NORWEGIAN ENERGY SOURCING STRATEGY

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1 NORWEGIAN ENERGY SOURCING STRATEGY JWPA, Tokyo Leon Eliassen Notkevich, Statkraft Wind Power Prof. Terje Gjengedal, Statnett/NTNU

2 THIS PRESENTATION Statkraft today Dynamic power system Market mechanisms Interplay between wind and hydro Manual Imbalance Management Imbalance Management through AGC Swing producer side 2

3 STATKRAFT TODAY Main office Offices Hydro, gas, wind and district heating Baltic Cable side 3 STAKRAFT 2008

4 LEADING IN RENEWABLES Generation of renewable energy in Europe TWh Statkraft 51 EdF Vattenfall Enel Iberdrola E.ON Fortum Electrabel (SUEZ) EnBW Endesa SSE RWE Page side 4 Source: Annual reports

5 HIGHLIGHTS WIND ACTIVITY Norway Project pipeline of approx MW Sweden 1100 MW in late stage development UK One onshore and one offshore wind farm in construction Two wind farms granted license side 5

6 STATKRAFT S NEXT PROJECTS Blaengwen, Wales 10 turbines á 2.3 MW In operation in 2010 Carraig Gheal, Scotland Capacity of MW Final consent in June 2008 side 6

7 side 7 THE POWER SYSTEM IS DYNAMIC

8 VARIATION IN GENERATION EXAMPLE: WIND FARM 40 Smøla vindpark 40 MW, 66 kv Aktiv effekt (MW) /02 01/03 01/04 01/ side 8 28/10/2009 s. 8

9 VARIATION IN GENERATION EXAMPLE: HYDRO POWER PLANT (2 x 110 MW) Serie1 Serie side 9

10 VARIATION IN WIND RESOURCE Seconds - Minutes: Negligible affect on primary regulation Studies show that wind power does not affect the short time balance The variations are small and slow compared to fluctuations in load (consumption) Hours: Affects the need for secondary/tertiary regulation If the aggregated deviation from wind power and load is larger than that of the load alone Abnormal weather conditions side 10

11 24 HOURS A DAY AT THE CENTRAL DISPATCH Change of Bid Regulating Power Market Change of shift Night/Day Preparation for short term optimization planning meeting Opt. Planning meeting Change of Production Plans Preparation of Bid sheets Input to Nord Pool Bid to Statnett Bid to Regulating Final Production Plan Power Market Fina l Production Plan to Statnett Change of shift Day/ Night Ca Prices and volumes from Nord Pool Ca 1430 Preliminar production plan side 11

12 POWER RESERVE MARKET Secondary (tertiary) reserve power The TSO instructs a generator to refrain from bidding in the spot market. The system operator has the option to initiate the use of these units Balancing Power Market (RKM) Every day at 19:00 for the next hours The requirement is limited to 8% of the installed capacity Totally 1600 MW in Norway Balancing Power Option Market (RKOM) During winter 7 days ahead side 12

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14 HYDRO POWER IS A RELIABLE AND FAST RESERVE Technology Average regulation ability Oil/Gas 8-12 % of P N / minute Coal 4-8 Nuclear 5-10 Hydro % of P N / second Start up time CCGT: 2-5 hours depending on technology Hydro Power: 3-15 minutes depending on plant side 14

15 HOW CAN HYDRO POWER CONTRIBUTE? Deliver reserve services Keep rotating and fast reserves (short term) Storage of surplus energy in reservoirs (long term) Refinement of new renewables Balancing wind, wave and tidal energy Deliver peak effect and reduce need for spinning reserves from thermal power plants Optimal for the economy and the environment side 15

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18 VARIATION IN LOAD AND ENERGY INFLOW OVER THE SEASONS 7 Normalized data (%) Wind energy Water inflow Load Week side 18

19 LOOK TO NORWAY Norway has 50 % of the reservoir capacity in Europe side 19

20 IMBALANCE MANAGEMENT Alternative 1: All imbalances are managed by the imbalance market/ regulating market (organized by the TSO) Imbalances created by wind power goes into this market, and regulations are done according to bids Alternative 2: We are managing our imbalances our selves Automatic Generation Control (AGC) side 20

21 COPING WITH POWER VARIATIONS? 132/22kV transformer. i Wind turbines 22/0,69kV transformer. How to include forecasts and deviations? s. 21

22 BALANCE MANAGEMENT Balancing: Challenge: Keeping the deviation from planned production as low as possible s. 22

23 MGC - MANUAL GENERATION CONTROL * L MW ::::::: :: ::..:.:...::: : ::.:: * Br :::.:: ::..:..::..:. - U/I - - Tr U/I G T Start/stop of units Economic Dispatch Set point setting (MW) Activating reg. power (tertiary reserves) Gen Process control and surveillance s. 23

24 AGC - AUTOMATIC GENERATION CONTROL Unit Controls: Measurements power system generation -Automatic start/stop - Locked to schedule -Flexibility in control Generation deviations AGC Frequency Generator Turbine Valves/Gates Speed -Economic Control To selected units Speed Governor Set point changer s. 24

25 AGC - AUTOMATIC GENERATION CONTROL f 0 f - + R PF 1 UC 1 P NI ACE PI PF i UC i P DNI P WI PF n UC n PDWI Input from SCADA ACE calculation PIcontroller Generation distribution Unit Control SCADA s. 25

26 EXAMPLE: DEVIATION MANAGEMENT WITHOUT WIND MW GenDev NewPH1 NewPH Time Interval s. 26

27 EXAMPLE: DEVIATION MANAGEMENT WITH WIND GenDev WindDev MW TotalDev NewPH1 NewPH Timeinterval s. 27

28 EXAMPLE GENERATION SCHEDULE Pwind PH1 PH2 Total Time Intervals s. 28

29 TRANSMISSION LIMITED GENERATION MW Pwind TotGen TranM NewTot PH1new PH2new Time Interval s. 29

30 The wind farms of Western Denmark produced close to rated power Norway was importing approximately 1000MW over the Skagerrak HVDC link A strong storm hit Denmark, and the wind farms started to cut out The total wind production was reduced from about 2200MW to 100MW in about 9 hours side 30

31 January 2005 MWh/h Exchange DK1 -> NO1-500 Balancing power (NO1) -750 Windpower DK Hour Source: NORDPOOL Norway started to reduce imports and then finally changed the power flow direction to export Norwegian hydro power saved the system in Western Denmark side 31

32 side 32 MAKING THE BEST OF THE AVAILABLE RESOURCES

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