ESTLINK 1 & 2 - Konkurentsiamet
ESTLINK 1 & 2 - Konkurentsiamet
ESTLINK 1 & 2 - Konkurentsiamet
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<strong>ESTLINK</strong> 1 & 2<br />
Raine Pajo<br />
Technical director<br />
October 5
Synchronous areas in Europe<br />
Capacity: : 90 GW<br />
Peak load: : 60 GW<br />
Consumption: : 400 TWh<br />
Population: : 20 mln<br />
Capapcity: 85 GW<br />
Peak load: 60 GW<br />
Consumption: 400 TWh<br />
Population: 65 mln<br />
NORDEL<br />
Capacity: 310 GW<br />
Peak load:180<br />
GW<br />
Consumption: : 1200 TWh<br />
Population: : 280 mln<br />
ATSOI<br />
Capacity: 610GW<br />
Peak load: 390 GW<br />
Consumption: 2500 TWh<br />
Population: 450 mln<br />
UKTSOA<br />
UCTE<br />
UPS/IPS<br />
HVDC cable<br />
HVDC B2B<br />
HVAC tie line
HARKU<br />
<strong>ESTLINK</strong> 1 VSC-tehnology<br />
ESPOO<br />
" - "<br />
" + "
<strong>ESTLINK</strong> 1 two project phases<br />
Decision<br />
Cable ready<br />
Sales of ownership to national<br />
grid companies<br />
2004 2005 2006 2007 2008 2009<br />
2010<br />
Commercial project 2006-2009<br />
(2013)<br />
• Investors are traders; Exemption valid<br />
Infrastructure project earliest 2010<br />
(latest 2013)<br />
• Investors are national grid companies<br />
• Project based investment, revenues from<br />
special fee paid by Estlink users<br />
• Part of domestic regulated asset base, i.e,<br />
included in the domestic grid tariffs<br />
• Owners have privileged rights for capacity;<br />
use-it-or-lose-it<br />
• Open access for all market participants
• Shareholders of NEL own all capacity in both directions<br />
• NEL will organize the following auctions:<br />
• Year Auction<br />
• Month Auction<br />
• Day Auction<br />
• Free Capacity Auction<br />
<strong>ESTLINK</strong> 1 auctions<br />
• Shareholders of NEL can sell their capacity at year, month and day<br />
auctions<br />
• All unused capacity for next day will be sold to third parties at free<br />
capacity auction<br />
• Every day there will be offered around 700 MW of free capacity for next<br />
day
<strong>ESTLINK</strong> 1 operation<br />
Estlink Usage [MW]<br />
400<br />
300<br />
200<br />
100<br />
0<br />
-100<br />
-200<br />
-300<br />
-400<br />
EST-FIN<br />
FIN-EST<br />
4.01.2007<br />
3.02.2007<br />
5.03.2007<br />
4.04.2007<br />
4.05.2007<br />
3.06.2007<br />
3.07.2007<br />
2.08.2007<br />
1.09.2007<br />
1.10.2007<br />
• Estlink has been in operation since January 4, 2007;<br />
• Estlink has been used in both directions, but mainly in direction from Estonia to Finland;<br />
• Average capacity usage during first 9 month has been 67,5%.
Good correlation with prices at NordPool<br />
Estlink usage during week 39<br />
NordPool average price<br />
Estlink usage<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
09.24.07<br />
09.24.07<br />
09.25.07<br />
09.26.07<br />
09.27.07<br />
09.28.07<br />
09.29.07<br />
09.29.07<br />
09.30.07<br />
NordPool Spot average price<br />
[€/MWh]<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
-50<br />
-100<br />
-150<br />
Estlink Usage [MW]
<strong>ESTLINK</strong> 1 system services and operation<br />
• <strong>ESTLINK</strong> 1 is operated by Estonian and Finnish TSO – good cooperation<br />
• <strong>ESTLINK</strong> 1 has been sucessful used also for the frequency regulation &<br />
POD in Finland<br />
• <strong>ESTLINK</strong> 1 has been tested for black-start in Estonia<br />
• Maximum capacities at Harku:<br />
- From Estonia to Finaland 383 MW (02.02)<br />
- from Finland to Estonia 281 MW (27.05)<br />
• Energy transmitted through Harku 8 months:<br />
- From Estonia to Finland 1130 GWh<br />
- From Finland to Estonia 18 GWh
<strong>ESTLINK</strong> 2
•NO INTERCONNECTORS = NO COMPETITION<br />
⇒ HIGHER PRICES<br />
The strategic goal of the Baltics<br />
•The main goal is to integrate the Baltic power<br />
system to the Scandinavian and West-European<br />
power systems<br />
•The development of electricity markets in the Baltic<br />
Sea region<br />
• Improve security of supply<br />
•The Baltics should have about similar transmission<br />
capacity towards East and West
Three strategic connections of Baltics<br />
2012-2018<br />
635 MW<br />
365 MW<br />
3000 MW<br />
700 MW<br />
700 MW<br />
3000 MW<br />
1000 MW
Strategic connections in Baltics and Nordel<br />
2012-2018<br />
200-750 MW<br />
800 MW<br />
600 MW<br />
400-600 MW<br />
700 MW<br />
600 MW<br />
800-1000 MW<br />
300 MW<br />
600 MW<br />
1000 MW
Estlink 2 Estonia-Finland HVDC<br />
• Capacity 600 MW<br />
• Losses ca. 1,5 - 2%<br />
• Energy availability: 98%<br />
• Life-time 40 a.<br />
• Cost: ca 200 MEUR;<br />
• Estonian TSO : 100 MEUR (50%);<br />
• Finnis TSO: 100 MEUR (50%);<br />
• <strong>ESTLINK</strong> 2 influence to household ca 1,5 s/kWh (Estonian)<br />
• Time schedule:<br />
• start: 2006 a.<br />
• Cooperation with Fingrid: 2007 detsember<br />
• Commissioning 2012-2013
Fenno-Skan 1<br />
<strong>ESTLINK</strong> 2 tehnology<br />
A<br />
C<br />
B<br />
NorNed<br />
Fenno-Skan 2
<strong>ESTLINK</strong> 2 tehnology
Synchronous operation with<br />
UCTE
Conclusion<br />
6 criterias for new connections<br />
• Production optimisation and energy exchange<br />
• consumer and producer benefits + congestion rents<br />
• Reduced risk of power shortage<br />
• Changes in losses<br />
• Lower risk of energy shortage<br />
• Trade in regulating power and ancillary services<br />
(POD)<br />
• The value of a better-functioning market
Vision of 1 PWh Baltic Sea market<br />
9<br />
TWh<br />
390<br />
TWh<br />
NW Russia<br />
150 TWh<br />
IE<br />
420<br />
TWh<br />
UK<br />
Baltics<br />
25 TWh<br />
Russia<br />
780 TWh<br />
510<br />
TWh<br />
Centrel<br />
260 TWh<br />
480<br />
TWh<br />
UCTE<br />
Iberia<br />
280 TWh<br />
320<br />
TWh
Thank You!
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