Monthly Balance Report August 2016

Content • BRPs' imbalances How well have the BRPs traded into balance last report period? • BRP imbalances, reserves and balancing power How did we manage the imbalances? • Norwegian prices How did the prices develop during the last report period?

Balance Responsible Party Imbalances trading into balance

A balance responsible party (BRP) will according to his physical obligations and rights have to achieve a planned balance latest when Elspot closes for bids (to trade into balance). Through bilateral trades and Elbas the BRP can until the trading deadline restore his balance if prognosis errors are discovered. System responsible and balance settlement cooperate when analyzing the BRPs' imbalances. The following is carefully monitored: • How well do the BRPs trade into balance? (not to large hourly absolute imbalances and appropriate relative imbalances, monthly net imbalance should be near zero and thus not show a skewed distribution of positive and negative imbalances)

• whether BRPs use trades after Elspot to restore their balance or not

As a result of the analysis the imbalances are diversified by generation and consumption imbalance and the BRPs are classified into three categories – red, yellow and green. In the long run not acceptable

In the short run acceptable

Acceptable

BRPs in this category might be breaching the balance agreement. The BRP is urged to improve his balance. A continued classification into this category can result in exclusion from the wholesale market.

BRPs in this category are not balancing as well as they could. Although they during the reporting period are not breaching the balance agreement a continued classification or worsening imbalance in future periods can justify a classification as In the long run not acceptable.

BRPs in this category are achieving a good balance. Although the balance is classified as acceptable the BRP still can reduce imbalance costs by improving his balance.

Balance Responsible Party Imbalances criteria for classification as red, yellow or green (only BRPs > 1800 MWh/month abs imb) In the long run not acceptable (does not apply for BRPs < 1800 MWh/month absolute imbalance)

Consumption Imbalance • more than 10% relative imbalance and more than 2 times difference between negative and positive imbalances • more than 12,5% relative imbalance • more than 2,5 times difference between negative and positive imbalances Production Imbalance • more than 5% relative imbalance and more than 2 times difference between negative and positive imbalances • more than 6% relative imbalance • more than 2,5 times difference between negative and positive imbalances

In the short run acceptable

Consumption Imbalance • neither red or green Production Imbalance • neither red or green

Acceptable

Consumption Imbalance • less than 6% relative imbalance and less than 1800 MWh absolute monthly imbalance • less than 6% relative imbalance and less than 1,5 times difference between negative and positive imbalances Production Imbalance • less than 2,5% relative imbalance and less than 1800 MWh absolute monthly imbalance • less than 2,5% relative imbalance and less than 1,5 times difference between negative and positive imbalances

August 2016: Norwegian BRPs' Imbalances Consumption Imbalance In the long run

In the short run

not acceptable

acceptable

AGA AS

NO1

Agder Energi Vannkraft AS

acceptable

Acceptable

NO2 NO3 NO4 NO5

NO1

NO2 NO3

NO5

NO2

NO2

NO1

AXPO Nordic AS

NO1

NO2 NO2

AVINOR AS

NO3

NO5

NO3 NO1

NO2

NO4

NO5 NO1 NO2

NO4

NO2

NO3

NO2 NO3 NO4 NO5

Bergen Energi Spot AS

NO3 NO4

NO1 NO2

NO5

NO5

NO1 NO2 NO3 NO4 NO5

BKK Produksjon AS

NO3

Boliden Odda AS

NO5

NO3

NO5

NO2

Coop Norge SA

NO1 NO2 NO3 NO4 NO5

Dalane Energi IKS

NO2

Dalane Kraft AS

NO2

E-CO Energi AS

NO2

Eidefoss AS

NO1

NO2 NO2 NO3

NO5

NO5 NO1

NO3

NO3

Eidsdal Kraft AS

NO3

NO3

Eidsiva Marked AS

NO1 NO2 NO3 NO4 NO5

Eidsiva Vannkraft AS

NO1

Eiendomsspar Energi AS

NO1

Elkem AS Elkraft AS

In the short run

not acceptable

NO1 NO2 NO3 NO4 NO5

Aktieselskabet Saudefaldene

Bane Energi

In the long run

NO2 NO3 NO4 NO5

Agva Kraft AS Akershus Energi Vannkraft AS

Generation Imbalance Acceptable

NO1 NO3

NO5

NO3 NO4

NO1

NO3

NO2

NO1

NO3

NO5

NO2 NO3 NO4 NO5

Energi Danmark Energi Salg Norge AS

NO1 NO2

NO3

NO5

NO4

Engie E & P Norge AS

NO5

ENI NORGE AS

NO4

EVRY ASA

NO2 NO3 NO4 NO5 NO1

Fjord Energi AS

NO2 NO3

Flesberg Elektrisitetsverk AS Fortum Markets AS

NO5

NO1

NO2 NO3 NO4 NO5

Glitre Energi Produksjon AS

NO1

Glitre Energi Strøm AS - Engros Gudbrandsdal Energi AS (utg)

NO1

NO3

NO5

NO2 NO3

NO1

NO5

Haugaland Kraft AS

NO2

NO1

NO3 NO4 NO5

Haugesund Kommune

NO2

NO4

NO1

NO4

NO2

NO1

NO2

NO2 NO4

NO1 NO2

NO3

Helgeland Kraft AS Vannkraft

NO4

Helse Sør-Øst RHF Hemsedal Energi (Balanseansvarlig)

NO1

NO2 NO3 NO4 NO5 NO1

Hafslund Hedging AS

Helgeland Kraft AS

NO2 NO3

NO1

NO3 NO1

NO5 NO4

NO5 NO1 NO2 NO5

August 2016: Norwegian BRPs' Imbalances Consumption Imbalance In the long run

In the short run

not acceptable

acceptable

Generation Imbalance Acceptable

Hordaland Fylkeskommune AS NO2

NO5

NO1

NO3 NO4

Hålogaland Kraft Kunde AS NO1

NO4

NO2 NO3 NO3

JotunKraft A/S

NO1 NO2 NO3

Kongsberg Energiselskap AS

NO1 NO2

Kongsvinger Kommune

NO1

NO5 NO1 NO2

NO1 NO2 NO1

NO5

Lindex AS

NO1 NO2 NO3 NO4 NO5

Lofotkraft Produksjon AS NO2

Luster Energiverk AS

NO3 NO4

NO4 NO5 NO1

NO3

NO2

NO5

NO3 NO4 NO5 NO1 NO2

Lærdal Energi AS

NO2

NO2 NO3 NO4 NO5 NO1 NO2 NO3

Mesta Konsern AS

NO1

NO5

NO4

NO5

NO1 NO2 NO3

NO5

NO1 NO2 NO3 NO4 NO5

Midt Kraft Buskerud AS

NO2 NO3 NO4 NO5 NO1

Midt-Telemark Energi AS

NO1

NO1 NO2

Møre og Romsdal Fylkeskommune

NO2 NO3

Nammo Raufoss AS

NO1

Nesset Kraft AS

NO3

Nordkraft Produksjon AS (Ny)

NO3 NO2 NO3

NO1

NO5

NO1 NO2 NO3

NO5

Notodden Energi Kraft AS

NO1 NO2

NO5

NO1 NO2

NO5

NTE Energi AS

NO3 NO4

NTE Marked AS

NO3 NO4

NO3 NO4

NO3 NO4 NO5

NO4 NO5

Nord-Østerdal Kraftlag Marked

NO1 NO2 NO3

NO3 NO4 NO1

Oppland Energi AS

NO1

NO3

Pasvik Kraft AS

NO1 NO4

NO4

NO2 NO3 NO4

Posten Norge AS RAO Nordic Oy

NO2

NO1 NO2 NO3 NO4 NO5

Lyse Produksjon AS

Powest AS

NO1

NO4

LOS AS

Pelagia AS

NO4 NO3

NO3 NO1 NO2 NO3 NO4 NO5

Oppegård kommune

NO5 NO4

NO3

Kragerø Kraft AS

Nordmøre Energiverk AS

NO2 NO4

NO2

Kraftinor AS

Markedskraft ASA

Acceptable

NO4 NO5

NO5

Konsesjonskraftfondet for Aust-Agder IKS

Lyse Energisalg AS

acceptable

NO4

Istad Kraft AS

Kraftverkene i Orkla

In the short run

not acceptable

NO2

Hydro Energi AS Ishavskraft AS

In the long run

NO4 NO5 NO1 NO2 NO3 NO1 NO2

NO2

August 2016: Norwegian BRPs' Imbalances Consumption Imbalance Rauma Energi Kraft AS

In the long run

In the short run

not acceptable NO3

acceptable NO1 NO2 NO4 NO5

REC Wafer Norway AS

Røros Elektrisitetsverk Kraft

NO1 NO2 NO3 NO4 NO5

Scandem Norge

NO1 NO2 NO3

Scandic Hotels AS

Acceptable

NO1 NO2 NO1

NO2 NO3 NO4 NO5 NO1

Selbu Energiverk

NO3

SFE PRODUKSJON AS

NO1 NO2

Shell Energy

NO3 NO4 NO5

NO3

NO3

NO5

NO3

Sira-Kvina Kraftselskap Produksjon

NO2 NO2

NO3 NO4

NO2

NO1

SKL Produksjon As

NO5

NO2

NO3

NO1

NO2

SKS Kraftsalg AS

NO4

NO1 NO2 NO3

NO5

NO4

NO4

Sogn og Fjordane fylkeskommune

NO3

Sognekraft A/S

NO5 NO1 NO2

Stange Energi AS

NO4

NO5 NO2

SKS Produksjon AS

NO4 NO5

NO3

NO3

NO5

NO1 NO2 NO3 NO4 NO5

Statens Vegvesen

NO2 NO3

NO5 NO1

Statkraft Energi AS

NO2 NO3

NO1

Statoil ASA

NO3 NO4

NO2

Stord Kommune

NO4 NO4 NO5

NO1 NO2 NO3

NO5

NO5

NO5

NO4

NO3 NO4

NO2

Stryn Energi AS, Kraft

NO1 NO2 NO3 NO4 NO5

Studentsamskipnaden i Oslo

NO1

Sunndal Energi KF Sunnfjord Energi AS

NO3

Tafjord Kraftproduksjon AS

NO1 NO2 NO3

NO5

NO1

NO5

NO3

NO1 NO2 NO3 NO4 NO5

Telenor Eiendom Holding As

NO3 NO1 NO2 NO3 NO4 NO5

Telge Kraft AS

NO1 NO2 NO3 NO4 NO5

Telinet Energi AS

NO1 NO2 NO3 NO4 NO5

Tinfos AS

NO2

TIZIR TITANIUM & IRON AS

NO2

NO4

NO5

Troms Kraft Handel AS

NO4 NO5

NO2

NO4

Trønderenergi Kraft AS

NO3

TrønderEnergi Marked AS - Kraft

NO3

NO1 NO4

Tussa Energi AS

NO4

NO4

NO1 NO2

NO3 NO5

NO1 NO2 NO3 NO4 NO5

Tussa-24 AS Vardar vannkraft AS

acceptable NO3

NO2 NO3 NO4 NO5 NO1

Ustekveikja Energi AS

In the short run

not acceptable

NO3 NO4 NO5 NO1 NO2 NO1

Ringsaker Kommune

Skagerak Kraft AS

In the long run

NO2

Reitan Convenience AS Ringeriks-Kraft Produksjon AS

Generation Imbalance Acceptable

NO3 NO2

NO1

NO4 NO5

NO4 NO5 NO1

NO3 NO2

NO3

NO2 NO3 NO1

NO5

NO5

August 2016: Norwegian BRPs' Imbalances

Consumption Imbalance In the long run not acceptable

In the short run acceptable NO2 NO3 NO4 NO5 NO1

Varner Retail AS Vattenfall AB Filial Norge Østfold Energi AS

NO1 NO5

Generation Imbalance Acceptable

NO2 NO3 NO1

In the long run not acceptable

In the short run acceptable

Acceptable

NO5 NO4

NO1

NO4 NO5

01.08.2016 01.08.2016 02.08.2016 03.08.2016 04.08.2016 04.08.2016 05.08.2016 06.08.2016 07.08.2016 07.08.2016 08.08.2016 09.08.2016 10.08.2016 10.08.2016 11.08.2016 12.08.2016 13.08.2016 13.08.2016 14.08.2016 15.08.2016 16.08.2016 16.08.2016 17.08.2016 18.08.2016 19.08.2016 19.08.2016 20.08.2016 21.08.2016 22.08.2016 22.08.2016 23.08.2016 24.08.2016 25.08.2016 25.08.2016 26.08.2016 27.08.2016 28.08.2016 28.08.2016 29.08.2016 30.08.2016 31.08.2016 31.08.2016

MWh/h

Consumption Imbalance Norway The diagram shows as blue area the overestimated BRP-consumption and as red area the underestimated BRP-consumption. (Wrongly reported bilateral trades can disturb the figures)

13 500

13 000

12 500

12 000

11 500

11 000

10 500

10 000

9 500

Norwegian BRPs

Accumulated imbalances for the NO-area

The BRP-imbalance is diversified into generation and consumption.

0,05

Monthly Imbalances BRPs Norway (relative to consumption) generated less or consumed more than planned

0,03

0,01

generated more or consumed less than planned

-0,01 -0,03 -0,05

jan feb mar apr may jun jul aug sep oct nov dec jan feb mar apr may jun jul aug sep oct nov dec

imbalance per consumption

Consumption includes all imbalances settled as consumption imbalance except for the main transmission grid's losses.

2015

2016

PositiveConsumptionImbalance

NegativeConsumptionImbalance

PositiveProductionImbalance

NegativeProductionImbalance

Share of up- and down regulation hours August 2016

100 % 90 % up

80 % 70 % 60 %

none

50 % 40 % 30 % 20 %

down

10 % 0% NO1

NO2

NO3

NO4

NO5

Imbalance Costs What did it cost to have 1 MWh/h imbalance during August 2016?

25 000

cost for imbalance NO1 cost for imbalance NO2 20 000

cost for imbalance NO3

NOK/month

cost for imbalance NO4 cost for imbalance NO5

15 000

10 000

NO5

29 NOK/MWh 30.08.2016

30 NOK/MWh 29.08.2016

NO4

28.08.2016

31 NOK/MWh

27.08.2016

NO3

26.08.2016

28 NOK/MWh

24.08.2016

NO2

23.08.2016

28 NOK/MWh

22.08.2016

21.08.2016

20.08.2016

19.08.2016

18.08.2016

17.08.2016

16.08.2016

15.08.2016

14.08.2016

13.08.2016

12.08.2016

11.08.2016

10.08.2016

09.08.2016

08.08.2016

07.08.2016

06.08.2016

05.08.2016

04.08.2016

03.08.2016

02.08.2016

-

01.08.2016

5 000

NO1

31.08.2016

average cost

BRPs will have the same cost if their hourly imbalances are opposite to the main direction of regulation.

Content • BRPs' imbalances How well have the BRPs traded into balance last report period?

• BRP imbalances, reserves and balancing power How did we manage the imbalances? • Norwegian prices How did the prices develop during the last report period?

Balancing with Norwegian Reserves

The diagram shows the net activated energy from all available reserves in Norway, i.e. primary-, secondary- and tertiary-regulation, special regulation and adjusted generation schedules. Minus means that Norway used less water than planned, plus means that Norway used more water.

Net Balancing Power Norway 300 000 200 000

used more water than planned

MWh/month

100 000 0

used less water than planned

-100 000 -200 000 -300 000

2015

(100.000 MWh/month ≈ 139 MWh/h)

2016

dec

nov

oct

sep

aug

jul

jun

may

apr

feb

mar

jan

dec

nov

oct

sep

aug

jul

jun

may

apr

mar

feb

jan

-400 000

Imbalances and the joint Nordic Balancing An important "imbalance" is referring to the planned exchange with SE/DK/FI/NL. Basically an imbalance between planned and metered exchange is the result of exchange of reserves. Failures on the interconnectors are included in these volumes. Negative values indicate that Norway exported less or imported more than planned, positive that Norway exported more or imported less than planned.

300 000

Deviation between planned and metered exchange between NO and SE/FI/DK/NL

MWh/month

200 000

regulated up for neighbors

100 000 0

regulated down for neighbors

-100 000 -200 000

jan feb mar apr may jun jul aug sep oct nov dec jan feb mar apr may jun jul aug sep oct nov dec

-300 000

2015

(100.000 MWh/month ≈ 139 MWh/h)

2016

Norwegian imbalances

Both BRP's imbalances and the exchange of reserves influence the flow in the grid and thus create an imbalance between Statnett's purchased and metered grid loss.

Norwegian net monthly imbalance 200 000 150 000

MWh/month

100 000

bought more than needed bought more or generated more than needed

50 000 0

bought less than needed bought less or generated less than needed

-50 000

-100 000 -150 000

2015 BRPs net.imb.

2016 Imbalance Grid Loss Statnett

dec

nov

oct

sep

aug

jul

jun

apr

may

mar

feb

jan

dec

nov

oct

sep

aug

jul

jun

may

apr

mar

feb

jan

-200 000

Norwegian Balance Power

Activated reserves in the NO-area

Activated Reserves NO (August 2016) 200 000 100 000

-100 000 -200 000 -300 000

up-regulation

Net Balance Power

Total Balance Power

Other Regulation

Special Regulation

Tertiary Reserves

Secondary Reserves

-400 000

Primary Reserves

MWh

0

down-regulation

The during the report period activated reserves in Norway are shown above. Primary and secondary reserves are activated automatically when the frequency needs to be stabilized. Tertiary reserves are activated manually and in merit order when restoring the frequency. Special regulation also uses tertiary reserves, but not in a merit order. Other regulation is mainly the adjustment of generation schedules.

january february march april may june july august september october november december january february march april may june july august september october november december january february march april may june july august september october november december

MWh per month

Primary Reserves (FFR/FNR)

Historical activation

50 000

40 000

30 000

20 000

10 000

0

-10 000

-20 000

-30 000

-40 000

-50 000

2014 2015

down-regulation 2016

up-regulation

Secondary Reserves (LFC)

Historical activation

50 000 40 000 30 000 20 000

MWh per month

10 000 0

-10 000 -20 000 -30 000 -40 000

2016 down-regulation

up-regulation

december

november

october

september

august

july

june

may

april

march

february

january

december

november

-50 000

2014 down-regulation 2015

up-regulation 2016

december

november

october

september

august

july

june

may

april

march

february

january

december

november

october

september

august

july

june

may

april

march

february

january

december

november

october

september

august

july

june

may

april

march

february

january

MWh per month

Tertiary Reserves (RK - ordinary balancing)

Historical activation

200 000

150 000

100 000

50 000

0

-50 000

-100 000

-150 000

-200 000

2014 down-regulation 2015

up-regulation 2016

december

november

october

september

august

july

june

may

april

march

february

january

december

november

october

september

august

july

june

may

april

march

february

january

december

november

october

september

august

july

june

may

april

march

february

january

MWh per month

Tertiary Reserves (RK - special balancing)

Historical activation

200 000

100 000

0

-100 000

-200 000

-300 000

-400 000

Content • BRPs' imbalances How well have the BRPs traded into balance last report period?

• BRP imbalances, reserves and balancing power How did we manage the imbalances?

• Norwegian prices How did the prices develop during the last report period?

The colored area indicates the price spread between the lowest and highest price area 31.08.2016

30.08.2016

29.08.2016

28.08.2016

27.08.2016

26.08.2016

25.08.2016

24.08.2016

23.08.2016

22.08.2016

21.08.2016

20.08.2016

19.08.2016

18.08.2016

17.08.2016

16.08.2016

15.08.2016

14.08.2016

13.08.2016

12.08.2016

11.08.2016

500 450 400 350 300 250 200 150 100 50 0

10.08.2016

09.08.2016

08.08.2016

07.08.2016

06.08.2016

05.08.2016

04.08.2016

03.08.2016

02.08.2016

01.08.2016

NOK/MWh

NOK/MWh

Norwegian Prices Norwegian Balancing Power Prices

450

350

250

150

50

-50

Norwegian Spot Prices

balancing power price NO3 Elspot area price NO3

31.08.2016

350

30.08.2016

Elspot area price NO2

29.08.2016

balancing power price NO2

28.08.2016

350 300 250 200 150 100 50 0 -50 -100

27.08.2016

Elspot area price NO1

26.08.2016

balancing power price NO1

24.08.2016

350 300 250 200 150 100 50 0 -50 -100

23.08.2016

22.08.2016

21.08.2016

20.08.2016

19.08.2016

18.08.2016

17.08.2016

16.08.2016

15.08.2016

14.08.2016

13.08.2016

12.08.2016

11.08.2016

10.08.2016

09.08.2016

08.08.2016

07.08.2016

06.08.2016

05.08.2016

04.08.2016

03.08.2016

02.08.2016

01.08.2016

Norwegian Prices (NOK/MWh)

300

250

200

150

100

50

0

31.08.2016

30.08.2016

Elspot area price NO5

29.08.2016

balancing power price NO5

28.08.2016

350 300 250 200 150 100 50 0 -50 -100 27.08.2016

Elspot area price NO4

26.08.2016

balancing power price NO4

24.08.2016

350 300 250 200 150 100 50 0 -50 -100

23.08.2016

22.08.2016

21.08.2016

20.08.2016

19.08.2016

18.08.2016

17.08.2016

16.08.2016

15.08.2016

14.08.2016

13.08.2016

12.08.2016

11.08.2016

10.08.2016

09.08.2016

08.08.2016

07.08.2016

06.08.2016

05.08.2016

04.08.2016

03.08.2016

02.08.2016

01.08.2016

Norwegian Prices (NOK/MWh)

Imbalance prices versus spot price (NOK/MWh)

August 2016

350 300 250 200 150 100 50 0 NO1

NO2

NO3

NO4

average spotprice average price for generation balance deficit average price for generation balance surplus average price for consumers' imbalance

NO5

Content

END