2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet

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2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet
SECURITY OF

ELECTRICITY
SUPPLY REPORT

2018
2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet
2   Security of electricity supply report 2018
2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet
Security of electricity supply report 2018                                            3

TABLE OF CONTENTS

Summary.....................................................................................................................4
1.     Security of electricity supply..............................................................................8
1.1 What is security of electricity supply?......................................................................... 8
1.2 The security of electricity supply framework
		       is becoming more international.................................................................................... 8
1.3      Level of security of electricity supply....................................................................... 10

2.      Historical security of electricity supply..........................................................12
2.1      Outage statistics.............................................................................................................. 12
2.2      Electricity system incidents in 2017.......................................................................... 14
2.3      Ancillary services........................................................................................................... 18

3.       Forward-looking risk assessment.................................................................20
3.1      Expectations for the future electricity system......................................................20
3.2      Generation adequacy.....................................................................................................20
3.3      Grid adequacy..................................................................................................................26
3.4      Robustness.......................................................................................................................27
3.5      IT security.........................................................................................................................31
3.6      Operational and market development.....................................................................32

     Front page photo: Maintenance work on the electricity connection between Kassø
                                  by the Danish-German border and Tjele by Viborg.
2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet
4                                     Security of electricity supply report 2018

                                      SUMMARY

           In general, Denmark's      The Security of electricity supply re-        regional, instead of simply a national,
     security of electricity sup-     port 2018 uses selected highlights            issue. At the same time, electricity
                                      and analyses to sum up the security of        markets and operational collaboration
      ply level ranks among the       electricity supply for 2017 and includes      across Europe are harmonised via new
     highest in Europe, and the       a related forward-looking risk assess-        European regulations. This all greatly
     2017 level was no excepti-       ment.                                         influences how Energinet will ensure
     on. Danes had power avai-                                                      the Danish security of electricity supply
                                      Energinet’s goal is for Danes not to          in the future.
    lable 99.995 per cent of the      experience outages, resulting from
      time. This means that the       faults in the power transmission grid,        In this 2018 report, Energinet describes
     average consumer experi-         for more than 60 seconds in total             the main challenges for the security of
    enced less than 25 minutes        during a normal year.                         electricity supply. Examples are listed
                                                                                    below.
       of outage. Though this is      Of the 25 minutes outage in 2017, 92
     slightly more than in 2016,      seconds resulted from incidents in the        Risk of no electricity east of the
      the figure is still very low.   transmission grid. The transmission           Great Belt
    The high level of security of     grid fault that affected the most consu-      The Danish electricity grid has an
                                      mers occurred at Svanemøllen station          eastern and a western section with
     electricity supply is mainly     in Copenhagen in October. It was a            the Great Belt as the dividing line.
    due to conversion to cables       procedural error in connection with           In Eastern Denmark, the risk of the
         in the distribution grids    planned maintenance at the station.           electricity supply not meeting demand
                                                                                    will increase in the coming years.
                                      Minimizing faults is essential to Ener-       Although Energinet's 10-year outlook
                                      ginet, as a single fault in the electricity   shows an increased probability of
                                      transmission grid can escalate and            brownouts - i.e. controlled disconnecti-
                                      lead to extensive outages for Danish          ons of electricity consumers in limited
                                      electricity consumers. Energinet aims         areas - such situations are expected to
                                      to avoid faults by continuously optimi-       be very rare events.
                                      sing work processes and component
                                      maintenance.                                  Energinet introduces concrete mea-
                                                                                    sures to address the Eastern Danish
                                      Key challenges for the high Danish            challenge. Among other things,
                                      security of electricity supply                Energinet is working to make better
                                      The Danish and European electricity           use of existing infrastructure, such as
                                      systems are undergoing significant            an upgrade of the domestic electricity
                                      changes. Extensive wind and solar             grid close to the Øresund Link that will
                                      power capacity is integrated in the           increase capacity in case of outages or
                                      electricity system, while many traditio-      revisions. Energinet is also looking into
                                      nal thermal power stations are phased         the possibility of obtaining approval
                                      out. As more electricity interconnec-         for a temporary introduction of a
                                      tors link different countries' electrical     strategic reserve. At the same time,
                                      grids together, the security of electri-      Energinet is working determinedly to
                                      city supply becomes an increasingly           implement current electricity market
2018 ELECTRICITY SUPPLY REPORT - SECURITY OF - Energinet
Security of electricity supply report 2018              5

reforms, which will combine with other new initiatives to               the fact that today’s modern wind
ensure increased flexibility in both electricity generation and         turbines help to stabilise the system,
consumption, bringing new market solutions to ensure the                and that Energinet can use automation
security of electricity supply.                                         to operate the grid closer to the limit.

Renewal of the Copenhagen power grid                                    Thus, Energinet can operate the elec-
Operation of the power grid is changing in these years as a             tricity grid more stably, even without
consequence of increased renewable electricity generation,              power stations running. Optimised
a rise in electricity consumption, especially from data                 utilisation of the electricity system's
centres, and an ageing power grid. This requires expansion              components facilitates the integration
of and reinvestments in the domestic electricity grid, for              of renewable energy sources while
example in Copenhagen.                                                  maintaining a high level of security of
                                                                        electricity supply.
In Copenhagen and the surrounding areas, the security of
electricity supply is challenged by an ageing electricity grid          Greater focus on IT security
with still longer outage times due to regular maintenance.              The electricity system’s increasing
In addition, electricity consumption is expecting to rise               dependence on IT requires high
while electricity generation by Copenhagen thermal power                uptimes on crucial IT systems. It also
stations is declining.                                                  triggers focus on external threats,
                                                                        as well as national and international
As a result, Energinet is in the process of laying new cables           preparedness cooperation. One
leading into Copenhagen, and these should be operational                measure implemented is a joint Nordic
by the beginning of 2019. Energinet finds that the risk of              preparedness drill.
load shedding is unacceptably high during the construction
phase. Therefore, Energinet has ordered a thermal power
station in operation to maintain the high security of electrici-
ty supply in Copenhagen until the cable is put into operation.

Changes in need for properties required to maintain power
system stability
Properties required to maintain power system stability are
important to ensure the robustness of the power system, as
these properties help to ensure the stability of the electricity
grid in case of faults or outages.

Energinet's most recent and most comprehensive analyses
of the need for properties required to maintain power
system stability show that the electricity system is more
robust than previously assumed. This is due to, for example,
6                             Security of electricity supply report 2018

    TOTAL OUTAGE MINUTES                                                   OUTAGE MINUTES DUE TO
                                                                           FAULTS IN THE TRANSMIS-
                                                                           SION GRID
               2017, minutes:25                                                            2017, seconds: 92
               2016, minutes:19                                                            2016, seconds: 48
                                                                                           Target, seconds: 60
    Outage minutes for an average con-
    sumer in the Danish electricity system.                                Average outage minutes due to system
                                                                           disturbances in the transmission grid
                                                                           (above 100 kV).

    ALERT STATE                                                            IT SECURITY

                    2017, no.                                                             2017, no.
                    of times:              1                                              of incidents:     0
                    2016, no.                                                             2016, no.
                    of times:              1                                              of incidents:     3
    The 2017 outage was caused by a fault                                  No incident with loss of critical IT tools
    in a cable into Copenhagen.                                            in 2017.

    PREPAREDNESS                                                           ANCILLARY SERVICES

                2017, no. of                                                             2017,
                incidents:        1                                                      DKK million:       626
                2016, no. of                                                             2016
                incidents:        0                                                      DKK million:      758
    The single 2017 incident was caused by                                 Costs of procuring ancillary services.
    a fire in a station.
Security of electricity supply report 2018                               7

GENERATION ADEQUACY                                      GENERATION ADEQUACY
2025                                                     2025

             More data centres.                                                    Eastern
             Fewer power stations.                                                 Denmark,
             More interconnectors.
             More renewable energy.
                                                                                   minutes:           11
                                                                                   Western
                                                                                   Denmark,
Impact security of electricity supply in
                                                                                   minutes: :
8                                 Security of electricity supply report 2018

                                  1. SECURITY OF ELECTRICITY
                                  SUPPLY

     Ensuring a high level of     1.1 What is security of electricity          An assessment of system security
  security of electricity sup-    supply?                                      involves assessing the electricity
                                  The level of security of electricity         system’s robustness when faced with
ply is a complex interaction      supply depends on the extent to which        faults and IT incidents and is subdivi-
 throughout the value chain       electricity consumption and electricity      ded into robustness and IT security.
 between the physical elec-       generation can be balanced and on the
 tricity grid, electricity mar-   electricity grid’s capacity to transfer      Robustness is defined as the electricity
                                  the electrical energy and handle             system's ability to handle sudden
 kets, electricity generators     faults. Thus, risk assessments for the       system disturbances caused by elec-
 and electricity consumers.       electricity system are divided into two      trical short circuits, power station or
       This is true not only in   categories – system adequacy and             transmission line outages etc. without
Denmark but for Europe as         system security – which in reality are       these situations affecting the electricity
                                  two partially overlapping elements.          supply or resulting in power outages.
a whole. This requires har-
monisation and cooperation        Assessing system adequacy means              IT security is defined as the electricity
    across national borders.      assessing the electricity system's ability   system's ability to maintain high up-
                                  to meet the total electricity consumer       times on critical IT systems and to with-
                                  demand, and can be subdivided into           stand cyberattacks, without the system
                                  generation adequacy and grid adequacy.       and its participants being affected.

                                  Generation adequacy is defined as the        A lack of system security will, in a
                                  electricity system’s ability to ensure       worst-case scenario, lead to blackouts
                                  adequate electricity when the consu-         in Western and/or Eastern Denmark.
                                  mer needs it. Generation adequacy is         A blackout is a complete breakdown of
                                  closely linked to the electricity market,    the electricity system. The result may
                                  where inadequacy results in high             be substantial installation damage and
                                  electricity prices.                          long restoration times for the electrici-
                                                                               ty supply. As such, system security is
                                  Grid adequacy is defined as the elec-        the main challenge faced by the Danish
                                  tricity transmission and distribution        electricity system.
                                  systems’ ability to transport sufficient
                                  electricity from generation site to          1.2 The security of electricity supply
                                  consumption site.                            framework is becoming more inter-
                                                                               national
                                  A lack of system adequacy will typical-      Generation adequacy is becoming an
                                  ly lead to announced disconnections          increasingly regional and international
                                  of consumers in limited areas. These         issue with the expansion of renewable
                                  situations are referred to as planned        energy and the change in the electri-
                                  disconnections or brownouts. A brown-        city generation mix across national
                                  out is a precaution taken to protect         borders.
                                  against a blackout in a large area.
                                  Brownouts are serious incidents, yet         In order to solve future challenges of
                                  less severe than blackouts.                  security of electricity supply, a large
Security of electricity supply report 2018                                           9

                                   SECURITY OF ELECTRICITY SUPPLY

                    SYSTEM ADEQUACY                                                                          SYSTEM SECURITY

 GENERATION                            GRID ADEQUACY                                 ROBUSTNESS                                    IT SECURITY
  ADEQUACY                         Ability to supply electricity to             Ability to handle sudden                          Ability to maintain
  Ability to meet                            consumers                          disturbances or outages                        secure system operation
  overall demand

Figure 1: Illustration of security of electricity supply consisting of system adequacy and system security.

number of initiatives have been                  parties, electricity distribution com-                      of the Danish committee on electricity
launched across Europe. Energinet is             panies and installations.                                   regulation on security of electricity
also faced with more local challenges          • Principles for activating measures to                       supply, and the objectives in the go-
of grid adequacy and system security             safeguard the security of electricity                       vernment report Supply for the future
as a result of the increasing electricity        supply.                                                     of increased marketization of the ser-
generation from renewable energy                                                                             vices that Energinet demands to safe-
sources and reduction in the number of         With the adoption of the System Ope-                          guard the security of electricity supply.
thermal power stations in operation.           ration Guideline, the Danish Electricity
                                               Supply Act must be updated to avoid                           The act also proposes that the Minister
These initiatives include both the             double regulation. Moreover, the Act                          for Energy, Utilities and Climate will
implementation of new EU regulation            will incorporate the recommendations                          have the overall responsibility for the
in the form of European legislation and
network codes aimed at promoting
European and regional cooperation on
security of electricity supply in order to
ensure optimal use of capacity across               CLEAN ENERGY FOR ALL EUROPEANS
national borders.
                                                    On 30 November 2016, the European Commission issued the draft of a major
The implementation of the System                    legislative package called 'Clean Energy For All Europeans'. This is expected to
Operation Guideline network code is                 be implemented in 2018. The package aims to promote European and regional
particularly important. This provides               cooperation on the security of electricity supply in order to ensure optimal use
a framework for Energinet’s options                 of capacity across national borders. In addition, the package is expected to
when it comes to maintaining the                    require that the level of security of electricity supply be assessed on the basis
desired level of security of electricity            of Value of Lost Load.
supply. This includes:
• Requirements for the content of                   Value of Lost Load, abbreviated VoLL, is an economic indicator that states the
  the outage plan and for enhanced                  cost of interrupted supply. VoLL is usually determined in DKK/kWh.
  regional coordination.
• Requirements for data exchange bet-
  ween Energinet, balance responsible
10                         Security of electricity supply report 2018

     security of electricity supply and the level thereof going         1.3 Level of security of electricity
     forward. Energinet will continue to be responsible for             supply
     maintaining and monitoring the established level of security       Energinet’s strategy 2018-2020 does
     of electricity supply.                                             not state an explicit target for security
                                                                        of electricity supply. However, Ener-
     In addition, the annual security of electricity supply report is   ginet is working to keep the Danish
     expected to become mandatory.                                      level of security of electricity supply
                                                                        at the European top. With the update
                                                                        of the Danish Electricity Supply Act,
                                                                        the Minister for Energy, Utilities and
        POSSIBLE REMOVAL OF THE                                         Climate may change the security of
                                                                        electricity supply objective.
        COMBINED HEAT AND POWER
                                                                        Historically, Denmark’s level of security
        (CHP) REQUIREMENT                                               of electricity supply has been very high,
                                                                        and it is expected to remain so in the
        There has been a political debate on whether to rem-            coming years, albeit not necessarily at
        ove the CHP requirement for thermal power stations.             exactly the same level.

        Removing the CHP requirement may impact the se-                 The level of security of electricity
        curity of the electricity supply differently in the short       supply is influenced by a number of
        and long term, respectively. However, Energinet does            things. In some cases, an increasing
        not expect the level of security of electricity supply to       dependence on foreign supply, a rise
        be noticeably reduced.                                          in the number of wind turbines and
                                                                        declining thermal electricity generation
        In the short term, the electricity system depends on            capacity pose challenges to generation
        central thermal power stations to provide several               adequacy.
        different services. Especially in situations where, for
        instance, a vital grid component is out of service due
        to audit or breakdown.

        In addition, it may be necessary to expand the grid
        locally to compensate for the decommissioning of                     ELECTRICITY SUPPLY ACT
        certain power stations, since these have been part of
        electricity grid planning historically. This will lead to            The Danish Electricity Supply
        increased costs of investments in the electricity grid.              Act contains various provisions
                                                                             regarding the framework for a
        A removal of the CHP requirement may also prove                      high level of security of electricity
        the least expensive solution socio-economically, if the              supply, and various authorities
        socio-economic savings for the stations are greater                  are assigned tasks and compe-
        than the increased socio-economic costs for the                      tences in relation to this. Energi-
        electricity system.                                                  net has the overall responsibility
                                                                             for security of electricity supply in
        In the long term, the need for technical characteri-                 Denmark. This obligation creates
        stics will change as the electricity system develops.                the foundation for Energinet's
        At some point, the services delivered by central                     core tasks in connection with the
        power stations today may be replaced by different                    support of a high level of security
        technologies.                                                        of electricity supply. The Danish
                                                                             Electricity Supply Act is expected
                                                                             to be revised in 2018.
Security of electricity supply report 2018               11

Energinet monitors the development and continuously                      Denmark. Energinet will use these
evaluates whether to take action to maintain the level of                talks to ask for an approval for the
security of electricity supply.                                          period 2025-2029 with an option to
                                                                         extend this period by five years.
Energinet works on the implementation of new market
reforms on an ongoing basis, including incentives for con-               At the same time, Energinet is working
sumption flexibility combined with more transparency and                 determinedly to actualise ongoing
marketization of services to maintain security of electricity            electricity market reforms, and new
supply.                                                                  initiatives aimed at ensuring greater
                                                                         flexibility both from electricity genera-
At the same time, new grid components make it possible to                tion and electricity consumption and
safeguard system robustness, even on days with no central                from new storage technologies will be
electricity generation capacity.                                         launched in the coming years.

Cost-effective security of electricity supply is about ensuring
that the electricity system works, so the participants
throughout the value chain can supply energy to customers
when needed.                                                                  STRATEGIC
A high level of security of electricity supply is of great                    RESERVE
socio-economic value, and the Danish electricity system is
designed accordingly. Whether to invest more in strengt-                      From 2014-2017, the European
hening the security of electricity supply depends on the                      Commission approved a number
availability of cost-effective tools to minimise the risk of                  of capacity mechanisms in e.g.
outages. Therefore, this entails an assessment of whether                     England, France and Germany
additional measures are to be taken to prevent a loss of                      based on new regulation, and
electricity supply. This means that cost becomes a question                   in February 2018, strategic
of looking into different measures and comparing these in                     reserves were approved for
respect of the risk reductions that they will provide.                        the first time in Germany and
                                                                              Belgium.
Generation adequacy analyses in Denmark towards 2025
show that Eastern Denmark still faces the greatest risk of                    In case of the latter two
power shortage. Although results are somewhat uncertain,                      countries, these are temporary
they show that there is an increased probability of a limited                 strategic reserves. The purpose
number of brownout situations over the next 10 years. Brow-                   of strategic reserves is to
nouts are most likely to occur in situations involving several                ensure national generation
simultaneous cases of outage in the grid, interconnectors                     adequacy in the event of a
and/or thermal power station outages, and low levels of                       series of unexpected changes
wind power generation. Thus, power shortage situations will                   in the electricity system with
be very rare events.                                                          potentially significant impact on
                                                                              the security of electricity supply.
Achieving a higher level of generation adequacy will require                  In other words, the reserves
the launch of initiatives that underpin the energy-only mar-                  in these two cases should be
ket by means of e.g. incentive-promoting electricity market                   seen as measures to ensure
reforms, new interconnectors or a capacity mechanism in                       the security of electricity supply
the form of a strategic reserve.                                              during the ongoing transition
                                                                              of the two countries' power
This explains Energinet’s wish to open up talks with the                      systems.
European Commission and the Danish authorities on the
possibility of obtaining approval for a time-limited strategic
reserve in order to uphold generation adequacy in Eastern
12                                  Security of electricity supply report 2018

                                    2. HISTORICAL SECURITY OF
                                    ELECTRICITY SUPPLY

       For many years, Danish       2.1 Outage statistics                                       enced several outages, while others
   electricity consumers have       Danish electricity transmission grid                        experienced none.
                                    and distribution grid faults and outages
         experienced very high      are recorded in the Elselskabernes                          In 2017, the number of outage minutes
  levels of security of electri-    Fejl- og Afbrudsstatistik (ELFAS)                           was still very low. There were just
     city supply. This was also     statistics.                                                 less than 25 minutes of outage, which
 the case in 2017 with a very                                                                   is higher than in 2016. Thus, Danes
                                    Outage statistics show the extent to                        had power 99.995 per cent of the
    low number of outage mi-        which an average electricity consumer                       time on average. This makes 2017 yet
      nutes per consumer and        experienced outages. This means that                        another year where Danish electricity
    a low number of incidents       some electricity consumers experi-                          consumers had a security of electri-
    that impacted the security                                                                  city supply level that was among the
                                                                                                highest in Europe.
     of supply in the electricity
                        system.                                                                 Until 2011, the outage statistic was
                                    FIGURE 2: OUTAGE STATISTICS FOR                             divided into the voltage levels 1-24
                                    DENMARK, 1998-2017.                                         kV and 25-99 kV, with the electricity
                                    Source: Elselskabernes Fejl- og Afbrudsstatistik (EL-       transmission grid included in the 25-99
                                    FAS), Danish Energy Association.
                                                                                                kV statistics. After 2011, the electricity
                                    The figure shows the average duration of electricity        transmission grid is shown indepen-
                                    supply outages in minutes per consumer per year
                                    (calculated per delivery point) in Denmark. Historically,   dently using the category > 100 kV.
                                    power shortages have not led to the disconnection of
                                    consumers in Denmark and are therefore not included
                                    in the figure.

                                    Outage minutes per year (delivery points)
                                    150
                                                                                                TABLE 1: AVERAGE NUMBER OF
                                    120                                                         OUTAGE MINUTES OVER THE LAST 5,
                                                                                                10, 15 AND 20 YEARS.
                                     90
                                                                                                Source: Elselskabernes Fejl- og Afbrudsstatistik (EL-
                                                                                                FAS), Danish Energy Association.
                                     60

                                     30
                                                                                                 (Minutes/   5    10    15    20
                                                                                                 year)     years years years years
                                       0
                                                                                                 1-24 kV            16        18        25         31
                                                2001       2005       2009       2013   2017
                                                                                                 25-99 kV            4         5        11         10
                                             >100 kV                   20-year average
                                             25-99 kV                  10-year average           >100 kV             1          -         -             -
                                             1-24 kV
                                                                                                 Total              21        23        36         41
Security of electricity supply report 2018                13

                                                                                                    FAULT AT SVANEMØLLEN
                                                                                                    STATION

                                                                                                    The fault that affected the most
                                                                                                    electricity consumers occurred at
                                                                                                    Svanemøllen station on 4 October
                                                                                                    2017. The fault was caused by a
                                                                                                    procedural error in connection
Apart from one-time incidents, such as a fault in Western                                           with switching during planned
Denmark’s transmission grid in 2002 and a fault in the Swe-                                         maintenance at the station.
dish grid in 2003, the general picture is that the vast majority
of outage minutes are due to faults in the distribution grid.                                       A manual switching procedure
                                                                                                    of an operational busbar went
There are approximately 20-30 outage minutes per average                                            wrong, resulting in the tripping
consumer per year caused by outages at the distribution                                             of the entire station. This then
level. As more overhead lines are converted to cables, the                                          led to an automatic unintentional
number of outage minutes in the distribution grid is gradually                                      tripping of the line between
declining.                                                                                          Amager Power Station and
                                                                                                    Bellahøj station.
The underlying reasons for the high outage minute numbers
in 1999 and 2005 were a hurricane and a storm, respectively.                                        Close to 92,000 electricity con-
                                                                                                    sumers were disconnected,
Therefore, average outage levels should be viewed over a                                            and it took around 25 minutes
number of years.                                                                                    before the electricity supply was
                                                                                                    restored by rerouting the under-
                                                                                                    lying distribution grid.

TABLE 2: DISTURBANCES IN THE TRANSMISSION GRID
INVOLVING DISCONNECTION OF ELECTRICITY CONSU-
MERS IN THE DANISH ELECTRICITY SYSTEM IN 2017.
                                                                                                    DISTURBANCES, OUTAGES,
Source: Elselskabernes Fejl- og Afbrudsstatistik (ELFAS), Danish Energy Association.
                                                                                                    INCIDENTS AND FAULTS

                                                                                                    Typical incidents include distur-
                                           Unserved            Outage minutes                       bances, near-miss incidents, IT
  Date      Error type
                                         energy (MWh)             (seconds)                         incidents and N-1 exceeding.

            Procedural error                                                                        The term disturbance is defined
6/2         in Energinet's                       14                      15
            control centre                                                                          as faults in the grid that make at
                                                                                                    least one component disconnect,
            Procedural                                                                              thus affecting operation of the
4/10                                             35                      34
            error at station                                                                        electricity system. Disturbances
            Procedural                                                                              do not necessarily lead to discon-
11/10                                              8                       8                        nection of electricity consumers.
            error at station

29/10 Component error                            36                      35                         Outages, on the other hand, are
                                                                                                    defined as situations where elec-
Total                                            93                1 minute and                     tricity consumers are not supplied
                                                                     32 seconds                     with the electricity demanded.
14                        Security of electricity supply report 2018

     Outages caused by the transmission grid                           2.2 Electricity system incidents in 2017
     On average, a total of 92 seconds (1 minute and 32 seconds)       Incidents of significance to security of
     of the 25 minutes of outage that electricity consumers            electricity supply occur at the electri-
     experienced in 2017, were caused by four disturbances in the      city market, system, IT and component
     transmission grid.                                                levels.

     These faults mainly owed to procedural errors that Energi-        Generation adequacy
     net is working to avoid by implementing new workflows in          There were no incidents related to
     the control centre and establishing better cooperation with       generation shortages in the Danish
     contractors, among other things.                                  electricity system in 2017. As has been
                                                                       the trend historically, there were thus
     Outage seconds at transmission level were distributed as          no market-related shortages in 2017
     follows: 15 seconds were caused by a procedural error in the      which led to failure to reach a market
     electricity system control centre, 42 seconds by procedural       price.
     errors at stations and 35 seconds by component faults.

     COPENHAGEN

     In the Copenhagen area, security of electricity supply is         with the lowest possible socio-econo-
     under pressure. Reasons include an ageing electricity             mic costs.
     grid, characterised by increasing planned outage times, an
     expected rise in electricity consumption and the continued        Alternatively, as a precaution, Energi-
     decommissioning of thermal electricity generation capacity        net can disconnect electricity con-
     in the area. Consequently, outages on the two 400 kV lines        sumption in the area to avoid overload
     linking the grid in Copenhagen to the rest of Zealand can         in situations of outages on one of the
     cause intolerable overloads in the electricity grid. Thus,        two 400 kV lines.
     there is a risk that electricity consumers in Copenhagen will
     have to be disconnected more or less permanently until the        In late 2017 and early 2018, there were
     damage caused by any overload has been repaired.                  two major faults in the Copenhagen
                                                                       area which led to near-miss incidents:
     Energinet’s business case on “Forsyning af København”,            • A faulty meter led to the disconnec-
     published in 2017, stated that the socio-economically best          tion of one 400 kV connection. If the
     solution is to invest in an upgrade of the electricity grid         Amager Power Station unit 3 had
     leading into Copenhagen. The Minister for Energy, Utilities         not been running, the consequence
     and Climate has approved the construction of a new 132 kV           would have been disconnection of
     cable in the area, which will solve the current problem in          electricity consumers.
     Copenhagen. The cable is expected to be operational in early      • An oil leak led to the disconnection
     2019.                                                               of one of the 132 kV connections in
                                                                         Copenhagen. Amager Power Station
     However, until the cable is in place, exceptional measures          unit 3 was not in operation. If the
     are necessary, since the risk of forced disconnections is           remaining power stations had been
     considered unacceptably high. One such measure is that              unable to ramp up electricity genera-
     Energinet has chosen to order Amager Power Station’s unit 3         tion, it would have been necessary to
     to run until the cable is commissioned. This decision is based      disconnect electricity consumers.
     on an assessment of how the challenge faced can be met
Security of electricity supply report 2018               15

Use of brownout
The controlled disconnection of electricity consumers
(brownout) to handle strained operating situations was not
necessary in 2017.

However, there were a few operating situations in which the
loss of the largest unit (N-1) in the system could have led to
a power shortage due to maintenance work and breakdowns
in the electricity system. Had such an incident occurred, it
might have been necessary to disconnect electricity consu-
mers.

Operational status
Energinet's electricity system control centre operates with
three different operational status types: normal operation,
alert state and emergency state.
                                                                                                         OPERATIONAL
The electricity system is in normal operation for the vast
                                                                                                         STATUS TYPES
majority of the time. In 2017, an alert state was registered
once in November. The state was triggered by the fault on                                                During normal operation, the
the 400 kV cable in November, which presented a challenge                                                electricity system follows the
to the security of electricity supply in Copenhagen. The                                                 normal operating conditions,
problem, was quickly resolved, and the upward regulation                                                 including being able to handle
of Amager Power Station’s unit 3 and quick troubleshooting,                                              an outage of the largest unit
among other things, ensured that there were no electricity                                               (the N-1 principle).
consumer outages in the intervening period.
                                                                                                         If incidents in the electricity
                                                                                                         system threaten normal
                                                                                                         operation, and there is a risk
TABLE 3: LIST OF DANISH INCIDENTS REPORTED TO THE                                                        of operation disruption, the
ICS STATISTICS IN 2016 AND 2017.                                                                         operating situation changes to
                                                                                                         an alert state. In an alert state,
Incidents are classified in the reporting on a scale from 0-3, where 3 is the most
severe level:                                                                                            the electricity market can be
• Scale 0 Local deviations with low impact on operational reliability
                                                                                                         suspended, and Energinet
• Scale 1 Serious incidents and incidents affecting more than one TSO                                    can use all the options at
• Scale 2 Extensive incidents in a large area (e.g. neighbouring TSOs)
• Scale 3 Major incidents resulting in a blackout                                                        its disposal to maintain the
Loss of IT tools is only registered for scale 1 and scale 2 incidents in the ICS statistics.
                                                                                                         electricity supply.

                                      Scale           Scale          Scale        Scale                  If operation becomes un-
 CRITERIA                                                                                                stable, and there are also
                                        0               1              2            3
                                                                                                         local/regional outages, the
 Incidents with                                                                                          operating situation is changed
                                    2016: 1         2016: 13
 components in the                                                                                       to emergency state. In an
                                    2017: 1         2017: 10
 transmission grid                                                                                       emergency state, Energinet
                                                                                                         calls in extra crisis staff,
 Violation of                       2016: 0         2016: 0                                              and preparations are made
 voltage standards                  2017: 0         2017: 0                                              to handle extended system
                                                                                                         disturbances.
                                    2016: 0         2016: 3
 Loss of IT tools
                                    2017: 0         2017: 0
16                                 Security of electricity supply report 2018

     An emergency state is declared extremely rarely, and there                            Disturbance Statistics and Classifi-
     were no cases in 2017.                                                                cation (DISTAC)
                                                                                           Within the ENTSO-E framework, the
     European incident reporting                                                           Nordic and Baltic countries prepare
     Europe’s electricity systems are closely connected, and sy-                           an annual report called DISTAC. The
     stem disturbances in one country may impact neighbouring                              report describes both system distur-
     countries, or in the worst case all of Europe. Therefore,                             bances and faults in the HVAC grid
     European TSOs work together to maintain secure operation                              over 100 kV and the utilisation of HVDC
     in a common electricity system.                                                       connections regarding outage times
                                                                                           and limitations.
     ENTSO-E has developed an Incidence Classification Scale
     (ICS). The ICS aims to provide an overview of incidents in                            Reporting on the AC (HVAC) grid
     the European electricity system through a single common                               A technical incident report is prepared
     reporting method. ICS statistics only cover events at the 220                         for the HVAC grid, providing insights
     kV level or above.                                                                    into failure rates, causes, security of
                                                                                           supply and components subject to
     There were 10 incidents in the transmission grid in 2017                              multiple faults.
     against 13 the year before. Four of the incidents in 2017                             In 2017, 53 system disturbances
     occurred at KontiSkan, four at Skagerrak and two at the                               occurred in the Danish electricity grid
     Øresund Link.                                                                         at voltage levels above 100 kV, with
                                                                                           an equivalent 51 disturbances in 2016.
     No incidents with loss of critical IT tools were registered in                        The 10-year average from 2008 to 2017
     2017 against three in 2016.                                                           was 55 errors. Four system disturban-

     FIGURE 3: ILLUSTRATION OF THE NUMBER OF AC (HVAC)                                     FIGURE 4: RESTRICTIONS ON THE
     GRID FAULTS.                                                                          IMPORT VIA DANISH HVAC CONNEC-
                                                                                           TIONS.
     Source: DISTAC, Nordic and Baltic Grid Disturbance Statistics 2015.

                                                                                           Source: Energy Data Service, www.energidataservice.dk.

     Number of faults                                                                        Pct.
     20                                                                                    100

                                                                                            80
     15
                                                                                            60
     10
                                                                                            40

      5                                                                                     20

      0                                                                                      0
          Lightning Other External Operation                Tech-        Other   Unknown                 2016                    2017
                   environ- influen- and main-               nical
                    mental     ces    tenance               equip-
                    causes                                   ment
                                                                                                    AC Germany
              2016          2017                                                                    The Øresund Link
Security of electricity supply report 2018               17

ce incidents led to disconnection of consumers in 2017. By                                      ”The system’s robustness
comparison, there were 13 such incidents in 2016.
                                                                                               enables Energinet’s control
Restrictions on AC connections                                                                  centre to handle most sy-
Energinet monitors the exchange capacity of AC connections                                     stem disturbances without
in Eastern and Western Denmark. Moreover, import capacity
is an important aspect of security of electricity supply.
                                                                                                escalating these to emer-
                                                                                                    gency incidents”
In 2017, the AC connection from Germany (import capacity)
was restricted an average 8 per cent of the time, which was
lower than in 2016. The Øresund Link (import capacity) was
limited 9 per cent of the time on average.

Reporting on HVDC connections
Statistics are prepared for the Nordic HVDC connections,                                      Availability of central power stations
detailing how these are impacted by technical limitations                                     Average availability of central electri-
in the grid or by faults and maintenance work. The Danish                                     city generation capacity in Denmark
HVDC interconnectors and the Great Belt Power Link are                                        roughly matches previous years' levels.
included in the statistics.                                                                   In 2017, availability averaged 82 per
                                                                                              cent, up from 73 per cent in 2016 and
In 2016, 24 faults were registered on connections to/from                                     79 per cent in 2015. Availability is not
Denmark, while 18 were registered in 2017. A 102-day cable                                    100 per cent because maintenance
fault on Skagerrak 2 represented the only long-lasting fault                                  work and breakdowns still take place.
in 2017.
                                                                                              Emergency incidents
                                                                                              Emergency incidents are rare in the
FIGURE 5: CURRENT RESULTS FOR CAUSES OF OUTAGE                                                Danish electricity system. The system’s
TIMES AND LIMITATIONS ON THE IMPORT CAPACITY FOR                                              robustness enables Energinet’s
DANISH HVDC CONNECTIONS.                                                                      control centre to handle most system
                                                                                              disturbances without escalating these
Source: DISTAC, Nordic and Baltic HVDC Utilisation and Unavailability Statistics 2017.        to emergency incidents. In 2017, only
                                                                                              one incident reached proportions that
Pct. of technical capacity
                                                                                              required the preparation of an incident
100
                                                                                              report for the Danish Energy Agency.
 80
                                                                                              This incident involved a fault at a 10
 60                                                                                           kV substation which then caused a fire
                                                                                              in the building. The building was split
 40
                                                                                              between an electricity distribution
 20
                                                                                              company and Energinet, and the fire
                                                                                              quickly spread to Energinet’s 132 kV
  0                                                                                           installation. Damage from the fire was
      2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
       Kontek    Konti-    Konti-    Skager-   Skager-    Skager-   Skager-     Great         so extensive that the station was out of
                 Skan 1    Skan 2     rak 1     rak 2      rak 3     rak 4    Belt Power
                                                                                  Link        service for some two months after the
                                                                                              incident.
          Outages due to maintenance
          Outages due to faults                                                               On the day of the incident, Energinet
                                                                                              rerouted the grid around the damaged
          Technical limitations
                                                                                              station, keeping the grid fully operatio-
                                                                                              nal and securing grid stability. Con-
                                                                                              tractors could then rebuild the station
18                                                  Security of electricity supply report 2018

Energinet's electricity system control centre in Erritsø.

uninterrupted. The station was put into             and 800 million annually. Overall, costs     Costs of procuring properties required
operation again in steps by criticality;            dropped approximately DKK 130 million        to maintain power system stability
the first part only a month after the               from 2016 to 2017.                           went down from DKK 48 million in 2016
incident and the last part some two                                                              to 10 million in 2017. Moreover, these
months after.                                       The largest change from 2016 to              costs dropped approximately DKK 130
                                                    2017 is a considerable drop in the           million from 2015 to 2016. In other
To prevent similar incidents, Energinet             cost of manual reserves. Costs were          words, costs of properties required to
has launched a study to clarify whether             exceptionally high in 2016 because           maintain power system stability have
there are other stations where some-                of a special situation in the manual         been reduced by more than DKK 160
thing similar might occur.                          reserves market in the autumn of that        million in just two years. The decrease
                                                    year. This was caused by a planned           is mainly due to the fact that the
2.3 Ancillary services                              outage at Kyndby Power Station, which        generic need for properties required
Ancillary services is the collective term           is usually the main supplier of manual       to maintain power system stability has
for the electricity generation and con-             reserves in Eastern Denmark.                 been reduced in recent years, while
sumption resources used to maintain                                                              Energinet has also expanded the grid
electricity system balance and stability.           In 2017, the cost of other ancillary         with synchronous compensators and
Energinet purchases ancillary services              services increased from DKK 30 to 112        added automation features to existing
that can be activated automatically or              million. The rise was mainly due to the      grid components.
manually in the delivery hour. Ancillary            one-off, long-term situation in Copen-
services consist of reserves, regulating            hagen, where Energinet is paying for         Local needs for properties required
power, properties required to maintain              Amager Power Station unit 3 to run con-      to maintain power system stability
power system stability and other                    tinuously. Keeping the power station in      in case of breakdowns and planned
system services such as emergency                   operation reduces the risk of overloads      outages are seen as unchanged
start-up.                                           and thus disconnection of electricity        because, most often, only one possible
                                                    consumers. Other ancillary services          supplier is available locally. Therefore,
In 2013-2017, Energinet purchased                   also includes emergency start-up and         ordering constitutes a large portion
ancillary services at between DKK 600               generation adequacy capabilities.            of total costs of properties required to
Security of electricity supply report 2018                            19

maintain power system stability, but out of a much reduced
total amount. In 2017, there was no unplanned ordering                                   FIGURE 6: COST OF ANCILLARY
where Energinet may, at very short notice, make use of the                               SERVICES.
ordering option under the Danish Electricity Supply Act. For
further information, please read the Energinet publication                               Note: Before 2015, black start was recognised as part.
                                                                                         of manual reserves.
"Energinet’s use of ordering to secure the security of
electricity supply 2016-2017".
                                                                                         DKK million
Plans to decommission power stations and cancelled                                       800
outage applications
Energinet coordinates and draws up an annual outage plan.                                600
The outage plan ensures that outage times are coordinated
with market participants. The outage plan is prepared                                    400
on the basis of submissions from central power stations,
                                                                                         200
interconnectors and Energinet's own projects. Once appro-
ved, Energinet cannot deviate from the outage plan without
                                                                                            0
compensating the affected parties. Energinet did not cancel                                      2013       2014         2015   2016    2017
any outage in the outage plan in 2017.
                                                                                                    Manual reserves (mFRR)
                                                                                                    Automatic reserves (aFRR and FCR)
                                                                                                    Properties required to maintain
                                                                                                    power system stability
                                                                                                    Other ancillary services

TABLE 4: COSTS OF PROPERTIES REQUIRED TO MAINTAIN                                        Energinet evaluates all requested
POWER SYSTEM STABILITY                                                                   scheduled outages from the market
                                                                                         participants according to the current
Note 1: Stated costs of synchronous compensators include operation and maintenance,
electricity consumption, depreciation and financing.                                     technical regulation, the power balance
                                                                                         in Western and Eastern Denmark, and
                                                                                         the areas combined. The parties may
 COSTS OF PROPERTIES REQUIRED TO MAINTAIN POWER                                          have to adjust their outage requests
 SYSTEM STABILITY                                                                        if deemed necessary. Energinet was
                                                                                         unable to grant several requested
 DKK million                               2014      2015       2016      2017           outages.
 PLANNED
                                                                                         In 2017, several applications were
 • Market contracts                          164       171          18          2        made for changes to operating condi-
 • Ordered under the Danish                                                              tions of central power stations. These
                                                0          0        30          8
 Electricity Supply Act                                                                  include, among other things, closures
 NOT PLANNED                                                                             and extended start-up warnings. In
                                                                                         each situation, Energinet assessed the
 • Ordered under the
                                               54          6         0          0        security of supply-related consequen-
 Danish Electricity Supply Act
                                                                                         ces.
 Costs of synchronous com-
                                               38        54         54        57
 pensators1:                                                                             In a few cases, Energinet found that
                                                                                         the change would result in an unaccep-
 Total costs of properties                                                               table deterioration of the security of
 required to maintain power                  255       231        102         67         electricity supply and could therefore
 system stability                                                                        not approve the applications.
20                               Security of electricity supply report 2018

                                 3. FORWARD-LOOKING RISK
                                 ASSESSMENT

     The forward-looking risk    • Generation adequacy analyses for           it an increase in wind and solar-based
        assessment takes into      Denmark up to 2025 still show that         electricity generation capacity. Ther-
                                   Eastern Denmark faces the greatest         mal electricity generation capacity has
  account expected develop-        risk of power shortage.                    declined correspondingly in recent
ments and challenges in the      • Grid adequacy may be challenged by         years. This trend is expected to
electricity system. Generally      an increasing number of reinvest-          continue.
       speaking, the forward-      ment and connection activities in the
                                   electricity transmission grid.             In addition, Denmark will expand its
   looking risk assessment is    • On the other hand, units required to       currently significant exchange capacity
    based on developments in       maintain power system stability and        further in the coming years.
      system adequacy, which       increasing use of automation help
    can be subdivided into ge-     to strengthen the robustness of the        3.2 Generation adequacy
                                   electricity system.                        Generation adequacy is the electricity
 neration and grid adequacy,     • The electricity system’s increasing        system's ability to meet the overall
 and system security, which        dependence on IT requires high             demand of electricity consumers. Ge-
        can be subdivided into     uptimes on crucial IT systems.
  robustness and IT security.
                                 3.1 Expectations for the future
                                 electricity system
                                 The assessment of the future security
                                                                              FIGURE 7: MAXIMUM POWER CON-
                                 of electricity supply is based on            SUMPTION, AND ELECTRICITY GENE-
                                 Energinet’s Analysis Assumptions 2017.       RATION AND EXCHANGE CAPACITY.
                                 The analysis assumptions represent
                                                                              Source: Energinet's Analysis Assumptions 2017.
                                 Energinet’s best estimate of trends in
                                 key parameters in the electricity and
                                 gas sectors towards 2040.                    GW
                                                                              12
                                 The main parameters in Energinet’s
                                                                              10
                                 generation and grid adequacy
                                                                               8
                                 assessment are trends in electricity
                                 consumption, electricity generation           6
                                 and exchange capacity. These trends           4
                                 are inherently linked to both short and
                                                                               2
                                 long-term uncertainties. In this respe-
                                 ct, the electrification extent of other       0
                                                                                       2019             2025            2030
                                 sectors, with its matching increase in
                                 electricity consumption, and the speed
                                                                                       Thermal elecitricity generation capacity
                                 of the green transition, play significant
                                                                                       RE capacity
                                 roles.
                                                                                       Exchange capacity
                                 Electricity generation and exchange                   Maximum power consumption
                                 capacity
                                 The green transition has brought with
Security of electricity supply report 2018              21

neration adequacy is closely linked to the electricity market,            In this year’s report, future generation
where inadequacy results in high electricity prices.                      adequacy risk assessments are made
                                                                          using the Forsyningssikkerhedsindeks
                                                                          (FSI) model.

                                                                          The method Energinet uses to perform
    FSI MODEL                                                             generation adequacy analyses has
                                                                          been substantially updated compared
    The Forsyningssikkerhedsindeks (FSI) model is                         with previous years' security of
    Energinet's tool for analysing generation adequacy                    electricity supply reports.
    in Denmark. The model is stochastic and simulates
    incidents in the electricity system, which can lead to                The procedure that Energinet’s control
    power shortages, on an hourly basis.                                  centre uses to determine the capacity
                                                                          of the Øresund Link in case of a bre-
    Every year, the security of electricity supply is ana-                akdown or planned outage has been
    lysed using a large number of simulations to repre-                   partly incorporated in the model. The
    sent possible incident combinations. The model                        model’s limitations make it impossible
    results thus illustrate an average of all calculations                to incorporate the procedure fully.
    for a single year.                                                    The procedure has a major impact
                                                                          on available capacity in the model,
    The FSI model is based on historical time series for                  as an outage on one of the Øresund
    electricity consumption and fluctuating electricity                   link’s four lines impacts the exchange
    generation (wind and solar power). Electricity gene-                  capacity of the rest.
    ration from thermal power stations and imports
    via interconnectors are stochastic. The stochastic                    The procedure is updated annually
    element is represented using probabilities for break-                 to match changes in the grid. There-
    downs. Thermal generation stations and international                  fore, more exchange capacity will be
    connections will therefore be unable to supply                        available in case of planned outages
    energy to meet electricity consumption for a number                   or breakdowns on the Øresund Link in
    of hours in each simulation. Planned outages on                       the 2025 simulation. This means that
    Denmark's central power stations and international                    generation adequacy analyses will
    trade connections are placed deterministically in                     show more available capacity on the
    the models based on a planned optimisation of their                   connection in 2025 than previously.
    positions in relation to each other.
                                                                          This increased availability in the 2025
    The model estimates the risk of outages in the Danish                 simulation is due to an expected
    system due to power shortages. The FSI model is                       upgrade of a domestic connection
    best suited to perform calculations on the basis of                   between the Øresund Link and the
    assumptions resembling the situation today, as the                    Zealand electricity grid. The upgrade
    model is based on historical time series and without                  is expected to be carried out between
    derived effects of shortage situations, such as flexible              2020 and 2025.
    electricity consumption.
                                                                          In addition, outage at central power
    The FSI model will tend to overestimate the risk of                   stations and on interconnectors is
    power shortages in a future electricity system which                  modelled deterministically as opposed
    is significantly different from today's system in terms               to the previous stochastic approach.
    of both physics, the market and international operati-
    onal cooperation (e.g. in 2025).                                      Generation adequacy assessment
                                                                          Generation adequacy analyses for
                                                                          Denmark up to 2030 still show that
                                                                          Eastern Denmark faces the greatest
22                                 Security of electricity supply report 2018

     risk of power shortage. Reasons include reduced domestic
     electricity generation capacity and less exchange capacity
     in Eastern Denmark than in Western Denmark. All analysis                                  GENERATION ADEQUACY
     results for Western Denmark show a risk of less than one                                  INDICATORS
     weighted minute per year. Therefore, only results for Eastern
     Denmark are presented in the following.                                                   Weighted minutes are consumer-
                                                                                               weighted outage minutes, calcu-
     Overall, the risk of power shortages in Eastern Denmark is                                lated by dividing unserved energy
     estimated to be increasing over time. This is primarily due to                            (EUE) by average hourly
     the expected reduced thermal electricity generation capacity                              consumption for Eastern and
     as well as to increased electricity and power consumption.                                Western Denmark, respectively, in
                                                                                               the simulated year.
     Therefore, Energinet is opening talks with the EU Commis-                                 EUE (Expected Unserved Energy)
     sion and Danish authorities on the possibility of obtaining                               indicates unserved energy in the
     an approval for a time-limited introduction of a strategic                                simulations. In other words, total
     reserve in order to maintain generation adequacy in Eastern                               electricity consumption that is
     Denmark. Energinet will use these talks to ask for an                                     expected not to be covered by
     approval for the period 2025-2029 with an option to extend                                electricity generation and imports.
     this period by five years.                                                                LOLE (Loss Of Load Expectation)
                                                                                               indicates the number of hours
     Energinet is working determinedly to actualise ongoing                                    with power shortages, irrespec-
     electricity market reforms, and new initiatives to ensure                                 tive of the scope of the shortages.
     increased flexibility both from the electricity generation and
     consumption sides as well as from new storage technologies
     will be launched over the coming years.

     Eastern Denmark is closely linked to Southern Sweden, and
     the Øresund Link greatly affects generation adequacy in
     Eastern Denmark. In 2020, replacement of the Øresund Link
     400 kV cables is expected to reduce capacity significantly                           in the event of outage times in 2025
     for 1-2 months. When the exact replacement time is set,                              compared to today. In the FSI model,
     Energinet will assess whether extraordinary measures                                 the number of 2025 output minutes is
     must be implemented, such as long-term outage planning                               halved with these upgrades.
     or a tender for temporary extra electricity consumption or
     generation capacity.                                                                 The 11 weighted minutes in 2025 in FSI
                                                                                          correspond to the expectation that an
     When the Øresund Link is only partly operational, its capa-                          average electricity consumer will have
     city depends on the domestic electricity grid in Eastern                             99.9979 per cent of demanded energy
     Denmark. Energinet is planning an upgrade of this domestic                           supplied.
     grid between 2020 and 2025, increasing available capacity
                                                                                          Note that the expected number of
                                                                                          hours with power shortage (LOLE) in
                                                                                          the model simulations is low. Conse-
     TABLE 5 – FSI RESULTS 2019-2030                                                      quently, power shortage situations very
     Note that outlook for 2025 without upgrades in the domestic grid is 22 weighted      rarely appear in the simulations.
     minutes and security of supply 99.9957 per cent.

                                                                                          New method to calculating generation
       FSI        Weighted            EUE       LOLE     Security of                      adequacy
                   minutes         (MWh/year) (affected   electricity                     Until now, Energinet has used the
                  (minutes/                  hours/year)    supply
                    year)                                 (per cent)                      FSI model but expects to move to the
                                                                                          Better Investment Decisions (BID)
      2019               2                 53                 0.1               99.9996   model going forward. BID model
                                                                                          results are not used in this year's
      2025             11                340                  0.6               99.9979   security of electricity supply report,
                                                                                          as the model's generation adequacy
      2030             42              1,373                  2.5               99.9921   calculation module has not yet been
                                                                                          fully implemented in Denmark.
Security of electricity supply report 2018                                          23

Here, the submarine cable for the EU-subsidised Kriegers Flak project is landed. The project will connect German offshore wind farms to a future
Danish offshore wind farm in the Baltic Sea.

BID is used by the other Nordic TSOs,            there are also model-specific qualities,                     Sensitivities of future generation
as well as in ENTSO-E’s Midterm Ade-             and therefore, the models will not                           adequacy levels
quacy Forecast, which gives Energinet            present the exact same assessment                            The risk assessments of future gene-
a better opportunity to use the results          of Danish generation adequacy levels.                        ration adequacy are greatly influenced
both nationally and internationally.             As a result of the technical differences                     by input data. This is illustrated in the
                                                 between the models and updates in                            following sensitivity analyses, which
Two of the main differences between              assumptions, next year's report cannot                       were performed using the FSI model in
FSI and BID are that BID incorporates            be expected to show exactly the same                         the simulation year 2025. The different
both modelling of the power situation            results.                                                     parameter variations are illustrative
throughout Europe and compulsory
heat production for power stations.
FSI only models selected neighbouring
areas. Better modelling of other                       BID model
countries can mean more and less
available power compared to FSI.                       The Better Investment Decisions                        elements. The model assesses
On the other hand, the incorporation                   (BID) model is an electricity market                   generation adequacy in all model-
of power stations’ compulsory heat                     model which, among other things,                       led price areas, thus incorporating
production is expected to worsen the                   can be used to assess generation                       other nations' impact on Danish
power situation.                                       adequacy. The model simulates the                      generation adequacy. Unlike FSI,
                                                       electricity market across Europe,                      the model can handle flexible
Both models basically use the same                     thus reflecting Denmark’s relations                    electricity consumption directly.
methods to assess the risk of power                    to the world around us.
shortages in the system.
                                                       Power station breakdowns and
Even though there are many simila-                     interconnectors are stochastic
rities to the methods in FSI and BID,
24                         Security of electricity supply report 2018

     examples and do not reflect Energinet's assessment of input                 ”As data centres are large
     parameter uncertainties.
                                                                                  energy consumers, their
     Sensitivities show a risk of power shortages in Western                      electricity consumption
     Denmark of no more than one weighted minute per year,                       could greatly influence the
     attributable to e.g. the commissioning of COBRAcable to
     the Netherlands and Viking Link to the UK. Therefore, only
                                                                                overall generation adequacy
     results for Eastern Denmark are presented in the following.                  of the Danish electricity
                                                                                          system.”
     Increased electricity consumption flexibility
     Currently, efforts are made to present electricity consumers
     with better options to participate in the electricity market.
     This may lead to an increase in the incentive for electricity
     consumers to move electricity consumption to hours with                    Sensitivity-wise, a total reduction in
     lower electricity prices.                                                  the Danish electricity system gene-
                                                                                ration capacity of 1.5 GW is assumed,
     The analysis assumes that it will be possible to move 100                  compared with Analysis Assumptions
     MW in both Western and Eastern Denmark. This will happen                   2017. The reduction is divided into 1
     if electricity prices exceed €100/MWh.                                     GW in Western Denmark and 500 MW
                                                                                in Eastern Denmark, distributed fairly
     As expected, results show that increased electricity con-                  equally between central and decentra-
     sumption flexibility will improve generation adequacy.                     lised power generation capacity.

     Phasing out of thermal electricity generation capacity                     The reduction has a negative impact
     Thermal electricity generation capacity is an important                    on generation adequacy. Results show
     aspect of risk assessments of the power situation. There-                  a significantly higher risk of power
     fore, the extent to which faster phasing out of electricity                shortages in Eastern Denmark than
     generation capacity affects the power situation is examined.               electricity consumers face today.

     TABLE 6: RESULTS OF SENSITIVITY ANALYSIS IN EASTERN DENMARK IN 2025.

                                        SENSITIVITY ANALYSIS EASTERN DENMARK

                                                               Weighted        EUE          LOLE        Security of
     2025                                                       minutes     (MWh/year)    (affected  electricity supply
                                                             (minutes/year)              hours/year)    (per cent)

     ” Base case”                                                       11      340           0.6            99.9979

     Electricity consumption flexibility                                 6      195           0.4            99.9988

     Thermal electricity generation capacity                            64    1,943           3.6            99.9878

     Increased data centre expansion                                    19      610           1.1            99.9964

     Increased data centre expansion and
     phasing out of thermal electricity                                 84    2,720             5            99.9841
     generation capacity
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