Jaehnert S. and G. Doorman: Reservation of Transmission Capacity for the Exchange of Regulating Resources in Northern Europe: Is There A Benefit? In: Proceedings of the 11th IAEE European conference, 25-28 August (2010). At: Vilnius (Lithuania). ISSN: 1559-792X.
The need for sustainable energy production leads to an increasing share of wind power production especially in northern Europe, along the coast of the Northern Sea. The intermittent wind power production results in a need for regulating resources to keep the electricity system in balance. The Nordic, especially the Norwegian hydro based power production has good capabilities for offering such regulating resources, utilizing the increasing interconnection capacity between the Nordic and the continental European power system. Contemporaneously the European Union enforces the liberalization and integration of the national European power markets. In order to exchange regulating resources, a reservation of transmission capacity on the interconnections might be beneficial. Some studies, which are done on a simplified level based on a statistical analysis, show a benefit of reserving transmission capacity for the regulating resource exchange , . However, the withdrawal of transmission capacity from the day-ahead market is not taken into account in . Further on a capacity of 100MW is planned to be reserved for the exchange of regulating resources on the new Skagerrak 4 cable, connecting Norway and Denmark . This paper analyzes the effects of reserving transmission capacity for the regulating power market on the links between the Nordic area and continental Europe.