Nordic grids to invest $16.6 B to handle wind power boost
Norway: Norway’s Statnett , Sweden’s Svenska Kraftnat, Finland’s Fingrid and Denmark’s Energinet plan to invest more than $16.6 B (15 B euros) combined in their grids until 2028.
This investment, however, is insufficient to handle the long-term changes to the region’s electricity system, as more capacity is needed to transport power from the north.
Generation capacity in the south, where most of the region’s demand comes from, is set to decline as nuclear power plants and fossil fuel thermal units are phased out.
“The phased-out production capacity is located in the southern part of the system whereas a significant share of the wind power replacing it will be located in the more northern parts,” the grid operators said in the report.
Power will have to flow over longer distances as a result, causing congestion in the transmission grid, and will make power prices lower in the northern part, they said.
In contrast, prices in southern parts will be higher and more closely linked to continental prices.
“The analyses made for this plan indicate a long-term need and the socioeconomic benefit of both maintaining and expanding the interconnector capacity within the Nordic system,” the report said.
The operators did not detail what the new grid could cost.