1/2013 - Fingrid

Corporate magazineFingrid Oyj 1/2013ELECTRICITY MARKET INTEGRATION MAKES HEADWAY4 16opportunitiesTowards a singleEuropeanelectricity marketDemand responseprovides new20Nordic balanceservice companyto Finland

In this issueFINGRIDCorporate MagazineFingrid Oyj16th volume1/2013Editorial staffTelephone: +358 (0)30 395 5153Fax: +358 (0)30 395 5196Postal address: P.O.Box 530, 00101 HelsinkiStreet address: Läkkisepäntie 21, HelsinkiEditor-in-chief: Tiina MiettinenE-mail: tiina.miettinen@fingrid.fiEditorial board: Eija Eskelinen, Mikko Jalonen,Reija Kuronen, Kaija Niskala, Arto Pahkin,Petri Parviainen, Tiina Seppänen (onmaternity leave)Design by: Better Business Office OyEnglish translation by: Kielipaja Hannu HakalaPublished byFingrid Oyjwww.fingrid.fiChange of address:reija.kuronen@fingrid.fiCover photograph: A cable campaign of theEstLink 2 electricity transmission connectionbetween Finland and Estonia was laid in the seaat Nikuviken in Porvoo at the end of November.Electricity transmissions to and from the Balticcountries will be strengthened significantlywhen the connection will be introduced in 2014.Photograph by Eija EskelinenPrinted by Libris Oy, HelsinkiISSN-L: 1456–2693ISSN: 1456–2693 (Print)ISSN: 2242-5985 (Online)481112141620222426283335European electricity market is around the corner | The objective is tolaunch the single electricity market within the EU as soon as 2014. Thechallenge is to ensure the security of supply as the electricity productionarchitecture is changing.Large-scale project to reinforce the grid in Ostrobothnia | The 400kilovolt transmission connection between Hirvisuo in Kokkola andPyhänselkä in Muhos is Fingrid’s largest transmission line project todate. The construction of the line will commence in 2014.Know the terms | P1Pros and cons weighed in system planning | The transmission gridis upgraded on the basis of long-term plans. The planning processtakes into account system security and also the needs of the electricitymarket.Minimum disadvantage on the market as the goal in transmissionoutages | The goal is to time the transmission outages required by gridconstruction and maintenance work so that the work causes a minimumof disadvantage on the market.Demand response provides new revenue opportunities | When thereis less flexibility in electricity production capacity, elasticity is soughtin loads. Jonne Jäppinen heads Fingrid’s project which makes demandresponse available to small-scale and medium-scale electricity users, too.Nordic balance service company to Finland | In 2015, the balance settlementprocedure will shift to a new company owned by the transmissionsystem operators in Finland, Sweden and Norway.Naantali substation: getting ready for the submarine cable from theÅland Islands | The Naantalinsalmi substation is scheduled for completionin 2015. The substation will enable the connection of the ÅlandIslands’ submarine cable and a new power plant to the Finnish grid.First field tower erected in HyvinkääBalance responsible parties now number 40 | The number of balanceresponsible parties rose in December.Grid ABC | Cross-border transmission connections between Russia andFinlandJoy of work | To see, you need to stopGrid QuizFINGRID 1/2013 | 2

EDITORIALAREA PRICE DIFFERENCES TO BE EXPECTEDin the expanding electricity marketElectricity transmission congestionshave imposed a considerablerestriction to electricity trade inthe past few years. The wholesale priceof electricity in Finland has been muchhigher than in the other Nordic countries.Previously, we became accustomedto a situation where there were really nodifferences in the prices, especially ascompared to Sweden. In 2012, however,the average difference was 4 to 5 eurosper megawatt hour, and in some monthsit went up as high as over 10 euros. Thisis a new phenomenon and a peculiartrait in a situation where new transmissioncapacity between the two countrieshas just become available.However, it is to be admitted thatthe additional capacity has not beenfully accessible. Failures have plaguedthe two Fenno-Skan cable connectionsbetween Finland and Sweden. A ship’sanchor, other technical faults, a fire at asubstation and a system fault have incapacitatedthese connections. Fortunately,there are now two cables, and at leastone of them usually works. However, itappears that direct current technology isquite vulnerable. The Nordic region featuresespecially many HVDC submarinecables on an international scale, andthey constitute a major risk factor in thismarket area.The market situation itself also contributedto the scarcity of transmissioncapacity. Abundant supply of hydropowerin Norway and Sweden resultedin a high demand for electricity importsto Finland. Imports from Russiahave decreased considerably during thesame period as a result of the capacityfees introduced in the Russian electricitymarket. Consequently, more electricitythan ever before was imported toFinland from the west in 2012. The fulltransmission capacity was utilised all thetime, and the capacity would probablynot have been sufficient even if all thecables had remained intact.It can be said that the Finnish markethas faced a new situation where eventsin the neighbouring countries influencethe market in Finland more than before.In addition to the situation in Russia,this is the result of the division ofSweden into four bidding areas and theBaltic countries joining the market. Inthe future, it will probably not be commonplacethat the prices in Sweden andthe Baltic countries, and also in Finlandin-between them, would be uniform. Thefull transmission capacity is met easilyat least on some border, and the areaprices become divergent.As a result of the transmission congestionson cross-border interconnectors,Fingrid has had the questionablepleasure to obtain so-called congestionincome. In 2012, it amounted to arecord-high figure of 44 million euros.Thanks to the regulation model applied,however, these funds do not go for exampleinto the pockets of the shareholders,but Fingrid uses them for capitalinvestments through which the transmissiongrid is upgraded to better meetthe needs of the market.Among Fingrid’s recent or pendinggrid upgrades for the needs of the marketare the recently-completed Fenno-Skan 2 cable, the EstLink 2 cable toEstonia to be completed next year, andthe newly-launched 400 kilovolt transmissionline project on the west coast ofFinland, securing that Finland remainsas a single price area in the electricityexchange. A third 400 kilovolt alternatingcurrent connection between Finlandand northern Sweden is also includedin Fingrid’s plans, but a decision onits implementation still requires furthercontemplation. All in all, Fingrid willuse much more money for the capitalinvestments that benefit the market thanwhat the company receives in congestionincome.Fingrid also endeavours to schedulethe transmission outages required bymaintenance and construction work sothat the disadvantages on the marketare minimised. However, it is difficult toforesee the market situation within thetime span in which this work is plannedand agreed. Wherever possible, work alreadyagreed has been postponed to apoint in time which better suits the market.This was the case twice in the pastfew months with maintenance work onthe cross-border interconnectors in thenorth due to the damage in the Fenno-Skan cable. This is described in more detailon page 15.Juha Kekkonen is Fingrid Oyj’sExecutive Vice PresidentFINGRID 1/2013 | 3

”Renewable energy,security of supply andthe electricity marketshould be advanced atthe same time.”Risto Lindroosproducers are responsible for balancingtheir own production balance.Fingrid’s Corporate Adviser RistoLindroos says that the investors’ confidenceis being tested, because thesignals provided by the current marketdo not guarantee sufficient productioncapacity. He says that the problemwith the policy applied to date hasbeen one-sidedness: a certain volumeof renewable energy at an annual levelhas been recorded in the objectives,but the fact that there has to be sufficientpower in every hour and everymoment has received less attention.“The power system is always an entity,and promoting just one thing at a timedoes not work in it. Renewable energy,security of supply and the electricitymarket should be advanced at the sametime,” Risto Lindroos sums up.According to him, the energy industryis now waiting for a decision inprinciple of the direction in which theenergy policy will be taken from 2020onwards. The target is clear: carbonfreeEU by 2050. It is now time to decideon the mechanisms through whichthat target can be reached.“Demand response is one of the foremostnew means for maintaining a balancebetween electricity consumptionand production,” says Jukka Ruusunen.“The situation in the Nordic countriesis good in that we can use hydropowerto adjust quite a lot of renewable energy.When we get more demand response,the situation will improve further.”More information on demandresponse on page 16 of this magazine.Perspective beyondnational boundariesIn order to ensure the security of electricitysupply, plans in different partsof Europe have emerged concerningthe subsidising of electricity producersso that they would keep their productioncapacity available or make capitalinvestments in additional capacity.The goal of this is to secure that therewould be available capacity also whenelectricity production from wind andsolar sources is not possible.Risto Lindroos says that these capacitycompensation methods involveproblems. “All subsidies distort themarket. If these mechanisms emerge,Capacity payments onthe outskirts of Europethey can lead to a situation where itis not always possible to use that productionwhich would be most affordableat any given time. The market isdispersed, and uniformity is compromised.In practice, security of supplycan also suffer, even though the originalobjective of the capacity compensationsystem was to improve the securityof supply.”Risto Lindroos hopes that the EUmember states would adopt a perspectivewhich extends beyond their nationalboundaries. “You should relymore on your neighbouring countries,broaden the viewpoint of security ofsupply, and upgrade the transmissionconnections. If the compensationOf the EU member states,capacity fees are already inuse in Ireland, Spain, Italy,Bulgaria and Greece, andthe introduction of some typeof capacity mechanism isplanned for example in theUnited Kingdom and France.The different methods appliedin the member states arecausing headache for thosedesigning the single Europeanelectricity market. The EuropeanCommission has conductedan open consultationon the topic, and the resultsshould be ready in 2013.In a way, the strategic reserveapplied in Finland andSweden is a minimal versionof the capacity compensationmechanism. However, themarket impact of the strategicreserve is minimised, which is why it does not cut the price level in themarket. “The strategic reserve is only applied when demand exceeds supply.In a way, it is an insurance policy for the finishing of power in the future,”Risto Lindroos says.The other extreme is a method where electricity sellers are forced to buyas much capacity as what they are selling to their customers at any givenmoment. According to Risto Lindroos, the Russian capacity remunerationmechanism is an example of a system which impacts negatively on the functioningof the market. This is indicated by the collapse in the amount of electricityimported from Russia to Finland.FINGRID 1/2013 | 6

mechanism is implemented incorrectly,the situation within a certaincountry may improve but get worse inthe neighbouring countries.”If it is necessary to put capacitycompensations into use, they shouldbe designed so that the market effectsare minimised, says Risto Lindroos.First the Baltic Sea region,then the whole of EuropeThe single electricity market of the EuropeanUnion is right around the corner:the goal is to complete the marketcoupling within the EU by 2014.Alongside this, much work still needsto be carried out to reinforce and addto the electricity transmission connectionsbetween countries.In the Baltic Sea region, the integrationof the Baltic countries into theNordic system has made good progress.Estonia and Lithuania have alreadyjoined Nord Pool Spot’s tradingsystem, and the next goal is to integratethe electricity market in Latvia.The transmission connections to theBaltic countries will be strengthenedsignificantly when the EstLink 2 HVDCconnection between Finland and Estonia,which is under construction, willbe completed. The connection will bebrought to commercial operation inearly 2014.“In addition to the integration of theBaltic region, the transmission connectionsbetween Finland and Russia arealso important to Finland. Fingrid hasan active role in promoting electricitytrade between Finland and Russia. Thepurpose is to make it as efficient andtransparent as possible, like any electricitytrade. The next step is to beginelectricity transmissions in both directionsbetween the two countries atmarket terms, between several players,”Jukka Ruusunen envisions. New transparency regulationobliges the market participantsA new regulation on the transparency of the electricity market has beenprepared within the EU. The regulation will oblige the transmission systemoperators, service providers and ENTSO-E to provide information increasinglytransparently.group consisting of the experts of the member states has already approvedA the regulation, and after a transitional period it will become effective atthe end of 2014.The regulation will require ENTSO-E, the European Network of TransmissionSystem Operators for Electricity, to publish the requisite information on theInternet. ENTSO-E is consequently preparing the gradual introduction of a newservice, starting with the market information found currently on ENTSO-E’swebsite. The project is comprehensive, and there will be a lot of work for theTSOs, their potential service providers and ENTSO-E. By virtue of the regulation,the market players are obliged to report the required information to theTSOs.The Nordic TSOs have a long history of publishing transparent market information,so there will be no major changes to the Nordic rules. However, somechanges will be made, such as the publication of hourly production informationon generating units in excess of 100 megawatts with a delay of five days.Moreover, aggregated production data broken down by types of productionwill be published with an hour’s delay. Changes concerning the TSOs includethe forecasting of loads much farther into the future than now, more accuratereporting of congestions, publication of counter trade, shorter deadlines forinformation relating to balancing, and more accurate publication of reservesby types of reserves.ENTSO-E’s website will also be used for publishing interruptions in powerplants and major loads, as required by REMIT.REMIT regulation controls wholesaletrade of electricity and natural gasThe provisions of the REMIT regulation governing electricity and naturalgas market players are being prepared by ACER.The EU regulation referred to as REMIT (Regulation on wholesale energymarket integrity and transparency, 1227/2011) came into force in December2011. The regulation prohibits, among other things, the abuse of insider informationand market manipulation, and obliges the wholesale market participantsto register, and report their transactions to the authorities.The more detailed provisions pertaining to REMIT are currently being preparedby ACER, Agency for the Cooperation of Energy Regulators. The transactionsand bids requiring registration are reported collectively through themarket places, or in terms of individual contracts to ACER. ACER is currentlydefining the products that will be covered by monitoring under REMIT.The publication of market information on interruptions in major (in excess of100 MW) power plants and loads is defined to be compatible with both REMITand the transparency regulation for electricity market information, which isbeing drawn up at the moment.FINGRID 1/2013 | 7

Electricitytransmissionhighway on theWest CoastAt the end of 2012, Fingrid made a capitalinvestment decision concerning the biggesttransmission line project in its history. Thereinforcement of the connection betweenHirvisuo in Kokkola and Pyhänselkä inMuhos is part of the development plan forthe transmission grid in Ostrobothnia inWestern Finland. This aged network withinsufficient transmission capacity will bereplaced with a more rugged connection.Text by Suvi Artti | Photograph by Valtteri KantanenFINGRID 3/2012 | 8

Additional capacity for thetransmission of electricity inOstrobothnia is needed becauseelectricity consumption andproduction in the region are increasing.There are several pending windpower projects in the region, and anuclear power plant is being plannedin Pyhäjoki. The reinforcement of thenetwork also serves the electricitymarket: when the transmission capacitybetween north and south is increased,it also contributes to Finlandremaining as a single price area.In order to guarantee the adequacyof transmission capacity and systemsecurity, the 220 kilovolt system alongthe entire west coast of Finland willbe replaced by a 400 kilovolt systemby 2016. A 400 kV line was constructedfrom Kristiinankaupunki to Kokkolain the early 1990s, but it has beenoperated at 220 kV until now. The 400kV transmission line between Ulvilaand Kristiinankaupunki will be completedin 2014.The section between Kokkola andOulu is in turn next. The timing ofthe project has been influenced by thefact that the 220 kV transformer substationsbuilt in Ostrobothnia in the1970s will reach the end of their technicallifetime in the 2010s. In otherwords, some components should havebeen renewed in any case in the nearfuture so as to maintain system securityand safety.“If a decision to keep the 220 kVvoltage level had been made, severalsubstations and transformers reachingthe end of their service life shouldhave been modernised,” says AnteroReilander, Special Adviser in Fingrid’sgrid planning. Transformerswhich have been installed more recentlywill not be wasted, either, becausethey can be moved to Laplandand the Oulujoki river, where the 220kV voltage will be retained.About 100 kilometres of the Hirvisuo–Pyhänselkäline will be constructedwith a 400 + 110 kV structure.Moreover, the remaining 220kV lines will be converted to 110 kV,which will facilitate the connection ofwind power capacity and distributionnetworks to Fingrid’s grid.Welcome, wind power!Antero Reilander says that the coast ofNorthern Ostrobothnia is undergoing awind power boom.“The wind power potential in the regiontotals thousands of megawatts. Ifjust 1,000 megawatts of the potential isrealised, it is a big achievement. Landuse and permit processes have sloweddown the projects, but now things willdefinitely start moving. Wind powerplayers talk about the ketchup bottle effect:when the blockage opens, there’sno stopping the flow.”In order to facilitate the connectionof wind power capacity to the grid, thefirst stage of the project, the new 110kV connection between Hirvisuo andKalajoki, will be brought to operation in2015. It will be possible to increase thetransmission capacity by means of smallchanges also after the actual project iscomplete. Transformers and transformersubstations can be added to the grid,and wind power producers can connectto these.“The change is so designed so that thegrid can be upgraded in small steps. Inthe future, minor amendments can give arequired volume of additional transmissioncapacity,” says Antero Reilander.At the right timeThorough planning is an important partof a transmission line project – whenthe actual construction work begins, theplanning process has been going on forTOTAL LENGTH OF TRANSMISSION LINE212 kilometres”It will be possible toincrease the trasmissioncapacity by means of smallchanges also after theactual project is complete.”Antero Reilanderyears. The network plan for Ostrobothniahas been on the design engineers’agenda since the early 2000s, and it hasbeen fine-tuned on several occasions.“We brought the schedule forwardtwo times so that the investment wouldtake place exactly at the right time.Execution too late would hamper theHIRVISUO–PYHÄNSELKÄ 400 KV TRANSMISSION LINE PROJECTCONSISTS OF THREE PARTS:1) Hirvisuo–Kalajoki, 2) Kalajoki–Siikajoki, 3) Siikajoki–PyhänselkäTHE PROJECT ALSO INCLUDES:Construction of Hirvisuo 400/110 kV transformer and series capacitor substationConstruction of Tuovila 400 kV substationExpansion of Pyhänselkä 400 kV substationConversion of 220 kV lines in Ostrobothnia to 110 kV voltageCOMPLETED IN2016CONSTRUCTION COSTSapprox. 110 million eurosFINGRID 1/2013 | 9

Development plan for the 400 kV grid in OstrobothniaHirvisuo–Pyhänselkä 400 kVtransmission lines400 kV transmission linesOther 400 kV transmission linesplanned/under constructionPlanned wind farmsExisting 400 kVlines operatedat 220 kVconstruction of new generation capacityand would not respond to the needsof increasing consumption. On the otherhand, there is no point in carrying outa project too early, either,” says AnteroReilander.He describes the network planningprocess as collaboration, where severalpeople work together to find the bestsolutions. Network designers simulatethe loads in a network in a variety ofsituations, while the simulations of theelectricity market experts ensure thatthe transmission capacity is adequatefor the market.Antero Reilander’s role in the Hirvisuo–Pyhänselkäproject has been tocompile all the information togetherand to simulate the different solutionsby means of computer: how the solutionswould actually work, and at whichpoints the network should be reinforced.“We aim to find an outcome which isoptimal to all. The issues that need to betaken into account comprise loads, newgeneration capacity, electricity market,and the ageing of the grid. The routeof the line was chosen so that as manyparties as possible will benefit.”“It is important to consider the systemsolutions well into the future andto find flexible solutions that do not excludeany developments in generationor loads. The goal is a grid that worksno matter what happens.”From plans to executionGrid planning 2000–2011Preliminaryengineering 2008–2010Tender inquiries and procurementdecisions 2013–2014Overall planning 2012–2013 Construction 2014–201620092010201120122013201420152016EIA 6/2009–11/2010Capitalinvestmentdecision12/2012Expropriation permitsEnergy MarketAuthority/Building permitsSubstations andtransmissionlines to becompleted in2016FINGRID 3/2012 | 10

Construction launched in 2014The general planning of the Hirvisuo–Pyhänselkä project is in progress, andsome of the plans are already complete.Most of the landowners affected by thenew power line areas have been contacted,and they have been offered anadvance agreement of the use of land.The Hirvisuo–Kalajoki section of theline has progressed to the expropriationpermit phase. In this section, thetransmission line will be built mostly inthe right-of-way of a dismantled line.Only in the vicinity of the new Hirvisuosubstation will the transmission line runin a completely new area. Transmissionline construction will begin in 2014,and the Hirvisuo transformer substationis expected to be ready in 2016.The substation will be built in Kokkola,about 1.5 kilometres from the Ventusnevasubstation. The substation will havea series capacitor, which increases thetransmission capacity considerably.On the Kalajoki–Siikajoki section, thetransmission line will be constructed inthe right-of-way of a dismantled line. BetweenSiikajoki and Pyhänselkä, 52 kilometresof the power line will be built ina new right-of-way. The planning of theline route has paid particular attention tothe environmental aspects. The EIA processof the project was awarded the GoodEIA Award of the Finnish Association forImpact Assessment (FAIA) in 2011.Customers involved in planningFingrid takes heed of the wishes of itscustomers in the planning of the sizeabletransmission line project. “As anexample, the solutions applied to theconnections must be decided duringgeneral planning. For this reason, wekept close contacts with our customersthroughout 2012. Discussions have beenconducted of the changes to be made tothe connections, and we have aimed tofind the best solutions for every party,”Antero Reilander says.Well-functioning co-operation is alsoneeded during the construction period.“We will face challenging transmissionoutage situations, which will callfor careful outage planning. There aremany customer networks in the area,and it is important to co-ordinate theoutages so that there will be no overlappingoutages in the customers’ network.”KNOW THE TERMSThis column presents and defines terminology in theelectricity transmission business and related fields.P1Text by Maarit UusitaloP1 related to system security isone of the quantities followedin the Finnish power system. P1transmission refers to electricity transmissionbetween north and south withinFinland. The P1 section cuts Finlandinto two south of Oulu, approximatelybetween Kokkola and Kajaani. The locationof the intersection has been definedin the past on the basis of the measurementpoints of 400 and 220 kV grids.P1 capacity means the transmissioncapacity available to north–south transmissions.At the moment, it consists ofthe total capacity of three 400 kV transmissionlines and two 220 kV lines. TheHirvisuo–Pyhänselkä line to be built onthe west coast of Finland will be part ofthe P1 capacity.Adequacy of P1 capacity analysedFingrid is analysing the adequacy of theP1 capacity during the spring of 2013.The objective is to identify the factorswhich on their own or in combinationwith other factors trigger a potential needfor additional transmission capacity betweenthe north and south from 2020 to2025. The analysis will survey the transmissionneeds resulting from various factors.Such factors can include changesin loads and generation as well as newcross-border lines. The process also aimsto find solutions that can maintain thetransmission capacity at the requiredlevel so that Finland can be keptas a single price area in the future,too. FINGRID 1/2013 | 11

PROS ANDCONSweighed in system planningThe electricity transmission system is planned with a long perspective into thefuture. Various models are used for assessing the generation and consumptionforecasts as well as the market benefits of new construction projects.Text by Maarit Uusitalo | Photograph by iStockphotoCapital investments in the transmissionsystem are based onchanges in electricity productionand consumption in Finland andneighbouring areas. Fingrid assessesthe market-based needs to reinforce thesystem by drawing up various scenariosand by analysing the transmissionneeds in these scenarios. The transmissionsystem is built in stages based onlong-term plans, and the capital investmentsare optimised with the renovationand maintenance management requirements.The transmission needs and needs toreinforce the system are assessed well inadvance. It is not in anyone’s interests ifthe grid is reinforced prematurely or unnecessarily.Environmental studies andenvironmental impact assessments areconducted beforehand so that the actualconstruction project can be startedquickly when necessary.Planningin unisonFingrid is responsible for the developmentof its own transmission system,and it carries system responsibility forthe whole power system. This responsibilitymeans capital investments in thegrid to meet the electricity productionand consumption requirements. The responsibilityalso means close co-operationwith customers and parties connectedto Fingrid’s grid.The load and generation changes ina few large geographical areas are reviewedthoroughly each year. This alsoensures the adequacy of the regionalnetworks.Fingrid participates in joint systemplanning both on the European level andwithin the Baltic Sea region through EN-TSO-E, the European Network of TransmissionSystem Operators for Electricity.A more comprehensive electricity marketarea is emerging in the Baltic Sea region,while at the same time the traditionalNordic electricity market is integratingwith the market areas in Continental Europeand the Baltic countries.The market in the Baltic Sea region isanticipated by looking at the scenarioson the EU level. The first shared regionalplan for the Baltic Sea region was releasedin 2012. The plan examines therequirements imposed by the expandingelectricity market on the transmissionnetwork.Projects carried out to promote theelectricity market reduce the transmissioncongestions in the shared marketarea. The profitability of the projects isalso assessed from the viewpoint of economicbenefits. A new regional plan isalready being prepared.Cost/benefit analysesfor cross-border linesVarious criteria are used to assess theadvantages of the projects. Some of theprojects are necessary because of systemsecurity. System security is guaranteedby keeping the power system in such aconfiguration that it will endure any individualfault at all targeted transmissionvolumes. Some of the projects are requiredso that new generation capacity orloads can be connected to the grid. Thereare also projects carried out due to developmentsin the systems of neighbouringcountries. As an example, additionalwind power capacity in Finland’s neighbouringcountries, but also increasing integrationof the electricity market in theadjacent areas, will change the transmissionneeds in Finland, too.The planning process assesses the impactsof a project on system security, securityof supply, system losses, electricitymarket benefits, and the environment.The general acceptability and timing ofthe project are also estimated, and it isassessed how quickly the project can beexecuted. The costs are calculated and thedifferent ways of implementation are figuredout. The impacts on the environmentmust also be thought out. The benefits ofthe projects are always analysed from thepoint of view of corporate finances, too.This covers an assessment of the impactson the company’s proceeds and consequentlyon the accumulated tariffs.The evaluation of the impacts onnational economy covers the benefitsgained by consumers and electricity producers,as well as congestion income andsystem losses. Modelling of the electricityFINGRID 1/2013 | 12

ENTSO-E´s cost/benefit methodFlexibilityTechnicalresilienceTechnical aspectsCostsProject assessmentSecurity of supplySocial and economicwelfareEnvironmental/social impacts3 x 20EnergyefficiencyCO2RESBENEFITS AND COSTS ASSESSED IN THE METHODmarket is used to facilitate this process.The permanence of transmissions andcongestion hours, which are needed soas to calculate the benefits, are foundout by means of market simulations.The simulation tools aim to describe thefunctioning of the electricity market indifferent scenarios, which also reflectelectricity consumption and productionin specific hours or other time periods.As a result, the model shows the averageelectricity transmissions between variousmarket areas and the price of electricityin different hours.The electricity market benefits areusually only calculated for cross-borderline projects or projects which influencecross-border transmission capacities. Thegoal is to keep Finland as a single pricearea, which is why market analyses withinFinland are usually not carried out.New EuropeanmethodENTSO-E has been preparing a commoncost/benefit evaluation method, wherethe projects are assessed using severalcriteria, also other than electricity marketbenefits. The method describes twodifferent ways of assessing the benefitgained by the electricity market parties.The method of assessing the total benefitgives assessments for each separateBENEFITS• Improved security of supply, system security benefits• Benefit to national economy, benefit to electricity market• Integration of renewable energy sources• Changes in system losses• Changes in CO2 emissions created in the system• Technical resilience• System flexibilityCOSTS• Total costs of project• Social and environmental impactsbenefit indicator. The other method, assessmentof savings in generation costs,evaluates the benefit of a network projectexclusively as saved electricity productioncosts.Neither method provides an assessmentof the overall economic benefit orincludes estimates of employment impacts,multiplicative effects, or other factorswhich are traditionally included ineconomic benefit.Both of the described methods focuson the assessment of the benefits createdin the electricity market. The benefit ofthe projects is obtained as the differencebetween two situations: one where theinvestment project is included and onewhere the project and its impact on thetransmission capacity are excluded.It is not always quite straightforwardto estimate the loss impacts of grid constructionprojects. Grid constructionprojects add to the transmission capacity,which is why the system has highertransmission volumes after the reinforcement.As the transmission volumes increase,so do the losses, even though thevolume of losses per transmitted energywould decrease. ENTSO-E’s cost/benefitanalysis aims to describe how the loss effectscan be determined in a comparableway.Some of the benefit criteria can onlybe assessed in terms of quality andsome only in terms of financial aspects.The indicators are therefore presentedwith three-level colour coding, and anyweighting of the different indicators is leftto the stakeholders themselves. The methodis used in the assessment of projectscovered by the next European ten-yearnetwork development plan. Valuable experienceof the application of the methodwill be obtained in this context. FINGRID 1/2013 | 13

FINGRID 3/2012 | 14Construction work on the 400kilovolt transmission line betweenYllikkälä and Huutokoski wasnearing completion in March.

Minimum disadvantage on the marketas the goal in transmission outagesFingrid’s major capital investment programme and maintenance work on the transmission grid requireelectricity transmission outages, which occasionally influence the transmission capacity of the grid. Thegoal is to always schedule the outages so that their impacts on the electricity market are minimised.Text by Arto Pahkin | Photograph by Johannes WiehnDisturbances in the high-voltagedirect current connections toFinland in 2012 and 2013 havecaused headache not only to the marketparties but also to those planning andexecuting the transmission outages andto those heading maintenance and constructionprojects.The planning of transmission outagesis influenced by many factors. Firstly,it is difficult to forecast the volumeof regional electricity productionand loads at the time of the outage.Secondly, the outage arrangementsnecessitated by Fingrid’s extensiveconstruction programme are also considerable.The goal is to always minimisetheir impacts on system security.Additional challenges are brought bysurprising and potentially long-termoperation disturbances.Cable fault postponedmaintenance work on cross-border lineSeveral transmission outages, which influencedthe cross-border transmissioncapacities, were carried out within Finlandlast year. The electricity market partiesare always taken into account in suchoutages. As an example, the replacementof overhead earth wires on the Keminmaa–Svartby400 kV cross-border linewas originally scheduled for March thisyear, but the work has been postponedto a later date, because the transmissioncapacity between Finland and Sweden islimited by a concurrent fault in the Fenno-Skan1 cable. A similar postponementwas carried out last autumn at the Swedishend of the Fenno-Skan 1 connectiondue to a fire in the thyristor facility. Thepostponement of the maintenance workaims to mitigate the market effects causedby the cable fault.The transmission outages are plannedin co-operation with the other Nordictransmission system operators. Theplans are drawn up with a perspectiveof a few years ahead. The goal is to adjustthe transmission outage needs betweenthe various Nordic countries sothat the impacts on the market participantswould be minimised and so thatthe agreed system security level couldbe retained in each country.The transmission outages are adaptedtogether within ENTSO-E’s NordicOutage Team. The TSOs have a sharedNordic Operational and InformationSystem, which is used for managingthe transmission outages affecting thecross-border transmission capacities.This co-operation will be developedfurther between the Nordic transmissionsystem operators.Significant outages must becommunicated well in advanceIn addition to enhanced co-operation,a European network code for systemoperation planning is being drawn up.The network code will require that significanttransmission outages in thenext year must be communicated tothe transmission system operators bythe late summer in the preceding year.The TSOs then evaluate the feasibility ofthe outages and propose changes wherenecessary. The final annual transmissionoutage plan would be ready towards theend of the preceding year. FINGRID 1/2013 | 15

Demand response providesnew revenue opportunitiesA large host of new players canparticipate in the balancing powerand reserve markets in the next fewyears, when electric cars, for example,become more common. DevelopmentManager Jonne Jäppinen is headingFingrid’s development project whichaims to increase demand responsein Finland.Text by Outi AiraksinenPhotographs by Matti ImmonenWHO?BORNEDUCATIONCAREERin the late 1960s. Born and raised inSavo, moved to Espoo in adulthood.B.Sc. in electric power engineering,B.Sc. in industrial engineering andmanagement, MBAServed in various system operationduties at Fingrid and its predecessorsfor about 20 years. Since the beginningof 2013 Development Managerfor power system operation.HOME ANDFAMILYINTERESTSMOTTOSingle-family house in Nöykkiö in Espoo. We are a typicalfamily in the area: parents, two children and a Volvo stationwagon, although there are also some funnier vehicles. Nogolden retriever because of allergies, but my brother has one!Downhill skiing, golf, gym, and as counterbalance a lot ofsports-watching on the living room couch. Travelling with thefamily. Children’s hobbies badminton and synchronised swimminghave become familiar in the role of sponsor and driver.Things get done, despite or because of the attitude adoptedfrom Savo…FINGRID 3/2012 | 16

”Ineed to be involved, even though itsometimes may get a bit too hectic. Iwant to do things hands on – wherethings are happening and where I canget to do something new,” says JonneJäppinen, Development Manager forpower system operation.Jonne Jäppinen has been followingthe electricity market from a vanguardposition for 20 years. He feels that it isnow the right time to convert the visionsembedded in smart grids intosomething tangible.“It is not just a question of technologybut also new business models – andhow different companies can participatein the reserve market and balancingpower market alongside Fingrid.”Since last autumn, the demand responseproject headed by Jonne Jäppinenhas been finding partners andfeasible business models, throughwhich small and medium-sized enterprisescould also draw benefits fromdemand response. In practice, thismeans earning money by providingFingrid with reserves. The enterprisescan achieve this by controlling theirown electricity consumption.“There has been demand response inelectricity loads for about a decade inFinnish large-scale industries, such asthe wood-processing, metal and chemicalindustries. However, we would liketo increase the share of demand as a reserveand find new players – especiallywhen energy-intensive industries seemto be diminishing in Finland.”Largely thanks to the new hourlyenergy meters, the electricity market isnow also opening up quickly to smallscaleelectricity users.Lessgeneration elasticityFor Fingrid, increased demand responseis a strategic project, which ultimatelyis about the functioning of the electricitymarket. The more inelastic electricitygeneration capacity – in other wordsgeneration that does not respond tochanges in the demand or price of electricity– is built in Finland, the greaterthe need for costly balancing power andreserve power, if no elasticity is availablein power consumption.Nuclear power and for example windand solar power, where the generationvolumes depend on the weather ratherthan demand, are problematic formsof generation in terms of demand response.Jonne Jäppinen says that greaterdemand response would be by far thebest and economically most sensibleway to solve the equation.“Fingrid currently has about 1,200megawatts worth of its own and rentedreserve power plants. Moreover, we haveloads in large-scale energy-intensive industries,with these loads providing demandresponse. In the future, however,Finland must have the new nuclear powerplant’s worth of reserve power so thatwe can replace the necessary volume ofpower if the plant trips from the grid forsome reason. Demand response can provideat least a partial solution to this.”Jonne Jäppinen hopes that the recentlycompleted Forssa reserve powerplant is absolutely the last new reservepower plant at least in the short term,because greater demand response wouldbe a much more sensible option for thereserve power plants which stand idle.However, this requires a new mindsetand examining new opportunities sothat the resources could be utilised moreextensively than before – not forgettingelectricity users with small-scale consumption.“Individual households still have itdifficult to be involved in demand response,but all small and medium-sizedenterprises using electricity could be active.Larger industrial enterprises probablystill also have a lot of untappedpotential and opportunities to increasedemand response.”Batteries of electric carsas future energy reservesWhen the price of electricity is determinedby supply and demand, you canearn money in the market if you cansell electricity when the price is high,or if you can at least shift your consumptionoutside the price spikes. Thesavings can be considerable, because forexample in the balancing power marketin 2012, electricity during the most expensivehour cost as much as 40 timesmore than in the entire year on average.In practice, demand response canconcern temporary – perhaps only a fewseconds in length – supply interruptionsduring extreme situations in the powersystem. Such interruptions are not necessarilynoticed at all in real life.“You can very well ask whetherthere is any point in constructing reservepower plants that stand idle, andwhether consumption could yield evenmomentarily against compensation incases where the supply interruptiondoes not cause disadvantage to the electricityconsumer. Such an interruptioncan take place as infrequently as oncein 10 years.”According to Jonne Jäppinen, onevery probable application of demandresponse would be electric cars, becausetheir charging is hardly disturbed byshort interruptions in the charging cycle.Even though an electric car is still toocostly an acquisition for many consumers,Jonne Jäppinen monitors the developmentsclosely. The breakthrough ofelectric cars may actually be very closeat least if the government follows Norwayand Estonia and starts to subsidiseelectric cars. Electric motoring will notbe impeded by a lack of infrastructurefor charging the cars, because Finland”We would like toincrease the shareof demand as a reserveand find new players.”is obliged by a proposed EU directive tobuild 7,000 public quick charging pointsfor electric cars by 2020.It is quite possible that by then enterprisesproviding charging services willalso make their loads available to Fingridas a reserve against compensation.This should, at least in theory, lower thecharging costs.One of the visions for the future isto harness the batteries of electric carsto serve as energy reserves. If necessary,the batteries could provide powerfor use by the electricity market. “Thatrequires a little more technology in theFINGRID 1/2013 | 17

”When the price ofelectricity is determinedby supply and demand,you can earn money inthe market if you cansell electricity when theprice is high, or if youcan at least shift yourconsumption outside theprice spikes.”Jonne Jäppinenbackground, but in fact it is just anothersmart grid application,” says Jonne Jäppinen.The wind power intensive Denmarkis already testing the utilisation of largebatteries the size of a ship container asan intermediate storage when the powersystem cannot accommodate all windpower generated.Even a small loadcan be valuableJonne Jäppinen says that even a smallload is valuable if it can be controlledflexibly and quickly. Ideally, householdswith their smart homes also take partin demand response, but in practice individualsdo not yet receive financialbenefit from controlling their own consumption.“I am really looking forward to takingadvantage of timing my own electricityconsumption outside the price spikes. Itcould be possible as soon as this year,but it all depends on the local distributioncompany,” says Jonne Jäppinen.The objective of Fingrid’s demand responseproject is to identify and harnesscomprehensively the various reservesof electricity consumers, where thenew technology offers opportunities.Reserves held by small and mediumsizedbusinesses are also on the agenda.According to Jonne Jäppinen, such reservescan be found at least in manufactureand commerce.“Taking part in demand response willrequire some initial investments fromcompanies so that consumption can becontrolled. In the long run, however, itis reflected in the profits. Large-scaleconsumption has a bigger potential forsavings and more opportunities to participatein diverse markets.”In practice, Finland is at the forefrontof developments. “Countries in ContinentalEurope are only contemplatingwhether to install hourly energy metersin the future. These meters are requiredby smart demand response. Such metershave already been installed in Finland,”Jonne Jäppinen says.Progress has been held up mainly bylack of information, because enterprisesdo not know how and with what typesof loads they could be involved in demandresponse, and what is required ofthe relevant enterprises. The next stagein the demand response project is toprovide information, for example onFingrid’s website. After that, the goalis to remove the obstacles that preventnew versatile loads from participating indemand response. This is carried out bycritically reviewing the procedures andagreements honed over the years for theneeds of large-scale enterprises.Although there is sometimes a bit toomuch work, Jonne Jäppinen is confident.Things can be taken forward bydiscussing and by creating ideas and visions– and sometimes the pieces canfall into place when you are on the skiingtrack. FINGRID 3/2012 | 18

Pilot Juuso Pykälistö and maintenance management specialist Jarmo Lahtoniemi checking the flight plan before take-off.The ice removal tool made of a composite insulator is shown on the right.Helicopter assistingthe dropping of ice loadsFingrid together with Helikopterikeskus Oy Helsinki has been developing amethod for the dropping of ice loads from transmission lines by means of helicopter.The method tested in Eastern Finland has proved to be a cost-effectiveway of removing ice from the lines.Text by Jarmo Lahtoniemi | Photographs by Mika KasurinenMassive ice loads on the overheadearth wires of transmission linescan cause transmission problems, and atworst they may even result in structuraldamage. Ice build-up has traditionallybeen monitored in conjunction with aerialinspections of power lines, and the iceloads have been dropped manually fromthe ground. The work has been slow andvery difficult due to troublesome terrainconditions and in many cases considerableamount of snow.Revised map serviceThe new method allows the droppingof ice loads during the inspectionflight. The work is considerably fasterwhen the ice load can be dropped assoon as it is detected. In an experimentcarried out in January, the clearingof both overhead earth wires in asingle span only took 1 to 5 minutes.In other words, in a short winter day ahelicopter can drop the ice loads fromthe overhead earth wires in as many as200 spans.Fingrid’s open map service has been revised to be more user-friendly.The map view of the service shows Fingrid’s transmission grid, and it can beused for viewing various factors in the grid.The service combines the submitting of feedback and contact requests, a possibilityto view the grid projects, and indicating the location of operation disturbancesand transmission outages in the grid.The map service in Finnish can be accessed on our website from section Shortcuts,link Map service.Because of being swift, the methodis very cost-effective: based on initialexperience, the method can save up tomore than half of the costs of the droppingwork. Additional savings will begained as a result of improved qualityof electricity. Correctly-timed droppingwork can effectively prevent a situationwhich often leads to a disturbance,where the ice load makes the overheadearth wire sag to the level of the phaseconductors or even below them.The tool used in the new methodis an ordinary 400 kilovolt compositeinsulator, whose stability has beenimproved by the addition of a separateweight. The insulator is taken into contactwith the overhead earth wire besidethe earth wire peak, and the insulatoris then allowed to slide along the wire.There is a bearing in the insulator,which is why it begins to revolve as itis being pulled, and the silicon flangesin the insulator work like a circular saw,cutting even tough ice effectively fromthe surface of the overhead earth wire.Due to the insulating properties of thecomposite insulator, the work does notcause the risk of short circuit or earthfault. If necessary, the method can beapplied to live phase conductors, too.The new method prevents effectivelythe formation of a massive ice load.The work is safe, and electricity transmissiondisturbances caused by iceloads are significantly reduced. FINGRID 1/2013 | 19

Nordic balanceservice companyto be HOSTEDBY FINGRIDFingrid together with Svenska Kraftnät andStatnett is establishing an inter-Nordicbalance service company for the electricitymarket. Finland has been selected asthe base of the new company, which isbecoming a pioneer: nothing similar hasbeen done before in Europe.Text by Maarit Kauniskangas | Photograph by Janika Seppälä”Balance service together withSweden and Norway will harmonisethe practices and reducethe routines,” says Project ManagerMinnakaisa Ahonen, who has beenheading the project at Fingrid. At present,the service is being prepared, andthe project goes by the name NordicBalance Settlement (NBS).The goal is that in 2015, the balancesettlement procedure will shift to anew company owned by the transmissionsystem operators (TSOs) in Finland,Sweden and Norway. The otherbalance responsibility tasks, such asnational balance management and themaintaining of the balancing powermarket, will remain the responsibilityof the TSOs.It was decided at the end of 2012that the shared balance settlementservice will be based in Finland. Accordingto a report of an externalconsultant, the best place for the newcompany is Finland due to Fingrid’seffective performance.The principles of balance servicehave already been harmonised in theNordic countries, although the practicalways to carry out the balance settlementsare different in each country.Unified procedures will bring theinter-Nordic retail market of electricityone step closer. By simplifying thefunctions, the goal is to facilitate theaccess of electricity market players toa common market.What will change?“When the NBS service is up and running,the balance responsible partiesoperating in the electricity market nolonger need to conclude separate imbalancesettlement agreements withFINGRID 1/2013 | 20

”The balance responsibleparties operating in theelectricity market no longerneed to conclude separateimbalance settlementagreements with the TSOsof Finland, Swedenand Norway.”Minnakaisa AhonenThe NBS project group comprises Morten Torgalsbøen, Pasi Lintunen, Minnakaisa Ahonen and Mats Elmér.the TSOs of Finland, Sweden and Norway.Instead, they sign a single agreementwith NBS. The balance responsibleparties will have common rulesand standards. Bureaucracy will bereduced – and in the long term so willbe the costs, even though there will besome additional costs initially whensetting up the service,” MinnakaisaAhonen says.Although the service will be centralisedin Finland, the services areprovided to the balance responsibleparties in each country in their ownlanguage.One major practical change concernsthe data systems of the balanceresponsible parties and network companies.Among other things, a newmessage format is being planned inthe messaging between these. “We willprovide more information on the newformat by the early summer,” MinnakaisaAhonen says.Based at FingridThe NBS project was launched in2010, when the TSOs in Finland, Swedenand Norway began the planningof a shared balance settlement service.The planning process has involved areference group with representativesfrom network companies, electricitysellers, balance responsible parties,and a representative of the EnergyMarket Authority of each country. Thegroup has received information aboutthe service model and provided usefulfeedback. At the same time, the electricitymarket players have been ableto prepare themselves for the change.Now a specific company is beingestablished for the NBS service. Otherwork in progress comprises the ITprocurement and a handbook of howthe balance settlements will be carriedout in the future. Inter-Nordic balancesettlement also calls for legislativechanges in each country.From the outset, the core persons ofthe project have comprised Pasi Lintunenfrom Finland, Mats Elmér fromSweden and Morten Torgalsbøen fromNorway. The number of Fingrid employeesinvolved in the project has grownas the project makes progress, sinceBALANCE SETTLEMENT ABCresponsibility for the project is shiftingto an increasing degree to Fingrid. Forexample personnel and legal matters,accounting and invoicing as well as ITsupport will be arranged by Fingrid inthe future. However, the balance settlementis carried out locally in Sweden,Finland and Norway. Working outsideFinland is possible thanks to electronicdata transfer and reporting.“Initially, the TSOs will offer their ownbalance settlement experts to the newcompany so that we can ensure properskills and expertise also in the new company,”Minnakaisa Ahonen says. BALANCE SETTLEMENT• ascertains how much the volume of electricity procured and used in thepreceding hour differs from that which had been estimated in advance• determines in retrospect the volume of imbalance power (in megawatts hours):a party which has used more electricity than estimated must pay more for itselectricity, and a party which has used less electricity than estimated receivesa compensation.BALANCE RESPONSIBLE PARTY• an electricity market party which has signed a balance service agreement with the TSO• estimates in advance how much it will produce and use electricity• balances and settles its electricity balance with the TSO• has access to the Nordic balancing power market• must be available 24 hours a day and have adequate technical capabilities andcredit worthiness.INVOLVED IN NBS PROJECT:• Project Manager: Minnakaisa Ahonen• Steering group: Tania Pinzon, Pasi Aho, Tor Heiberg• Project group: Pasi Lintunen, Mats Elmér, Morten Torgalsbøen• Reference group: Niko Jauhiainen, Tom Backman, Daniel Nordgren, SezginKadir, Margit Moen, Petter Sadøy, Suvi Lehtinen, Vidar Slettehaug, Anders WallinderFINGRID 1/2013 | 21

”The substation to be constructedin Naantali will enable theconnection of the future submarinecable from the Åland Islands tothe Finnish grid.”Jari TiusanenNew Naantalinsalmi substationTO ENSURE SYSTEM SECURITYFingrid will build a new 110 kilovolt substation in Naantali, enabling the connectionof a new HVDC submarine cable connection from the Åland islands and a new powerplant being planned in Naantali to Fingrid’s grid.Text by Antti Lagus | Photographs by Valtteri Kantanen and Jari TiusanenThe existing switching station locatedin conjunction with theNaantali power plant is almost 50years old and no longer meets the currentsystem security requirements.“The new substation is due to becompleted in the spring of 2015. Thetransmission connection to the ÅlandIslands will be introduced at the end ofthe same year. The direct current converterstation for the Åland Islands’submarine cable will be built next to thenew substation,” says Project ManagerJari Tiusanen.He says that the project is not aboutthe renewal of an existing substationbut about a completely new station. Thesubstation will be built under the existing110 kilovolt lines less than a kilometreaway from the old switching station.The goal is to utilise the existing linesand towers wherever possible. Provisionswill also be made for a potentialfuture 400 kilovolt power line.Conventional structureThe new substation will allow the connectionof a new multi-fuel powerplant, which is planned in Naantali, toFingrid’s grid. Jari Tiusanen says that italso makes preparations for a rise in electricityconsumption in the Turku region.FINGRID 1/2013 | 22

The switching station will be a conventionaloutdoor unit. The substationwill have two main busbars and onetransfer busbar. The project covers preliminarily12 outgoing bays and a buscoupler circuit breaker. There are morethan 100 similar 110 kilovolt switchingfacilities in Finland in Fingrid’s ownershipalone. The substation will not havea 400 kilovolt switching plant at thisstage, but one has been taken into accountin the space reservations.Electricity transmissions betweenmainland Finland and the Åland Islandswill constitute an interesting aspect atthe new substation. Even though thesubmarine cable will be built to improvethe system security of the power systemon Åland, it also indirectly increases thetechnical transmission capacity betweenCentral Sweden and mainland Finlandin both directions by a maximum of 80megawatts. This is the site of Naantalinsalmi substation.ÅLAND ISLANDS – a future electricity exporter?Electricity production on the Åland Islands is on the increase. In the future, electricity can beimported from the Åland Islands to mainland Finland.”Most of the electricity used onthe Åland Islands is deliveredfrom Sweden, but the shareof local wind power is on the increase.In the future, there may be even morewind power, and the volume of surpluswind power can be significant attimes. In these cases, the surplus can betransferred to Finland using the submarinecable,” says Fingrid’s DevelopmentManager Juha Hiekkala.New connection could level outthe price differencesDespite the solid cross-border transmissionconnections, the price of electricityin Finland last year was often higherthan in Sweden. Great price differencesare a drawback in terms of the functioningof the market.“The price differences were due tofactors such as a good hydropowersituation and problems in electricitytransmission to Finland. The Fenno-Skan 2 HVDC connection was out ofuse because a ship’s anchor damagedthe cable, and a fire during the annualmaintenance of Fenno-Skan 1 put thislink out of order for a long time,” JuhaHiekkala says.Last year’s problems were not relievedby electricity imports from Russia, as theprice of Russian electricity was no longercompetitive due to the capacity compensationintroduced in Russia.Market functioning can be improvedby building more interconnectors betweenFinland and Sweden. A third ACconnection to Northern Sweden has beenplanned for a long time, but no decisionof its construction has been made.“The transmission connection to theÅland Islands to be introduced in 2015could add to the transmission capacitybetween Finland and Sweden and reducethe price differences,” Juha Hiekkala says.Too small to bea price areaINFOSince the area of the Åland Islands isvery small, it is not suitable as a pricearea of its own in Nord Pool Spot. JuhaHiekkala says that there should be anotherway in which electricity productionand consumption on the ÅlandIslands could be separated from otherelectricity trade. The system should beable to take into account how much ofthe connections of the Åland Islands areavailable for increasing the transmissioncapacity between Finland and Sweden.“This is a new kind of approach forNord Pool Spot, but we believe thatit can be managed. There will also beother similar cases when offshore windparks are taken into use,” Juha Hiekkalasays.However, he is a little concerned thatthe arrangements for the Åland connectionwill not be overshadowed by theother arrangements undertaken by NordPool Spot. These other arrangements arerelated to the integration of the electricitymarkets in the Nordic countries andContinental Europe. In the systems of Nord Pool Spot, which takes care of the Nordic electricity market,Sweden is divided into four bidding areas. Finland is a bidding area of its own. Fromthe point of view of the functioning of the market, it is advantageous if the prices inthe neighbouring countries do not differ much from each other. The neighbouringareas of Finland are Central Sweden, Northern Sweden and Estonia.The primary transmission interconnectors between Finland and Sweden are theHVDC submarine connections Fenno-Skan 1 (550 megawatts) and Fenno-Skan 2 (800megawatts), which was commissioned in the autumn of 2011. There is also an alternatingcurrent connection from Northern Sweden (1,500 megawatts).FINGRID 1/2013 | 23

The first field tower can be found at addressRantakulmantie 134, Hyvinkää.FINGRID 1/2013 | 24

Field tower erectedIN HYVINKÄÄFingrid’s first field tower has been erected near the housingfair area of next summer in Hyvinkää. The tower is part of thetransmission line project between Nurmijärvi, Hyvinkää andHikiä in Southern Finland. The new tower has been designedto minimise the disadvantage inflicted on agriculture and toimprove occupational safety.Text by Tiina Miettinen | Photographs by Juhani EskelinenThe foundation of the field tower consistsof concrete sections joined together. Thecontractor in Hyvinkää is Eltel Networks Oy.Agricultural machinery can beoperated more freely near thenew tower than in the vicinityof conventional guyed towers. Manyagricultural machines can run betweenthe legs of the tower, since the spaceunder the tower is 7–10 metres in thelongitudinal direction and 14 metres inthe cross direction of the line. Protectivestructures surrounding the legs ofthe tower prevent potential collisionswith the legs. The field tower is approximatelythe same height as a conventional400 kilovolt tower: the crossarmrises to 31–35 metres.The foundations of the field towerare composed of two prefabricated concretesections joined together. Each partweighs 3 tonnes. The four-legged toweris anchored to the ground using foundationsof 24 tonnes. Separate concretingwork is not required, but the entirefoundation is built as prefabricated constructions.The field tower erected in Hyvinkääis the first of its kind. Others will soonfollow, because such towers will alsobe used in the transmission line projectbetween Ulvila and Kristiinankaupunki,which is under construction.In the future, these towers will beused at Fingrid’s all new 400 kilovoltline sites in field areas where the towersare applicable in terms of the terrainconditions. Typically, such areas cover10 to 60 towers in a transmission lineproject. The field towers will primarilybe used on new transmission lines,but they can also be erected on existinglines in conjunction with the replacementof a line or some its towers.Award-winning towerThe field tower model has been devisedin co-operation with design agencyMuotohiomo Oy. The tower was grantedthe Fennia Prize 2012 Grand Prix in industrialdesign last June. The jury commendedFingrid for the use of design inan innovative and open-minded manneras part of an indispensable infrastructure.The award-winning tower modelis gaining a “little brother”, becauseFingrid has been designing a similarstructure for 110 kilovolt transmissionlines. FINGRID 1/2013 | 25

Number ofbalance responsibleparties roseMore and more companies balance theirelectricity balance directly against Fingrid. At theend of 2012, the number of balance responsibleparties in Finland rose to 40.Text by Outi AiraksinenFingrid has managed the nationwidebalance service in Finland bylaw for more than ten years now.In balance service, companies whichhave applied for the position of a balanceresponsible party do the balancingby matching their electricity procurementwith their consumption. This isdone by selling or purchasing imbalancepower to or from Fingrid.The open electricity supplier of thesebalance responsible parties is Fingrid, towhom the balance responsible parties reporttheir electricity supplies, deficit andsurplus. Fingrid is committed to buyingand selling imbalance power as necessary.As many as 12 companies started asnew balance responsible parties in Finlandin early December, when PVO-PoolOy, which was previously in charge ofthe open electricity supply of the companies,changed its operations.The new balance responsible partiesare: Energia Myynti Suomi Oy, StoraEnso Oyj, Metsä Board Oyj, Kemira Oyj,Pori Energia, Yara Suomi Oy, RuukkiMetals Oy, PVO Power Management Oy,Oy Perhonjoki Ab, Oulun Energia, KokkolanEnergia and Etelä-Suomen VoimaOy. In all, there are now 40 balance responsibleparties in Finland, which takecare of their imbalance power mattersdirectly with Fingrid.“It would be quite possible that therewould only be one or two balance responsibleparties, and the other electricitymarket players would work underthem. However, this raises the questionof whether the market would function effectivelyand whether the players wouldno longer be independent,” says Fingrid’sBalance Service Manager Pasi Aho.There are now about equally as manybalance responsible parties in Finlandand Sweden. Instead, in Norway almostall electricity market parties balance theirelectricity balance directly against thetransmission system operator.“Due to the necessary data systemsand requirements concerning 24-hourreporting, it is not necessarily worthwhilefor all companies to serve as balanceresponsible parties. A balance responsibleparty accumulates costs, andit may be more affordable to do somethings in co-operation with others,” PasiAho says.Equal conditions for allIn practice, the balance responsible partiesrepresent the foremost players in theelectricity market in Finland, such aselectricity production and sales companiesas well as energy-intensive industries.Some of the companies provide anopen supply of electricity to their owncustomers or shareholders. There are alsosome foreign companies engaged in thesales of electricity.“The balance responsible parties arecurrently a rather heterogeneous group,because the companies must organise theopen supply of electricity in some manneranyway. Fingrid provides this serviceat public conditions which are the samefor all without the companies having tolook for quotations from various sources,”Pasi Aho says.A company wishing to become a balanceresponsible party signs a balanceservice agreement with Fingrid. The agreementrequires from the balance responsibleparties issues such as a guarantee, 24/7accessibility, and electronic exchange ofinformation concerning reporting.“We impose certain requirements, andif you can fulfil them, you can become abalance responsible party. In this way, aplayer can become more independent ofthe other players and gain direct accessto the balancing power market, amongother things,” Pasi Aho says.A balance responsible party also hasaccess to Fingrid’s balance settlementservices. Correspondingly, the companymust provide Fingrid with a continuousprocess of balance settlement, on the basisof which the imbalance power is invoiced.A role as a balance responsibleparty also gives the companies accessto the forefront of information, becauseFingrid invites the balance responsibleparties for example to various seminarsand customer events. FINGRID 1/2013 | 26

“Enhanced transparency improvesthe efforts”Etelä-Suomen Voima Oy owned by 15 local electricity companies made a decision lastspring to apply for a position as a balance responsible party with Fingrid, if this wouldnot cause a significant increase in costs.“We wanted to make the supply chain lower. From the perspective of our shareholders,there were previously two intermediaries, but now we have direct contactswith Fingrid, the highest level in Finland. This has expedited certain processes andconsiderably improved transparency, which in turn will help us in our quest to lowerthe costs,” says Development Director Kimmo Tyni of Etelä-Suomen Voima.Etelä-Suomen Voima Oy balances the electricity balances of six of its shareholders.Previously, the counterparty in the sales and purchase of imbalance power wasPVO-Pool Oy, but the business was streamlined as of the beginning of December.As the balance responsible party, Etelä-Suomen Voima primarily makes sure thatmoney moves at the right time and to the right place, because the company hasoutsourced imbalance management and shared balance settlements to Empower Oy.“Our shareholders have no resources of their own for imbalance management andbalance settlement. We have made the system primarily to reduce bureaucracy, butit also benefits us in view of costs, because the scheme offers economies of scale,”says Kimmo Tyni.The electricity deficit and surplus problems of the six companies are mainly dealtwith using mutual arrangements between the companies, which means that theneed for actual balance service is smaller. Based on a few months’ experience, KimmoTyni is satisfied with Fingrid’s balance service.“Everything has worked just like we think it should. Our initial intention was tointroduce the service in early 2013, but the amendment of the terms of PVO-Pool’sopen electricity supply expedited the transition. Still, we knew well in advance whatis required from us so that we can become a balance responsible party. The processwas easy and smooth in every way,” says Kimmo Tyni.“It all worked just like we planned”Ruukki Metals Oy, a subsidiary of Rautaruukki Oyj, became a new balanceresponsible party with Fingrid last December when its electricity procurementand balance arrangements through PVO-Pool changed.“The change as compared to the previous situation has been minor despiteour new role. It mainly meant the signing of agreements and giving of guaranteesto Fingrid. The actual work continues same as before – we buy andsell imbalance power even if the counterparty is now different,” says EnergyManager Mikko Lepistö of Rautaruukki.Ruukki’s annual electricity consumption is 1.2 terawatt hours, which representsabout 1.5 per cent of the total electricity consumption in Finland. Thecompany produces itself approximately 40 per cent of the electricity it consumes,because the blast furnace gas and coke oven gas generated in its processesat the Raahe steel mill are utilised as a fuel at the power plant.According to Mikko Lepistö, Fingrid’s balance service works exactly as thecompany had thought. “The change-over has not had a significant cost impact.Instead, we are concerned about the transmission connections between electricityprice areas. A failure in a cable between Finland and Sweden may resultin significant costs to us.”“The goal should be to avoid price differences through every means availableand to repair the faults as quickly as possible. Last year, the area pricedifference between Finland and Sweden was 5.44 euros per megawatt hour,and through the spot prices this price difference affects the price of all Finnishelectricity – including imbalance power.”“Same rules for allfacilitate the operations”Like many other PVO-Pool’s shareholders,the wood-processing companyStora Enso Oyj started as a balance responsibleparty with Fingrid at the beginningof December.“As far as electricity consumption isconcerned, we are now involved in Fingrid’sbalance service, but on the productionside we continue with the formerapproach. The change was due tothe rearrangements in electricity procurementwithin Pohjolan Voima,” saysJukka Mikkonen, Vice President, Energy,of Stora Enso Oyj Energy Services.Stora Enso consumes 5.5 to 6 terawatthours of electricity per year inFinland. Of this, more than half is producedby its own mills. Being a largescaleelectricity user, co-operation withFingrid was familiar to Stora Enso fromearlier contexts.“We have dealings with Fingrid in issuessuch as electricity transmission,so balance service with Fingrid was asensible solution for us,” Jukka Mikkonensays.Taking the matters into the company’sown hands has gone quite well,because many of the tasks associatedwith balance service and the contentsof balance settlement were already familiarissues for the company from theperiod when the counterparty was PVO-Pool. However, the change requiredmatters such as reviewing the functionsand conditions necessitated by the roleas a balance responsible party.“We had to learn some new things,but this was facilitated by the fact thatthe agreement and the conditions areclear. When the rules are the same foreveryone, the actual operations areeasier.”FINGRID 1/2013 | 27

Grid ABCThis article series deals with the main operating principles,equipment units and components in the main grid. The articlespublished in the series previously can be viewed on our websiteat www.fingrid.fi.FINGRID 3/2012 | 28

Cross-border transmissionconnections between Russia and FinlandElectricity has been imported to Finland from Russia since the 1960s. At present, the total importcapacity is 1,500 megawatts. Most of the electricity from Russia is imported via the 400 kilovoltconnections from Vyborg in Russia. The next step is to shift to two-way transmission of electricitybetween the two countries.Text by Pertti Kuronen | Photograph by Johannes WiehnElectricity imports from Russia toFinland have traditionally had animportant role in Finnish electricitysupply. At their height, the importshave almost corresponded to the annualhydropower production volume in Finland.Transmission of electricity betweenthe two countries started in the 1960s.Enso-Gutzeit launched electricity importsfrom Svetogorsk in the SovietUnion to Imatra in Finland, using itsown 110 kilovolt transmission line, in1961. The import capacity at that timewas 25 megawatts. Hydropower unitscorresponding to the import capacitywere connected beyond the Imatra–Svetogorsk transmission line, and theplants were connected to the Finnishtransmission grid. A similar mode ofoperation still continues.In Ivalo in northern Lapland, localelectricity production was supplementedby connecting it to the Russian grid usinga 35 kilovolt line in 1965. This tookplace from Kaitakoski, which is one ofthe hydropower plants on river Paatsjoki.A 110 kilovolt line across the borderwas completed in 1975, and it wasextended to Ivalo in 1981.Ivalo was connected to the Russiangrid until 2000, when the Ivalo 220/110kilovolt substation was connected permanentlyto the 220 kilovolt power linefrom Vajukoski in Kemijoki to Varangerbotnin Northern Norway. This linehad been completed in 1988. Earlier, the220 kilovolt line had served as a backupconnection for Ivalo.Electricity imports from Russia havecontinued and are still continuing byconnecting Russian generating machinery,which corresponds to the importcapacity, to the Finnish grid via theIvalo Kaitakoski 110 kilovolt transmissionline.An agreement on the constructionof the Vyborg high-voltage directcurrent (HVDC) converter station wassigned with the Russian party in 1975.Imports of electricity via Vyborg beganin 1980, initially at a power of 300megawatts by connecting the Kirishinthermal power plant to the Finnish gridthrough transformers in Vyborg. Thistemporary feed method was referred toas a “tandem connection”. The actualelectricity imports using the direct currentconnection commenced at the endof 1981.Currently, the technical import capacityon the Vyborg 400 kilovolt HVDCconnection and a parallel alternatingcurrent (AC) connection is 1,400 megawatts.The 400 kV connections aremanaged by Fingrid. The 110 kV connectionImatra–Svetogorsk Fingrid is owned Oyj:n byFortum Power and Heat Oy. The importElectricity importconnections from Russiavoimansiirtoverkko1.1.2013 capacity of the connection is about 110megawatts. The 110 kilovolt connectionIvalo–Kaitakoski in Lapland is ownedby Inergia Oy, and its import capacity isabout 75 megawatts.The Vyborg transmission link consistsof two parts: an HVDC and an ACconnection. The HVDC connectionconsists of four HVDC blocks, eachIvalo75 MWV1400 MW © Karttakeskus Oy, Helsinki110 MWFINGRID 3/2012 | 29

Development of transmission connections between Finland and Russia1961 1965 1975 1980 1984 1997 2000110 kV ACconnectioninSouth-East Finland20.2.1961,25 MW generationsynchronizedto Finland.35/110 kVAC-connectionin NorthernFinland, usedseparately fromother Finnishgrid.Agreement toconstruct HVDCstationand 400kV connectionbetween Finlandand Russia.First HVDC block intooperation 15.12.1981.400 kV doubleline and tandemconnection, a300 MW blocksynchronized toFinland.HVDC connectioncompleted,3 X 350 MVA17.11.1984. Totalcapacity 1000MW 400 and110 kV connections.1.9.1997 FingridOyj starts itsoperation andowns the doubleline to VyborgThird 400 kV lineand HVDC 4 X 350MVA. Import capacity1400 MW.with a nominal power of 350 MVA. Themaximum commercial imports throughthese total 900 megawatts, and another100 megawatts have been reserved as atechnical reserve. The technical capacityis hence 1,000 megawatts.Alongside the HVDC connection,there is an AC connection throughwhich one power plant (3 x 150 MW)at the north-western plant located nearSt Petersburg is connected to the Finnishgrid. In other words, the total technicalcapacity is approx. 1,400 megawatts,and the commercial imports are1,300 megawatts.In Russia, three 330 kV lines run toVyborg. Three of these feed the converterstation and one is connected viaa 330/400 kV transformer to the Yllikkälä400 kV substation in Finland.Of the other two 400 kV transmissionlines running to Finland, one isconnected to the Yllikkälä substationand the other to the Kymi substation.These arrangements have maintainedthe reliability of the connection itselfand ensured the system security of theFinnish power system during potentialdisorders.Why is such a back-to-back HVDClink needed in Vyborg? Why are thelines not connected directly together?The Russian power system is quite extensive,and the Nordic power systemis also relatively large. Managing thepower transmissions on an individualtransmission connection between twolarge power systems is difficult, if notimpossible, especially when there aredifferences in the power control principlesas well as operation and designcriteria of the power systems. AnHVDC connection eliminates these differencesbetween the power systems,and the power of the connection settlesto the desired, set value. It could besaid that the HVDC connection combinesboth technical and commercialpower transmission.The Russian cross-border transmissionconnections have traditionallybeen used for the import of electricityto Finland. The Vyborg back-to-backHVDC link was originally constructedonly in view of imports, and the exportsof electricity to Russia are notpossible without modifications. Theconversion of one HVDC block to twowaytransmissions has been plannedwith the Russian parties. The goal is toimplement the necessary changes andto agree on the commercial terms sothat the two-way operation of the connectioncould be launched in 2014 at apower of 350 megawatts.Over time, when transmission connectionsmust be renewed due to ageing,two-way transmission of electricitywill be introduced as a naturaldevelopment. Electricity import connections from RussiaFINGRID 1/2013 | 30

TLT-Building Oy selected as the contractor forthe Hovinpaikka–Kontiolahti transmission lineFingrid signed a contract with TLT-Building Oy on the construction of theHovinpaikka–Kontiolahti 110 kilovolt transmission line on 14 February 2013.The line will replace the existing line built in the 1950s.The length of the new line section isapprox. 30.5 kilometres. The contractcovers the construction of a newline between Hovinpaikka and Kontiolahtiprimarily in the right-of-wayof an old line which will be dismantled.The contract also includes modificationwork on the Kontiolahti–Puhos line andthe rerouting of the line to Pamilo sothat a Puhos–Pamilo line is established.The line section covered by the contractis part of the Varkaus–Kontiolahtiline. When the whole line is completed,there will be a new line between Huutokoskiand Kontiolahti. The project ispart of the grid development plan forthe Savo-Karelia region, bringing moretransmission capacity to North Kareliaand improving system security.The value of the contract is approx.4.5 million euros. The work will beginwith foundation work in the summerof 2013. The line will be ready no laterthan 20 May 2015.Shown in the photograph inthe front row from the leftare Managing Director VesaNurmi of TLT-Building Oy,and Fingrid’s Executive VicePresident Kari Kuusela andSenior Vice President JussiJyrinsalo. In the back rowfrom left: Managing DirectorEero Hakala of TLT-EnergyOy, and Project ManagerRitva Hauvonen and ConstructionManager KeijoVälimaa of Fingrid.Photograph by Olli HäkämiesResults of customer surveyFingrid’s overall grade in the 2012 customer survey was 8.38. The grade fellslightly from the previous year. This was mainly due to the tariff increases andtransmission congestions.Fingrid arranged the annual survey of its performance towards the end of 2012.The survey form was sent to Fingrid’s grid service and balance service customers,electricity market parties, service providers, regulators, and industrial organisations.A total of 212 stakeholder representatives replied to the survey, i.e. 50 per cent ofthose who received the survey form. Fingrid’s general grade among all respondentswas 8.38 on a scale from 4 to 10, and among grid customers slightly higher, 8.47.The general grade decreased slightly from the previous year, when it was 8.42.This was mainly due to the tariff increases and transmission congestions. However,the grade given by the relevant stakeholders for both the electricity market services8.32 (8.25 last year) and the grid services 8.71 (8.60) went up. Only the average gradegiven by the balance service customers came down, to 8.43 (8.71). Based on the survey, the customers wish more co-operationand personal meetings.FINGRID 1/2013 | 31

Open houseon Valentine’s DayPhotographs by Juhani EskelinenThe housewarming party of Fingrid’s new head office was held in Käpylä inHelsinki on Valentine’s Day 14 February. The guests were given a guidedtour of the new premises. Video presentations of Fingrid’s office and Main GridControl Centre were also released in the event.Fingrid’s presentationvideos onYouTubeFingrid has released two new presentationvideos: “Talo täynnä virtaa”shows Fingrid’s operations and peoplein the new facilities, and “Kantaverkkokeskus”describes the Main Grid ControlCentre, showing how the Finnish powersystem is monitored day and night.Koop Arponen’s ensemble Flute of Shame provided the guests with entertainment.Katrina Klinge-Sonninen and Juha Kekkonen receiving the visitors.FINGRID 3/2012 | 32

JOY OF WORKTo see, you need to stopThe results of surveys conductedof the world of work in recentyears do not make very pleasantreading. The meaningfulness of work hasbeen coming down for a long time. Workimposes a greater and greater mentalburden. You can sleep off physical exertionover the weekend, but your headis active at all times, so it is not easyto push job matters to the background.Haste and deadlines also represent everydayfeatures for many.How can we retain our creativity in themidst of stress? We could use innovationto come up with new ways of working toavoid the haste. Overwhelmed by a negativemood, we perceive a smaller andsmaller slice of the world, and we cannotfocus on the essential.What adds to a positive attitude andthe skill of calming down? In one study,an attempt to achieve this was made byasking the test subjects to record thedaily positive events and emotions andby learning meditation skills. First, theythought of positive thoughts of themselves,then of their near ones, and finallyeven of the difficult people at theworkplace. After nine weeks of this, thetest subjects’ personal strength and creativityhad increased, they could receivesupport from their colleagues better thanbefore, their satisfaction at life had increased,and they were even less susceptibleto illness. The US Marine Corps isalso testing the same approach with thenew recruits.We and our daily planners are like theovergrown park that was thinned outin our neighbourhood last summer. Theleaves of the trees that were left standingwere at a high altitude, and the bare treesdid not look very attractive. However, thegardener assured that the landscape willlook nice in five years. He also said thatthe thinning severely disturbs the life ofshrub snails. They can no longer crawlamong the bushes and raise all-devouringoffspring, because the sun and windcan penetrate the underbrush.The logging of the park prompted meto reflect on the state of my own head(this opportunity was also due to my anklewhich I sprained while jogging). Theankle was operated on, so I had to go onsick leave, because I could not walk withthe special shoe that kept my foot in astable position. As I had to start clearingmy planner, I noticed that it had becomeovergrown, quite on its own. It was completelyshort of void, which would helpme to see far and give room to breathe.I went to the cottage to pass sometime. When I got out for the first time,I noticed a stone in the yard. The stonehad become covered with bright greenmoss in the shape of a heart. It had notappeared there during the two weeks ofmy sick leave; it was just that I had beentoo busy to see it before.To see, you need to stop, but a positiveattitude also gives perception and enablesnew ideas. Emotions also tend to betransmitted from one person to another,even over the telephone. If you come towork feeling annoyed, it is transmittedinstantly to your co-workers by meansof the mirror neurons in our brains. Customerswill experience that they obtainservice of better quality when the personattending to customer service is in agood mood.This is why managers and supervisorsshould pay particular attention tothe creation of a positive atmosphere.A neutral approach is not sufficient,because in many cases it is interpretedas a negative emotion. All members ofthe workplace community can create acycle of positivity through their own action:by thanking, commending, and bydescribing the highlights of their work.Creativity requires calming downand positive emotions – and not evenmoney. Marja-Liisa Manka, M.Soc.Sc., Ph.D., has served as a professorin work welfare at the University of Tampere since2004. Before that, she worked as an entrepreneur, headof further education centre, and as training manager atSaarioinen Oy, among others. In 2011, she was elected thesocial scientist of the year and an advocate of good worldof work. She has also written books on the topic, mostrecently “Työnilo” (2012).FINGRID 1/2013 | 33

”Fingrid’s annual review andfinancial statements 2012:Profit improved significantlyThe financial statements of the Fingrid Group for 2012 were publishedin February. Fingrid’s profit was improved by the increase of 30 percent in the grid tariffs and by the congestion income on the borderbetween Finland and Sweden resulting from the major area price differences.On the other hand, the Russian cross-border transmissionincome and inter-TSO compensations in the European market placedecreased considerably because the electricity imports from Russiacame down.Among the costs, especially the costs of reserves which safeguard the systemsecurity of the transmission system increased on 2011. The maintenancemanagement costs were raised by the repair of a fault in the Fenno-Skan 2 cable,” says Fingrid’s President & CEO Jukka Ruusunen.Net borrowing by the company grew due to its sizeable capital investmentprogramme. During 2012, Fingrid issued a public bond valued at 300 millioneuros and with a maturity of 12 years under the company’s International MediumTerm Note Programme.Fingrid’s capital expenditure in the transmission system totalled 139 millioneuros. Fingrid had several ongoing capital investment projects for ensuringsystem security and the adequacy of transmission capacity in the future.The system security of the transmission grid was excellent after two pooreryears. The number of disturbances in the grid was at the average level, but thedisadvantage inflicted on the customers and society as a result of the disturbanceswas very small.The year was exceptional in the electricity market. There was very abundantsupply of Nordic hydropower throughout the year, which clearly broughtdown the price level in the wholesale market. However, the Finnish market didnot benefit fully from the inexpensive hydropower. One of the two submarinecables between Finland and Sweden was out of order for much of the year,which is why the full transmission capacity between Finland and Swedencould not be utilised. As a result, a record-high amount of congestion income,88 million euros, was created on the border between Finland and Sweden.Fingrid’s annual review and financial statements are available on the Internetat www.fingrid.fi (under Investors). Printed publications can be requestedfrom Fingrid’s communications.Electricity MuseumElektra sheddinglight on the originsof energyExhibition “Energiaa vesipyörästäfuusioon” on energy is opening atElectricity Museum Elektra in thesummer of 2013.Our energy consumption has beenincreasing steadily in recentdecades, and the growth seems tocontinue. At the same time, we aimto decrease the burden on the atmosphereand develop new energyproduction technologies. Where arewe going in energy issues, and howhave we arranged our energy supplyso far? These are among the questionsto which an energy exhibitionat Electricity Museum Elektra in Hämeenlinnain the summer of 2013 isseeking answers. The exhibition willbe expanded further in 2014.The main focus in the exhibitionis on electricity and its central rolein contemporary energy supply. Theexhibition visitors can try out for examplea copy of the world’s first electricgenerator, and get to know newtrends in energy production – not forgettingprivate power generation. Theexhibition presents the wide spectrumof energy consumption and examineshow society as a whole and each oneof us can conserve energy. Should webuild our homes with better insulation,or maybe we should start usinghydrogen cars? Should we simplygive up buying new things? Couldwe produce our own electricity fromwind and solar sources? There aremany interesting things to see and tryout for people of all ages.Fingrid Oyj sponsors ElectricityMuseum Elektra. More informationabout the museum at www.elektra.fiText by Ville NymanFINGRID 1/2013 | 34

Two-way electricity trade between Finland and Russia being preparedFingrid and the Russian grid parties FGC UES and SO UPS as well as the Russian NP Market Council are preparing atrading model for two-way electricity trade between Finland and Russia and analysing its technical conditions.At present, electricity transmission on the 400 kilovolt cross-border interconnectors is only possible from Russia to Finland.In two-way trade, one of the four HVDC links from Vyborg (capacity 350 megawatts) would be used for transmittingelectricity from Finland to Russia. Two-way trade is expected to be possible from the beginning of 2014. The starting datedepends on the results of the technical analyses and testing and on the completion of the related procedures.GRID QUIZCompetition to the readers of Fingrid MagazineAnswer the below questions and send your reply by fax (number +358 (0)30 395 5196) or mail to Fingrid nolater than 31 May 2013. Address: Fingrid Oyj, PL 530, 00101 HELSINKI, FINLAND. Mark the envelope with”Verkkovisa”. Among all those who have given right answers, we will give five men’s leather wallets asprizes by drawing lots. The answers to the questions can be found in the articles of this magazine.1. In what year will the European electricity marketbe linked together according to the plans?2014201520162. By virtue of the proposed EU directive, how manypublic charging points for electric cars shouldFinland have by 2020?2,5005,0007,0003. When the development project for the grid inOstrobothnia will be completed, between whichtowns will the 400 kilovolt ring network run?Kokkola and OuluKristiinankaupunki and OuluPori and Oulu4. Where has the first field tower been erected?NurmijärviHyvinkääForssa5. The acronym NBS stands for:Northern Balance StatementNordic Balance SettlementNational Bidding System6. How many balance responsible parties are therein Finland?1226407. What is the name of the exhibition opening atElectricity Museum Elektra in the summer of2013?Sähköä tuulesta ja auringostaEnergiaa vesipyörästä fuusioonHiilivoimaa ja hiilihydraattejaWinners of prizes of the Grid Quiz in the previous Fingrid magazine (3/2012): Arto Köykkä, Muhos; DinsMerirands, Riika, Latvia; Sirkka Saviniemi, Hämeenlinna; Martti Uppala, Rovaniemi; Tommi Valli, Seinäjoki.

FINGRID OYJLäkkisepäntie 21, P.O.Box 530, FI-00101 Helsinki • Tel. +358 30 395 5000 • Fax +358 30 395 5196 • www.fingrid.fiHelsinkiP.O.Box 530FI-00101 HelsinkiFinlandTel. +358 30 395 5000Fax +358 30 395 5196HämeenlinnaValvomotie 11FI-13110 HämeenlinnaFinlandTel. +358 30 395 5000Fax +358 30 395 5336OuluLentokatu 2FI-90460 OulunsaloFinlandTel. +358 30 395 5000Fax + 358 30 395 5711PetäjävesiSähkötie 24FI-41900 PetäjävesiFinlandTel. +358 30 395 5000Fax +358 30 395 5524VarkausWredenkatu 2FI-78250 VarkausFinlandTel. +358 30 395 5000Fax +358 30 395 5611