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1 NorNed Submarine Cable Conference on Electric Cables Algeria 12 November, Algiers Svein S. Pedersen, Statnett SF Vice Precident.

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Presentation on theme: "1 NorNed Submarine Cable Conference on Electric Cables Algeria 12 November, Algiers Svein S. Pedersen, Statnett SF Vice Precident."— Presentation transcript:

1 1 NorNed Submarine Cable Conference on Electric Cables Algeria 12 November, Algiers Svein S. Pedersen, Statnett SF Vice Precident

2 2 Statnett in brief The Norwegian Transmission System Operator Established 1992 Owns and operates one national control centre and three regional control centres Owns approx km power lines and 130 transformer stations. 420 kV, 300 kV, 132 kV AC. 350 kV DC Owns and operates interconnections to four neighbouring countries Number of employees : 575 Turnover 2004:800 mill USD Statnett SF is a state-owned enterprise administrated by the Ministry of Petroluem and Energy

3 3 Ongoing Submarine Cable Projects in Statnett Statnett Projects NorNed: Norway- Netherlands, 450 kV HVDC, 580 km, 700 MW. 2 core cable and 2 single cables Ormen Lange, Norway 420 kV HVAC, 4 km, 1000 MW. First 420 kV PEX insulated submarin cable External Projects Mallorca-Ibiza, Spain. 2 cables: Mallorca-Ibiza and Ibiza- Formentera 150 kV HVDC/132 kV HVAC and 66 kV HVAC, 117 and 24 km, 100 MW and 50 MW resp. Valhall Offshore Platform, Norway-North Sea. 150 kV HVDC light, 290 km, 80 MW. with integrated return conductor

4 4 The NorNed project – some facts 700 MW HVDC cable between Norway (Feda) and the Netherlands (Eemshaven) TSO cooperation between Statnett and TenneT –Investment decision end 2004 –Regulated interconnector - included in main grids –Market coupling - Nord Pool and APX Cost estimate appr. 500 mill % increase in Norways import/export capacity In operation from 2007/2008

5 5 Scope is to build and install 580 km submarine cable and two converter installations Feda Eemshaven Strømretter N Strømretter NL Sjøkabel 580 km Submarine cable Converter

6 6 History Planning started 1994 –Based on power exchange agreement between Statkraft and Sep (NEA) –Statnett responsible for the northern half of the cable Statkraft/NEA agreement terminated January 2004 Statnett and TenneT developed new NorNed –New parties –New business model –Old licences, contracts etc

7 7 NorNed will be valuable for both countries Markets with different quite characteristics –Thermal vs hydro –Different price structures (day, season, year) Price differences leading to high trade income –Improvement in market functionality and security of supply

8 8 Energy in Norway and The Netherlands Different challenges The Netherlands: Enough capacity in peak hours Norway: Enough energy in dry years Flow to NL at peak hours Flow to Norway at offpeak hours, more in dry years Trade is beneficial Norwegian daily consumptionDutch daily consumption Winter Summer

9 9 Great variation in generation in Norway Normal Wet years Dry years TWh Import Export Todays grid can import TWh in dry years. We need TWh in increased capacity. High prices will reduce consumption in dry years Consumption

10 10 90 TWh 150 Import Export Normal Wet years Dry years New generation Consumption 10 TWh Normal Wet years Dry years 120 Great variation in generation [cont.]

11 11 NorNed will generate large trading revenues … unlike most grid investments … because the prices vary in totally different patterns Power prices

12 12 NorNed will increase market liquidity Increased supply to the Dutch market at peak hours will reduce peak prices –More competition to existing generators, more fair prices to consumers –Reduced frequency of price spikes. Will in itself contribute to increased liquidity because of lower risk exposure for traders –More stable prices will reduce the exposure to high imbalance costs. Will be a benefit for potential independent investors in new generation Source: APX

13 13 NorNed will improve security of supply Public and political concern for security of supply (SoS) Many sources and scenarios can lead to low SoS NorNed represents a diversified, alternative source of supply for both Norway and The Netherlands Norway will benefit from import of energy in dry years The Netherlands will benefit from import of power capacity in peak hours –Norway is able to deliver –New capacity (MW) can be installed at low cost in existing hydro stations The Nordic region has proven expeience from DC-links –DC is preferential, because flows can be fully controlled

14 14 NorNed is environmentally friendly Many environmental benefits –Import of green hydro power from Norway NorNed will reduce spill of water and stimulate to new investments –NorNed facilitate development of renewables Wind power in NL will benefit from quick regulating ability of the hydrosystem Possibility to build more wind power in Norway (where there is more wind and less people) –Reduced CO2-emissions from Dutch generators More efficient use of plants because of reduced daily variation in output from plants Few environmental problems –Neglible visual impact, no emissions, no pollution to sea, neglible magnetic field from two-core cables

15 15 Business model NorNed will be part of the main grid Costs and income split 50/50 between Statnett and TenneT –Costs covered by main grid tariff, subject to ordinary regulation –Income included in Statnetts allowed income –Expected net reduction in tariff about 10 mill /year Day ahead trade through market coupling –Capacity utilization determined by price differences in day ahead markets System services traded by TSOs –Reserve power –Emergency reserves

16 16 A new standard ? 1.Process –Cooperation between independent TSOs –Decision based on cost/benefit evaluation 2.Regulated interconnector, included in the main grid 3.Market coupling An innovative solution in a European context … –in line with EU preferences … and still well known within Nordel

17 17 European perspective The Nordic market The British market The Iberian market The Italian market The South-East European market The Baltic market The Core market

18 18 Concluding remarks The project has a sound business modell The fundamentals in the energy markets will make this a profitable investment for both countries A good cooperation between the Dutch and Norwegian Transmision System Operaters

19 19 Norway and Submarine Cables Between 1400 and 1500 submarine cables in Norway The oldest one in function was installed 1930 Statnett has today appr. 500 km of submarine cables Until year 2000, Statnett had its own cable laying vessel, Skagerrak Statnett has operated HVDC submarine cables since 1976 Nexans factory for submarine cables is placed in Norway

20 20 NorNed kabel HVDC Converters Thyristor Valve Thyristor Thyristor module Thyristor valve 6 valves, each appr 15m height

21 21 NorNed kabel HVDC Converters Transformers 3 Transformer units Each side (Spares in addition)

22 22 NorNed kabel HVDC Converters Shunt capacitors and filters AC harmonic filters DC smoothing reactor

23 23 Location of Converter Site Site Tunnel

24 24 Site Preparation Scope ( approximate /preliminary figures) Clearing of 25,000 m 2 wood and vegetation Removal of 80,000 m 3 till and soil Blasting of 60,000 m 3 rock Filling and compaction of 55,000 m 3 rock mass 1 km road construction Drainage trenches Retaining walls Erosion protection Landscaping

25 25 Tunnel route

26 26 Microtunnels

27 27 N102/N103 HVDC Cable Supply- Shallow Section Scope: Overview

28 28 HVDC Cable Supply- Shallow Section Supply: –270 km of two core mass- impregnated cable (2x790 mm 2 )

29 29 N102/N103 HVDC Cable Supply- Shallow Section Supply: –2 x150 km of single core mass-impregnated cable (1x700 mm 2 )

30 30 N102/N103 HVDC Cable Supply- Shallow Section

31 31 Scope of Work Engineering Sea trials deep trenching Sea trials laying vessel Pre-lay survey and route preparations Pre-lay dredging (Dutch nearshore) Cable laying Trenching and as-trenched survey Rock dumping and as-dumped survey As-built documentation

32 32 MAIN CHALLENGES Microtunnels landfall Norway Narrow and deep Fedafjord Deep Norwegian Trench Some areas with hard seabed in the flat and shallow sections further south Several crossings Intense trawling in the south Ship lane crossings Instable seabed Eems Estuary Schedule restrictions Waddensea Shallow area 20 km from landfall Dike crossing Dutch landfall

33 33 Crossings

34 34 Landfall operation



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