[en] Deregulation of electricity industry in Europe has tended to start with a grace period of energy surplus inherited from the previously expansive coordinated economies and further amplified by better resource utilisation from extended international trade. The regulatory challenge has therefore primarily been to allocate existing generation to consumers in an efficient way. However, as energy demand increases, due to economic growth, the challenge of providing new capacity surfaces. The Nordic region, which has been a pioneer in internationalising and deregulating electricity, is now approaching this stage, ahead of most of the rest of Europe. While the Nordic case is characterised by specificities related to hydropower it also raises the more general challenge of capacity expansion under a deregulated market economy. The article therefore discusses how the Nordic investment challenges of today shed light on more generic challenges that may become more general European challenges of tomorrow. In a final section, the article discusses policy options available to address the investment/price-hike challenge. The argument is put forward that recursion to some degree of coordinated governance might seem necessary if solutions are confined within large-scale technical systems. However, within the context of a small-scale decentralised technological development, one may be more confident of competitive solutions. (Author)

[en] The Board of the Nordic Nuclear Safety Research (NKS) decided in the autumn 2000 to contract out two separate evaluations on the NKS Programme 1998-2001. Martin Oeiby from the NorwegiOe Radiation Protection Authority was requested to perform an evaluation on overall administration of the NKS Programme. Two experts conducted the scientific evaluation. Gustaf Lowenhielm from the Swedish Nuclear Power Inspectorate was requested to assess projects on nuclear safety issues and waste management, and Raimo Mustonen from the Finnish Radiation and Nuclear Safety Authority to evaluate projects on radiation protection and nuclear emergency preparedness. This report deals with the scientific evaluation. The report contains brief review on the history of the Nordic nuclear and radiation safety co-operation and on the development of Programme for 1998-2001. Brief summaries of activities in all the projects are given, together with the main results of the projects. The evaluators give their subjective assessments on the success and effectiveness of the projects based on the evaluation criteria agreed With the NKS Board in the beginning of work. Also some general recommendations for the future co-operation are given. (au)

[en] The peak power balance in the Nordic power system is gradually turning to be very tight, especially in the electric area of southern Sweden and eastern Denmark. Power stations are closed and hardly any investments in new production are carried out. Demand response is considered essential when the formation of spot prices shall send the signal of needed investments in new capacity. Demand response which are based on individual preferences, and carried out automatically, can be one way to increase the volume of price elastic demand. Demand response need hourly metering for calculation and documentation of the decrease in demand, and controllability in order to meet the timing requirements. Within the EU SAVE project EFFLOCOM (2002 - 2004), a Danish demand response pilot project was established in 2003 including 25 single family homes with direct electrical heating. The system has been tested during the winter 2003/2004. The tested technologies include hourly metering, communication by GRPS as well as the Internet. GPRS is used for daily remote meter reading and automatic control of the electric heating including individual control of up to five zones. The system is designed for automatic activation when the Nord Pool hourly Elspot prices exceed preset levels. The system can also be used as regulating power. The EFFLOCOM Web Bite includes an interactive demonstrator of the system. The developed customer Web Bite is including the services: 1) Access to setting the limits for the maximum duration of interruption for up to five different control zones for two periods of the day and for three price levels. 2) Access to stop an actual interruption. 3) A report on the hourly, daily, weekly and monthly use of electricity and the saved bonus by demand response control. The report is updated daily. The goals of up to 5 kW controlled per house were fulfilled. Besides the demand response bonus the customers have also saved electricity. A customer survey did show that the customers wanted to continue with the system. The Danish TSO's have decided to continue the pilot in the winter 2004/2005 including some new features. (au)

[en] Demand-side flexibility and demand response to high prices are prerequisites for the proper functioning of the Nordic power market. If the consumers are unwilling to respond to high prices, the market may fail the clearing, and this may result in unwanted forced demand disconnections. Being the TSO of Western Denmark, Eltra is responsible of both security of supply and the design of the power market within its area. On this basis, Eltra has developed a new mathematical model tool for analysing the Nordic wholesale market. The model is named MARS (MARket Simulation). The model is able to handle hydropower and thermal production, nuclear power and wind power. Production, demand and exchanges modelled on an hourly basis are new important features of the model. The model uses the same principles as Nord Pool (The Nordic Power Exchange), including the division of the Nordic countries into price areas. On the demand side, price elasticity is taken into account and described by a Cobb-Douglas function. Apart from simulating perfect competition markets, particular attention has been given to modelling imperfect market conditions, i.e. exercise of market power on the supply side. Market power is simulated by using game theory, including the Nash equilibrium concept. The paper gives a short description of the MARS model. Besides, focus is on the application of the model in order to illustrate the importance of demand response in the Nordic market. Simulations with different values of demand elasticity are compared. Calculations are carried out for perfect competition and for the situation in which market power is exercised by the large power producers in the Nordic countries (oligopoly). (au)

[en] The Nordic market fits well into place as a regional market in the over all European development, and it is therefore necessary to change the perspectives from a national one to a common Nordic approach. Despite the fact that the Nordic market is seen as a success, significant further improvements for customers and society can be made through deeper Nordic integration. The ongoing work on the Nordic electricity market within the Nordic Council of Ministers is therefore very welcomed and the Nordel report 'Enhancing Efficient Functioning of the Nordic Electricity Market' constitutes a good basis material for the further development of the market. There is a need to accelerate the pace of the harmonisation process, by making a clear timetable and prioritisation for the further work. Key issues for the next step are: Harmonisation of the legal framework and hence intensified co-operation among the Nordic governments; Implementation of the five known transmission investments, including a cost-benefit analysis; A more precise definition of the TSO responsibilities and core businesses, including operational reserves a prerequisite for further work on, e.g. the peak load issue; Initiation of cost-benefit analysis concerning future transmission investments; Guaranteed cross border capacity for market players; An analysis on settlement of imbalances and how this is affecting the peak load issue

[en] Results of the first studies specifically dedicated to the impact of climate change on the thermal behaviour of buildings in Portugal are discussed within this paper. A top-down econometric/statistical analysis was attempted in order to correlate fluctuations of temperature and energy consumption in the residential and services sectors, but the results were not conclusive. A bottom-up numerical thermal simulation of representative buildings for various regions of Portugal was more successful. Unlike most studies for northern countries, it is predicted that the energy demand for space conditioning in Portugal would greatly increase by the end of the twenty-first century, assuming fixed characteristics of the building sectors. The heating season is shorter and the heating thermal load reduced (with HadCM3 model scenarios, less 250-410 kWh for residences, less 5-7 kWh/m² for offices), but these economies are offset by an extended cooling season and large increases of the cooling thermal loads (additional 500-880 kWh for residences, 19-24 kWh/m² for offices). Higher resolution studies using HadRM data resulted in yet more serious climate change impacts. (Author)

[en] A statement of nuclear incidents at nuclear installations in Britain during the first quarter of 2001 is published today by the Health and Safety Executive. It covers the period 1 January to 31 March 2001. The statement is published under arrangements that came into effect from the first quarter of 1993, derived from the Health and Safety Commission's powers under section 11 of the Health and Safety at Work, etc. Act 1974

[en] The risk of terrorism in the UK is not new, but since the New York World Trade Centre attacks in 2001, the potential scale of any terrorist attack has required a considerable reassessment. With UK foreign policy closely aligned to that of the USA, the UK security services now consider it is simply a matter of when and no longer if the UK is attacked. For insurers of any type this fact would cause concern; for insurers involved in high profile and potentially catastrophic loss targets such as nuclear power plants, any attack could have a severe impact on solvency and shareholder's funds. This paper's objective is to describe the terrorism insurance arrangements put in place in the U.K. both before and after the September 2001 attacks. These arrangements have been designed both to safeguard insurers' solvency and to ensure that the nuclear industry and general public can continue to be reassured by the availability of insurance should an attack ever occur.(author)

[en] The article gives a short survey of the Scandinavian energy policies and the quota trade in connection with the opening of the power exchange Nord Pool

[en] Capacity Subscription (CS) implies that consumers buy (subscribe to) a certain amount of capacity. Their demand is limited to this capacity when the total power system is short of capacity and the System Operator activates controllable Load Limiting Devices (LLDs). The objective is to maintain system security by avoiding involuntary load shedding. The report describes a market design with CS. As a case study, an analysis is made of the changes in the market design of the Nordic system that would be necessary to implement CS. First the present Nordic market design is described. Focus is on the various market participants, their roles within various time horizons and their interactions. So it is described how CS works, why it works and what is necessary to make it work. Subsequently the necessary changes in the Nordic market structure are described. The major changes are the installation of the LLDs, the establishment of the necessary infrastructure to control the LLDs and the rules governing their control and the establishment of a capacity market. The major rule is that the System Operator announces LLD activation when a shortage situation is expected. In the capacity market generators offer available capacity during system peak conditions, while consumers bid their need for capacity. Market participants are the same as on the spot market, while small consumers buy through retailer. Generators are obliged to offer the capacity sold on the capacity market on the spot market during LLD activation. Failure to do so results in a penalty payment. The report further discusses issues like the need for verification procedures, import and export, generation pooling, the handling of small consumers, reserves and a possible implementation path of CS. With respect to transmission constraints it is argued that market splitting can be a viable option. It is concluded that CS can be a possible solution to maintain generation adequacy, but there are some serious challenges. The most important are the establishment of the necessary infrastructure and the acceptability for especially small consumers. Implementation should be evaluated against other options like Capacity Obligation and Reliability Contracts. (author)