During the pending repair of intersystem power link connecting the Lithuanian and Swedish power transmission systems NordBalt, electricity reserve services (the so called “strategic reserve” services) will be provided by the Combined Cycle Unit (CCU) operated by Lietuvos Energijos Gamyba (LEG). This means that by using this modern and effective facility the company will be able to contribute to ensuring stable power supply.
The possibility to offer electrical power generated by the CCU to the market occurred after LEG obtained the approval of transmission system operator Litgrid to have tertiary active power reserve services provided by Unit 8 of Elektrėnai Complex during the repair of NordBalt. To test preparedness for activating this unit as scheduled and generate electrical power in a reliable manner, on 17 July, Litgrid initiated testing of Unit 8. The initial assessment has shown that the Unit successfully meets the technical parameters.
After the auction which was held in autumn 2017, this year, by means of the CCU (with 260 MW capacity), LEG has provided tertiary active power reserve services intended for the control of voltages in the transmission network of 330 kV and for the restoration of the secondary emergency power reserve. Meanwhile, public interest services (Lith. VIAP) – 212 MW power capacity electrical energy system reserve – has been ensured by means of Unit 8 by decision of the Government.
LEG initiated the substitution during the period of NordBalt connection repair taking into consideration the fact that with the 700 MW connection inoperative a considerable amount of electrical power from the fourth price zone (SE 4) in Sweden of the Nordic exchange Nord Pool will be unable to reach Lithuania and energy supply will reduce. The applicable laws stipulate that in case of insufficient inter-system throughput, where the full demand for the consumption of electrical power cannot be satisfied and when there are no other reliable sources for ensuring the balance between the system production or import and consumption or export, producers which ensure strategic reserve can submit proposals with regard to the sale of electrical power in the Day-Ahead electricity trading market.
”Lietuvos Energijos Gamyba seeks to make the capacity of power plants operated by it available to the market as big as possible. Having in mind the fact that the existing legal regulation allows for replacement of facilities and taking benefit from the most modern gas facility available as efficiently as possible, we have addressed the responsible authorities and the transmission system operator. After we receive their approval, we will be able to contribute more to ensuring stable energy supply,” Eglė Čiužaitė, Chair of the Board and CEO of Lietuvos Energijos Gamyba, said.
With the CCU operating, the need for funds intended for public interest services (VIAP) and allocated to LEG might possibly reduce since the share of income received from the sale of power will be used to reduce the VIAP budget and, consequently, will positively affect the rates all power consumers are charged.
The full capacity of the CCU, which during the warm season can reach up to 382 MW (max), will be offered to the market solely during the connection repair period, i.e. when inter-system throughput will be considerably limited. After the completion of NordBalt repair the units will operate the way they were operating at the beginning of the year: the CCU will ensure the tertiary active power reserve services, meanwhile, Unit 8 – the strategic reserve services funded from the VIAP budget.
It should be noted that when providing tertiary reserve services a facility can operate at the capacity which remains after the amount needed for these services is ensured. During the summer/spring season, this balance is smaller than the technological CCU minimum due to high air temperature, thus the CCU cannot generate electrical power under the market conditions.
For more details contact:
Valentas Neviera, Head of Communication Division, Lietuvos Energijos Gamyba, AB
Phone 8 670 25997, email: valentas.neviera@le.lt
