries, and heat pumps in all participating countries, regardless of location, thereby simplifying access to the electricity market. At the same time, all local or regional flexibility platforms can be connected to the Equigy platform so that as much flexibility as possible can be bundled. This means: Equigy is not exclusive and can be integrated into existing grid stabilisation processes. The technology and software are open-source and provided free of charge to promote the development of secondary applications in the energy value chain. Equigy has now been successfully launched, and the pilot project to test the technology will run until the end of 2020.

In Switzerland, the project has attracted a lot of interest. Numerous partners have expressed an interest in participating. Yves Zumwald, CEO of Swissgrid, comments: “We are proud to be a founding partner of Equigy. It’s only natural that this ambitious initiative is being driven by TSOs. We are not subject to commercial constraints and are able to operate the new platform adopting a neutral position.” Manon van Beek, CEO of TenneT, can also be pleased to have various Equigy partners in Germany and the Netherlands. She emphasises the European dimension of the project: “Equigy originated from European cooperation. In a common European market, we will have to develop solutions together. We already have the same sockets. It would be a shame and unnecessarily expensive to develop different systems.”

Expansion to the north
The Danish TSO Energinet recognises the potential of Equigy and is highly interested in participating. The consortium behind Equigy appreciates this interest. Swissgrid, TenneT, Terna, and Energinet have thus signed a Letter of Intent in which the parties confirm their common interest in including Energinet in Equigy. Energinet will now examine the possibilities of becoming part of the cooperation. All partners aim to take a decision on Energinet’s accession before the end of this year. Søren Dupont Kristensen, CEO of Energinet Electricity System Operator, explains: “We are now investigating the potential of this platform in the context of the Danish energy system. Based on our findings, we will decide on joining the collaboration regarding the platform.”

The blockchain based crowd balancing platform Equigy has been launched by Swissgrid, TenneT, and Terna

Linkup
> See Energinet news release (html)
> See Swissgrid news release (html)
> See TenneT news release (html)
> Visit Equigy website (html)

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SIDC: Massive growth in trading volume

02.04.2020

European cross-border Single Intraday Coupling (SIDC) was introduced in June 2018 (then called XBID) to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. The overarching objective is the integration of the European energy market. In November 2019, SIDC was extended in a second go-live, so that currently the markets of 22 countries are coupled through SIDC: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Portugal, Spain, Sweden (first go-live), and Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia (second go-live).

The Nominated Electricity Market Operators (NEMOs) from the seven countries of the second go-live report significant growth in trading volume in the coupled intraday market. The Hungarian NEMO HUPX, for example, recorded an average monthly trading volume of around 75,600MWh from December 2019 to February 2020 compared to 7,600MWh in the same period of the preceding year; in the Czech Republic, the volume has increased eightfold. The other NEMOs are also registering significant growth rates. A total of 36 million trades have been executed since SIDC first went live, and the system continues to operate reliably after the second wave.

The SIDC solution is based on a common IT system with a shared order book, a capacity management module and a shipping module. The TSOs cooperating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, TenneT, Transelectrica and TransnetBW, as well as the TSCNET customer Creos from Luxembourg and Energinet from Denmark. With the accession of the NEMO OKTE and further TSCNET shareholder SEPS, the TSO from Bratislava, the project has meanwhile been extended to Slovakia. A third go-live to expand continuous cross-border intraday trading to Greece and Italy is expected in the first quarter of 2021.

The seven new members of SIDC for a single integrated European intraday market are reporting enormous growth in trading volume

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> See Amprion press release (html)
> See PSE press release (html)

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