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Fingrid Current 5 April 2017

Presentation recordings are published at: www.fingrid.fi/en/news/events

Green and light future – a roadmap for the electricity market change

Juha Hiekkala,Development Manager, Markets, Fingrid Oyj

Jyrki Uusitalo,Development Manager, Power System Operations, Fingrid Oyj

Electricity marketneeds fixing –What can we do? Feedback and conclusions

Our Shared Journey – a roadmap towards achieving a green power system

3

A snapshot of the current electricity market situation – further progress towards market-based pricing requires eliminating subsidies.

Tangible measures for promoting market-based pricing include strengthening price signals and bringing the value of flexibility into better focus.

For the most part, the snapshot was considered valid and market-based pricing was seen as a worthy goal.

Our shared journey – a roadmap towards achieving a green power system

Extensive markets

Creating regional reserve markets

Improving power transfer capacity

utilisation

Adding and improving interconnections (FI-SE)• North-South (Forest

Line)• New overland• New marine (Kvarken)

Markets are expandingEnabling free and transparent price

formation

6

Real-Time Markets

Increasing automation in

reserve utilisation, supporting faster response to rapid

changes

Increased trading opportunities close to the consumption hour

Providing new earning

opportunities for flexible resources

Improving the current balance

model– adjusting prices to reflect power system

balancing costs

15 minute trade periods match power

system properties

8

Consumer at centre stage

Encouraging demand-sidemanagement with network

tariffs and taxes

Steering consumption by providing real-time

price information of the balancing power market

Consumer at centre stage

A datahub enables new

services

Customer-oriented model

- providing electricity through integrated services

- regional retail markets

10

New solutions

Aggregation

Data security

Electric cars

Decentralised resources

Power and energy storage

systems

New challenges require new solutions

Open data

Smart grids

Real-time information exchange

12

Trading closer to the consumption

hour

Market participation by decentralised

resources

Real-time pricing utilised

Market area: the entire Baltic Sea

Region

On a Common Path