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ECN publication
Large-Scale Balancing with Norwegian Hydro Power in the Future European Electricity Market
Published by: Publication date:
ECN Policy Studies 28-8-2017
ECN report number: Document type:
ECN-E--17-043 ECN publication
Number of pages: Full text:
46 Download PDF  

In this study insights are gained on the impact of a future expansion of Norwegian Hydro Power. Two scenarios are analyzed for the year 2030 that differ with regard the ambition of Norway to participate in the EU power markets to balance supply and demand; Niche storage and Big Storage. In addition to the insights gained on trade flows and production, the market prices and their volatility are especially of interest to gain insight on the business case for Hydro Conventional Storage and Hydro Pumped Storage (PS) in Norway. While hydro conventional units benefit from high electricity prices, Hydro PS units benefit from high price volatility since it is both a consumer and producer of electricity. From the perspective of a hydro PS operator Niche Storage scenario is most preferred due to higher price volatility, and Big Storage is most preferred from the perspective of a hydro conventional operator due to higher electricity prices. Especially the developments in EU grid expansion are identified as important as a strong EU grid is able to accommodate fluctuations in supply and demand to a significant extent and is thus regarded as a competitor to Hydro PS in Norway.

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