DANISH EXPERIENCE - HOW TO REACH A > 40% WIND ENERGY SHARE -

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1 DANISH EXPERIENCE - HOW TO REACH A > 40% WIND ENERGY SHARE - 1st internat Conference on Large Scale RES integration in India Antje Orths, Energinet Antje Orths - Danish Experience September2017 1

2 DENMARK - PART OF A LARGER MARKET AREA Development in RES GWh GWh Net electricity generation 27,704 28,930 Net Import 5,912 5,057 Consumption (incl grid losses) 33,616 33,987 Breakdown of electricity generation GWh GWh Wind, solar and hydro electric power 14, , Electricity from thermal Generation based on biofuels 3,789 4,266 Electricity from thermal Generation based on non RE 9,159 11,119 fuels Share of RES % % Wind power share of net generation 51,0 44,2 Wind power share of consumption 42,0 37,6 RE share of net generation 66,9 61,6 RE share of consumption 55,2 52,4 Antje Orths - Danish Experience September2017 2

3 DENMARK SMALL PART OF A LARGE ELECTRICITY MARKET Denmark is located between a thermaland a hydro-dominated power system. This makes Denmark a transitcorridor. Energinet.dk operates Eastern and Western Denmark independently in two different synchronous power systems (Nordic and Continental Europe). 350 km Border between systems dominated by hydroand thermal power NORDEL UPS 350 km DK: ~ 5 mio inhabitants UCTE Antje Orths - Danish Experience September2017 3

4 POWER BALANCE 2016 Two synchronous areas West: Net Consumption Primary power stations* Local CHP plants* Wind turbines* PV MW 2320 MW 1010 MW 3710 MW 410 MW 5130 MW Primary power station Local CHP plant Wind turbines 1632/1632 MW 680/740 MW 2016: 37,6 % el-consumption covered by Wind East: Net Consumption MW 1300/1700 MW Primary power stations* 1880 MW Local CHP plants* Wind turbines* PV 480 MW 1010 MW 210 MW 1700 MW * Maximum production 600 MW Relation [%] DKW DKE DK Export capacity/ installed gen Import capacity/ peak load / 600 MW 1500/1780 MW Antje Orths - Danish Experience September import / export [MW] AC DC

5 THE ENERGY SYSTEM IN DENMARK IS CHANGING By 2020, wind power will constitute 50% of the electricity consumption By 2050, Denmark must be completely independent of fossil fuels Strategic commitments of Energinet: - Security of supply - Efficient green transition - Healthy investment climate Antje Orths - Danish Experience September2017 5

6 DEVELOPMENT IN FUEL CONSUMPTION, DEMAND AND GENERATION Fuel for electricity generation Fossil fuel: -70% Demand and generation Wind power/demand = 42%

7 TOOLBOX FOR EFFICIENT WIND POWER INTEGRATION IN DENMARK Strong transmission grids and interconnectors International electricity markets Flexible generation system Specialized forecasting and operational planning tools Antje Orths - Danish Experience September2017 7

8 A WEEK IN DENMARK WITH 51% WIND POWER How to balance a system with wind variation between ~0 and exceeding demand? Antje Orths - Danish Experience September2017 8

9 A FLEXIBLE POWER SYSTEM - RESULT OF MARKET CLEARING Antje Orths - Danish Experience September2017 9

10 A MARKET DRIVEN DYNAMIC DISPATCH Antje Orths - Danish Experience No large power plants in Denmark West September

11 EXAMPLE: HIGH WINDS LOW PRICES NO LARGE POWER PLANTS in DK West Grid Integration and Planning April

12 ALSO WIND FARMS REACT ON MARKET PRICES Antje Orths - Danish Experience September

13 HIGH FLEXIBILITY OF POWER PLANTS Operational range: % Regulating rate: 3-4% per minute Source: Dong Energy Antje Orths - Danish Experience September

14 THE NORDIC ELECTRICITY MARKET Power producers Consumer Power producers Consumer TSO 1 hr for TSO to prepare physical balancing Financial Markets Day ahead clearing Intraday Market Regulating Power Market 12:00 15:00 0:00 h-1 h The day before the day of operation Operating hour Antje Orths - Danish Experience September

15 WIND POWER FORECASTS TO REDUCE IMBALANCES 1m/s deviation ~ 500 MW Numerical weather prediction + on-line measurements! 1.5% x 5 GW = 75 MW. (~10% of DK dimensioning fault) Antje Orths - Danish Experience September

16 OPERATIONAL PROCEDURES AND TOOLS Operational Planning based on best predictions at any time Minimize needs for automatic reserve and ancillary service Balance system with least cost resources slow manual reserves Detailed and continously updated knowledge allows operation closer to the limits All operational aspects deliver Security of Supply Antje Orths - Danish Experience September

17 RESIDUAL DEMAND IN DENMARK - HOW BIG, HOW LONG AND HOW OFTEN? RRRRRRRRRRRRRRRR dddddddddddd = DDDDDDDDDDDD wwwwwwww PPPP ( tttttttttt) Timer Sol - middel over 10 år 0 Jan Apr Jul Oct Jan 1.0 GW Vind - middel over 10 år GW 4 3 Sammenhængende periode på 1 uge med højeste residualforbrug Forbrug Landvind Havvind Kystnære Sol GW 4 3 Maksimalt gennemsnitligt residualforbrug i sammenhængende perioder Klassisk Proces ivp FVVP EV Timer Jan Apr Jul Oct Jan 5 GW kl kl kl kl kl kl kl. 00 Start: Onsdag d. 12. december 2007 kl time 6 timer 1 døgn 3 døgn 1 uge 1 måned Periodens længde Week with highest residual demand in 10 years. No wind, no solar and high demand Maximum average residual demand in periods of different lengths IEA meeting Golden, CO, USA Source: energy concept 2030, Energinet.dk (Danish version) Antje Orths;

18 RESIDUAL DEMAND IN DK AND NEIGHBOURING COUNTRIES Fixed and flexible residual demand Denmark Denmark & Neighbours 8 Residualforbrug inkl fleksibelt forbrug og V2G 250 Max residual i DK vist for DK+nabolande GW 4 GW 3 Fast forbrug Klassisk afkoblet 2 Proces ivp Individual heat pumpts District FVVP heating heat pumps 1 EV V2G Tidsinterval - [h] Flexible demand and V2G can de-couple a lot in periods of 1-5 hours, but not much in periods longer than 10 hrs fix flex Fast forbrug Fleks V2G Kraftværk kap Periodelaengde - [timer] There is not enough PP capacity in neighbouring countries during the short periods with highest residual demand But flexible demand and V2G might help IEA meeting Golden, CO, USA Source: energy concept 2030, Energinet.dk (Danish version) Antje Orths;

19 VALUE CHAIN FROM RESSOURCE TO ENERGY SERVICE - INTEGRATION OF ELECTRICITY, GAS AND HEAT SYSTEMS - Source: Energinet.dk: Energy Concept 2030, May 2015 Antje Orths - Danish Experience September

20 ENERGINET ENERGY CONSULTANCY PROJECTS ENERGY CONSULTANCY

21 THANK YOU! ENERGY BECOMES SUSTAINABLE In 2050, all energy in Denmark must come from renewable energy sources

22 ENERGINET STATE-OWNED TRANSMISSION SYSTEM OPERATOR Ensure short- and long-term security of supply for electricity and gas Ensure well-functioning markets for electricity and gas Own, operate and develop the gas and electricity transmission grids Antje Orths - Danish Experience September

23 OPERATIONAL PLANNING SYSTEMS TO REDUCE RISKS AND COSTS - PREDICTED IMBALANCE ON-LINE UP-DATED Closing the gap before the operating hour Predicted Imbalance Grid Integration and Planning April