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

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: mill USD
Statnett SF is a state-owned enterprise administrated by the Ministry of Petroluem
and Energy

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. 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
15-20 % increase in Norway’s import/export
capacity
In operation from 2007/2008

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

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

9. Great variation in generation in Norway
150 25
Wet years
Export
Consumption
125
120
Import
Normal 35 90
Dry years
Today’s grid can import TWh in dry years. We need TWh in increased capacity. High prices will reduce consumption in dry years. 10
TWh

10. Great variation in generation [cont.]
160
150
Wet years
Export 35
Wet years
Consumption
120
125
125
Import
Normal
Normal 25
100
Dry years 90
Dry years 10
New generation
TWh
TWh

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

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

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

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

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

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

23. Location of Converter Site
Tunnel

24. Site Preparation Scope (approximate /preliminary figures)
Clearing of 25,000 m2 wood and vegetation
Removal of 80,000 m3 till and soil
Blasting of 60,000 m3 rock
Filling and compaction of 55,000 m3 rock mass
1 km road construction
Drainage trenches
Retaining walls
Erosion protection
Landscaping

25. Tunnel route

26. Microtunnels

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

28. HVDC Cable Supply- Shallow Section
270 km of two core mass-impregnated cable (2x790 mm2)

29. N102/N103 HVDC Cable Supply- Shallow Section
2 x150 km of single core mass-impregnated cable (1x700 mm2)

30. N102/N103 HVDC Cable Supply- Shallow Section

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. 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. Crossings

34. Landfall operation

35. ROV BASED WATER JETTING TRENCHER

36. ROCK DUMPING VESSEL