TenneT’s interconnectors contribute
to security of electricity supplies.
Thanks to the electricity
connections between the Netherlands and neighbouring countries, the Netherlands
benefit from surpluses in neighbouring countries according to the State
grid owner Tennet.
According to Tennet Interconnectors and an integrated power grid are necessary
in order to transport (temporary) electricity surpluses.
These conclusions have been set out in the latest edition of the annual
Security of Supply Monitoring Report, which was published today by electricity
transmission operator TenneT.
· Growth
in cross-border electricity transmission capacity between the Netherlands
and five connected countries secures long term domestic (Dutch) electricity
supply
· TenneT
working on further expansion of import and export capacity
· Electricity
production capacity of conventional power plants expected to decrease by
20% between now and 2022
· Wind
and solar capacity expected to increase by 360% between now and 2022
· Investments
in renewable electricity production capacity require integrated high-voltage
grid
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TenneT
will continue to develop links with markets in other countries, in order
to maximize the benefits of the strong growth in renewable electricity
production in our part of Europe, to compensate for fluctuations in the
supply of green electricity generated from wind and solar energy, and to
compensate for the loss in production capacity due to the decommissioning
or mothballing of gas- and coal-fired power plants,” says TenneT CEO Mel
Kroon. “National borders can only serve as obstacles to a successful transition
to a renewable energy supply. We need closer collaboration between Northwest
European TSOs as well as interconnectors and links between electricity
systems in order to safeguard the security of electricity supplies, import
cheap energy, and facilitate the transition to a more sustainable energy
market.”
Interconnectors yield benefits for the Netherlands
The Dutch grid is already closely linked to the grids of other countries
through onshore and subsea electricity connections (known as ‘interconnectors’).
TenneT is planning to realise a further expansion of cross-border transmission
capacity in the coming years. Mel Kroon: “These interconnectors have an
economic life of at least 40 years and offer a relatively quick return
on investment. They establish links between the electricity markets of
different countries. Interconnectors benefit everyone in the Netherlands,
since they enable us to import cheaper renewable electricity, or export
it when prices are higher in another market.”
The
BritNed cable between the Netherlands and the UK
(capacity: 1,000 MW, taken into operation in 2011) is an example of an
interconnector which is mainly used to export electricity. In contrast,
the NorNed cable between the Netherlands and Norway (capacity: 700 MW,
taken into operation in 2008) imports renewably generated electricity for
most of the time.
The Netherlands’ maximum import/export capacity currently totals 6,000
MW. TenneT plans to expand this capacity by 3,400 MW to reach 9,400 MW
by 2022, an increase of 57 percent. The following projects are being undertaken
to achieve this aim:
· Doetinchem-Wesel:
1,500 MW (onshore interconnector between the Netherlands and Germany)
· COBRAcable:
700 MW (subsea cable between the Netherlands and Denmark)
· Expansion
of the capacity of the existing Meeden-Diele interconnector by up to 500
MW, depending on market conditions and electricity flows in Northwest Europe
· Expansion
of the import/export capacity between the Netherlands and Belgium by up
to 700 MW, depending on the market conditions and electricity flows in
Northwest Europe
The actually available capacity at any given time depends on the locations
of the units generating electricity at that time.
Supply of electricity generated by conventional power plants decreasing
Total thermal production capacity will decrease in the coming years due
to the decommissioning and conservation of gas- and coal-fired
power plants. Operational thermal production capacity is expected to decrease
by over 5,000 MW during the period until 2022, largely due to the closing
of coal-fired power plants (2,700 MW) as well as the ‘mothballing’ of
gas-fired power plants (1,900 MW). At present, the operational thermal
production capacity totals nearly 25,000 MW, but this is expected to fall
by approx. 20 percent to 20,000 MW in 2022.
Substantial increase in renewable production capacity (wind and solar energy)
Wind and solar generating capacity is expected to rise dramatically, from
4,200 MW today to over 15,000 MW in 2022. This corresponds to an increase
of no less than 360%. However, the growing share of wind and solar energy
will not result in a substantial improvement of the security of supply
given the inevitable fluctuations in supply due to weather conditions.
Local storage, demand response, and closer cross-border integration will
provide the flexibility to maintain the security of supply at its current
high level.
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In the table above, the domestic supply has been subdivided into operational
and non-operational capacity. Non-operational capacity refers to conserved
or ‘mothballed’ capacity. The operational capacity has been subdivided
into capacity from generation sources (solar/photovoltaic, hydropower and
wind energy) and thermal capacity. Click to enlarge the table.
Market uncertainties
The planned investments in large-scale subsidised renewable electricity
production, the unfavourable market position of gas-fired power plants,
and the development of capacity markets in France, the United Kingdom and
possibly Belgium are resulting in uncertainty regarding investments in
thermal generation capacity. Because of these factors, it is unclear whether
and when further production capacity will be taken out of operation. It
is not inconceivable that more production capacity will be decommissioned
or mothballed in the coming years as the operating time and therefore the
cost-effectiveness of existing, mainly gas-fired production capacity comes
under increasing pressure due to the further increase of renewable production
capacity in the Northwest European market. Producers may announce their
intention to decommission obsolete production capacity shortly before that
decision is actually implemented.
On the other hand, the Dutch grid has a significant amount of relatively
modern mothballed production capacity that can be quickly redeployed if
necessary
Development of capacity markets
The results of this monitoring exercise do not give TenneT cause to advise
the government to take any new measures in order to safeguard the future
security of supply in the Netherlands. However, TenneT does believe that
the current debate on the possible development and introduction of capacity
markets in neighbouring countries should be closely monitored, in view
of the possible consequences for the development of the Dutch market. Capacity
markets in which power plant operators receive subsidies for keeping electricity
production capacity in reserve can cause market disturbances with respect
to future investments in demand response, storage capacity and conventional
(thermal) electricity production capacity, thus presenting obstacles to
innovation and efficiency improvements.
