Nordic TSOs list supply chain and transmission capacity as key challenges to 2030

The Nordic transmission system operators (TSOs) have published an updated strategy for the energy system for 2024 to 2030, addressing elements such as challenged transmission capacity, tapping hydrogen as flexibility and European supply chain pressures.

In their report, Solutions for a clean Nordic energy system 2024 – 2030, the TSOs list three key challenges and plans of action for the Nordic energy system:

1. Threatened connection and transmission capacity

According to the operators, transmission capacity continues to be challenged by the immense increase in offshore wind and other generation technologies.

To combat this, says the report, comprehensive and holistic system planning, new IT system support and operational tools will be needed as larger adequacy gaps, flow changes, reduced inertia and risk of internal bottlenecks increase.

In the strategy document, the TSOs say they have committed to providing solutions to connecting the increasing amounts of offshore wind, as well as mitigating the impact of this increase on the system. The Nordic Region Coordination Center (NRCC) will play a critical role in this.

2. Hydrogen versus system stability

With the emergence of Power-to-X plants and the development of hydrogen as an energy source, the Nordic TSOs say that upgraded grid infrastructure will be needed, allowing hydrogen to complement the power system with flexibility and production surplus utilisation.

However, they add that it can also challenge system stability, and without timely design principles and technical requirements, flexibility may not be available to the extent desired.

To this end, the TSOs say they are cooperating internally and with stakeholders to ensure the right investment climate and governing frameworks for hydrogen development without counterproductive incentives across borders and barriers to flexibility.

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3. Pressured European supply chains

In the strategy, the TSOs cite increasing competition on green investments between the US, Asia and Europe, along with surging costs and prices making the green transition more challenging, both in terms of lead times, grid expansion and development costs.

Potential investment delays, they add, is risking security of supply as the grid ages.

The key to this, they say, is cooperation, namely by proactive insight-building among the Nordics, neighbouring TSOs and vendors.

Strategic themes

In addition to these, the TSOs lay out four driving themes in their roadmap:

• Adequate system instrastructure to enable increases in production and consumption of clean energy through the power grid;
• A secure and optimised energy system;
• ‘Markets that enable’, flexibility and a level playing field for all technologies. To achieve this, the TSOs say they will create a framework for flexibility across all technologies, introduce offshore bidding zones and integrate offshore power solutions into the electricity market, and ensure market mechanisms to ensure adequacy and optimal grid utilisation;
• The digital foundation, which involved ensuring Nordic synergies on information-, data- and system architecture, ensuring strong Nordic and European cooperation within cyber security, and establishing Nordic common services and IT platforms for the balancing and electricity markets

The Nordic strategy, initially published in 2022 as a response to new climate goals, has been updated to reflect circumstances in the Nordics and Europe, says Svenska kraftnät in a release.