Norway as Swing Producer
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- Institutt for elkraftteknikk 
This paper looks closer at using Norwegian hydropower for swing production towards Continental Europe. On-going discussions suggest that Norwegian resources could be utilised to a larger extent, and thereby enable further development of renewable energy on the Continent. When discussing swing production the terminology needs to be clearly defined. There are many different terms in use, and they can refer to different aspects of the power system operation and different market mechanisms. In this thesis there has been a separation based on the time horizon, which gives two possible interpretations:The long term perspective: Systematic regulation of production during the day, week and year. This is handled through day-ahead trade and bilateral agreements. The short term perspective: Balancing within the hours of operation by use of the reserves, and use of intraday trade to balance closer to the hour of operation.Norway is already a provider of systematic regulation through the interconnections between the Nordic and the Continental region. In the future also the short term perspective is expected to become increasingly important. Premises for an extended use of Norwegian resources, in both perspectives, are amongst others consistent and targeted Energy politics in both Norway and the EU, development of common market solutions, and increased cross-border transmission capacity.An analysis of the power system in 2025 has been performed by the use of the EMPS and the EPF models. Due to limitations in the simulation tools only the systematic exchange has been analysed. Three cases with different assumptions for the Norwegian and Nordic energy balances and the development of new cross-border capacity were investigated. Systematic use of the Norwegian hydropower was found in all three cases, with export during daytime and import during night and to some extent weekends. Nights and weekends showed to be highly affected by the seasonal variations of the hydro production. The amount exchanged differed from case to case, and especially the case assuming a high Norwegian surplus showed a larger degree of export and reduced import compared to the case with similar transmission capacity. The large differences in input data for the analysed cases proved to have a very big influence on the price structure and socioeconomic profitability. When discussing the development of the future European power system, there are many factors that need consideration. The goal should be finding an optimal way to utilise and manage the resources. The Norwegian hydropower could be an important part of the solution, but a sustainable balance between climate goals and environmental concerns should be emphasized.