New Nordic System Operation Agreement

04.10.2019

The five Nordic power transmission system operator (TSOs), including the Danish TSCNET shareholder Energinet, have signed a new Nordic System Operation Agreement. This agreement sets out the common operating principles of the Nordic TSOs to ensure that the Nordic interconnected system is operated reliably and efficiently in accordance with national and European regulations.

Against the background of the increasing volatility of electricity generation due to renewable energies and the reduction of balancing power generation, the Operating Agreement will further strengthen Nordic cooperation, harmonise grid operating practices between Nordic countries and within Europe, and ensure the system security of the Nordic electricity system.

The document will also contain several appendices, of which the appendix on reserves has already been concluded. The Nordic TSOs are in the process of finalising further appendices on all relevant operational issues. The new Operation Agreement will successively replace the existing one after the completion of the new appendices.

Energinet and the other four Nordic TSOs have signed a new Nordic System Operation Agreement (picture showing Copenhagen, Denmark)

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Danish wind power generation exceeds demand

23.09.2019

Sunday, 15 September 2019, now is a historical date for the Danish electricity market. Within the 24 hours of that day and during the first strong autumn winds of the year, wind power generation covered 130 percent of national demand, thus exceeding it for the first time for an entire day. According to preliminary figures from TSCNET shareholder Energinet, the Danish power transmission system operator (TSO), Danish wind turbines generated between 2 a.m. and 3 a.m. early Sunday morning an impressive 60 percent more electricity than the Danish market actually consumed.

For one thing, this beats the previous record of 9 June 2019 (52 percent above demand), but what is even more significant for the Danish energy transition is this being the first 24-hour period ever in which surplus wind energy has been generated during all day and night hours. This surplus wind energy was further transmitted by Energinet and sold to other countries.

Carsten Vittrup, Energy Strategy Adviser at Energinet, comments on these groundbreaking figures: “A mere ten years ago, wind accounted for only about one fifth of our supply. But things have developed extremely fast, meaning that we now see not just hours, but entire days of wind turbines generating more electricity than we need.”

Energinet reports record in national wind power generation (picture: Energinet)

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COBRAcable market launch on 7 September

02.09.2019

After three years of construction, including the laying of the submarine cables as well as the construction of two onshore converter stations, and a successful test phase earlier this year, COBRAcable will be available for the electricity market as of the delivery day of 7 September, which is exactly on schedule. The first direct connection between the electricity markets of Denmark and the Netherlands was jointly realised and is operated by the two TSCNET shareholders Energinet, the Danish transmission system operator (TSO), and TenneT, the Dutch-German TSO.

The high-voltage DC cable with a length of about 325km has a capacity of 700MW. The Netherlands can import more sustainable electricity from Denmark through COBRAcable, mainly wind energy. In addition, the cable provides Dutch capacity on a structural basis for the Danish electricity grid, thus ensuring security of supply in Denmark, which of course also works the other way round. Moreover, the cable connection is designed in such a way that an offshore wind farm can be connected at a later date, so that COBRAcable contributes to a sustainable European energy landscape.

The COBRAcable interconnector of Energinet and Tennet is available to the market from 7 September (picture: screenshot taken from TenneT-video “First pile COBRAcable”, YouTube)

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Nordic TSOs present new development plan

26.08.2019

The four Nordic transmission system operators (TSOs), which include the the Danish TSO and TSCNET shareholder Energinet, Fingrid from Finland, Statnett from Norway, and Svenska kraftnät from Sweden, have published the new edition of the biennial Nordic Grid Development Plan. The four TSOs will continue to intensify their cooperation work in the future and shape it even more comprehensively.

It is planned to significantly expand the transmission grid. The main reasons for this are increased volatility due to the massive increase in renewable electricity generation, the decommissioning of fossil fuel facilities, the growth in consumption from increasing electrification and new industries, aging equipment and the need for reinvestment in existing grid assets, and the decommissioning of nuclear power plants in Sweden. The capacity for the import and export of electricity between the Nordic states and continental Europe is also to be substantially increased with several interconnectors. At the same time, several measures are being developed to make electricity markets and grid operations more effective.

The four Nordic TSOs have published the biennial Nordic Grid Development Plan (picture: Fingrid)

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Wind power hub promotes climate goals

10.07.2019

It’s only been a good three years since TSCNET shareholder TenneT, the Dutch-German transmission system operator (TSO), first presented the concept of a North Sea Wind Power Hub (NSWPH) to the public. From then on, the vision has taken concrete shape and the hub consortium has been consistently expanded, now including further TSCNET shareholder Energinet from Denmark, the port of Rotterdam and the Dutch natural gas company Gasunie, as power-to-gas applications are an important component of the concept.

In future years, when large wind regions in the North Sea are defined for development, it will be possible to implement several hubs to support the energy transmission infrastructure. These NSWPHs will then combine generation, storage and transmission of wind energy with a multinational interconnection of North Sea riparian states and thus promote the large-scale implementation and integration of offshore wind energy. The NSWPH partners have now presented the results of the project assessment phase. In recent months, they not only analysed options for the construction of wind farms in the North Sea, but also conducted a large number of studies, examined various scenarios and held intensive discussions with policy makers, leading offshore developers and non-governmental organisations.

The studies and investigations have confirmed the technical and economic feasibility of the hub concept. Furthermore, they have shown that large offshore wind capacities must be developed in the North Sea in order to achieve the goals of the Paris Climate Convention in due time. The targeted capacities range from 70 to 150GW by 2040 and up to 180GW by 2045. Depending on the scope of development, the NSWPH could lay the foundation to supply hundreds of millions of Europeans with green electricity. To take the concept forward, the Danish, Dutch and German governments as well as the European Commission are invited by the NSWPH consortium to consider setting up a consultation.

Studies confirm the climate benefits of the North Sea Wind Power Hub concept (picture: TenneT)

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New FCR market design

04.07.2019

The collaboration of central European transmission system operators (TSOs) in the procurement and exchange of Frequency Containment Reserve (FCR) is the first regional cooperation in Europe to implement market harmonisation in compliance with the EU Guideline on Electricity Balancing (EBGL). The TSOs that make up the FCR consortium are: the Austrian, German and Swiss TSCNET shareholders APG, 50Hertz, Amprion, TransnetBW, and Swissgrid, the Dutch-German shareholder TenneT as well as the Belgian TSO Elia and the French TSO RTE, which are supplemented by further TSCNET shareholder Energinet from Denmark as non-active member.

The FCR cooperation was founded in the summer of 2016 and has conducted two consultation rounds in the last two years, resulting in a final proposal, which was approved by all national regulators involved. The first milestone in the advancement of the largest FCR market in Europe has now been reached in the implementation of a new FCR market design. In addition to shortening the product length from a week to a day, the cooperation introduces a marginal pricing system. The aim is to reduce procurement costs and create incentives for new balancing power providers and technologies to enter the market.

The FCR cooperation introduces a new market design

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New ENTSO-E leadership team elected

28.06.2019

The Assembly of the European Network of Transmission System Operators for Electricity (ENTSO-E) has elected a new leadership team for the next two years, taking office today. The new President is Hervé Laffaye, Deputy CEO of RTE (Réseau de Transport d’Electricité), the French transmission system operator (TSO). Vice President is Zbyněk Boldiš, member of the Board of Directors of our shareholder and customer ČEPS, the Czech TSO. The Board is chaired by Joachim Vanzetta, Director of System Control at Amprion, one of the four German TSOs. Of our shareholders and customers, also Tahir Kapetanovic (APG), SØren Dupont Kristensen (Energinet), Konrad Purchała and Robert Paprocki (both PSE), Frank-Peter Hansen (TenneT), Michael Jesberger (TransnetBW), and Yves Zumwald (Swissgrid) belong to the ENTSO-E team.

“ENTSO-E’s agenda comprises several strategic targets to support the TSO community in preparing the power system of 2020, 2030 and beyond, in ensuring transparent implementation of existing and new legislation while keeping an excellent level of system security,” explains Joachim Vanzetta. The background is shaped by the implementation of the Clean Energy Package and the design of the future European electricity market design. Particular attention will be paid to the issue of system security in times of energy system transformation and European climate targets.

The ENTSO-E Assembly has elected a new leadership team – on the left the new ENTSO-E President Hervé Laffaye (RTE), on the right Chair of the Board Joachim Vanzetta (Amprion)

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TSO offshore connections are most cost-effective

26.06.2019

In most European countries with offshore wind farms, the respective transmission system operators (TSOs) are responsible for connecting these offshore facilities to the onshore grid, which they also operate. The TSCNET shareholders affected by this arrangement include the north-eastern German TSO 50Hertz, the Danish TSO Energinet and the Dutch-German TSO TenneT. But obviously this handling is not the only one possible. In the UK, for instance, the developer of the particular offshore wind farm is also responsible for its grid connection.

In concrete terms, this means that in the UK the offshore grid connection after its completion is sold to commercial investors and a so-called OFTO (Offshore Transport Owner) is established. But which model, the TSO model or the OFTO model, causes the lowest costs for consumers and thus for society?

The internationally accredited registrar and the world’s largest classification society, DNV GL, has investigated this question in more detail. The main outcomes of this study are that in the OFTO system the costs for the development of offshore connections are significantly higher than in Denmark and the Netherlands. In contrast, the Levelised Cost of Energy (LCOE) of the Dutch and Danish offshore connections is significantly lower. The LCOE assesses the average total cost of constructing and operating an energy generating asset over its lifetime divided by its total energy output over that lifetime.

DNV GL has documented lower costs for the TSO connection of offshore wind farms than for the OFTO solution (illustration of Borssele Alpha: TenneT)

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Imminent test operation for COBRAcable

24.06.2019

COBRAcable, the first direct interconnection between the electricity markets of Denmark and the Netherlands, is a joint project of the two TSCNET shareholders Energinet, the Danish transmission system operator (TSO), and TenneT, the Dutch-German TSO. Since spring, the partner TSOs have been preparing the commercial operation of COBRAcable. TenneT and Energinet have now launched an Urgent Market Messages (UMM) site for the commissioning of COBRAcable, which is scheduled to take place between 3 July 2019 and 6 September 2019.

A total of around 30 individual tests with different energy charges in the respective transport directions are planned. It is expected that the full capacity of COBRAcable will be available for the day ahead and intraday markets from 7 September. TenneT and Energinet then will offer financial transmission rights on COBRAcable at monthly and annual auctions. The first auction is expected to take place after a full month of stable operation, so probably the auction for November 2019, which will be held in October.

By promoting the exchange of surplus wind energy, COBRAcable will improve the cohesion of the European transmission system and the integration of the electricity market. It will also make a sustainable contribution to the low carbon energy future by allowing future offshore wind farms in the North Sea to be hooked up to the DC interconnector.

Energinet and Tennet will carry out individual tests of COBRAcable as of 3 July (picture: screenshot taken from TenneT video “COBRAcable Cable Pull Fano Denmark Film”, YouTube)

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Second go-live wave of XBID

13.06.2019

The successful go-live of XBID, the European cross-border Single Intraday Coupling (SIDC) solution, on 12/13 June 2018 was a significant step towards a single integrated continent-wide intraday market. Such an integrated market increases the overall efficiency of intraday trade through effective competition, increased liquidity and more efficient utilisation of generation resources across Europe. Today the first anniversary of XBID is celebrated and over 16 million trades have been executed since its launch.

The SIDC partners look back on a successful first year of operation with a stable and robust system performance as well as a high and growing number of trades across Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain, and Sweden. The integration of seven additional countries into the SIDC region is expected in the fourth quarter of 2019. A pre-launch event for the second wave is planned for the beginning of October 2019 and a trial period will also be arranged with the market parties. The countries for this second go-live wave are Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia.

The TSOs already cooperating in XBID include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, and TransnetBW as well as the TSCNET client Creos from Luxembourg. Further shareholders are to follow with the second wave, namely ČEPS, ELES, HOPS, MAVIR, PSE, and Transelectrica.

XBID, the SIDC solution for a single integrated European intraday market, celebrates its first anniversary

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