Demand Bidding at FINGRID, Finland

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Demand Bidding at FINGRID, Finland

• PLMA/IEA International Symposium on Demand
  Response
• Southgate Towers Hotel, New York City
• September 9-10, 2003
• Fingrid Oyj
• Power System Operation Planning
• Jarno Sederlund
• jarno.sederlund_at_fingrid.fi
• www.fingrid.fi

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FINGRID IN THE NORDIC ELECTRICITY MARKET-
Finnish System Operator in brief -
NORDEL GRID (A JOINT NORDIC GRID)

• Started operations on 1 September 1997
• Owns 99.5 per cent of the Finnish main grid and
  all the major interconnections
• A total of 14,000 kilometres of transmission
  lines and 100 substations
• Number of transmission customers 100
• Number of personnel 210 (31.12.2002)
• Turnover EUR 273 million
• Profit for the financial year EUR 39 million
• Balance sheet total EUR 1,379 million
• Consumption in Finland in 2002 84 TWh
• Peak load (winter 2002/2003) 13 920 MW

FINGRID OYJ TRANSMISSION GRID
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RESERVES- Overview in Nordic countries -
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DISTURBANCE MANAGEMENT- Maintaining of reserves -

• Fingrid is responsible for the maintenance of
  reserves that are needed in the Finnish power
  system according to Nordic grid dimensiong rules
• Power system has to withstand any single fault
  (N-1)
• Maintaining of reserves is largely based on
  purchased services
• Disconnectable loads are used as reserve in the
  event of disturbance situations in the same way
  as reserve capacity of power plants

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DEMAND BIDDING AT FINGRID- Markets/Participants -

• Fingrid has signed contracts with process
  industry's large customers on disconnectable
  loads
• Metal industry (steel works and furnaces)
• Forest industry (groundwood plants and mechanical
  pulping plants)
• Chemical industry (electrolyses)
• The unit size of disconnectable load varies
  between 15 - 60 MW
• The needed amount of disconnectable loads are
  contracted with a competitive bidding procedure
  on yearly bases
• Additional loads can be obtained from reserve
  owners on weekly basis

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DISCONNECTABLE LOADS- Techincal and functional
terms -

• Loads are disconnected from the grid by
• frequency sensitive relays (instantaneous
  disturbance reserve)
• manually within 15 minutes, when asked by Fingrid
  (fast disturbance reserve)
• Loads can also be used as system protection
  scheme or in peak load situations to release
  production capacity
• Fingrid has the right to obtain information from
  loads
• day-specific forecasts of the reserve volumes for
  the following calendar day
• real time status data and active power
  measurements of the resource to Fingrid's
  SCADA/EMS

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DISCONNECTABLE LOADS- Contracts and costs -

• Contractual terms are equal and agreement model
  voluntary to all participants
• Payments are settled in accordance with
  participants offer
• The following fees are paid for the reserve
  holders (in accordance with participants offer)
• hourly fee for the time load has been connected
  to the grid (average fee EUR 0.3 per MWh)
• energy compensation for disconnection (average
  fee EUR 350 per MWh)
• The total volume of contract loads is
  approximately 400 MW
• Contracts are made with 6 industrial enterprices
• Fingrid's annual costs are approximately MEUR 1.8

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DISCONNECTABLE LOADS- Experiences and future
plans -

• Activation of loads in year 2002
• as instantaneous disturbance reserve 3 times
  (frequency under 49.6 Hz)
• Participants have chosen loads so that
  disconnection does not interrupt significantly
  normal operation
• Future plans
• explore futher possibilities to utilize loads
  e.g. in counter trades
• increase the number of potential loads and
  participants (now 6 companies and 18 pcs loads)

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DISCONNECTABLE LOADS- Summary -

• Fingrid can utilize disconnectable loads as
• instantaneous reserve in frequency disturbances
• same way as gasturbines in disturbances
• system protection scheme in certain problem areas
  
• in peak load situations

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• Further information
• www.fingrid.com