New approach for better utilisation of the Nordic electricity grid

New, advanced capacity calculations are being used to raise the limits for how much electricity can be sent through the Nordic grid.

The new approach, which was launched in the last week of October, utilises flow-based capacity calculations to enable the transport of power closer to the physical limits of the grid.

In particular, this should benefit the transmission of green energy, with the greater fluctuations when large parts of the production will come from wind and solar, and also reduces the need for the expansion of the electricity grid.

For example, calculations show that at some times, around two-thirds more electricity can be moved through connections in the Nordic electricity system than the old calculations allowed.

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“Flow-based market coupling probably sounds both complicated and technical. But in fact, I think it’s one of the biggest things that has happened since the Nordic electricity market was formed, and something that benefits us all,” says Johannes Bruun, head of Electricity Market at Energinet.

“Even though the numbers probably won’t end up being quite as big now that we’ve introduced flow-based capacity calculations, the analyses show that there are very big gains to be made – not only in terms of integrating more renewable energy, but also in the form of lower costs for a new electricity grid.”

Moreover, with more capacity in the electricity grid, more electricity can be traded in the day-ahead market.

Among the expected consequences is that more electricity made from hydropower in the northern part of Norway can go south, which should lead to slightly lower electricity prices in Western Denmark, for example.

However, on the other hand, there will be less capacity in the intraday market but work is set to continue to apply the principle to this market as well as to the balance markets.