1. Further needs for regional power system planning in the Nordics and Baltics
Pekka Vile, Senior analyst, Fortum Power and Heat Oy
BEMIP Electricity Regional Group meeting 26 October 2016

2. Fortum’s current geographical presence
Nordic countries
Power generation TWh
Heat sales TWh
Electricity customers million
Power generation
Electricity sales
Heat
OAO Fortum
Power generation TWh
Heat sales TWh
Russia
Poland
Power generation TWh
Heat sales TWh
Baltic countries
Power generation TWh
Heat sales TWh
India
Power generation 26 GWh
Key figures 2015
Sales EUR 3.5 bn
Comparable operating profit EUR 0.8 bn
Balance sheet EUR 23 bn Personnel ,800

3. Report on Benefits of regional power system planning
Gaia Consulting prepared in October 2015 for Fortum a report on regional planning in the Nordic and Baltic electricity market
Main conclusions of the report:
There is a clear need for regional governance
Coordination efforts lack regional focus
National priorities influence TSO decisions
Agreement on bottleneck income collection exists – but not how it is used
Market efficiency benefits need to be captured
The Nordic cooperation has demonstrated that a larger market area allows the countries in the region to benefit from the strengths of each other

4. Alternative operative models for regional governance in power system design
Source: Benefits of regional power system planning, Gaia Consulting Oy, 21 October 2015

5. High SE-FI congestion rents have been collected during recent years - New SE1-FI interconnector would have been paid by the congestion rents from
Sources: Challenges and Opportunities for the Nordic Power System, Nordic TSOs, August 2016; ENTSO-E TYNDP 2016
We should have this as a PCI project to be implemented as soon as possible !
SE1-FI & SE3-FI congestion rents of over 300 MEUR
Projects 111 & 96 total cost estimate around 150 MEUR

6. Stronger interconnections would further increase security of supply and market efficiency in the Baltic Sea Region power market
Night-time Nord Pool Elspot flows 24 Oct 2016 at 3-4 with exports from Germany and Poland northwards
Peak-hour Nord Pool Elspot flows 24 Oct 2016 at with some flows at the full available capacity for the hour
Map source: Nord Pool Spot