NorthConnect: Contribution to Scottish Renewables Sector. Fiona Henderson, UK Permitting Lead. All Energy Grid Session 5 th May 2016

Transcription

1 NorthConnect: Contribution to Scottish Renewables Sector Fiona Henderson, UK Permitting Lead All Energy Grid Session 5 th May

2 Some Project Facts & Figures MW 655km 1.5bn 10 years 2

3 Fundamental differences between UK and Norwegian energy systems underpin confidence in future Interconnector value Large price difference due to very different generation mixes Hourly prices NO (South) and UK ( /MWh) However fundamentally different systems underpin long term interconnector value Structural value: Fundamental differences in generation mixes and marginal price setting will remain for UK and Norway in the foreseeable future: - UK dominated by thermal and intermittent renewables. - Norway dominated by flexible hydro power. Variable value: Multiple source of variability expected. Intermittent renewables expected to grow: - Natural variability in weather conditions, influencing electricity demand and production. - Events like generation outages or transmission failures. 3

4 EU Policy & Strategy Strong and increasing support for NorthConnect and Interconnectors EU Policy and Strategic Initiatives for completing the energy market The Energy Union / Riga Process: Jean-Claude Juncker, Feb-2015 Energy becomes the 5th Freedom of the EU. A fully-integrated internal energy market using interconnectors which enable energy to flow freely across the EU - without any technical or regulatory barriers. ACER / ENTSO-E asked to take stronger responsibility for implementation of the 3 rd Package in Member States and complete the internal energy market (IEM). Benefits of Electricity Interconnectors Allow flow from low priced to high priced regions, generating revenue for Owner from the power price difference. High and enduring structural difference between GB / Nordic power prices. Significant socio-economic benefits from increased market integration, improved security of supply as well as cost efficient and climate friendly balancing of intermittent renewables. European TYNDP, PCI and CEF NorthConnect among the top rated projects by ENTSO-E / DGEnergy for socio-economic welfare, RES integration and carbon reduction. NorthConnect is a designated 10-yr Network Development Plan, Project of Common Interest and Electricity Highways Project with the EU. Funding support available from the Connecting Europe Facility. 4

5 DE-NO DKW-GB NO-GB BE-DE DKW-NL IE-FR LUG-BE BE-NL NI-IE IE-NI DE-NO NO-GB DKW-GB IE-FR DKW-NL BE-DE BE-NL LUG-BE NI-IE IE-NI NO-GB DE-NO IE-FR DKW-GB DKW-NL BE-DE BE-NL LUG-BE NI-IE IE-NI NorthConnect has status as a Project of Common interest and several studies highlight strong gains of connecting UK to Norway Socio-Economic Welfare ( m/yr) NorthConnect Vision 1 Vision Increased Renewable Production (GWh/year) NorthConnect Vision 1 Vision 4 Supported by numerous studies: 5 - OfGem/Poyry (Dec-14) Cap and Floor NSN Initial assessment - National Grid & UK Govt (Apr-14), IC Report - ENTSO-E (Mar-14), TYNDP14 Interim Results - NorthConnect Modelling (Apr-13 to Mar-14): - Stanett NSN (May -2013) Concession application - DECC-Redpoint Baringa (Dec-13), GB Interconnection: - DECC-Pöyry (Dec-12), EMR & ICs - Thema (May-12), Renewables & IC s Towards 2020 Even stronger socio-economic case for connecting to Scotland Reduction of CO2 Emissions (kton/year) NorthConnect NSN/NorthConnect Vision 1 Vision 4 Source: PCI-assement as part of TYNDP 2014 studies and Statnett

6 Connecting Scotland with the Western Fjords adds a dimension to the interconnector which maximises Wind-Hydro interoperability Scotland s 100% Conundrum Scotland s generation >60% from RES with the closure of Longannet. Greater volatility in Scottish market: need for balancing wind intermittency and reduction of fossil imports from south of the border. NortConnect s Scottish Benefits Balance 1.4GW (40%) of the intermittency shortfall, supplying carbonfree, subsidy-free power. Provide a route to alternative markets and balancing / storage capability at times of low UK demand and high wind loading. Perfect Match Directly connected to the Scottish system with a large (>60%) renewable generation and increasing wind power (intermittent) generation requiring high balancing capacity where flexible Norwegian Hydro power* is a perfect match. Scotland is one of the first nations to end its use of coal for power generation, marking a historic step in its energy transition as Longannet (2400MW) stopped generating in March Hence, NorthConnect could provide a significant contribution of reliant renewable back-up capacity to GB where it is most needed, as Scotland has limited balancing capacity. Back-up capacity will most likely otherwise be provided by gas-fired units. In addition, NorthConnect could also drain peak intermittent renewable generation which avoids curbing of production. This adds socio-economic value to the NorthConnect Interconnector project. * Norway has 50% of Europe s reservoir capacity. NorthConnect can play an important part in helping Scotland meet its 100% renewables target in a sustainable, cost-effective and reliable manner. 6

7 Opportunity for ancillary services driven by technology and introduction of European market, design and operating codes Fast Frequency Response VSC Interconnectors have the ability to rapidly change their power output across their full operating range, thus making them a very suitable option for managing the system frequency, National Grid. Black Start Capability Peterhead power station de-rating Tech and uncertainty over future. NorthConnect offers ability for Black Start connected to a live, resilient system location in Norway. Reactive Power Response Large amount of wind generation in Aberdeenshire will represent a significant and variable reactive power source and hence present problems with local grid voltage control. VSC HVDC can independently control its active and reactive power exchange, and therefore offer a service to the grid in supporting and limiting the system voltage at the point of connection. Constraints Management New Eurocodes (CACM) and the principles of the Energy Union represent a significant interoperability opportunity. System Operators have option of backing off transfers on NorthConnect and supplementing via southern UK interconnectors to balance the system. The predominance of large, fast-response, Pelton Wheel turbine hydro facilities close to the Norwegian end of NorthConnect will make it ideally placed to provide these service to the GB system. 7

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