Strategic reserve capacity in Finland - Peak load capacity system
The strategic reserve in Finland secures supply of electricity during situations when market based electricity production can`t cover consumption. Plants accepted to system may not be in the market during the agreement for the strategic reserve. Only income the participants get is the compensation from the strategic reserve.
The peak load capacity system is based on Finnish act 117/2011 (act on peak load capacity which secures a balance between electricity production and consumption). The system can consist of both power plants and demand side flexibility (DSF) facilities. The administrative duties of the public service prescribed by law are managed by Finextra, a subsidiary of Fingrid Oyj.
Energy Authority of Finland defines the amount of strategic reserve needed in Finland. 2007-2013 the amount was 600 MW, 2013-2015 365 MW, 2015-2017 299 MW and 2017-2020 the amount will be 729 MW.
The procurement process of the plants is based on public procurement. Energy Authority makes the decision of the power plants and DSF facilities adopted to system. The procurement decision takes into account the total economy of the system.
Based on Finnish act 117/2011, 12§ the system is financed by separate fees charged from electricity users in Finland. Finnish TSO Fingrid Oyj (Finextra) charges the money to cover the payments to power plants and DSF facilities in the system. Fees also cover the reasonable costs of Finextra and a reasonable return for the management of the peak load capacity system. The Energy Authority adopts determination of Finextra`s costs and profit.
Energy Authority adopted four power plants and two DSF facilities for the system for the period 1.7.2017-30.6.2020. The power plants in the peak load capacity system in the next period will be Naantali 1 (110 MW, Turun Seudun Energiantuotanto Oy), Naistenlahti 1 (129 MW, Tampereen Sähkölaitos Oy), Meri-Pori (308 MW, share of Fortum Power and Heat Oy) and Haapavesi (160 MW, Kanteleen Voima Oy). DSF facilities will be Suomenoja heat pump (10 MW, Fortum Power and Heat Oy) and Katri Vala heat pump plant (12 MW, Helen Oy). Annual cost will be around 13,8 million euros.
More information: Senior Engineer Ville Väre, ville.vare[at]energiavirasto.fi
Documents about strategic reserve period 2017-2020
Pöyry's summary: Study on the amount of peak load capacity for 2017-2020
Documents about strategic reserve period 2015-2017