The intention is that NEPP will have a structure for research that is based both upon a number of research focus areas as well as the ongoing activities of the research projects that are part of the cluster. The structure will alsoguarantee that the programme objectives "will provide distinct syntheses based on an extensive and broad research base" and "increase the international research collaboration between the Nordic countries and the EU".

 

The research and synthesis work of the cluster can be viewed on four levels.

 

Collaboration with several other European research programmes

Fusions and assessments of syntheses, results and conclusions from several system-wide programmes in (Northern) Europe.

• The ambition is to gradually (within 1-3 years) establish a close collaboration (on both steering committee level and research level) with several international research programmes with seats in e.g. Germany, Poland, UK, the Netherlands, and, together form a joint network (a "North European Coordination Network/Group") with the aim of jointly widen the basis for results and to create joint syntheses (and also be more effective in reaching decision-makers at the EU level).

• An important initial task for the research cluster (for the steering committee and project management) will be to prepare for – and contribute to– the formation of such a network. However, the cluster should first have had time to get fully operational and to have interesting results and syntheses to share in such collaboration.

• Right from the start of the project, the cluster should contribute to the formation of research collaboration with suitable research centres onContinental Europe.

• Another important task is to ensure that the system-wide and interdisciplinary syntheses are processed based on a European research question(and not just a Swedish/Nordic one), so that synthesescan be directly used in the dialogue at the EU level.

 

Multi- and interdisciplinary syntheses of research findings from several disciplines:

The previous project of NEP and its synthesis work is an example of this.

• Through collaboration between those responsible for the synthesis work in the different subject-specific research groups all the results and subject-specific syntheses are put together into one whole, which also answers the overall research questions

• This level is also given responsibility for managing the synchronisation ("downwards") of the projects, to ensure that sufficient information is put forward to answer the research questions.

 

Syntheses of current topics/subject:

Comparative analyses and syntheses of projects and research activities within the same discipline.

• The main focus is to encourage collaboration between existing projects, and on the basis of the results from many different research projects create syntheses in the current subjects. Also part of the project is to assess the results of the projects from a systems and interdisciplinary perspective (with the North European power system's future developmentin focus).

• Usually it is part of the ongoing project commitments to do comparative studies, but the purpose of NEPP is to catalyse and strengthen these comparative analyses.

 

Projects:

Traditional research and analysis in individual subject-specific projects. The ambition is that the cluster shall include a large number of projects.

• The ambition is not to initiate new projects, but it may be necessary to carry out some additional analysis work within the sub-areas of the cluster to strengthen the basis for the syntheses. (Experiences from the previous project of NEP show that despite taking advantage of ongoing projects additions and updates are necessary).

• It may also be necessary with some reinforcement of the development of the methods and models used in the ongoing projects in order to develop tools that will be used in the synthesis work process.

 

The description of the research and synthesis in the cluster are summarised below.

Research focus area/level	Type of activity	Tasks	Volume
1	Collaboration with several other European programmes	Preparation of a North European cluster/network Initiate a North European research collaboration Form syntheses from a European perspective	Small
2	Interdisciplinary and joint syntheses for the entire cluster	Syntheses that answer overall research questions Coordination of all disciplines Responsibilities for the synchronisation of the analysis work	Large
3	Syntheses of current topics/subjects	Coordination of the research of ongoing projects To encourage comparative analyses Create syntheses of each research area	Large
4	Traditional research and analyses of individual projects	Some additional analyses may be needed as well as some enhancement of the model development in some of the ongoing projects	Sporadic

 

The following section provides some suggestions of the research focus on the different levels of research areas of NEPP.

 

 

 

 

Research focus 1 :
The development of the electricity market in the EU, Northern Europe and the Nordic countries

EU:s Climate and Energy policy and the individual countries' own ambitions in the energy sector have a strong influence on the development of the energy market and the energy system in Northern Europe. The success factors for a balanced development of the electricity market and the power system are described at an overall level. The period up to 2020 and 2030 are described with regard to the progress towards a completely fossil fuel independent power system in Europe in 2050. Research focus 1 includes:

• To show how a balanced and efficient development of the power and energy system of the Nordic region and the EU can be achieved. The project should be based on assumptions for how these changes may be realised. It will also illustrate the impact and values of the increased integration, and above all, how the political targets can be realised for the benefit of society and operators.

• To indicate success factors that may provide this balanced development. It may involve new market regulations, the selection and design of political policy instruments, choice in design and operation of the technical system, etc.

• An increased understanding of the requirements that is put on energy operators, politicians and society at large to realise these ambitions.

 

Research focus 2 :
Preparing Nordic operatos for future

There are a wide range of complex issues of great importance for the future electricity market and the development of the power system. Below, a few examples of such questions are listed. The intention with NEPP is to carry out joint syntheses with the participationand contribution of all the senior scientists that are part of the cluster.  For example:

• How are the requirements for investments in renewable electricity and nuclear power in the Nordic countries and other EU countries affected by the political goals and the selected policy instruments?

• The future need for reinforcements of the power grids in the Nordic countries to the rest of Europe

• The need for future regulation abilityof the Swedish and the Nordic power system given different scenarios. The aim is to identify what resources that could best meet this need:
– What are the opportunities in existing and future hydro-electric power, including pump storage?
– How can district heating contribute to handling intermittent power (CHP, heat pumps, electric boilers)?
– What can operators do to activate electricity consumers?
– How is the issue concerning regulation power handled in other countries with a large share of wind power?

• What are the implications for electricity export from the Nordic countries and what is required of the transmission capacity to Europe to be able to export large amounts of electricity

• The need for the design of key institutions and the regulatory framework of the electricity market. For example, how should such rules for the electricity market best be adapted to new conditions?

• The developments in electricity use, e.g. efficiency requirements that reduce electricity use and new areas such as electric vehicles that increase the use. Customer interest in as well as their opportunities for small scale production is also important.

 

Research focus 3: Synthese of each research subarea

Research focus 3 aims to provide answers to specific questions within a number of subareas. Here follows a few examples of the questions at issue.

 

3A. Development of the policy framework

In the coming years several decisions in the energy sector will be taken, both concerning the direction of the energy policy as well as the design of control measures and regulations. These changes are of significant importance to the electricity market and the development and function of the power systems development and function. It is vital that these decisions will be based on knowledge of both the short-term and long-term effects. This emphasises the need for a thorough knowledge gain with a comprehensive perspective on the future electricity market and power system. Examples of some key issues are:

• The design of control measures for renewable energy sources (and ETS) in the Nordic countries. For example:
– The choice and range of control measures (what will be the role of electricity for meeting political climate and energy goals)
– The abilities and possible extent of trading under the Renewable Directive
– Synergies with other policy measures (efficiency, CO₂, …)

• What are the options for the countries on Continental Europe in reaching their commitments under EU:s Climate and Energy policy? For example, how are the following affected:
– The willingness to purchase green certificates from the Nordic countries
– The technical capacity of the power systems to receive import of electricity

• The availability and future investments in nuclear power:
– If the existing power plants are replaced with new ones, planning must start relatively soon.
– Are nuclear power plants profitable?

• Is there a political will for a major expansion of hydro-electric power in Sweden/the Nordic countries

• What about the efficiency policy that EU has decided about in 2010? There are issues concerning for example:
– Its scope – the entire system or specific end-use sectors?
– It may have a major impact on the volume of electricity that can be exported
– What counts as efficiency measures – heat pumps, wind power, nuclear power?
– Its impacts on increased use of electricity, such as electric vehicles

 

3B. Issues related to the operation of the power system

Issues related to current and future regulation capacity of the power system are very complex and needs to be analysed in multiple time perspectives and witha thorough understanding of for example the actual regulation capacity of hydro-electric power, both with regard of permits for the use of water as well as yearly and seasonal variations.

Hydro-electric power as a regulation resource may for example be of good use in handling hourly variations. However, it is not as good when it comes to shorter periods than an hour, and in longer time frames there are other production resources that may be used for regulation. From a market's perspective it also matters whether variations in wind power generation are predictable and therefore have implications for the spot market, or if the balance market will take care of the regulation (leading to risk of increased price differentials between the spot market and balance market). Eventually, new opportunities, like consumer flexibility and smart grids, will emerge as potential measures. In the longer term, the political decisions may lead to great uncertainties and the choice of policies in both EU and the individual countries can change the future situation radically. Examples of important questions at issue are

• How large is today's need for regulation capacity of the Swedish and Nordic power systems?

• What regulation capacity exists today? What are the variations over time (daily/seasonally/yearly/dry year/wet year etc.?)

• What is the need for regulation in the future given different scenarios? How can the need for regulation in existing and future hydro-electric power be met?

• Where (geographically) will the need for regulation occur?

• How do we most effectively maintain a stable grid regarding load and frequency?

• Where is the boundary between the responsibility of the market actors and the transmission system operator?

• What are the effects of different kinds of reinforcement of the grid?

• Are there other ways to handle the need for regulation? For example, on the user/consumers? What is the time perspective for such solutions?

 

3C. Development of market regulations of the electricity market

Control measures under the Climate and Energy policy are central to the future development, but equally important is the design of the regulations that govern the electricity market and that this framework is shaped according to the new conditions that may apply. The situation in the 1990s where rather different compared to what we can expect to be the case 10 years from now. Back then, the production was predictable and could be regulated at reasonable costs. The domestic grids were strong and foreign trade limited. This meant that operators were able to handle temporary bottle-necks by using counter trade. Any particular reserve for dealing withunusually cold weather was not deemed necessary at the time. Since then, there has been a lot of changes in regulation and the development can be expected to continue to adjust the market regulations to new conditions. Examples of important questions at issue are:

• To what extent can increased consumer flexibility contribute to an improved regulating ability?

• When it comes to consumer flexibility, how can the regulation framework and economic incentives be designed in order to create economicallyrational solutions for operators involved?

• Are there any reasons for introducingmore frequent auctions on the spot market, for example every six hour, to handle the increased uncertainties associated with a greater share of intermittent power?

• What measures can be used to reduce an increased risk of balance price?

• How can the methods for evaluating the investments in the main grid be developed in order to ensure the benefit of the investments?