Session 5: Market opportunities in a changing world

General Assembly, Brussels 26-27 October 2009 Inger Pihl Byriel, R&D Coordinator, Energinet.dk [email protected] Energinet.dk in brief

Independent public enterprise under the Ministry of Climate and Energy with Approx. 500 employees Owns and operates the motorways of electricity and gas The consumers contribute to our activities via tariffs on their electricity and gas bills We are responsible for the general short-term and long-term security of electricity and gas supply We plan and expand the Danish electricity and gas systems, and ensure the preparedness of the energy sector We ensure well-functioning competition on the electricity and gas markets We support research, development and demonstration of new electricity technologies, including fuel cells and electrolyzers. Kastrup kbst. H. C. Ørsted C. H. Værket Amagerværket 60 kV Bellahøj kbst Svanemølleværket Amager kbst Sverige Kriegers Flak Grønnegård Glentegård Sverige 1.900 MW 1.900 Allerødgård Gørløsegård Teglstrupgård Avedøreværket Stasevang Vigerslev kbst Mosedegård Karlstrup København Jersie Ejbygård 600 MW Tyskland gård

Borup V Lindevang

V Bjæverskov Spanager k k Brøndby- 0 kV 50 ntek 5 2 Ko Bagsværdgård / 3 Blangslev

Flaskegård 2 1 Haslev 3 Masnedøværket 1 Fensmark Valseværket Hovegård Ishøj gård Hareskovgård Kamstrup Dyregård Ostedgård Vejleå Måløvgård

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Ballerupgård 3 1 Radsted Ringsted Sperrestrupgård Næstved Herlufmagle Kirkeskovgård Rødby Sverige 740 MW Torslunde Anholt

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Asnæs- K Kalundborg Svendborg Odense Sydøst Odense Fraugde Mesballe Studstrup- værket Starbakke Fynsværket Dybvad Nordjyllandsværket Vester Hassing Mollerup Mårslet Hasle Moselund Høskov Vendsysselværket Ålborg Øst Hornbæk Kærbybro Malling Graderup Tinghøj Abildskov Ferslev Kingstrup Trige Sønderborg Hatting Bredkær Ryttergård Ådalen Tjele Tange Skansen Hørning Tyrstrup Knabberup Skærbæk- værket Nibstrup Landerupgård Enstedværket Bjørnholt Magstrup Håndværkervej Hvorupgård drup Mosbæk Bram- Thyregod Askær Fredensdal Loldrup Tyskland 1.200 MW 1.200

ak Andst rr Vilsted Jammerbugten

e Herning ag Kassø Sk Bilstrup Ribe Sdr. Felding Holsted Norge Revsing Klim Fjordholme Endrup 1.000 MW 1.000 Bredebro Frøstrup Nors Struer vej Estrup- Videbæk Lykkegård Idomlund Stovstrup Bedsted Karlsgårde A visinary Danish Energy policy: + 3.000 MW wind power i 2025 (~ +50%) Installed capacity in DK 2009: 13.118 MW Yearly electricity consumption: 36,6 TWh Horns Rev Ringkøbing Fjord Electricity in - the challenges… - lots to few from from monopoly to market - Integration of additional 3,000 MW wind power National goals: EU goal for Denmark: •additional 1.300 MW wind by 2011 •30 pct RE in the energy system •additional 3.000 MW wind by 2025 by 2020

Today + 3,000 Today MW

Wind Minimum controllable power Consumption power generation

Denmark must utilise domestic resources and trade with neighbours Security of supply maintained - the value of wind power maximised Power balancing and stability in power system

Short term Medium term Long Flexibility in power system term ƒ Extension of exchange ƒ Geografical spread of ƒ Storage in hydrogen Primary focus connections offshore wind ƒ Compressed Air balancing of Hydropower ƒ Reinforcement/extension ƒ Flexible power Energy Storage electricity in of existing grid consumption the grid ƒ Storage in batteries ƒ Down Hydrogen/CAESregulation of ƒ Flexible power production when negative production spot prices Central heat pumps ƒ Heat pumps on local ƒ Heat pumps in ƒ Use of (electrolysis) Primary focus CHPs EV households hydrogen in the integration of transport sector RE electricity ƒ Electric cars in other ƒ Use of (electrolysis) ƒ ImmersionIndividual heaters heat on ƒ Plug-in sectors pumps hydrogen in the gas local CHPs hybrids grid Seconds00,2 Minutes 0,4 Hours 0,6 Days 0,8 Weeks Months 1 1,2

ƒ A need for a market that addresses the need for balancing the power system together with the other energy systems

ƒ Fuel Cells and Electrolyzers can play a key role in this market

ƒ 50 pct. wind power requires both strong exchange connections and a range of domestic instruments Mobilization of distributed resources

•Avoid overflow of 90 GWh/year in 2025 in a system with 6700 MW wind power (~50%) •Improve security of supply •Improve the socio-economy UPS •Reduce need for reinforcements µCHP FCV of distribution grid •Reduce the need for regulating power

Future needs •The energy efficient, flexible, and socio-economic solutions should be promoted – could be fuel cells and electrolyzers! •Standards for intelligent communication should be developed •Intelligent metering is a requirement