Corporate magazine Fingrid Oyj FINGRID 1/2006 MOVEMENT ON THE BORDERSpage 3 SILVER MEDAL celebrated at Fingrid page 12 In this issue 58 Fingrid’s major project of replacing more than 1,000 alumin- This spring, Fingrid is arranging four training events for pro- ium towers with steel towers in Northern Finland had pro- fessionals in transmission line inspections. Those who pass gressed to the Petäjäskoski - Pyhänselkä line by the begin- the examination at the end of training obtain the right to ning of 2006. The aluminium towers are replaced because of inspect Fingrid’s transmission lines. corrosion problems encountered in some of the towers. Editorial Movement on the borders 3 Silver medal from Turin Teemu Salo, IT Specialist in Fingrid’s Data Systems unit and a Replacement of aluminium towers in Northern Finland member of the Finnish Olympic team, returned from the Olym- speeded up by cold weather in January pics with a positive mind - and a silver medal in curling. 12 In early March, some 100 towers were still to be replaced on the Petäjäskoski - Pyhänselkä line, but weather forecasts suggested In brief 15 that weather would be favourable for the work. 5 • Construction work for gas turbine power plant launched at Olkiluoto • Neighbourhood help discussed in the workshop of Licence training of transmission Nordic TSOs • Fingrid’s theme afternoon • 50th anniversary line inspectors launched seminar of Power and District Heat Pool • New contracts The objective of the training arranged by Fingrid is to ensure and im- prove the quality of maintenance management in the Finnish grid. 8 All in a day’s work Pasi Turunen, who works as a Specialist in Fingrid’s Grid New maintenance management contracts to ensure Management Unit, writes about his one day at work. 19 system security in 2006 – 2008 11 FINGRID Editorial staff Corporate magazine Telephone: +358 (0)30 395 5000, Fax +358 (0)30 395 5196, Fingrid Oyj Postal address: P.O.Box 530 , FI-00101 Helsinki, Finland Street address: Arkadiankatu 23 B, Helsinki, www.fi ngrid.fi 9th volume Editor-in-Chief: Leni Lustre-Pere, leni.lustre-pere@fi ngrid.fi 1/2006 Editorial board: Jari Helander, Aila Itäpää, Antti Linna, Erkki Stam Design by bbo, Better Business Offi ce Oy, Maria Hallila and Tuija Sorsa Translation by Kielipaja Hannu Hakala Published by Cover photograph Paul Ahlgren Fingrid Oyj Printed by F. G. Lönnberg ISSN 1456-2693 Editorial Movement on the borders Ten years ago, the main electricity trans- mission system operators, published a development programme mission grid in Finland was owned by concerning fi ve priority cross-sections in the Nordic countries in Imatran Voima Oy, the state-owned 2004. One of these, the expansion of the sea cable link between power company, and Pohjolan Voima Oy Finland and Sweden together with Svenska Kraftnät, has been owned by private industries. When the in progress since the beginning of 2005, while the other projects present transmission system operator in still await their launch. Finland was being established, private The Nordic Council of Ministers ordered a report from the industries relinquished their grid on con- Norwegian consultant Econ concerning the organisation of dition that the private sector should have Nordic transmission system operation. The report suggests the a share majority in the new operator so establishment of a shared capital expenditure company in the that direct state ownership would not have too great an effect Nordic countries. This model is well suited to the execution of on the operation of the company. If Finland had done as Sweden the Norwegian capital expenditure programme of more than and Norway, state would have a direct impact both on the largest 1,000 million euros. There are no reasons why the Finnish na- electricity producer and on the transmission system operator. tional economy, after having attended to its responsibilities con- The European Union has assessed the independence of trans- cerning its own infrastructure in an effi cient and appropriate mission system operation in different countries. The EU consid- manner, should have to pay for these grid reinforcements and ered that state-owned transmission system operators are formal- cross-border connections which have now been found to be ur- ly separated, but the goal should be complete separation from gent in Norway. the largest state-owned power producer. The EU regarded that Voluntary co-operation within Nordel has created a well-func- besides Finland, transmission system operation has been com- tioning electricity market in the Nordic countries. Most of the pletely separated in only a few other countries. other parts of Europe are still nowhere near this situation. Nordel The long traditions of electricity trade between Finland and also has its own development programme. The fi ve priority cross- Sweden have created solid cross-border transmission connec- sections must be carried out, and congestion revenues must be tions between the two countries. Grids dimensioned in accord- used for the related capital expenditure. A shared view exists of ance with shared engineering principles and requirements im- the harmonisation of system responsibility and of the transpar- posed on the connecting parties have ensured a technically uni- ency of its fi nancing. Development of transmission management, form power system in these countries. These were the main fea- harmonisation of balance service model, and complementing the tures of the transmission system which enabled a swift transi- engineering and operating principles of the grid are included in tion to an inter-Nordic electricity market. On the other hand, the development programme. electricity exports from Norway were restricted for a length of Nordel’s opportunities to promote the development projects time. Heavy-duty cross-border connections to the neighbouring are complicated by the differences in legislation in the various countries were not constructed. The development of the grid in Nordic countries. Moreover, the promotion of market mecha- Norway was dominated by a regional approach and relying on nisms is crucially infl uenced by the different types of energy pol- the other parts of the Nordic grid, partly due to extensive con- icy approaches in the various countries. The views expressed by struction costs. Unlike in Finland and Sweden, no uniform main the Norwegian Government emphasise a national standpoint. grid was created in Norway. Finland considers it important to develop the Nordic market on Separated transmission system operation commenced in the basis of shared benefi ts. National objectives have also gained Finland, Sweden and Norway almost simultaneously in the ear- more emphasis in the efforts of Nordel. Finland must not for- ly 1990s. The approach adopted in Finland has made it possi- get these, either. From the viewpoint of Finnish market play- ble that the transmission capacity on the border between Finland ers, Fingrid considers it important that, for example, Finland and Sweden has almost doubled thanks to capital expenditure and Sweden become separate price areas as seldom as possi- by Fingrid. There have not been nearly as extensive grid projects ble. Moreover, the present condensing power capacity in Finland on the borders between the other Nordic countries. In Norway must be kept operational. The need for this was highlighted dur- in particular, capital expenditure in the grid has been very small ing the very cold week in January, when restrictions in electricity since the 1990s. This is why the congestions in the Nordic mar- imports had to be covered by starting condensing power plants. ket are primarily located between Norway and Southern Sweden Fingrid has kept to the basic duties of transmission system and at the Danish straits. operation and optimised its operating models accordingly. As Nordel, the co-operation organisation of the Nordic trans- a result, Fingrid is undisputedly in the top league of transmis- 3 sion system operators globally. Fingrid’s customers, who pay for The planned cable project would almost double the imports Fingrid’s work, are presently very satisfi ed with the decreasing of electricity from Russia into Finland from the present level. price and high quality of electricity transmission. Fingrid has car- Sudden omission or signifi cant restriction of imports during a ried out capital expenditure projects for the cross-border trans- peak load situation in the St Petersburg region would easily lead mission connections, anticipating the needs of the market. The to a serious electricity shortage in Finland and jeopardise the op- strategies and fi nancial outlook of the company consolidate the erating capability of the entire power system in Finland. This continuation of this trend. Indeed, it is diffi cult to perceive some would also be the case in less critical load situations, for example other operating model which would lead to a better outcome. during a potential extensive grid disturbance in the St Petersburg Imports of electricity from Russia also have long traditions region. The possibility of black-out in Finland would multiply, in Finland. Initially, electricity was imported from hydropow- and the dimensioning and operation of the Nordic power sys- er plants connected to the Finnish grid. The imports grew in tem would become dependent on faults in the Russian pow- the early 1980s when a direct current link was completed be- er system. tween the Finnish and Russian grids. Fingrid has increased the An obligation has been placed on Fingrid to promote the import capacity further. Up until recent years, imports have been Nordic electricity market, and the company has assessed the im- based on contracts between Finnish and Russian enterprises, and pacts of additional electricity imports from this basis. Most of the benefi ts have hence been shared between them both. At the the imports from Russia would be transmitted from Finland fur- moment, the cross-border transmission capacity is primarily re- ther to the west.