Fingrid (FG), Svenska Kraftnät (SvK) and Nord Pool Spot (NPS) have, together with the concerned regulators, agreed on procedures for the activation of peak power reserves in Sweden and Finland through the day-ahead market Elspot. These procedures are based on Nordels guidelines for implementation of transitional peak load arrangements and include the following:
- Power reserves should be made available to the market through Elspot
- Power reserves should only be activated after all commercial bids have been activated
- Unused power reserve capacity after Elspot can be transferred to the balancing power market
Guidelines for implementation of transitional peak load arrangements. - Proposal of Nordel. (Document date February 2007)
FG and SvK have acquired totally 2600 MW peak power reserves, 600 MW in Finland and 2000 MW in Sweden. This is in accordance with the Energy laws of Finland and Sweden respectively.
The Finnish law concerning the peak power reserves in Finland, which has been effective since December 2006, will expire 28 February 2011. The Swedish law concerning the peak power reserves in Sweden expired in March 2008 and has been prolonged by the Swedish Government to 15 March 2011.
The power reserves in Sweden and Finland will be activated as hourly bids in Elspot only if there is a curtailment situation in Sweden or Finland after all ordinary steps in the price calculation has been carried out. The power reserve shall be activated in the Elspot market through a normal price calculation process, and before Nord Pool Spot asks the affected TSOs if there are more cross-border transmission capacity available for Elspot. (NPS rulebook Appendix 1 item 3.9.2.)
The new routine will require a change in the Nord Pool Spot Rulebook Appendix 1 item 3.9. The new Appendix 1 and a description of the procedure have been published on the Nord Pool Spot web (http://www.nordpoolspot.com/upload/rulebook/Appendix%201%20-%20Elspot%20Regulations%2019%20Jan%202009.pdf). The new NPS procedure for how power reserves can be activated in Elspot was approved by the Norwegian Water and Energy Directorate (NVE) on 22 December 2008. The change to the rulebook will come into force from 19 January 2009.
Lysaker, 7 January 2009
For further information, please contact:
Fredrik Wik, Svenska Kraftnät, phone +46 870 559 7343
Juha Hiekkala, Fingrid, phone +358 30 395 5108
Magnus Sunnefors, Nord Pool Spot, phone +46 70 273 1340