The challenge
A larger proportion of renewable energy, combined with the decommissioning of nuclear power, indicates that the overall share of intermittent power generation will continue to grow in the future and that the links to Europe will be stronger. Consequently, we must place higher demands on flexibility and adjustability with regard to both production and consumption. The challenge lies in quantifying the effect this has on system operations and operating costs, as well as meeting the need to make long-term price forecasts for all electricity products. Decisions to invest in the construction of new cables to the European continent and upgrade existing hydropower plants will depend heavily on such forecasts.
The goal
The goal of the project is to develop methods and modelling tools that are well suited for calculating costs related to the supply of reserves (capacity and energy) in the future Nordic power market. Fundamental multi-market models should be able to give more realistic prices and a more detailed description of the physical system – which includes reserve capacity and balance energy, in addition to energy products.
The project
By developing a new model for calculating marginal prices for all electricity products traded on the Nordic market, and different types of reserve capacity in particular, it will be possible to estimate the benefits of future investments. The models and methods developed by the project will also serve to support decision-making during the market design phase.
Project team members
- Statnett
- Svenska Kraftnät
- Statkraft
- E-CO Energi
- Lyse Produksjon
- Agder Energi
- Hydro Energi
- The Norwegian University of Science and Technology (NTNU), Electric Power Engineering
- SINTEF Energy Research
- The Research Council of Norway (RCN)
Funding
- The Research Council of Norway (RCN) – KPN project
- Statnett
- Svenska Kraftnät
- Statkraft
- E-CO Energi
- Lyse Produksjon
- Agder Energi
- Hydro Energi