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Value creation by interconnecting Norwegian hydropower and European markets in transition
German Norwegian Energy Forum - October 23th 2014
Øyvind Stakkeland, Director Regulatory Affairs
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Agder EnergiMajor hydropower producer in Norway
Annual production: 7,800 GWh –6% of total Norwegian production
1,700 MW installed capacity
47 power stations
Experience in interconnector projects: NorGer and NorthConnect
Partner in CEDREN (Centre for Environmental Design of Renewable Energy)
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The Agder Region
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Power Stations
Tonstad – 960 MW
Skjerka – 110 MW
Brokke – 330 MW
Holen – 230 MW
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Key points
1. The power markets
2. Value of interconnectors
3. Challenges to overcome
4. The way forward
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Blåsjø 7.8TWh RESERVOIR
Total Norwegian reservoir 84TWh
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Wind production in 2030 - North Sea region
Source: Cedren
7 x 24 h
7 x 24 h
7 x 24 h
-30 000 MW
+30
000
MW
5 TWh needed for balancing a low wind week
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Intermittent energy in Germany in 2022- need for flexibility
Source: Agora
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The spot markets
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Key points
1. The power markets
2. Value of interconnectors
3. Challenges to overcome
4. The way forward
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How to integrate renewables in the EU?
Source: Prognos
Indirectstorage
Generation
Batteries
Potentialsolutions
Loadmanagement
Networkextension
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Energy trading across borders
Trading of RES commitments Energy trading based on interconnection
Lower risk of missing renewable energy targets
Lower cost delivery of renewable energy targets
Lower cost balancing services
Low-cost electricity imports
Lower CO2 emissions
Export market for European power
Improved security of supply
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Interconnectors to Norway have high economic value
Source: Entso-E
DE-NO: Socio-economic welfare 370 Meur/Year
NO- UK: Socio-economic welfare 290 Meur/Year
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Interconnectors NO-DE and NO-UK
Source: Entso-E, TyndP-Vision 4
Reduced CO2 emission
Increased renewable production
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Key points
1. The power markets
2. Value of interconnectors
3. Challenges to overcome
4. The way forward
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Market access
Challenge:Access to all markets through interconnectorsOptimize use of interconnector capasity across time frames.
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Financing
• Legal framework – access for 3. party investors
• Business models attracting investors
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Domestic grid bottlenecks
Grid planning for next generation grid
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Key points
1. The power markets
2. Value of interconnectors
3. Challenges to overcome
4. The way forward
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The way forward Market access PCI Projects
EU RES 2030Financing