Svenska Kraftnät Annual report - svk.se · Svenska Kraftnät plans, builds, operates and maintains...
Transcript of Svenska Kraftnät Annual report - svk.se · Svenska Kraftnät plans, builds, operates and maintains...
•Somewhathighertransmission:118(117)TWh
•Turnoverofthebusiness:SEK6,326(6,838)million
•Excellentfinancialresults:SEK732(676)million
•Majorinvestmentprogrammetocome
•Environmentalissuesmoreinfocus
Annual report2007
Svenska Kraftnät
HVDC
HVDC
HVDC
StenungsundKungälvGöteborg
Varberg
Falkenberg
Gnosjö
Halmstad
Ängelholm
Helsingborg
LundMalmö
Trelleborg
(220 k
V)
(220
kV)
Lübeck
Flensburg
Ringhals
Helsing-borg
Cøpen-hagen
Gothen-burg
MalmöKarlshamn
Norrköping
Oskars-hamn
HasleStavanger
BergenRjukan
Oslo
Stockholm
Enköping
Nea
Trondheim
Tunnsjødal
Umeå
Sundsvall
Røssåga Rana
MelfjordSvartisen
Salten
Ofoten
Kobbelv
Narvik
Loviisa
Olkiluoto
Tallin
HVDC
Kristiansand
Rauma
Forsmark
0 100 200 km
N
Luleå
The power transmission networkin the Nordic Countries 2008
Hydro power plant
Thermal power plant (CHP)
Transformer or switching station
400 kV line
300 kV line
Joint operation link forvoltages below 220 kV
220 kV line
Extend 2008 CableOverhead line
275 kV AC –75 km
220 kV AC 4295 km
130 kV AC 7 km
The Swedish grid, comprises mainly 220 and400 kV lines, switchyards and transformerstations and foreign links for alternating (AC)and direct current (DC).
400 kV AC 4 km10643 km
Planned/under construction
Sweden
Norway
Finland
Denmark
Rovaniemi
HelsingforsÅbo
Vasa
Tammerfors
Kemi
Uleåborg
–
HVDC (High Voltage DC) 459 km115 km
–
Viborg
Slupsk
Tekn
ikre
dakt
örer
na A
B 2
008
HVDC
HVDC
HVDC
Rostock
The Swedish Natural GasNetwork(high pressure)
Eemshaven
Box 526, SE-162 15 Vällingby. Tel Swbrd: +46 8 739 78 00. Fax: +46 8 37 84 05 Visitors: Jämtlandsgatan 99. Corp. ID. no: 202 100-4284. Website: www.svk.se
Svenska K
raftnät Annualreport2
007
Financial development
Operating income (MSEK)1 000
900
800
700
600
500
400
300
200
100
0
408
620
912
736
2003 2004 2005 2006 2007
Operating and net profit margin (%)
Operating margin Net profit margin with a deduction for tax
2003 2004 2005 2006 2007
18,0
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
Net income for the year (MSEK)1 000
900
800
700
600
500
400
300
200
100
0
291
538
880
676
2003 2004 2005 2006 2007
732
Operating revenue (MSEK)8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
5 335
5 885
6 838
2003 2004 2005 2006 2007
6 326
5 633
Operating revenue per business segment 2007
Adjusted equity (MSEK) and return on adjusted equity (%)
Adjusted Equity Return on AE
6 500 12,0
10,0
8,0
6,0
4,0
2,0
0,0
6 000 5 9116 068
6 264 6 149
5 500
5 000
4 500
4 000
3 500
3 0002003 2004 2005 2006 2007
5 946Contingency planning
4%
Network 54%
System responsibility
– electricity40%
System responsibility – natural gas
1%Telecommunications
1%Electricity certificates
0,1%
864
2007inbrief
2007 2006
Operationsduringtheyear
Energy supplied TWh 120,5 119,8
Reliabilityperformance
Number of operational disturbances
in the national grid 150 181
Number of operational disturbances
with breakdowns 5 15
Non-supplied energy MWh 13 95
Financialfacts
The Group’s operating revenue MSEK 6 326 6 838
Consolidated income MSEK 732 676
Return on adjusted equity* % 8,9 7,9
Debt/equity ratio times 0,33 0,38
Investments MSEK 596 478
* after tax equivalence, 28 %
Financial overview 2007
Picturesonthefrontpage
Motorways for electricity! Svenska Kraftnät plans, builds, operates and maintains the national grid for electricity.
Parent-friendly company! In 2007 Svenska Kraftnät was acclaimed as the country’s most parent-friendly of the companies which employ a lot of engineers.
Serving society – around the clock! The Network Control Centre is manned day and night. From here Svenska Kraftnät monitors the national grid for electricity and ensures that there is a balance between generation and demand in the electricity system, and that there is a balance in the natural gas system.
We take responsibility for the environment! Through conscious maintenance of the powerline corridors we are promoting biological diversity. The Northern Brown Argus is a butterfly species that is present in our powerline corridors, but is red-listed in several European countries.
SvenskaKraftnät,HeadOfficeBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 00 Fax: +46 8 37 84 05 Website: www.svk.se e-mail: [email protected]
SvenskaKraftnät,HalmstadBox 819 301 18 Halmstad Visitors: Kristian IV:s väg 3 Tel: +46 35 18 22 40, +46 35 18 22 30 Fax: +46 35 18 22 41, +46 35 18 22 39
SvenskaKraftnät,SollefteåNipan 51 881 52 Sollefteå Tel: +46 620 78 76 10 Fax: +46 620 121 46
SvenskaKraftnät,SundsvallBox 138 851 03 Sundsvall Visitors: Erstagatan 2 Tel: +46 60 19 57 00 Fax: +46 60 19 57 09
SvenskaKraftnät,VästeråsMelker Kontorshotell721 83 VästeråsVisitors: Kopparbergsvägen 6Tel: +46 21 32 89 87 Fax: +46 21 32 89 88
SvenskaKraftnät,ÅsbroTrainingCentre690 45 Åsbro Tel: +46 582 838 00 Fax: +46 582 512 10
ElforskAB101 53 Stockholm Tel: +46 8 677 25 30 Fax: +46 8 677 25 35 Website: www.elforsk.se
KraftdragarnaABSeglargatan 15 721 32 Västerås Tel: +46 21 17 04 80 Fax: +46 21 17 04 85 Website: www.kraftdragarna.se
NordPoolASAP.b. 373 NO-1326 Lysaker, NorwayTel: +47 67 52 80 00 Fax: +47 67 52 80 01 Website: www.nordpool.com
NordPoolSpotASP.b. 373 NO-1326 Lysaker, NorwayTel: +47 67 52 80 10 Fax: +47 67 52 80 01
STRIABBox 707 771 80 Ludvika Tel: +46 240 795 00 Fax: +46 240 150 29 Website: www.stri.se
SvenskaKraftnätGasturbinerABBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 00 Fax: +46 8 37 84 05
SwePolLinkABBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 46 Fax: +46 8 37 50 39 Website: www.swepollink.se
TriangelbolagetD4ABBox 26237 21 Bjärred Tel: +46 705 29 28 11 Fax: +46 46 29 28 11 Website: www.triangelbolaget.se
Addresses
Editor: Johnny NorlingDesign & production of printed matter: Wikströms Tryckeri, UppsalaPhoto: Håkan Flank (pages 1, 3, 7, 8, 12, 13, 17, 18, 21, 22, 23, 25, 26, 27, 29, 30, 31, 32, 34, 36, 37, 39, 43, 63, 65, 66, 68, 69, 70, 73, 74, 76, 77). Johnny Norling (pages 5, 33, 34, 70, 78, 83). Jan Bergsten (butterfly, pages 1, 79). Eva Grusell (pages 71, 81). Krister Engström (page 75). Jonas Nilsson (page 46). Fortum (page 28).
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Contents
Important operational events during the past year .......... 4
A word from the chairman ............................................. 7
Director General’s statement ........................................ 8
This is Svenska kraftnät ............................................. 10
Svenska Kraftnät’s values .......................................... 11
The Svenska Kraftnät Group ....................................... 12
Svenska Kraftnät’s stakeholders ................................. 14
Report of the Board of Directors 2007 ......................... 15
Business segments .................................................... 20
Associated companies ................................................ 29
Research and development ......................................... 30
Nordic and European cooperation ................................ 31
Environment .............................................................. 33
Employees ................................................................. 35
Incentive programme 2007 ......................................... 38
Governance for the Group ........................................... 38
The Board of Directors and its work ............................. 39
Svenska Kraftnät’s internal controls ............................ 39
Financial reports ........................................................ 40
Income statements – the Group ................................................40
Balance sheet – the Group .......................................................42
Cash flow statements – the Group ............................................44
Change in equity – the Group ....................................................45
Income statements – Parent Entity ............................................47
Balance sheets – Parent Entity .................................................48
Cash flow statements – Parent Entity ........................................50
Change in equity – Parent Entity ................................................50
Seven year review for the Group ................................................51
Additional information and notes ................................. 52
Proposed disposition of earnings ................................. 62
Auditor’s report .......................................................... 62
The Board of Directors ............................................... 63
Wind power – a challenge for Svenska Kraftnät............. 64
The Nordic national grid is being expanded .................. 66
Twenty four hours in our control room .......................... 68
We are making ourselves more attractive ..................... 72
New features in the natural gas sector ......................... 74
Environment and sustainability .................................... 76
Power industry terms.................................................. 82
Definitions ................................................................. 82
Addresses ................................................................. 83
Serving society – around the clock! The Network Control Centre is manned day and night. From here Svenska Kraftnät monitors the national grid for electricity
and ensures that there is a balance between generation and demand in the electricity system, and that there is a balance in the natural gas system.
�
Important operational events during the past year
January• Theoperationalsituationduringthe
ChristmasandNewYearholidayswascalmafterastrainedperiodintheweekbeforeChristmaswhenthreenuclearserviceblocksaswellasFenno-Skan,thesubmarinecabletoFinland,wereoutofservice.Thisresultedinaheavystrainonthenationalgridanditwasnecessarytoengageinextensivecountertrading.
• AfterNewYearalmostallnuclearpowerblockswerebackinproductionagain.Fenno-SkanwasstillnotoperationalandKontek,thesubmarinecablebetweenZea-landandGermany,wasoutofservicefromNewYear’sEveandforacoupleofmonthsafterwardsasitwasdamagedbyananchor.
• OlaAlterå,UndersecretaryofStateattheMinistryofIndustry,EmploymentandCommunications,visitedSvenskaKraftnäton9Januarytogainaninsightintoouroperationsandcurrentissues,includingtheSouthernLink,thepeakpowersitua-tion,theStockholmsStrömproject,envi-ronmentalissuesandtheNordicelectricitymarket.
• OnSunday1�JanuaryaseverestormhitSouthernandCentralSweden.Some275,000householdswerewithoutpowerintheeveningandmanyofthemweredisconnectedforaweek.Inaddition60–70,000householdshadnotelephoneconnectionandalmostalltrainservicesinWestSwedenwerecancelled.Thena-tionalgridwasnotaffectedbythestorm.However,afterthestormSvenskaKraftnätwasabletoplaceitsmaintenancestaffandequipmentatthedisposalofeffortstorestoretheregionalandlocalnetworks.
February• DuringthefirstweeksofFebruarythere
wasamaximumshortfallof2,700MWofnuclearpower,asseveralblocksinRing-halsandForsmarkwereoutofoperation.Atthesametimetherewascoldweatherandahighlevelofconsumption.This
resultedinhighelectricitypricesonthespotmarket,peakingat1,�00SEK/MWh.However,afterrepairworkitwaspossibletoconnectFenno-Skaninthemiddleofthefollowingmonth.
• OnWednesday21Februarybetween18.00and19.00lastyear’shighestcon-sumptionof26,�00MWwasequalledinSweden.Itwaspossibletomanagetheoperationalsituationbyactivatinggenera-tion,whichincludedthepowerreservethathadbeenprocured,inordertodealwiththenetworklimitationsbymeansofcountertrading.Amongotherthings,thisresultedinveryhighoperatingexpensesduringthemonth.
• SvenskaKraftnät’sBoardhelditsfirstmeetingoftheyearon22February.Amongotherthings,anumberofinvest-mentsinpowerlinesandstationswereauthorized.BeforethemeetingaseminarwasheldfortheBoardontheresultsoftheinvestigationregardingatechnicalsolutionfortheSouthernLink.
March• SvenskaKraftnät’sannualcustomerand
stakeholderdaywasheldon22March,providinganaccountofthepastyear.Thisyeartherewerealsopresentationsofthemajorexpansiontothenationalgridandhowwearedealingwiththegreenhousegassulphurhexafluoride(SF
6)whichis
usedinourcircuitbreakersandotherequipment.InadditionSvenskaKraftnät’senvironmentalprizewasawardedforthefirsttime.TheprizewassharedbetweenABBforthedevelopmentoftheCom-binedcircuit-breaker,andthebutterflyexpertIngemarFrycklundforhisworkwithendangeredspeciesinsitesincludingSvenskaKraftnät’spowerlinecorridors.
• Astheperiodofhisappointmentcametoanend,JanMagnussonleftSvenskaKraft-näton�1MarchafternineyearsasDirec-torGeneral.MrMagnussonhadbeenwith
SvenskaKraftnätfromthestart,initiallyin1991astheGovernment’sinvestigatorinadvanceofsettingupSvenskaKraftnät,thenasDeputyDirectorGeneralandDirectorGeneral.WhilewaitingfortheappointmentofanewDirectorGeneral,StureLarssonhasactedasinterimDirectorGeneral.
April• Afeasibilitystudyonaconnectionbe-
tweenLithuaniaandSwedenwasinitiatedinconjunctionwithLithuania’snationalgridcompany,LietuvosEnergija.SvenskaKraftnäthasalsobeencontactedregardingproposalsfornewcableconnectionswithLatvia,EstoniaandRussia.
• TheSwedishAssociationofGraduateEngineers(previously“Civilingenjörsför-bundet”)acclaimedSvenskaKraftnätas”Sweden’smostparent-friendlycompany”forengineers.
May• Inspring2006SvenskaKraftnätsubmit-
tedareporttotheGovernmentwiththeproposalthatactorsintheelectricitymar-ketshouldtakeoverresponsibilityforthepeakpowerreservefromSvenskaKraftnätwhenthecurrentActceasestoapplyin2008.InMaytheCompetitionAuthoritydisapprovedtheformationofsuchajointbodyfortheindustry.Insteaditwasre-commendedthatSvenskaKraftnätbegivencontinuedresponsibilityforprocurementuntilamarketsolutioncanbeputinplace.TheEnergyMarketInspectorate,whichpreviouslysupportedSvenskaKraftnät’sproposal,hasnowmadeastatementtotheGovernmentsuggestingthattheTempo-raryPowerReserveActshouldbeextendedbythreeyears.
• AtthemeetingofSvenskaKraftnät’sBoardon21MaydecisionsweretakenoninvestmentsinSödraSandbyandBorgvik.However,nodecisionwastakenonthe
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SouthernLink.TheBoardobservedthatithassufficientdatatomakeadecision,butthattheconsequencesofthedecisionarefar-reachingandthatthemattershouldconsequentlybedealtwithbyanewDirectorGeneral.
• On22May,theannualinformationdaywasheldforbalanceproviders.Amongotherthings,forthcomingchangesintheproposalforbalanceagreementsforelectricityfor2008(i.e.from1Novem-ber2007andoneyearforward)werepresented.
• TheissueofdealingwithcongestionisthesubjectofextensivediscussionsintheNordiccollaboration.TheSwedishstudyonpriceareasintheelectricitymarket,theso-calledPompeStudy,wassubmittedtotheNordicCouncilofMinistersonthelastdayofMay.ThestudywascarriedoutincollaborationbetweenSvenskaKraftnät,theElectricityMarketsInspectorate,Swe-denergyandtheConfederationofSwedishEnterprise.Theconclusionisthattheaimshouldbetohavethesmallestpossiblenumberofpriceareasthatareaslarge
aspossible.ThestudyproposesthattheNordicCouncilofMinisters,NordelorNordREGtakestheinitiativetotryoutacross-borderpriceareabetweentheNordichydro-andthermalpowerareasinordertoachievemoremarketintegration,effectiveutilizationofresources,healthycompeti-tionandamoreefficientlyfunctioningelectricitymarket.
June• SvenskaKraftnätreportsonthetaskof
clarifyingthepreconditionsforandtheconsequencesofintroducingpriorityac-cessforwindpowertothenationalgrid,andalsoofanalysingpossiblewaysofintegratingalarge-scaleexpansionofwindpowerintothebalanceregulationandshowinghowadditionalrequirementsforregulationresourcesaretobedealtwith.SvenskaKraftnät’sreport”Large-scaleexpansionofwindpower–someprecon-ditionsandconsequences”observesthatitistheissuesconcerningconnectiontothenetworkthatareimportantinrelationtoalarge-scaleexpansionofwindpower.The
reportsetsoutchangestothecustomarypracticeforpermissiontoconnectplantsforelectricitygenerationtothenationalgrid,inordertofacilitatetheexpansionofwindpower.Theexpansionofwindpowerwillplaceincreaseddemandsonthecapac-itytoregulatethebalancebetweensupplyandconsumptionofelectricity.Providedthatcurrentaccesstoregulatoryresourcesarenotreduced,SvenskaKraftnätconsid-ersthatanexpansionofapprox.10TWhcanbehandled.ContinuedexpansioninNorthernEuropeasawholewillhoweverplacefurtherdemandsontheregulatorycapacity.
• Procurementdecisionswereannouncedtothoseplantownerswhotookpartinthisyear´sbiddingforthepeakpowerreserve.Thepeakpowerreserveconsistsofatotalofjustunder2,000MW,�00MWofwhichcomprisesreductioninconsump-tion.Tenderswereevaluatedonthebasisofpriceandendurance.Itisinterestingtonotethatthepriceofthereservehasfalleneveryyear.ThetotalfixedannualcostisnowaroundSEK118million.
On 21 September the first spade entered the ground in the Uppsala ström project, which will provide Uppsala with a more secure electricity supply and more
opportunities to expand. The project is a collaboration between Svenska Kraftnät, Vattenfall Eldistribution and Uppsala municipality. The electricity network is being
expanded and will have more supply points, which will increase security of supply.
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• Theperiod16June–10Augustwascharacterisedbyextensiveworkinvolvinginterruptions,inturn,toallpowerlinestotheHorredstationinconnectionwiththeinstallationofanew,morereliableswitch-yard.ThisledtoreducedtradingcapacitytemporarilywithEastDenmark,GermanyandPolandforexportandimport.Theworkwasprecededbycarefulanalysesinordertoavoidthemarketbeingunneces-sarilyaffected.
• On20JuneSvenskaKraftnät’sdemon-strationareaforbiologicaldiversitywasopenedinpowerlinecorridorsnorth-eastofUppsala.Duringtheinaugurationpartici-pantswereabletoviewalargenumberofthespeciestypicaltomeadowandpasture-landthataretobefoundinthearea.
• On5JuneSvenskaKraftnättookthedecisiontopostponetheworkofconvert-ingtheswitchyardinStrömma,asthecontractors’staffwereexperiencingavarietyofhealthproblems.Atotalofsome15personsareworkingontheconversion.Duringthestoppageanalysesofcondi-tionsatthesitewerecarriedout,includingdrinking-water,groundradon,electricalandmagneticfields,low-frequencysoundandinfrasound.Occupationalmedicinesurveysandmedicalexaminationshavealsobeencarriedout.However,noexpla-nationforthehealthproblemshasthussofarbeendiscovered.Inconsultationwiththecontractorsonsite,SvenskaKraftnätconsequentlydecidedtoresumeworkinearlyAugust.Anumberofprecautionarymeasuresweretakentoreducetheriskoftheproblemsreoccuring.ForSvenskaKraftnät,whichorderedtheworksinStrömma,theproblemsareuniqueandhaveneveroccurredwithsimilarworkinotherswitchyards.
August• On�0AugustSvenskaKraftnät’sBoard
decidedthatthenationalgridtarifffor2008shouldbeunchangedincomparisonwith2007.OtherdecisionsincludedanewstationoutsideGävleandinterimdecisionswithintheStockholmsStrömproject.
September• Closeto200peoplefromtheelectricity
industrypractisedcrisiscommunications
inconnectionwithamockstormon18–19SeptemberinLjungbyandVäxjöinanexercisecalledSamvete07.ItwasajointeventbetweenSvenskaKraftnätandSwedenergyanditsmembercompanies.Regularexercisesofthistypeareimpor-tant.Theelectricityindustrymustbepreparedatalltimesincasetheseunlikelyeventsdoneverthelessoccur.
October• Thesystemmonitoringagreementthat
wasineffectbetweenSvenskaKraftnätandE.ONGasSverigeABceasedtoapplyin�0September2007.AfteraprocurementprocedureanewagreementwasconcludedwithSwedegasAB.Theagreementappliesfrom1October2007to�0September2009.TheagreementmeansthatSwedegasABwillsupportSvenskaKraftnätbymonitoringpressureandflowsinmeasuringandregulatingstations,certaincalculations,andalsobyprovidingadvice.
• On1–�OctoberSvenskaKraftnätarrangedseminarsfortheelectricityindustryintheÅsbrotrainingcentreunderthename”Kraftsamling2007”.Theseminarsconcernedwhatthenetworkcompaniesaredoingtomanagethe2�-hourrequirement,andwhichroleandresponsibilitySvenskaKraftnäthasastheauthorityforelectricitycontingencyplanning.Therewasalsoapresentationofwhatassistanceandresourcesareavailablenationallyandinternationallyintheeventofseveredisruptionstoelectricitysupply.
November• On8–9November2007therewasasevere
disturbancetotheDanishandSwedishnaturalgassystem.ProductionofnaturalgasontheDanishplatformsintheNorthSeawascompletelyorpartiallyshutdownforaperiodofapproximately2�hours,whichmeantthatsupplytotheDanishnaturalgassystemwascutduringthesameperiod.Thereasonforthestoppagewasstormyweatherthatcausedwavesinexcessofthecriticallevelsfortheplatforms.Energinet.dkdeclaredastateofemergencyfortheDanishnaturalgasmarket,whichmeantthatspecialrulescameintoeffectfortheDanishnaturalgassystem.ThisisthefirstoccasiononwhichacriticalstopinsupplyfromtheNorthSeatothe
DanishandSwedishnaturalgassystemshasoccurred.Astheproductionshut-downwasimplementedwithsomehoursadvancenotice,itwaspossibletopreparetheDanishandSwedishsystemforthesituation.WithintheframeworkofthecollaborationbetweenSvenskaKraftnätandEnerginet.dk,itwaspossibletoraisethepressureinadvanceofthestoppagebyimportinggasoverandabovethetradingparties’importlevels.Thelevelofpressurecouldtherebybemaintainedevenduringthecriticalperiod.SvenskaKraftnätdidnottakeanyfurthermeasureswithintheframeworkofitsresponsibilityformain-tainingthesystembalance.
• Lithuania’spresidentvisitedSvenskaKraftnätonWednesday1�NovemberinconnectionwithdiscussionsonaDClinkbetweenLithuaniaandSweden.
• ThetimetableforthenewDClinkbe-tweenSwedenandFinland,Fenno-Skan2,hastobechangedearlyinNovember.Commercialoperationsarenotnowexpectedtostartbefore�0November2011.Thereasonforthedelayisproblemsingettingthesubmarinecabledeliveredatthetimescheduled.
• AtSvenskaKraftnät’sBoardMeetingon21NovemberinterimdecisionsweretakenwithregardtotheprojectstoboostsupplytoUppsalaandLidingö.TheproposaltomoveoperationsattheheadofficefromRåckstatoanalternativelocationwasalsoapproved.On22DecemberacontractwassignedwithSkanskaregardingnewpremisesinSundbyberg.
December• On21Decemberitwasannouncedthat
OMXwastobuytheelectricityexchangeNordPoolASA’sclearingoperation,internationalderivativesbusinessanditsconsultancycompany.SvenskaKraftnätandStanettinNorwayeachown50%ofNordPoolASA.TradeinNordicfinancialelectricityderivativesremainunderNordPoolASA,asdoestradeintheelectricityspotmarketunderthecompanyNordPoolSpot.ThistransactionenablesthenationalgridcompaniesSvenskaKraftnätandStatnetttofocustheirownershiponthosesectionsthatareimportantfortheNordicelectricitymarket’scoreareas.
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ItisclearthatSvenskaKraftnäthasnowenteredaperiodofchange.
Asinthepast,itisimportantthatSvenskaKraftnätcontinuestofurtherimprovethereliabilityinthenationalgrid,andsupportdevelopmentsintheNordicelectricitymar-ket.DuringtheyearEuropeanpoliciesonenergyandenvironmenthaveincreasinglycometocharacterizethepreconditionsfortheoperation,sothatitconstitutesabroaderframingofthesegoals.Atthesametimeitclarifiesthatthesubstantialfocusondealingwithclimatedevelopmentwillneedtoleadtoatangibleshiftinenergysupply.ItisnaturalthatSvenskaKraftnätshouldsupportthisde-velopmentinitsoperations.Thesefutureper-spectivesweredealtwithataspecialstrategymeetingoftheBoardinOctober.
Investmentactivitieshavecontinuedtoexpand.Inafewyearstheywillreachalevelapproximately�timesashighaswasthecasesomeyearsago.TheinvestmentprojectinvolvestheentirespectrumfromthelargeNordicreinforcementprojects,reconstruc-tionsofentirestationstolargeandsmallreinvestments.Forexample,renewalsofanumberofpowerlinesareunderwaytoensuretheiravailabilityforalongtimetocome.Inaddition,substantialinvestmentsarebe-ingmadeinneworupgradedIT-systemsthatarenecessaryassupportforoperationssuchassystemsforoperationalmonitoring,settlementetc.DuringtheyeartheBoardhasmadeseveraldecisionswithintheseareas.
StockholmsStröm,whichinvolvesare-
structuringoftheelectricitysupplytothecapitalregion,comprisesalargenumberofsubprojects,someofwhichhavealreadycommencedafterauthorisationfromtheBoard.ThesameappliesfortheelectricitysupplytoUppsala.
ItisparticularlysatisfyingthattheBoardhasbeenabletoarriveataprincipaldecisioninrelationtotheprotractedissueofchoiceoftechnologyfortheSouthernLink.Bycon-sideringthisreinforcementintheperspectiveofthefutureenvironmentaladaptions,withanincreasingneedfortransmissioncapacity,theexpandedSouth-WesternLinkprojectemergesasanaturalsolution.ItalsomeansthatanumberofreinforcementrequirementsinWestSwedenandSouth-EastNorwaycanbedealtwithsimultaneously.
Managingalltheinvestmentprojectsmeansthattheorganisationisfacingamajortask.Itwillplacedemandsonexpertisewithinalargenumberoftechnicalareas,aswellaseffectiveprojectmanagement.Long-termfinancingfortheinvestmentshastobesecured.However,thechangesarenotonlyapparentintermsofthegrowingnumberofprojects.Securesupportsystemsandcommercialrelationshipsmustbefurtherdeveloped.Thestaffwillbegraduallyrejuve-nated.Alargenumberofyoungeremployeesandspecialistskillswillneedtoberecruited.Theymustallhavetheopportunitytobereceivedintotheorganisationwithasenseofcommunity,andbeabletodevelopintogoodstaffmembers,expertsormanagers.
TheBoarddecidedtorecommendthatoperationsaremovedtonewpremisesthatareentirelyourown.ItisanexpressionoftheBoard’sexpectationthatthiswillcon-tributetoSvenskaKraftnät´semergenceasamodern,competentandresponsiblecom-panybothforthepublicandforitsstaff.
Finally,itisverygratifyingthatanewDirectorGeneralhasnowbeenappointedandcantakeuphispositionfrom1March.MikaelOdenbergisjoiningSvenskaKraft-nätduringaninterestingperiodofchange,whichhewillhavetheopportunitytoinflu-enceinthefuture.
Stockholm, February 2008Sven Hulterström
A word from the chairman
Sven Hulterström, Chairman of Svenska Kraftnät’s
Board.
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Director General’s statement
Environmental responsibilityDuringthepastyearrealisationofglobalenvironmentaldevelopmentshasperme-atedtheconsciousnessofthegeneralpublic.Internationalundertakingsontryingtoturnrounddevelopmentshaveemergedinawaythathasneverhappenedbefore.InEuropetheEU,throughtheCommission,haspre-sentedfar-reachingplansfornewenergyandenvironmentalpolicies.
Atnationallevelgoalshavebeenmadeconcretethatwillentailconsiderablechangesinenergysupply.
Thisdevelopmentisincreasinglyde-mandingthatSvenskaKraftnätshouldoper-ateasaresponsiblecompanybothwithintheenvironmentalareaandwithinotherareaswhereethicalbehaviourisrequired.Whatisnowevidentisthatglobalenvironmentalconsiderationsmustbegivengreaterweightthanpreviously.Thesignificanceofthisshiftinperspectiveisnotthatthemorelocalenvi-ronmentalconsiderationsarelessimportant.Theyarestillofgreatimportanceinensuringthatthewell-beingofhumanbeings,ani-malsandplantsisnotjeopardized.However,handlingthebalancebetweenglobalandlocalenvironmentalconsiderationsbecomesincreasinglynecessary.
Transmission congestionsDespitethefactthatwinterinearly2007wasforthemostpartmild,duringsomeperiodsthetransmissionsituationwasunderpressure.ThiswasprimarilyduetoreductionsinnuclearpowerproductionatthesametimeastheFenno-SkanDClinkbetweenSwedenandFinlandwastakenoutofoperationforrepairofadamagedcable.Tolimittransmissionsonthenationalgridtosafelevelsitwasnecessarytoactivatethermalpowerproductiontoalleviatethesituation.SvenskaKraftnätincurredsubstantialcostsforthesecounter-trades.
Financingisviathenationalgridfeesthatthenationalgrid’scustomerspay.InreturntheyareofferedtheserviceofbeingabletooperatewithintheunifiedpriceareathatSwedencon-stitutes.Thepriceareacanbeenlargedprovidedthatthecustomersthatwouldbenefitfromitparticipateinpayingthecosts.
Thetransmissionnet-work,inparticularinSouthSweden,hasasubstantial,butneverthelesslimitedcapacity,thatmustnotbeexceededforreasonsofgridreliability.Itisconsequentlynotpossibletoalwaysbeabletomaintainunlimitedexportstoneighbouringcountries.Inreality,thedif-ferentmethodsthatareusedtomanagethenecessaryrestrictionsonlyentaildifferentwaysofallocatingthecoststhatappearwhentheelectricityisnotallowedtoflowfreely.AmongNordicoperators,therearedifferentopinionsregardingwhichmethodsshouldbeapplied.Fromacompetitionperspective,thevalueofmaintaininglargeareaswithacommonspotpriceisputinrelationtomoreeconomicviewthateveryresourceconflictmustbesignalledtothemarketparticipantsthroughdifferentiatedprices.
DuringtheyearSvenskaKraftnäthasbeenprimarilyworkingtoeliminatethephysicallimitationsbystrengtheningthenet-work.Thisconstitutesanessentialpartofthesubstantiallyincreasinginvestmentoperation.Tohandlethesituationbeforethereinforce-mentsareimplemented,wehaveendeav-ouredinavarietyofwaystofindsolutionstotheproblemofallocatingthecostsoftherestrictionsinareasonablewaybetweentheoperatorsconcerned.
The rise of wind powerSvenskaKraftnät’sroleinadaptingtoclimatedevelopmentisessentiallyanindirectone.Theprimarychangeswillneedtotakeplaceattheelectricitygenerationstage.Inthatcontextintensificationoftheexpansionofwindpowercomesfirst.ItisimportanttorealisethatthisdevelopmentisnotlimitedtoSweden.ThesamethingisgoingtotakeplaceinallourneighbouringcountriessothattheeffectsofdevelopingwindpowermustbeviewedattheveryleastinaNorthEuropeanperspective.Furthermore,forecastsindicateverylargevolumes,perhapsinthesameorderofmagnitudeastheexistinggen-erationcapacityintheNordicregion.
Windpowerwillbeconstructedandgen-eratedinvariouspartsofthecountry,atseaandawayfromthemajorareasofconsump-tion.Thevariationsinwindproductionmustbebalancedwithotherproductionsourcesorflexibilityontheconsumptionside.Thepreconditionforthistoworkisthatthetransmissionnetworksaresufficientlystrongandflexible.Theymustbeabletohandlethephysicalrequirementsaswellasfacilitate
Sture Larsson, acting Director General.
9
themarketmechanismsthatarenecessarytoreachanadequatelevelofefficiency.ItisSvenskaKraftnät’stasktoensurethatthenationalgridisabletomeetthesedemandsandtherebyeffectivelysupportthedevelop-mentinenergyandenvironmentalpolicies.
The South West LinkTheSouthernLinkprojectwasinitiatedinordertoreinforcethenationalgridbetweencentralandsouthernSweden.InMaytheBoarddecidedtodelaymakingadecisiononchoiceoftechnologyfortheprojectuntilanewDirectorGeneralhadbeenappointed.However,inthelightoftheexternalfactorsthathavebeenreferredto,withtimeitbe-cameevidentthatitwasincreasinglyneces-sarytoevaluatewhethertheSouthernLinkshouldbebuiltinanalternativewaytothepreviousoptions.Theconclusionwasthatthereinforcementshouldbemadeasstrongasanytechnicalsolutioncouldprovide,atareasonablecost.AtthesametimetherestrictionsintransmissioncapacitytoandfromSouthernNorwayshouldbeelimi-nated,whichisclearlysetoutbyanalyseswithinNordel.Thisopenedthedoorfortheconstructionofanewstructurewithanop-timumcombinationofnewDCtechnologyandstrengtheningoftheACnetwork.TheBoardwasinformedoftheproposalforthenewexpandedproject,theSouthWestLink,duringtheautumn,andwasabletoarriveataprincipaldecisioninJanuary2008.
The gas operationGassupplyisgraduallybeingdevelopedto-wardsanopenmarketinlinewiththeEU’smorestringentGasMarketDirective.TheSwedishmarketwasopeneduptodomesticcustomersatmid-pointintheyear.ThevulnerabilityofgassupplywasdemonstratedinNovemberwhentheonlyinputfromtheDanishplatformsintheNorthSeawasshutdownforalmost2�hoursduringastorm.However,thesituationwasresolvedbeforeanyrealshortagearose,thoughitofferedtheopportunitytotesttheemergencyproce-duresthatpertainwithinSvenskaKraftnät’ssystemresponsibilityandwithvariousotheroperators.
The peak power situationInordertofindanewsolutiontothepeakpowersituationaproposalwaspresented
duringtheyearfromtheelectricityindustryastohowthefinancingofnecessarypowerreservescouldtakeplacewithoutrequir-ingtheparticipationofSvenskaKraftnät.However,therewereobjectionstothisfromacompetitionperspective.Insteadtheout-comewasthatthetemporaryPowerReserveActwasprolongedandthatSvenskaKraftnätistoprocureresourcesforafurtherthreewintersupto2010/2011.Ifthisisnottobeapermanentsolution,adecisivedevelop-mentofcommercialincentivesandproductswhichguaranteepowerisrequiredduringthesethreeyears.
Move to new premisesImmediatelybeforetheChristmasholidaywewereabletosignthecontractforournewpremisesinSundbyberg,whichwearemovingtoinmid-2009.Movingtheoperationwilloffernewpossibilitiestocre-atemethodsofworkingandgoodinternalcommunicationsthatareneededtodealwithourimportantchallengesinthefuture.Theperiodofchangethatwearegoingthrough
meansthatitisimportanttoutilizethecrea-tivitythatcanbereleasedbymeansofsuchaprocess.SvenskaKraftnätisdependentonbeinganattractiveemployerfortheyoungergenerationsthataregoingtotakethebusi-nessforwardinthelong-term.
Excellent resultsWewereabletofinishtheyearwithfinancialresultsshowingagoodmargintotheyieldrequirementandwithstatisticsthatdisplayahighlevelofgridreliability.Thesefiguresrevealcompetentandsolidworkonthepartofourstaffinlargeandsmallprojects,de-velopmentofITsupportfortheoperation,themanagementofthenationalgridaswellastheelectricityandgassystemandalargenumberofotheractivities.ForthisIwouldliketodirectalargethankyoutoallstaff.
Stockholm, February 2008Sture Larsson
Acting Director General until 29-02-2008
The South West Link extends the Southern Link with a connection westwards to Norway. It combines high-
voltage direct current in underground cables with alternating current in overhead lines, and has double the
capacity compared with the Southern Link. Jönköping will be the new nodal point in the southern section
of the national grid.
New nodal point at
Jönköping.
A combination of two
technologies with high
capacities.
AC powerline
DC ground cable of approx. 1,200 MW
10
This is Svenska Kraftnät
SvenskaKraftnätmaintainsthenationalgridforelectricpower,whichcomprisesthecountry’s�00kVand220kVpowerlineswithstations,interconnectionswithneigh-bouringcountriesetc.WealsohavesystemresponsibilityforelectricityandnaturalgasinSweden.Ourprincipletaskistodevelopthenationalgridandtheelectricitymarketinordertomeetsociety’sneedforasecure
andeconomicelectricitysupply.Atthesametimewehavetofulfilenvironmentalrequire-mentsthataresetataveryhighlevel.
Wehaveapproximately�00employees,themajorityattheheadofficeinVällingbyinStockholm.WealsohaveofficesinSunds-vall,HalmstadandSollefteåalongwithatrainingcentreforpowerlinemechanicsinÅsbrooutsideÖrebro.Weemployafurther
coupleofhundredpeopleascontractorsforoperationandmaintenanceofthenationalgridthroughoutthecountry.In2007turno-verwasSEK6.�billion.
SvenskaKraftnäthasthreesubsidiariesandsixassociatedcompanies,thelargestofwhichisNordPool,theNordicelectricityexchange.Moreinformationisavailableonourwebsitewww.svk.se
Toprovidetransmissionofpoweronthenationalgridwellcompliancewithsecurity,efficiencyandenvironmentalrequirements.Toperformthesystemoperatorfunctionforelectricityandnaturalgascost-efficiently.
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TopromoteanopenSwedish,NordicandEuropeanmarketforelectricityandnaturalgas.Toensurearobustnationwidesupplyofelectricity.
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Organisation
Svenska Kraftnät is organised in six departments. The contingency planning staff lead the power contingency planning operation and the work on dam safety.
Svenska Kraftnät’s management
Board of Directors
Internal audit
Contingency planning staff
Management staff Law Environment Press officer R&D Stockholms Ström
Grid technology
Operation IT Market HumanResources
CorporateFinance
Contingency Planning Council
Planning Council
Electricity Market Council
Gas Market Council
Operations Council
Dam Safety Council
Our mission
11
Incooperationwiththemanagementandtheemployees,SvenskaKraftnäthasworkedoutanddeterminedwhichvaluesbestsupportourambitiontobeoneofthemostef-fectivenationalgridcompaniesintheworld.Thevaluesaresummarisedinthewords:efficiency, quality, social responsibility, spirit of cooperation and teamwork.
Efficiency:Wefocusongoodleadershipandgoodroutinesinordertodotherightthingsinacost-consciousway.
Quality: Itisextremelyimportantthatthereisahighlevelofreliabilityintheelectricitysystem.Allaspectsofourworkmustthereforebecharacterisedbygoodquality,reliabi-lityandalong-termperspective.
Social responsibility: ElectricitysupplyissoimportantandofsuchbenefittosocietythatwemustworkwithahighlevelofcommitmenttoensurethatSwedenhasenoughelectricityeverysecondoftheday.Wealsohaveanenvironmentalresponsibilitytomakesurethatourpowerlinesandstationsaredesignedinsuchawaythattheyencroachaslittleaspossibleonhumanbeingsandthecountryside.Asacentralandneutralpartyintheopenelectricitymarket,itisimportantforustotreattheoperatorsequallyandtoprovidethemwithgoodinformation.
Spirit of cooperation: Wewanttohavesatisfiedcustomersandstakeholders.Weshallbesensitivetotheirneedsandkeentohavegoodcommunicationwiththem.
Teamwork: WithinSvenskaKraftnät,wewanttohaveastrongcorporatefeelingthatischaracterisedbyopenness,clarityandconsideration.
Svenska Kraftnät’s values
12
Business segments in briefSvenskaKraftnät’soperationisdividedintothefollowingbusinesssegments:
• Network• Systemresponsibility–electricity• Telecommunications• Systemresponsibility–naturalgas• Renewableelectricitycertificates• Contingencyplanning
NetworkTheNetworksegmentcomprisestheconstruction,maintenanceandoperationofthenationalgridinSweden,whichconsistsof220kVand�00kVlineswithstationsandforeignlinksadministeredbySvenskaKraftnät,includingSwePolLink.SvenskaKraftnät’snetworkcustomers–i.e.ownersoflargeplantsconnectedtothenationalgrid,e.g.electricitygenerationfacilities,regionalnetworksandconsumptionfacilities–payforaccesstothenationalgrid,accord-ingtoapre-settariff.
Revenuealsoderivesfromcongestionrevenueandtransitcompensationforelec-tricityflowbetweentwoothercountriesviatheSwedishnationalgrid.Congestion
revenueisgeneratedwhentheNordicmarketisdividedupintodifferentpriceareasduetodemandfortransmissionbeinggreaterthanthecapacityofcross-borderinterconnectors.Therevenueisusedforin-vestmentsinincreasingcapacityandtherebyreducinglimitations.
System responsibility – electricitySystemresponsibilityforelectricityentailsSvenskaKraftnätensuringthatplantsinteractreliablywiththegridandwitheachotherandthatthereisabalancebetweenproductionandconsumptionofelectricity.Revenueandexpensesforsystemresponsi-bilityaregeneratedinrelationtotheman-agementofthebalancebetweenproductionandconsumptionofelectricity.ThisisdealtwithbySvenskaKraftnät’sBalanceService,whichismannedroundtheclock.
Telecommunications SvenskaKraftnäthasanationwidetele-communicationsnetworktomonitorandcontrolthenationalgrid,extendingfromMalmöinthesouthtoRitseminthenorth.ThehighlevelofcapacitygivesSvenskaKraftnätthepossibilityofleasingcapacitytoexternalcustomers,includingtelecomoperatorsandenergycompanies.Operating
revenueconsistspartlyofrevenuefromex-ternalcustomers,partlyofinternalrevenuefromtheNetworksegment.
System responsibility – natural gasItisSvenskaKraftnät’sresponsibilitythatthereisabalancebetweentheincomingsupplyandtheconsumptionofnaturalgasinSweden,butwedonotownthegaslines.Revenuesandexpensesforsystemresponsibilityaregeneratedinrelationtothemanagementofthebalancebetweeninputandextractionofnaturalgas.BalanceregulationisdealtwithbySvenskaKraftnät’sBalanceService.
Renewable electricity certificatesSvenskaKraftnätisresponsibleforissuingandaccountingforelectricitycertificates.TheSwedishEnergyAgencyisresponsibleforotherofficialtasks.Revenueconsistofaccountfees.
Contingency planningThecontingencyplanningoperationconsistsofelectricitypreparednessanddamsafety.Itisfinancedthroughgrants.Intermsoftheaccounts,theactivitiesareneutralforSvenskaKraftnät.
The Svenska Kraftnät Group
The Network division comprises expansion, maintenance and operation of the Swedish national grid for electricity. The network is monitored 24 hours a day from
our control centres. Contingency planning is another business segment, which also encompasses the responsibility that Svenska Kraftnät has as the authority for
dam safety in the country.
1�
SubsidiariesSwePol Link ABThetaskofthecompanyistooperateandmaintainaDClinkbetweenSwedenandPoland.Thelinkisratedat600MW.SwePolLinkABownsthepartofthelinkthatislo-catedonSwedishandinternationalterritory.
SvenskaKraftnät’sshareholdinginthecompanyis51 %,VattenfallABowns16 %andthePolishnationalgridcompanyPolskieSieciElektroenergetyczneSAowns�� %.
Group turnover in 2007: SEK 248 (232) million.
SwePolLinkPolandSp.zo.o.isawholly-ownedsubsidiaryofSwePol Link AB. ThecompanyownsthatpartoftheDClinkwhichrunsthroughPolishterritory.
Turnover in 2007: SEK 61 (58) million.Svenska Kraftnät Gasturbiner ABThecompanyiswholly-ownedbySvenskaKraftnät.Itwassetupin1999sothatSven-skaKraftnätcouldsecureresourcesinthelongtermfordealingwithdisruptionsinthepowersystem.
Turnover in 2007: SEK 73 (71) million. Svenska KraftKom ABThecompanyiswholly-ownedbySvenskaKraftnät.During2007,asin200�–2006,thecompany’soperationswereinsignificant.
Turnover in 2007: SEK 0 (0) million.
Associated companiesNord Pool ASANordPoolASAisanexchangeforfinancialtradingforoperatorsintheNordicelectricitymarket.TheheadofficeissituatedinOsloandtherearebranchofficesinStockholm,Helsinki,Fredericia,BerlinandAmsterdam.NordPoolisalsoactiveontheEuropeanmarket,forinstance,byowning17percentoftheGermanelectricityexchangeEEX.
During2007tradingonthefuturesmarketamountedto1,059.9(765.9)TWh.Clearingoperationsamountedto2,�69.2(2,160.�)TWh.
SvenskaKraftnätowns50%ofNordPoolASA.Theremaining50%isownedbyStatnettSF.Turnover in 2007: NOK 372 (327) mil-lion.
Nord Pool Spot ASThephysicaltradingexchangeinelectricity,thespotmarket,isconductedviaaseparatecompany:NordPoolSpotAS.During2007tradingamountedto290.6(2�9.9)TWh.
ThecompanyisownedbySvenskaKraft-nät,StatnettSF,NordPoolASA,FingridOyjandEnerginet.dk
Turnover in 2007: NOK 98 (96) million.
Triangelbolaget D4 ABThecompanyadministersthefibre-opticlinksbetweenStockholm,Oslo,Göteborg,MalmöandStockholmonbehalfofitspartners.Leasingrevenuegodirectlytothepartners.
ThecompanyisownedinequalsharesbySvenskaKraftnät,VattenfallAB,FortumDistributionABandTele2SydAB.
Turnover in 2007: SEK 29 (21) million.
Kraftdragarna ABTheprimarytaskofKraftdragarnaABistoprovideavailablefacilitiesonbehalfoftheownersforthetransportoftransformers,reactorsandotherheavycomponentsthatmakeuptheelectricitysupplysystem.
KraftdragarnaABcooperateswithStat-nettTransportAStofurtherstrengthenthe
levelofavailibilityforthetransportationofreplacementcomponents.
SvenskaKraftnätowns50%,VattenfallAB25%andVattenfallRegionnätAB25%ofthecompany.
Turnover in 2007: SEK 32 (32) million.
STRI ABThecompanyconductsresearchanddevelopmentwithinthefieldofelectricalpowertransmission,primarilyonbehalfofitspartners.
SvenskaKraftnätowns25%,ABBAB50 %,StatnettSF12.5%andVattenfallAB12.5%ofthecompany
Turnover in 2007: SEK 71 (64) million.
Elforsk ABElforskconductsjointoperationsinthefieldofresearchanddevelopment(R&D)onbe-halfoftheelectricalpowersectorinSweden.
SvenskaKraftnätismainlyinvolvedwith-inthoseareasthatconcernthetransmissionofelectricityandthedevelopmentoftheelec-tricitymarket.Themostimportantcentresoffocusareenvironmentalissues,maintenanceandtherenewalofplants,aswellasthepro-visionofsupportforpostgraduateprojects.
SvenskaKraftnätowns25%andthetradeassociationSwedenergyowns75%ofthecompany.
Turnover in 2007: SEK 86 (119) million.
Gas turbine power stations are important to enable operational reliability to be maintained in the event
of disruptions in the national grid. They can be started at very short notice. Olle Selin is MD of Svenska
Kraftnät’s subsidiary Svenska Kraftnät Gasturbiner AB.
1�
Electricity suppliers
Electricity network companies
Regional networks
Local networks
National grid
Electricity producers
Nord Pool, the Nordic electricity exchange
Electricity consumers
SvenskaKraftnätisastate-ownedpublicutilitythatsincebeingsetupin1992main-tainsthenationalgrid,thebackboneoftheSwedishelectricitysystem.Wealsoensurethatthereisabalancebetweenelectricityputinandextracted,sothatthefrequencyisalwayscloseto50Hz.Thisandourotheractivitiesaffectlargenumbersofpeopleandorganisations,allofwhichcanbeincludedasSvenskaKraftnät’sstakeholders.
The players in the electricity marketInitsroleasnationalgridcompanySvenskaKraftnäthasdirectcontactwithcompaniesthatownfacilitiesconnectedtothegrid,i.e.largeproductionplantsandregionalelectric-itynetworks.
Maintainingthebalancebetweengenera-tionanddemandofelectricityisconditionalonproductionbeingplannedonthebasisofforecastedconsumption.SvenskaKraftnätdoesthisincollaborationwiththebalanceproviders,whichhavetakenonfinancialresponsibilityforensuringthatthereissuf-ficientelectricityproducedtosatisfycon-sumption.Allelectricityconsumershavetohaveabalanceproviderfortheirconsump-
tion,however,inpracticetheelectricitysupplierensuresthatthereisone.Electricitysupplierscanbebalanceprovidersthem-selves,ortransfertheresponsibilitytoan-othercompany.ThelocalelectricitynetworkcompanysubmitstheconsumptionfigurestoSvenskaKraftnät,whichusesthemtocalculatewhetherthebalanceprovidershavesucceededinbalancingproductionagainstconsumption.
Companieswithsystemresponsibilityinothercountriesarealsoincludedasplayers.SvenskaKraftnätenjoysclosecooperationwiththesecompaniesinNorway,FinlandandDenmarkinoperatingtheelectricitysystemefficientlyandsafely.
Land owners and nearby residentsSvenskaKraftnätadministersapprox.15,000kmofpowerlines,andsome1�0substa-tions.Wearealsocontinuallybuildingnewfacilities.Landownersandnearbyresidentsareimportantstakeholders,andtheyaregiventheopportunitytoexpressanopinionwhenSvenskaKraftnätconvertsorbuildsnewfacilities.
The Government commissions our activitiesSvenskaKraftnät’sactivitiesareregulatedprimarilythroughaninstructionandanannualletterofgovernancethatisissuedbytheGovernment.Inconnectionwithadop-tionofthenationalbudget,Parliamentde-cidesonSvenskaKraftnät’sinvestmentsandfinancingactivities.AsapublicutilityandauthoritySvenskaKraftnätalsohasalargenumberofcontactswithotherauthorities.
A lot of other stakeholdersAbovewehaveonlymentionedasmallnumberofallourstakeholders.Examplesofotherare:municipalities,countyadminis-trativeboards,operatorsinthenaturalgasmarket,theNordPoolelectricityexchange,damowners,journalists,windpowercom-panies,universities,researchers,students,jobapplicants,ourstaff,interestorganisa-tions,suppliers,voluntaryorganisationsandfinancialinstitutions.
Svenska Kraftnät’s stakeholders
The national grid is the electricity network’s ”motorways”. The electricity produced is transmitted via the national grid to the regional networks and onward to
local networks to finally reach the electricity user. Electricity producers sell their electricity via the electricity exchange Nord Pool or to an electricity supplier, which
sells it onward to the electricity user. Electricity suppliers and electricity network companies have different roles. They are separate companies.
15
Report of the Board of Directors 2007
Group operations and structure
Operations
SvenskaKraftnät’sprincipaltasksaretoadministerandoperatethenationalgridforelectricityinSweden,includingthelinkswithneighbouringcountries,andtobetheauthorityholdingsystemresponsibil-itypursuanttotheElectricityAct,whichinvolvesbeingresponsiblefortheongoinginstantaneouselectricitybalanceandtheoveralloperationalreliabilityoftheSwedishpowersystem.
Furthermore,SvenskaKraftnätistheauthorityholdingthesystemresponsibil-ityfornaturalgasinaccordancewiththeNaturalGasActandtheauthorityresponsi-bleforcontingencyplanninginaccordancewiththePowerContingencyAct.SvenskaKraftnätalsohasofficialdutiesinconnec-tionwithdamsafety,renewableelectricitycertificatesandguaranteesoforigin.
The Group’s structure
During2007,theSvenskaKraftnätGroupconsistedofthepublicutility,threesubsidi-ariesandsixassociatedcompaniesinSwedenandNorway.ThelargestassociatedcompanyisNordPoolASAwithitsheadofficeinOslo,Norway.InDecember2007anagree-mentwasreachedonthesaleofNordPool
ASA’sclearingandconsultancyoperationstoOMXinStockholm.Thetakeoverwillbeeffectedduringthelatterhalfof2008.
Since2005thegrouphashadsixbusi-nesssegments:Network,Systemresponsibil-ityforelectricity,Telecommunications,Sys-temresponsibilityfornaturalgas,ElectricitycertificatesandContingencyplanning.
Development of the market
TotalannualproductionofelectricityinSwedenincreasedby�percentcomparedwith2006andamountedto1��.6TWh1.Totalelectricityconsumptioninthecountrywassome1�5.9TWh–adecreaseof0.�TWhcomparedwiththepreviousyear.Thedecreaseisprimarilyduetothewarmerweather.Netimportsfellto1,�(6.0)TWhasaresultofincreasedhydroelectricpowerproductionastherewasabettersupplyofwaterthanlastyear.
Thedevelopmentisstronglycharacter-isedbytransmissioncongestionsthathavearisenintheNordicmarket.Afterthecopi-ousrainfallofthesummerandautumn,thereservoirsinSouthernNorwaywerefilledtoabovethenormallevelforthetimeofyear.AsubstantialinterestinexportingelectricitytoSwedenarosewhichexceededthetrans-missioncapacitybetweenthecountries.Thisaffectedelectricitypricesandpricedifferen-tialsoccurredbetweenthetwopriceareas,primarilybetweenSouthernNorwayandthe
restoftheNordicregion.Torestricttrans-missionthepriceareamethodwasapplied,whichledtoso-calledcongestionrevenuefortheNordicnationalgridcompanies.
Duringtheyearinputtothenation-algridamountedto120.�TWh,aslightincreaseonpreviousyears.Inthefourthquarterof2007inputincreasedbysome�percentcomparedwiththeequivalentperiodlastyear.
PeakelectricityconsumptioninSwedenduringtheyearoccurredon21Februarywhen26,200MWhwasconsumedinonehour.
Financial goals
TheSvenskaKraftnätGroupshallachieveanaveragereturnonadjustedequity,follow-ingdeductionfortaxequivalence,of6%.Thereturnonadjustedequityin2007was8.9(7.9)%,whichmeansthatthegoalwasexceeded.
Thedebt/equityratiowas��(�8),whichisinlinewiththegoalofamaximumof55percent.
Thedividendpolicyisthat65%ofan-nualnetincomeforthegroupshouldbeal-locatedtotheSwedishstate.Extradividendmayalsobeallocated.
1Source:Swedenergy
16
InvestmentsmadebytheGroupduring2007amountedtoSEK596(�78)million.
Theinvestmentsaredistributedasfollows:
Alargenumberofmajorinvestmentprojectshavebeeninprogressduringtheyear.Thegoalistoconverttwoswitchyardsperyearinordertoraisegridreliabilityasmanyoftheswitchyardsareinthefinalphaseoftheirperiodofuse.Inaddition,earthwireshavebeenreplacedduetotheiradvancedage.
Examplesofsomelargeprojectsare:
AswitchyardwestofSollefteåhasbeenrebuiltatacostofSEK90(2�)millionTheinstallationcostofanewtrans-formerandtherebuildingofanewswitchyardnorth-westofSollefteåamountedtoSEK�0(5�)million
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OngoingconversionofaswitchyardeastofVarberghascostSEK�0(2)millionthisyearThecostofconvertinganotherswitch-yardnorth-eastofVarbergamountedtoSEK25(57)millionChangingearthwiresandinstallingfibre-opticcablein290kilometresofpowerlinesbetweenSollefteåandGävlecostSEK28millionDuringtheyearSEK2�millionwaspaidtoreplaceearthlineson280kilometresofpowerlinesbetweenÖstersundandMoraRenewaloftheDClinkbetweentheSwedishwestcoastandJutlandhascostSEK29(28)millionduring2007ThesubsidiarySvenskaKraftnätGas-turbinerABhascarriedoutreplacementofcontrolequipmentinthegasturbineplantsatacostofSEK21million
Ongoing investment programmeAfterthemajordisruptionthattookplaceinSeptember200�,SvenskaKraftnätdecidedtoinitiateaconversionprogrammeforthe�00kVstationsinthenationalgrid.Thisworkisunderwayandduring2007therenewalofstationsoutsideSollefteå,VarbergandForsmarkcontinued.
Anotherprojectthatwasinitiatedafterthe200�disruptionwastobuildanewpow-erlinebetweencentralandsouthernSweden,theSouthernLink.Inmid-January2008SvenskaKraftnät’sBoarddecidedtoexpandtheprojectwithabranchtoNorway,andtodoublethecapacitycomparedwithear-
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lierplans.Theexpandedproject,calledtheSouthWestLinkwillalsoremedybottlenecksinthenationalgridontheSwedishwestcoastandinlinkstoSouthernNorway.ThedecisionrepresentsastageintheprocessofbringingtheSwedishandNordicnationalgridsintolinewithEuropeanenergyanden-vironmentpolicyinthefuture.
TheSouthWestLinkwillbeconstructedinthreesections.DCtechnologywithun-dergroundcableisbeingusedfromastationinthevicinityofJönköpingandsouthtoHörbyinSkåne.ThelinktoSouthernNor-wayisplannedincooperationwithStatnett,theNorwegiannationalgridcompany,usingthesameDCtechnology.Itwillbeconnect-edatthestationoutsideJönköpingandtotheNorwegiannationalgridwestoftheOsloFjord.ProvidedthatStatnettcantakethenecessarydecisions,theywillconstructtheirsectionontheNorwegianside.Fromthesta-tionoutsideJönköpinganewACoverheadlineisbeingconstructednorthwardsouttoHallsberginNärkeinthesameoverheadlinecorridorasanexisting220kVline.Specialconsiderationwillbetakentothelocalenvi-ronmentinsensitivesections.
SvenskaKraftnätisbuildinganewDClinkbetweenSwedenandFinland(Fenno-Skan2)togetherwithFingridinFinland.ThelinkwillrunbetweenRaumainFinlandandFinnböleinGästriklandandtheplanistoputitintooperationinNovember2011.Inadditiontothesubmarinecable,thelinkincludestwonewconverterstations,70kmofanew500kVoverheadlineandanew�00kVswitchyardoutsideGävle.
Inautumn2007theSwedishgovernmentgrantedaconcessionforanew�00kVpow-erlinebetweenJärpströmmeninJämtlandandNeainNorwayatanoveralllengthof100km.Redundantsectionsoftheexisting275kVpowerlinewillbedemolishedandtheswitchyardinJärpströmmenrefurbished.
During2005SvenskaKraftnätcom-mencedaprogrammetoreplacetheoldesttypeofearthwiresontheoverheadlineswiththeaimofraisingreliabilityandper-sonalsafety.Theworkhascontinuedduring2007onthesectionMorainDalarna–GrumsinVärmland–KungälvinVästergöt-land.Theprogrammewillrunforanumberofyearstocome.
ToincreasereliabilityinthesupplytotheGöteborgarea,inconnectionwiththereconstructionoftheDClinktoDenmark,in2001SvenskaKraftnätdecidedtobuildanew�00kVoverheadlineinthecorridor
MSEK 2007 2006
Parent entity
Investments in grid 506 367 Investments in fibre-
optic cables 15 59 Other intangible
investments 36 49
Total Parent entity 557 462
SwePol Link 3 10
Svenska Kraftnät Gasturbiner AB 36 6
Total 596 478
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007
Affärsverket SwePol Link Svenska Kraftnät Gasturbiner AB
MSEK
Investments
The Group’s investments
17
forthepreviousDCpowerlinebetweenthecoastandatransformerstationnorth-eastofGöteborg.Theconcessionhasnotyetbeengranted,andworkonpermitissueshasbeenproceedingduring2007.
SvenskaKraftnätisgoingtoinstallanewsectionof�00kVoverheadlineatSödraSandbyoutsideLundtoimprovetheenviron-mentforresidents.Theworkisexpectedtobecompletedduringthelatterpartof2009.
TheaimoftheStockholmsStrömprojectistoimprovetheprovision,reliabilityandenvironmentalconditionsforStockholm’selectricitysupply.During2007decisionshavebeentakenonanumberofsub-projects.
UppsalaStrömisanotherprojectwiththeaim,amongothers,ofincreasingreli-abilityintheUppsalaarea.Implementationoftheprojectcommencedduring2006andisacollaborativeventurebetweenSvenskaKraftnät,themunicipalityofUppsalaandVattenfallEldistributionAB.
Operating revenue and income for the year
OperatingrevenuefortheGroupdecreasedbysomesevenpercentandamountedtoSEK6,�26millioncomparedwithSEK6,8�8millionlastyear.ThedecreaseisprimarilyduetolowerrevenueforbalancepowerofSEK8�1million,asaresultofthelowermarketpriceforelectricity.Conges-tionrevenueincreasedduringthethirdquarteronaccountofthewatersituationinSouthernNorwayandmitigatedthe
decreaseinrevenuesbySEK�21million.TheGroup’soperatingexpensesamount-
edtoSEK5,5�1(6,150)million.CostsforpurchaseofbalancepowerduringtheyearwereSEK8�7millionlessasaconsequenceoftheloweraverageelectricitypriceincom-parisonwithlastyear.
DepreciationofintangibleandtangibleassetsfortheGroupincreasedbySEK21million.
GroupoperatingincomeamountedtoSEK86�million,whichisSEK128millionhigherthanin2006.TheoperatingmarginfortheGroupwas1�.7%,whichis2.9per-centagepointshigherthanlastyear.
Netfinancialincome/expensefor2007amountedtoSEK-127million,whichisadeteriorationofSEK72millionincom-parisonwithlastyear.Interestexpensesincreasedprimarilyduetoindexationofthepensionliabilityinaccordancewithnewse-curitygroundsthatweredeterminedbytheNationalGovernmentEmployeePensionsBoardandhigherinterestratescomparedwith2006.
NetincomefortheyearamountedtoSEK7�2(676)million.Thenetprofitmarginwithadeductionforstandardtaxamountedto8.�percent,whichisanin-creaseof1.2percentagepointscomparedwithlastyear.
Financing
TheparententityfinancesitsoperationswithequityandloansintheNationalDebt
Office.Attheendof2007,loansamountedtoSEK�71(709)millionandliquidfundstoSEK51(59)million.SvenskaKraftnäthasavariableloanparameterwiththeNa-tionalDebtOfficethatcanbeutiliseduptoSEK1,500million.
SinceFebruary2007thesubsidiarySwe-PolLinkABhashadaloanatHandelsbank-enofSEK1,2��million.TheNationalDebtOfficehasissuedamaximumguaran-teefortheloanofSEK150million.
AtyearendborrowinginSvenskaKraft-nätGasturbinerABamountedtoSEK157million.FinancingtakesplacewithintheGroup.
Risk managementTheGroup’sriskscanbearrangedundertwocategories:operationallyrelatedandfinan-ciallyrelatedfactors.Financialriskmanage-menttakesplaceatGrouplevelinaccord-ancewiththeguidelinesthatarespecifiedintheGroupfinancepolicy.
Operational risks
SvenskaKraftnät’soperationsareofcentralimportanceforSwedishelectricitysupply.Itmustthereforeberegardedasbeingofpar-ticularsocialimportanceinboththeshortandlongterms.Operationscanbesubjectedtodisturbancesandstressesofmanydiffer-entkinds.Thesemaybearesultoftechnicalshortfallsorintentionalactionsaimedatcausingdamage.Certainfactorsmayarisesuddenlywhereasotherscanbeobservedasslowprocessesinacertaindirectionthatmaysubsequentlyhaveanegativeimpactontheoperations.Inaseparatereport,SvenskaKraftnätgivesanoverallaccountofriskandvulnerabilityanalysesinaccordancewiththeOrdinance(2006:9�2)onCrisisManage-mentandEnhancedPreparedness.
Theeverydayworkandexpertiseofitsstaffmeansthattheorganisationhassig-nificantcapacitytoassesshowrisksandvulnerabilitiesarelinkedtogether.Theworkoffurtherreinforcingthisiscontinuallyinprogress.Withincertainareasitmayneedtobeextendedthroughgreaterbusinessintel-ligenceorstrengthenedbymeansofexternalefforts.Differenttypesofcooperationarealsoconductedinnetworkforminordertogatherexperiencefromotherareas,forex-amplewithintheITsecurityarea.
Thereislittleriskofoperationaldisrup-tionsinthenationalgrid,whichwouldhave
18
seriousconsequencesforthecustomers.Thegridispowerfullystructuredwitham-plepotentialtomaintainelectricitysupplyevenduringdisturbedoperatingconditions.However,theriskofamajorpowerfailurecanneverbetotallyeliminated.SvenskaKraftnätistakingaseriesofmeasures,in-cludinganextensiveinvestmentprogramme,tofurtherincreasethereliabilityofthena-tionalgrid.
TheriskofpeakpowershortagesintheSwedishelectricitysystemhasbeenlimitedsinceSvenskaKraftnät,asaninterimmeas-ure,hasprocuredstandbypowerinaccord-ancewiththetemporaryPowerReserveAct(200�:��6).Theactwasduetocometoanendafterwinter2007/2008,butithasbeenextendedbytheGovernmentforafurtherthreeyears.
Financial risks
ThehydrologicalsituationintheNordicregion,generationincombinedheatandpowerplantsandexportsinfluencetheuseofthenationalgridforelectricity.SvenskaKraftnät’srevenueincreasesinconjunctionwithlarge-scalehydro-powergeneration,whichleadstoincreasedtransmissionsfromNortherntoSouthernandCentralSweden.
Revenuedecreasewhenthereisasmallsupplyofhydroelectricpowerandwhenthereisahighlevelofimportsfromthe
south.ThefluctuationsinearningsmayasaconsequenceamounttoseveralhundredmillionSEK.AssessmentofSvenskaKraft-nät’sresultsmustthereforeapplytotheaver-ageconditionsoveraperiodofseveralyears.
CongestionsariseintheNordicelectric-itymarketwhenthedemandtotransmitelectricityonthegridisgreaterthanthetransmissioncapacity.Thesizeofthecon-gestionsvaryduetotheflowonthegrid.Themethodappliedtorestricttransmis-sionsovernationalbordersleadtorevenues,whicharebasedondifferingelectricitypricesinthepriceareasondifferentsidesofabottleneck.TheserevenuesgototheNor-dicnationalgridcompaniesinaccordancewithadistributionquotaonwhichtheyhavedecided.
WithinSwedencountertradingissome-timesusedinordertoreducethetransmis-sionofelectricityinasectionofthegridwherethereisalimitedtransmissioncapac-ity.Countertradingmeansthatthecustom-ersdonotnoticethiscongestion.Thecostsforcountertradingarenormallylowinaproperlydevelopednationalgrid.However,countertradingexpensescanamounttotensofmillionsofkronorinextremeoperationalsituations,e.g.suchasoccurredinFebruary2007whenthenuclearpowerstationinFor-smarkwasoutofoperation.
SvenskaKraftnäthasexpensesforpri-maryregulationtomaintainthefrequency
intheelectricitysystem.Thesizeoftheex-pensesaredependentonwatersupplyinthereservoirsandonthepriceofelectricity.Incertainsituationstheseexpensescandoublecomparedwithnormalconditions.
ThedevelopmentofSvenskaKraftnät’sfibre-opticnetworkhascontinuedataslow-erpaceoverthepastyearandhasprimarilybeenfocusedontheneedsofthenationalgrid.Thereareconsequentlynosignificantcommercialrisks.
TheETSOmodelfortransitcompensa-tionthatisalsoappliedtoSvenskaKraftnätsince200�,influencesthefinancialoutcome.IftheflowofelectricitythroughSwedenishigh,SvenskaKraftnätreceivesrevenue,butatthesametimetheflowsaregenerallythroughDenmarkandneighbouringcoun-tries,incurringcostsforSvenskaKraftnät.Themodelthatiscurrentlyappliednormallyresultsinanetcostfornationalgridcom-paniesthat,likeSvenskaKraftnät,havelowgridcharges.In2007thisnetcostamount-edtoSEK19(�)million.
CustomersThecustomersconsistmainlyofwell-estab-lishedandstablecompanieswithahighlevelofsolvency.Altogether,SvenskaKraftnäthassome100customers,thetenlargestofwhichaccountfor75percentoftheturno-ver.ThismeansthatSvenskaKraftnäthasasounddistributionofcommercialrisks.
19
InvestmentsOverthenextten-yearperiodSvenskaKraftnäthasanextremelylargeinvest-mentrequirement.InconjunctionwiththeotherNordicnationalgridcompanies,inspring200�SvenskaKraftnätpresentedaprogrammeofinvestmentstostrengthentheNordichigh-voltagenetworkforelectricity.TheintentionisthattheseinvestmentswillincreasethesecurityoftheelectricitysupplyandfurtherimprovethefunctionoftheNordicelectricitymarket.TheprogrammeincludesthefollowingfiveprojectsintheNordicpowernetwork:
Fenno-Skan2betweenSwedenandFinlandNea–JärpströmmenbetweenNorwayandSwedenTheSouthernLinkbetweenCentralandSouthernSweden,whichinJanuary2008becametheSouth-WesternLinkTheGreatBeltLinkinDenmarkSkagerak�betweenNorwayandDen-mark
BesidesthefiveNordicinvestmentsthereisaprogrammecostingSEK�–�billiontoreinforceStockholm’selectricitynetwork,themajorityofwhichitisassumedwillbefinancedbyotherstakeholders.Renewalofseveralswitchyardsinthenationalgridisex-pectedtoamounttoaroundSEK1billion.
Thetotalinvestmentcostduringthenextten-yearperiodforSvenskaKraftnätamountstoalmostSEK20billion,whichwillhaveanimpactonthethegroup’sfi-nancingandinterestexpenses.Theriskex-posureliesinthedelaytotheproject,whichinitsturnrepresentscostincreases.Theboomin2007,whichcouldbeobservedinhigherpricesformaterialsandlongerde-liverytimes,hasmeantthatwehavebeenforcedtopostponetheconstructionofthenewDClinkbetweenSwedenandFinlandbyoneyear.
Thosefactorsthatcouldhaveasignifi-cantimpactontheconsolidatedresult,apartfromthehydrologicalsituation,arelinkedwithcurrencyexchangeratesandelectric-ityprices.
Currency exposureSvenskaKraftnät’sinternationaloperationsmeanthatitistosomeextentexposedtoexchangerisksinconnectionwiththetrans-lationofforeignassetsandresults.SvenskaKraftnäthasnothedgeditsreceivablesand
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liabilitiesinforeigncurrency.Theamountsinvolvedaremoderateinsizeanddonotaf-fectthefinancialresulttoanygreatextent.
Interest exposureInterestrisksinconnectionwithliquidityandliabilitymanagementarelow,sinceSvenskaKraftnät’sequity/assetsratioishighanditsborrowingvolumesmall.
Electricity pricesSvenskaKraftnätpurchaseselectricityinordertocoverthetransmissionlossesatafixedpriceinaccordancewithmulti-yearagreements.Thevolatilityintheelectric-itypriceaffectsrevenuesforsoldbalancepowerwithinthebusinesssegmentSystemresponsibilityforelectricity,howeverthereisalimitedeffectontheresult.
Credit risksThecustomersconsistofwell-establishedandstablecompanieswithahighlevelofsolvency.SystemresponsibilityforelectricityandnaturalgasincludesSvenskaKraftnät’sresponsibilityforthenationalbalancesettle-mentforthosecompaniesthatarebalanceproviders.Inordertodecreasethecreditriskthatarises,SvenskaKraftnätrequires
financialsecurityfromthosecompaniesthatarebalanceproviders.
Other risks
EnvironmentSvenskaKraftnätworksveryactivelywithenvironmentalissues.ForanumberofyearsSvenskaKraftnäthashadanenvironmentalmanagementsystemforconstructionactivi-tiesasanaidinstructuringitsenvironmen-talworkandensuringthatitisperformedeffectively.Environmentalrequirementsareplacedonallconstructionandmaintenancecontractstoreducetheenvironmentalrisks.Tocheckthattheenvironmentalrequire-mentsarebeingobservedSvenskaKraftnäthasimplementedapprovedenvironmentalauditsinanumberofcontractsduring2007.Theauditshaveledtomeasurestoproduceimprovements.Othermorelong-termmeasureswillbeimplementedduring2008.Severalenvironmentalauditswillbeimplementedduringthecomingyear.
ForthesubsidiarySvenskaKraftnätGas-turbinerABthefueltanksatthegasturbinefacilitiespreviouslyconstitutedanenviron-mentalrisk.During2007bankshavebeenconstructedaroundthefueltanksinthreeoftheplantstoreducetheriskofleakage.
Environmental aspects
and requirements
Environmental policy
Environmental goals
ImplementationFollowing-up
Evaluation and
improvementOrganisation
andresponsibility
Svenska Kraftnät’s environmental management system for construction activities is an aid in structuring
its environmental work and ensuring that it is performed effectively.
20
NetworkTheNetworkdivisioncomprisesthecon-struction,maintenanceandoperationofthenationalgridinSweden,whichconsistsof220kVand�00kVlineswithstationsandforeignlinksadministeredbySvenskaKraftnät,includingSwePolLink.
SvenskaKraftnät’snetworkcustomersarebilledforaccesstoandutilizationofthenationalgrid,inaccordancewithapre-settariff.SvenskaKraftnätundertakesareviewofthetariffeveryyearanditisauthorisedbySvenskaKraftnät’sBoard.Thelasttimethetariffwaschangedwasin200�.
Thetariffconsistsofapowercomponentandanenergycomponent,andaccountsformostofthetransmissionrevenue.Thepowercomponentisbasedonthepowersubscribedtobythecustomeronanannualbasisforinputandextractionateachcon-nectionpoint.TheinputfeeisSEK5/kWinthesouthandincreaseslinearlywithlatitudetoSEK25 /kWinthenorth.TheextractionfeeisSEK�7/kWinthesouthdecreasinglinearlywithlatitudetoSEK11/kWinthenorth.Theenergycomponentisbasedonthetransmissionlossesinthenationalgridthatareoccasionedbyinputandextractionattheindividualconnectionpoints.Ifinputandextractionleadtoreducedtransmissionlossesapaymentismadetotherespectivecustomerdesignatedenergycompensation.
Otherincomeitemsarecongestionreve-nueandtransitrevenue.CongestionrevenuearegeneratedwhentheNordicmarketisdi-videdupintodifferentpriceareasduetolackofcapacityintheNordicgrid.Therevenueisusedforinvestmentsinincreasingthecapa-cityandtherebyreducingthelimitations.
Transitrevenueconsistsofreimburse-mentforcostsofelectricityflowingthroughthenationalgridwithitspointsoforigininothercountries.
Revenue for Network operations
NationalgridfeesamountedtoSEK2,��2(2,�07)million,whichisatthesamelevelas2006.Thepowerfeesaccountedforap-proximately�5(�7)%andtheenergyfeesforsome55(5�)%.Fewersubscriptionshaveledtoasmalldecreaseinthepowerfeesandhighertransmissionproducedasmall
increaseinthepowerfees.AnaccountisgivenbelowoftherevenuefromNetworkoperations.
CongestionrevenueamountedtoSEK6�1millionandincreasedmarkedlycomparedwith2006.Themainreasonfortheincreaseisthatafterthecopiousrainfallofthesum-merandautumn,thereservoirsinSouthernNorwaywerefilledtoabovethenormallevelforthetimeoftheyear.Asubstantialinte-restinexportingelectricitytoSwedenarosewhichexceededthetransmissioncapacitybetweenthecountries.Thisaffectedelectri-citypricesandpricedifferentialsoccurredbetweenthetwopriceareas,primarilybet-weenSouthernNorwayandtherestofthe
Nordicregion.Torestricttransmissionthepriceareamethodwasapplied,whichledtoso-calledcongestionrevenuesfortheNordicnationalgridcompanies.
TransitrevenuesamountedtoSEK112(1�9)million,whereasthecostsforthetransittransmissionweincurinothercountrieswereSEK1�1(1�2)million.
Transmission via the national grid and energy lossesDuringtheyeartransmissionwas117.7(117.�)TWh.Subscriptionsforinputandextractionweresomewhatlowerthanin2006.Thenumberofcustomersconnectedtothenationalgridwas21(21)
Power transmission 2007 2006
Power subscribed to on the national grid
Input subscription, MW 20 340 20 404
Extract subscription, MW 21 367 21 554
Max. power outtake from the national grid, GW 18 500 20 000
Energy fed into the nationalgrid, TWh 120,5 119,8
Energy extracted from the nationalgrid, TWh 117,7 117,3
Business segments
Network revenue
(MSEK) 2007 2006
National grid fees
Power fees 1 061 1 074
Energy fees 1 271 1 233
Total 2 332 2 307
Congestion revenue 641 320
Transit revenue 112 139
Transmission via
SwePol Link 246 232
Other network revenue 46 52
Grand total 3 377 3 050
The national grid comprises 15,000 km of
powerlines and well over one hundred con-
nection stations.
Ringhals
Helsing-borg
Göteborg
MalmöKarlshamn
Norrköping
Oskars-hamn
Stockholm
Enköping
Umeå
Sundsvall
Forsmark
0 100 200 km
N
Luleå
21
Transmissionlossesonthenationalgridweresomewhathigherthanin2006andtheycostSEK762(698)million.Theincreasedcostsforpurchaseoflosspowerareprimarilyduetotheincreasedproductionofhydropowerinthenorthernpartofthecountry.
TheNetworksegment’sfinancialresultwaspositiveduringtheyearandwas:
OperatingrevenueincreasedbySEK��5millioncomparedwithlastyear.OperatingincomeamountedtoSEK791million,whichisSEK11�millionmorethanlastyear.Thehigheroperatingrevenueisduetorisingcon-gestionrevenue,whichduring2007amountedtoSEK6�1(�20)million.
InFebruarytwoextremeoperationalsitua-tionsaroseduetoadropinnuclearpowerpro-duction.ThisledtoSvenskaKraftnäthavingtousecountertradinginordertoreducethetransmissionofelectricitytoanothersectionofthegrid.CountertradingexpensesamountedtoSEK80million.Duringthesummercoun-tertradingtookplaceatacostofSEK��mil-lioninconnectionwithreconstructionworkinanewswitchyardnorth-eastofVarberg.DuringtheautumnanewswitchyardoutsideSollefteåhasbeenconvertedaccordingtothesameprogramme,whichledtoafurtherSEK�7millionincounterpurchasing.
Theoperatingmarginforthebusiness
segmentamountedto2�.2%,whichis1.2percentagepointshigherthantheequivalentperiodin2006.
Reliability performanceSvenskaKraftnät’sprincipalgoalisahighlevelofreliabilityperformanceintheNetworkoperation.Reliabilityperformancehasbeengoodduring2007.Therewere150(181)operationaldisturbancesinthegrid,mostofwhichweredealtwithbytheautomaticequip-mentbuiltintothetechnicalsystemswithouthavinganyimpactonpowersupplies.Thosedisturbancesinthenationalgridthatithasnotbeenpossibletodealwithsuccessfullyhaveonlyresultedinsmallvolumesofenergynotbeingsupplied.
Fivedisturbancesledtopoweroutagesforsubscribers.Thevolumeofenergythatwasnotsuppliedamountedto1�(95)MWh.Thenumberofoperationaldisturbancesinthena-tionalgridoverafiveyearperiodissetoutbelow.
Transmission losses national grid 2007 2006
Energy losses, TWh 2,8 2,5
Percentage of extracted energy, % 2,4 2,1
Maximum power losses, MWh/h (hour with highest energy losses) 634 806
Income statement – Network
MSEK 2007 2006
Operating revenue 3 409 3 074
Operating expenses -2 618 -2 397
Operating income 791 677
Operational disturbances 2007 2006 2005 2004 2003
Operational disturbances on the grid, no. 150 181 251 187 198
Ditto with power failure, no. 5 15 22 10 27
Non-supplied energy, MWh 13 95 4 25 10 400
Operational planning is important in maintaining operational reliability when connecting and disconnecting powerlines and equipment in the national grid, but also
in maintaining personal safety in conjunction with work on plants.
22
Manned round the clock! Svenska Kraftnät’s Balance Service monitors the frequency, maintains the instantaneous electricity balance, deals with congestion in
transmission and distributes the expenses between balance providers.
System responsibility – electricity
AccordingtotheElectricityAct,systemresponsibilityforelectricityentailsSven-skaKraftnätensuringthatplantsinteractreliablyandthatthereisabalancebetweenproductionandconsumptionofelectric-ity.Ensuringthatplantsinteractreliablyisachievedprimarilythroughrulesandrequirementsinconnectionagreements,andregulationsfornetworkandproduc-tionfacilities.Thevolumeofrevenuesandexpensesforsystemresponsibilityaregeneratedinrelationtothemanagementofthebalancebetweenproductionandcon-sumptionofelectricity.ItisreportedunderthebusinesssegmentSystemresponsibility–electricity.
ThisisdealtwithbySvenskaKraftnät’sBalanceService,whichismannedroundtheclock.
Animportantpartofthebalanceregu-lationaretheapproximately�0balanceprovidersthathavesignedagreementswithSvenskaKraftnätregardingbalancerespon-sibility.Thecompanieshaveundertakentoplantheirinputofelectricity(generation
andpurchase)andtheirextraction(con-sumptionandsale)foreachhoursothattheybalanceeachother.SvenskaKraftnätthenconductsabalancesettlement,orinotherwordsperformsafinancialsettle-mentoftheimbalancesthathavearisenwhenthemeasuredvaluesforproduction
andconsumptionarereported.Acompanythatonehourreportsadeficit,buystheelectricity(balancepower)thatisrequiredtoachieveabalancefromSvenskaKraft-nät.Correspondingly,companiesthathaveasurplussellelectricitytoSvenskaKraftnät.ThepriceoftheelectricitythatisboughtorsoldisthehourlyrateontheelectricityspotmarketwithasurchargeforexpensesthatSvenskaKraftnäthasincurredinstartingorstoppingproduction,theso-calledupwards-/downwardsregulatingprice.ThedifferencebetweenpurchasedandsoldbalancepowerinthepublicutilityamountedtoSEK21�(209)million.Thedifferencearisesasthepowersoldalwayshasthesameorahigherpricethanthepowerbought.
Tobalancethepowersystemthereareautomaticreserves(so-calledprimaryregula-tion)thatincreasetheproductionwhenthefrequencyfallsanddecreasesitwhenthefrequencyrises.Theautomaticreservesarechieflylocatedatproducerswithhydro-elec-tricpowerproductionandareprocuredonaweeklyanddailybasis.Whentheautomaticreserveisnolongersufficienttomaintainthefrequencywithingivenlimitsthebal-anceserviceactivatesupwardsordown-wardsregulationbasedonalistofbidsfrom
An important aspect of Svenska Kraftnät’s system
responsibility for electricity is ensuring that the
frequency is maintained at a constant of close to
50 Hz.
2�
producersthathavethepotentialtostartorstopproduction.SvenskaKraftnätalsocol-laborateswithcompaniesthathavesystemresponsibilityinourneighbouringNordiccountriesinordertoalwaysregulatethebalancewhereitcantakeplaceatthelow-estprice.AsimilarsettlementtakesplacebetweentheNordicnationalgridcompaniesasbetweenSvenskaKraftnätandthebalanceproviders.
DisturbanceReserves,primarilyintheformofgasturbines,areinplacetodealwithmajoremergenciestotheelectricitybalance,forexampleifalargeproductionfacilityisshutdownduetofailure.SvenskaKraftnäthasaccesstothesereservespartlythroughagreementsandpartlythroughitsowngasturbinecompany.
AccordingtothePowerReserveAct,SvenskaKraftnätshallberesponsibleforensuringthatreservepowerofatmost2,000MWisavailableduringthewinter.ItwasoriginallyplannedthattheActwouldceaseafterthewinterof2007/2008,howeverithasnowbeenextendedtoapplyuntilthe
endofthe2010/2011winter.Thereservecontributestomanagingelectricitysupplyevenduringextremesituationsthatcanariseinextremelycoldweatherconditions.Dur-ingthe2007/2008winterthepowerreserveamountedto1,998MWThepowerreserveisfinancedbyaspecialfeethatispaidbythebalanceproviders.Thecostofthepowerre-servetotheGroupduringtheyearamount-edtoSEK129(1��)million.
Thefinancialresultforthebusinessseg-mentSystemresponsibilityforelectricitywas:
Withinthebusinesssegment,Systemre-sponsibility–electricity,operatingrevenue
decreasedbySEK857or25%comparedwith2006andamountedtoSEK2,5�1(�,�88)millionRevenuesforsoldbalancepowerdecreasedbySEK8�2millioncom-paredwithlastyear,whichismainlyduetothelowerpriceofelectricityduringtheyear.
Revenuesfromthecompanieswithbal-anceresponsibilityforthestatepeakpowerreserveamountedtoSEK126(151)million.Theserevenuesareaccountedduringthewintermonths.Thecostsofthepeakpowerreserveariseonaregularbasisastheagree-mentswithsuppliersareforoneorseveralyears.Revenueandexpensesareevenedoutoverthedurationoftheagreement.OperatingincomeamountedtoSEK-�8(-�1)million.Thesomewhathigherearningsfor2007arechieflyduetolowercostsforbothprimaryregulationandthepeakpowerreserve.Theoperatingmarginwas-1.2%,whichisadeteriorationof0.�percentagepointscomparedwithlastyear.
Thefinancialresultshouldbeassessedasanaverageoveraperiodofseveralyears.Fur-therinformationisavailableinnote8.
Income statement – System responsibility for electricity
MSEK 2007 2006
Operating revenue 2 531 3 388
Operating expenses -2 569 -3 429
Operating income -38 -41
2�
Telecommunications
SvenskaKraftnäthasanationwidetelecom-municationsnetworktomonitorandcontrolthenationalgrid,extendingfromMalmöinthesouthtoRitseminthenorth.
In199�,afibre-opticnetworkwasin-stalledinthepowerlineearthwires.AtpresentSvenskaKraftnät’stelecommunica-tionsnetworkisinplaceforabout6,�00kmofownfibre-opticcablesandsome2,500offibre-opticcablesleasedfromothernetworkoperators.Theolderpartsofthisnetworkarebasedonlinecarrierviathepowerlinesandonradiolinkconnections.
SvenskaKraftnätoperatesatelecomnetworkonthefibre-opticnetworkwithaplatformthatisbasedonmoderntechnol-ogywithhighcapacityandgoodreliabil-ityperformance.Thetelecomnetworkisanimportantelementintherestorationfunc-tioninconnectionwithapotentialmajordisturbanceinthecountry’selectricitysupply.Inordertoguaranteereliableoperation,thetelecomnetworkisprovidedwithredundancyinbatteriesanddieselgenerators.Telecomtrafficisbeingsuccessivelyshiftedfromoldertomoremoderntechnologyasthebuildingofthefibre-opticnetworkgraduallyprogresses.
ThehighcapacityinthetelecomnetworkenablesSvenskaKraftnättoleasenetworkca-pacitytoexternalcustomers.SvenskaKraftnäthiresoutblackfibre(opticalfibrewithoutphysicalterminusequipment)to,forexam-ple,telecomoperators.Furthermore,activeconnectionsarehiredoutintheformofca-pacityto,primarily,energycompanies.
During2007thefibre-opticnetworkhasbeenexpandedoutwardsfromstationsincloseproximitytothesectionUmeå–Örn-sköldsvik–Sollefteå–Stöde–Sundsvall,aswellasthesectionGråska–HallstavikinNorthUppland.Inconjunctionwithotheropera-tors,SvenskaKraftnäthaslinkedupthefibre-opticnetworksinanumberoflocationsincentralNorrland,partlytobeabletoaccessmoreremotesitesinthepowernetworkeco-nomically,butalsotobeabletoofferthecus-tomersbetterservice.Besidestheseintercon-nections,fibre-opticcablesarealsoleasedbyregionalnetworkoperatorstoaccesssomeofthesmallerstationsinthenationalgrid.
DuringthepastyearSvenskaKraftnäthasalsointensifieditscollaborationwithStatnett
inNorwayandFingridinFinlandinordertolinkupthetelecomnetworksandtotherebyincreasesecurityinrelationtomonitoringtheNordicnationalgridforelectricity.TheconnectionwithNorthNorwaywillbeputintoeffectpartlybetweenRitsemandOfo-tensouthofNarvikontheNorwegianside,partlyinJämtlandinconnectionwiththereconstructionofthepowerlinebetweenJärp-strömmenandNea,eastofTrondheim.ThismeansthattheSwedishandNorwegianpow-ertelecommunicationsnetworksarelinkedtoeachotherinthreeplacesfromHaldeninthesouthtoNarvikinthenorth.ThisenhancesthelevelofrobustnessandreliabilitybetweenthecountriesandinthefutureSvenskaKraft-nätwillbeabletoofferNorwegiantelecomoperatorstheirownfiber-opticnetworkontheNarvik–Trondheim–Haldensection.TheconnectionwithNorthernFinlandisalongerroutingoffibre-opticcablesfromastationinthevicinityofJokkmokktoaFinnishstationwestofRovaniemi.
Operatingrevenueconsistspartlyofreve-nuefromexternalcustomersforleasingblackfibreandactiveconnections,partlyofinternalrevenue(calculatedaccordingtoastandard)fromtheNetworkbusinesssegment.
Therevenueearnedoncommercialfibre-opticoperationsamountedto62(56)mil-lionandtheoperatingincomewasSEK�5
(26)million.Theimprovementinresultsincomparisonwithlastyearischieflyduetoanumberofnewcustomeragreements.Withacalculatedinterestof7%onemployedcapital,theoperatingincomeforthefinancialyearwasSEK21(19)million.Investmentswithinfibre-opticoperationsfortheyearamountedtoSEK15(59)million.
WithintheTelecommunicationssegment,SvenskaKraftnäthasadditionalexternalreve-nueamountingtoSEK9(11)millionfortheleasingofdatanetworks,telephonenetworksandantennaspace.
ThetotalrevenueforTelecommunicationswasSEK10�(99)million.IncludedinthisisSEK�2(�2)millionininternalrevenuesfromtheNetworkbusinesssegment.Operat-ingincomeamountedtoSEK�0(�1)mil-lion.Thedeteriorationinoperatingincomeisexplainedbyahigherlevelofdepreciationduring2007.
Income statement – Telecommunications
MSEK 2007 2006
Operating revenue 103 99
Operating expenses -73 -68
Operating income 30 31
The fibre-optic network that Svenska
Kraftnät has at its disposal trans-
mits important information for mo-
nitoring and control of the electrical
power system.
Umeå
Gävle
Luleå
Sundsvall
Norrköping
Göteborg
Malmö
Östersund
Stockholm
Borlänge
Inhyrd optofiber
Planerad optokabel
Egen optokabel
25
SvenskaKraftnäthashadsystemresponsibil-ityfornaturalgasinSwedensince1July2005.Amongotherthings,thecommissionmeansthatitisSvenskaKraftnät’srespon-sibilitythatthereisabalancebetweentheincomingsupplyandtheconsumptionofnaturalgasinSweden.Thegaslinesarenot
ownedbySvenskaKraftnät.Therearefivebalanceproviders.Operatingrevenuefor2007wasSEK�1(�6)million.ChangestoagreementshaveledtoanincreaseintradebetweenSvenskaKraftnätandthebalanceprovidersduringthefourthquarter,whichhasresultedinrevenuesand
expensesincreasingbySEK7million.On1October2007theconsumptionenergyfeewasloweredfromSEK1.1/MWhtoSEK0.9/MWh.Thedivision’sexpensestherebyamountedtoSEK�6(29)million.OperatingincomefellsomewhattoSEK5(7)million.
In its role as the authority with system responsibility for natural gas in Sweden, Svenska Kraftnät is responsible for there being a balance between natural gas fed
into the system and that consumed.
Income statement – System responsibility for natural gas
MSEK 2007 2006
Operating revenue 41 36
Operating expenses -36 -29
Operating income 5 7
Some facts about the gas network Thenationalgridismadeupofsteelpipeswithadiameterofaround50cm.Thedistributionpipelinesaremadeofsteelorplasticwithvariousdimensions.Thepressureinthenationalgridisamaximumof70bar.Thepressureisregulateddownto�bar.Thegasthatendcustomersreceiveisusuallyat0.1bar,buthigherpressureisusedforlargercustomerfacilities.
System responsibility – natural gas
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Swedenintroducedanelectricitycertificatessystemin200�topromoterenewableelec-tricitygeneration.TheActgivesproducersofrenewableelectricitytheopportunitytoreceiveoneelectricitycertificateperMWhofelectricitygenerated.Thecertificatescanbesoldtoelectricitysuppliersandelectricityconsumers,whoareboundtopurchaseelec-tricitycertificatescorrespondingtoacertainproportionoftheirsalesandconsumptionrespectively.
SvenskaKraftnätisresponsibleforis-suingandaccountingforelectricitycerti-ficates.TheSwedishEnergyAgencyisre-sponsibleforotherofficialtasks.
SvenskaKraftnätissued1�.2(11.9)mil-
lionelectricitycertificatesduring2007.Duringtheyearsome2�millionelectricitycertificateswereputintocirculationatanaveragepriceofaboutSEK195percertifi-cate.Sincetheintroductionofthesystemsome5�millioncertificateshavebeenis-sued.
Windpoweristhetypeofproductionthatisentitledtocertificatesthathasen-joyedthehighestpercentageincreaseduringtheyear.Ithasgonefromashareof8%in2006to10.8%in2007.Electricitygenera-tedfrombiofuelshasaccountedfor72.6%ofproductionentitledtocertificationandhydropowerfor16.6%.
Operatingrevenuefor2007amounted
toSEK10(20)million.TherevenuesnowconsistsolelyofaccountfeesthatamountedtoSEK10(19)million.Transmissionchar-geswerediscontinuedinthefourthquarterof2006andtherebyamountedtoSEK0(1)million.OperatingincomeamountedtoSEK7(1�)million.
Income statement – Renewable electricity certificates
MSEK 2007 2006
Operating revenue 10 20
Operating expenses -3 -6
Operating income 7 14
Renewable electricity certificates
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Contingencyplanning,consistingofelectric-itypreparednessanddamsafety,isfinancedthroughGovernmentappropriationsandgrantsfromtheSwedishEmergencyManage-mentAgency.Intermsoftheaccounts,theactivitiesareneutralforSvenskaKraftnät.Duringtheyear,atotalofSEK26�millionwasutilisedformeasures.ThesefundshaveprincipallybeenutilisedforthepurposesspecifiedinNote�.
Accordingtotheletterofgovernanceforthe2007fiscalyear,inaspecialreporttotheGovernmentSvenskaKraftnätpresentsanas-sessmentofitsplannedcapacitytocontributetoensuringthattheneedsofsocietyandindi-vidualscanbemetintheeventofanyfutureattackorwar,aswellasanassessmentofthecapacityintheeventofseverepressuresonsocietyduringpeacetime.Thisreportwassub-mittedtotheGovernmentatthesametimeastheReportoftheBoardofDirectors.
Thereportincludesanaccountofmeas-uresthatSvenskaKraftnäthastakenastheauthorityforelectricitycontingencyplanningtoincreasetheoverallcapacitytosupplyelec-tricityintermsofcontingencyplanninganddefence.
SvenskaKraftnäthasdrawnupandre-portedtargets,directionsforlong-termplan-ningandoperationalplansformeasuresthatarefinancedbythe7:5EmergencyManage-mentGranttotheEmergencyManagementAuthority(KBM).Thisdetaileddatacanbepresentedifnecessary.Basedonthis,meas-ureshavebeenimplementedtocontributetoensuringasatisfactorydefencecapacityintheeventofanyarmedattackinthefuture,andtoreducetherisksandconsequencesofaccidentsandseverepressuresonsocietyinpeacetime.Certainresourcesprocuredcanalsobeusedasacontributiontoalleviatingsufferinganddamagecausedbyaccidentsanddisastersinothercountries.
SvenskaKraftnäthasprimarilyfollowedtheplanningdirectionandoperationplan-ning,andhasalsoimplementedplannedprojects.Fulfilmentofobjectives,reportingofdiscrepanciesandassessmentofcapacityhasalsobeenreportedtoKBM.Assessmentofca-pacityhasbeendealtwithinthereportinac-cordancewithadesignatedassessmentscale.
During2007,SvenskaKraftnäthasheldbasictrainingfor62conscriptsintherepair
ofpowerlinesattheauthority’strainingcentreinÅsbroandfor59conscriptsintherepairofswitchyardsandpowerplantoperatorsatVattenfallTrainingCentreinJokkmokk.Duringtheyear,some�00personsfromtheelectricitysectorhaveundergonetrainingincrisismanagementforwhichSvenskaKraftnäthasbeenresponsibleinco-operationwithSwe-dEnergy.Inadditionamanagementexercisefocussingoncrisiscommunicationhasbeenimplemented.
ThefacilityatÅsbroalsoservesasaware-houseforstrategicspareequipmentforrapidrepairsinconnectionwithbreakdownsinthenationalgridandregionalnetworks.Theequipmentstoredthereincludesspecialpylonswhichcanbeassembledquicklyandanumberofstandbypowerunits.Therearealsocom-pletesetsofequipmentformobilerepaircrewsthatcanbemobilisedfornationalefforts.
ThroughagreementswiththeSwedish
ArmedForces,varioustypesofreinforcementcanbeaddedtodealwithdisruptionsintheelectricitysupply.Amongotherthingsrepairteamscanbedeployedbyair.Throughagree-mentswiththevoluntarydefenceorganisa-tions,humanresourcescanbemadeavailablefromtheMotorTransportationCorps,theVoluntaryFlyingCorps,theMotorTrans-portCorps,andtheWomen’s’TransportationCorps.
Thecapacityoftheelectricitysupplytocopewithcriticalsituationshasbeenre-inforcedinthatcontrolcentreshavebeenprovidedwithgreaterphysicalprotection,reinforcedremoteandspeechcommunica-tionandimprovedlocalpower.Theprospectsofmaintainingnecessarytelecommunicationshavebeenreinforcedthroughthedevelopmentofmobilecommandandcommunicationunits.Duringthecourseoftheyear,coopera-tionhasbeenestablishedbetweenelectricity
An important task in contingency planning is to support companies within electricity supply in their task of
increasing their capacity to deal with extreme situations.
Contingency planning
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andtelecomcompanieswiththeaimofasfaraspossiblesecuringcriticaltelecommunica-tionsintheeventofpowerfailures.AsthetheRakelmobiletelecommunicationssystemhasbeenopenedtoawidercircleofusers,theelectricitysupplyindustryhasevaluatedthepossibilityofutilizingitbothundernormalandabnormalconditions.
Measureshavebeentakeninanumberofproductionplants,primarilycombinedheatandpowerplants,tosafeguardtheirblack-startcapability,whenthereisnocontactwiththecentralelectricitysystem,andtosecuretheirislandoperationcapability.Thiscapabil-ityhasbeenverifiedbymeansoftesting.Inconnectionwiththetests,operatingstaffhavebeentrainedinrunningtheirinstallationswithadjacentnetworksinislandoperation.Amobiletransformerandswitchyardfacilityhasbeenacquired.
WithintheNordicElectricityPrepared-nessandSafetyForumthepossibilityofmu-tualassistancehasbeenbolsteredthroughtheproductionofequipmentlistsandchecklists,contactrouteshavebeentestedandtherehavebeenexercisesinprovidingassistance.
SvenskaKraftnätcollaborateswithSwe-denergy’smembercompaniesinanemer-gencycooperationorganisationconsistingofsevenelectricitycooperationareas.Thepur-poseoftheorganisationistoproduceagoodassessmentofthesituationandtocoordinaterepairresourcesinconnectionwithexten-siveelectricityfailureswithdamagedplants.TheinformationandreportingsystemSusie,whichhasbeendevelopedinordertosup-portthecooperationorganisation,hasbeenfurtherdevelopedandplacedatthedisposal
ofvariousSwedishauthorities,andalsootherNordicauthorities,thatneedtofollowtheelectricitysupplysituationduringcriticalsituations.
InitscapacityassectorauthorityfordamsafetySvenskaKraftnäthassubmittedaspecialreporttotheGovernmentonthedevelopmentofdamsafetyinthecountry.Amongotherthingsthereportisbasedontheproceduresbywhichdamoperatorsre-portannuallytothecountyadministrativeboardsondamsafetythatweredevelopedbySvenskaKraftnät.
Withintheframeworkofongoingtests,during2007onemoredamhasundergonespecialinspectionwiththeassistanceofin-ternationalexpertise.Theaimofthespecialinspectionsistoexaminewhethersafetyindams,wheretheconsequencesoffailureareparticularlygreat,maintainasatisfactoryinternationallevel,andtoprovidedatatoen-abledamownerstocontinuetheirworkondamsafetyandfortheauthorities’supervi-sion.
AnupdatedandtosomeextentrevisededitionofSvenskaKraftnät’smanual’’Damsafety–selfregulationandsupervision’’hasbeenpublishedduring2007.Inadditionabrochurehasbeenproducedinordertoclarifyrolesandspheresofresponsibilityinissuesthatinvolvedamsafetyandcontingen-cyplanningfordamfailuresindamsthatareclassifiedasfacilitieswithdangerousopera-tionsaccordingtotheCivilProtectionAct.
Incooperationwithotherprincipalpar-tiesfor”Guidelinesfordeterminationofde-signflowsfordamfacilities”SvenskaKraftnäthascompletedworkonanewedition.The
contentoftheoriginalguidelinesthatwereissuedbythe“FlowCommittee”in1990isbasicallyunchanged.Applicationoftheguidelinesinachangeableclimateisdealtwithinthenewedition.
Developmentprojectstocoordinatecontingencyplanningfordamfailureinthemajorpowergeneratingriversisinprogressinthefollowingrivers:Luleälven,Ljungan,DalälvenandGötaälv,inadditiontoLju-snanwhereapilotstudyhasalreadybeencarriedout.SvenskaKraftnätissupportingthisdevelopmentbycontributingfinanciallytotheproductionofcommonplanningdata,providedthattheoperatorsconcernedalongeachriverhaveagreedtodevelopcoordinatedcontingencyplanning.Aprojecthasbeenstartedtodevelopsystemstoalertthegeneralpublicintheeventofdamfailure.Twotrain-ingsessionsforrivergroupsontheconse-quencesofinterventioninwaterregulationhavebeenimplementedduringtheyear.Theaimistoprovidetheparticipantswithbasiccompetenceinassessingthetechnicalandle-galeffectsofinterventioninconnectionwithhighwaterflows.
Asastepinsecuringknowledgeandskillsprovisionwithintheareaofdamsafety,Sven-skaKraftnäthasprovidedfinancialsupportto,andparticipatedinthegoverningbodyfortheSwedishHydroPowerCentre,SVC,acentreforsupportofuniversityeducationandresearchwithinhydraulicengineering,waterturbinesandgenerators.SvenskaKraftnäthasalsoprovidedsupportforanumberofR&Dprojectswithintheareaofdamsafety.
Furtherinformationisavailableinnote�.
Dam safety is an area where Svenska Kraftnät has a central role. Our commission includes working to limit damage caused by high flows and drawing attention
to the need for research within the area. We also have the central responsibility for supervision with regard to issues of dam safety as per chapter 11 of the
Environmental Code.
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ThoseassociatedcompaniesintheGroupthathavehadthegreatestimpactonSvenskaKraftnät’snetincomeareNordPoolASA,NordPoolSpotASandKraftdragarnaAB.Sincetheyareassociatedcompanies,onlySvenskaKraftnät’sshareofincomeintherespectivecompaniesisincludedintheGroup’snetincome.Theshareofincomefor2007amountedtoSEK69millioncomparedwithSEK�8millionfor2006.TheimprovedincomeislargelyduetoincreasedtradingandclearingvolumesandhigherfinancialrevenuesinNordPoolASAcomparedwith2006.
MSEK 2007 2006
Nord Pool ASA 59 36
Nord Pool Spot AS 7 10
Kraftdragarna AB 1 1
Others 2 1
Total 69 48
Share of income in associated companies
Associated companies
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SvenskaKraftnät’sresearchanddevelopmentactivitiesaimatmakingthenationalgridandsystemresponsibilityoperationsevenbetterwithrespecttoreliabilityperformance,efficiencyandenvironmentalcompatibility.Developmentofknowledgeandexpertiseincollaborationwithuniversitiesisalsoaprioritisedarea.Researchanddevelopmentisalsosupportedwithintheareaofdamsafetyaswellasriskandvulnerabilityquestionsforthepowersystem.
SvenskaKraftnätoftenundertakesre-searchanddevelopmentincollaborationwithcompaniesintheindustryviathejoint-lyownedElforskAB.SvenskaKraftnätisalsojointownerofthedevelopmentcompanyStriABinLudvika.Otherco-ownersareABB,StatnettandVattenfall.Researchanddevelopmentprojectsareoftencarriedoutincollaborationwiththeco-owners.
During2007severaljointprojectshavebeeninitiatedbytheNordicnationalgridcompanies.
Measuringmethodsandinstructionsformaintenanceoftensionjoints.
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Studiesofreliabilityindifferentdesignsofswitchyard.Thegoalistofindenhan-cedsolutionswithrespecttooperationalreliability,economyandmaintenance.
TheNordicprojecttoexchangemea-surementvaluesinrealtimeusingtimestampingiscontinuing.Thesystemwillbeputintooperationduring2008.ThereareanumberofinterestingapplicationsthatwillincreaseoperationalreliabilityandfacilitatebetteruseofthecapacityinourcommonNordicpowersystem.
SystemsconsistingofsensorssituatedonpowerlinestoprovidewarningofsaltandicecoveringsonlinesandtheirinsulatorsarecurrentlybeingtestedforsaltcoveringonthewestcoastandicecoveringonalineinDalarna.Thegoalistohaveanearlywarningsystemforextremeweatherconditions.
Maintenanceofpowerlinecorridors,i.e.loppingtreesandclearingvegetationisanimportantandmajoraspectofthemainte-nanceoperation.Newtechniquesforbetterassessmentofstatusandriskofdisruptionduetotalltreesinpowerlinecorridorshave
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priority.Twodifferentprojectsareunderwayandtheyarebasedondifferenttechnolo-gies.Thefirstoneusesadvancedmeasuringtechniqueswithlasers.Thesecondmethodisbasedonthreedimensionalphotographycombinedwithadvancedcomputerisedinter-pretation.Thegoalistointroducetheoptionthatismostappropriateforourmaintenanceoperation.
DamsafetyisanimportantfieldintheHydraulicEngineeringsphereofcompeten-ce.Thesafeadministrationofthecountry’sagingstockofdamsrequiressoundknow-ledgeandcompetencewithinareassuchashydrology,hydraulicsanddamconstructiontechnology.Withobjectivesincludinggua-ranteeingtheprovisionofengineeringskillswithintheareaofdamsafety,SvenskaKraft-nätissupportingtheactivitiesattheSwedishHydroPowerCentre.InadditionsupportisbeingprovidedforanumberofR&Dpro-jectswithintheareaofdamsafety.
During2007,SvenskaKraftnätutilisedSEK29(27)millionforresearchanddeve-lopmentwithingridoperations,includingdamsafetyandcontingencyactivities.
Research and development
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The excellent Nordic cooperation is continuingCooperationwithinNordel–theNordicnationalgridcompanies–hascontinuedandbeenintensifiedduring2007.NordelhassetoutavisionforcooperationinthefutureandtofacilitatecommunicationregardingNordel’sworkwithgroupsofstakeholders.Nordel’sstrategicagendafortheworkcon-tainsfourmaincomponents:
AmoreefficientNordicelectricitymarketContinuedintegrationoftheNordicelec-tricitymarketwithadjacentareasStrengthenedandmoreeffectiveplanning-andoperatingprocesseswithinNordelStrengthenedcooperationwithsystemoperatorsinthenearbyNorthEuropeanregion
Workinthenextfewyearswillbefocussedontheseareas.
DuringtheyearNordelhasdrawnupguidelinesastohowresourcesforpeakloadcapacityshouldbemanaged.IfaNordiccountrydecidesthattheGovernmentorsys-temoperatorsneedtoimplementmeasurestoboostthepeakpowerbalancethenNordelhasproducedrecommendationsforhowthisistoproceed.Thestartingpointistominimisenegativeimpactsonthemarket.Recommen-dationsincludehowthepeakpowerreserveshouldbepricedandactivatedandalsohowitshouldbefinanced.
Furthermore,Nordelhasagreedonaproposalforharmonisationofthebalanceservice,includingequalizationofthechar-gesthatoperatorspay.Theproposalisnowbeingdiscussedwithsupervisoryauthoritiesandoperatorsineachcountryandthegoalisforthechangestobeimplementedby1January2009.
Toimproveoperationalreliabilityadeci-sionhasbeentakenonharmonisationofso-calledrampingofHVDC-connectionsbetweenNordelandcontinentalEurope.Thedecisionmeansthatthedifferencebetweenthepowertransmittedbetweentwoadjacenthoursislimited.Theriskoftoogreatvaria-tionsintheelectricitysystem’sfrequencycantherebybeavoided.
AnewITsystemforoperationalcollab-orationbetweentheNordiccontrolroomsisunderconstruction.Itwillbecommis-sionedin2009.
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TheimplementationofNordel’sfiveprior-ityprojectsNea–Järpströmmen,theSouthernLink,Fenno-Skan2,theGreatBeltcon-nectionandSkagerak�areinprogress.TheSouthernLinkisnowpartofthelargerSouthWestLinkproject.Workonanewjointsys-temdevelopmentplanhasbeenunderwayduringtheyear.ItwillconstitutethebasisforthenextphaseofinvestmentsintheNordicnationalgridforanimprovedelectricitymar-ketandoperationalreliability.Theplanwillbepresentedinearly2008.
DuringtheyearNordelhasexpandedandformalisedcollaborationwithsystemopera-torsintheimmediatesurroundings.NordelandUCTEhavehadajointmeeting.Astatementofintentregardingcollaborationintermsofplanninghasbeenagreeduponbe-tweenNordelandBALTSO,representingtheBalticcountries.
European collaboration will become increasingly importantDuring2007SvenskaKraftnäthascontin-uedactivelyparticipatinginthedevelopmentoftheEuropeanelectricityandgasmarket.Thishasprimarilytakenplacethroughtheorganisationforcooperationbetweenthetransmissionsystemoperatorcompaniesforelectricity(ETSO)andgas(GIE),butalsowithintheso-calledregionalinitiativeforNorthernEurope(i.e.theNordicCountries,theBalticStates,GermanyandPoland).
The European Commission’s third energy packageTheEUCommission’s”StrategicEnergyReview”waspublishedinJanuary2007anditcontainedenvironmentalgoalsandpro-posalstoimprovetheenergymarkets.Thiswasmadeconcreteon19September2007inaproposalforathirdlegislationpackagetosupplementtheinternalmarketsforelectric-ityandgas.Thesedocumentshavecharacter-izedthediscussionduringtheyear.
Thepackageproposesthatexistingdirec-tivesfortheelectricityandgasmarkets,alongwithaccompanyingordinances,areadjustedwiththeaimofimprovingmarketfunctionsandincreasingsecurityofsupply.Further-more,itisproposedthatnationalsupervisoryagenciesshouldbestrongerandmoreinde-pendent,andthatanewEuropeanagencyforregulators(ACER)shouldbecreatedtoimprovethecollaboration.
CooperationbetweensystemoperatorsistobebolsteredthroughanewformalisedEuropeanbody,ENTSO,whichaccordingtotheproposalwouldreplacethepresentor-ganisationETSOandalsocovertheregionalcollaborations,e.g.UCTEandNordel.Thekeyareasforcooperationwillbetodevelopcommercialandtechnicalregulations,andtocoordinatesystemoperationandexpansionplanning.Inadditiontoitsannualreport,ENTSOisexpectedtopublishregularten-yearinvestmentplansandforecastsregar-
Nordic and European cooperation
Svenska Kraftnät’s staff take part in a number of joint forums within both the Nordic region and the rest of
Europe, both to develop operational reliability in electricity systems and to develop the electricity market.
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dingavailableproductionbothinwinterandsummer.Theworkwilllargelybeexecutedthroughregionalcooperation.
TheEUCommissionwouldalsoliketoeffectivelyseparateproduction/salesfromownershipofthenetworks.Inthefirstplaceamodelisrecommendedwheresystemre-sponsibilityislinkedwithownershipofthenationalgrids.SvenskaKraftnätisanexampleofsuchaTSOorganisation.Asanalterna-tive,anISOmodel,i.e.withanindependentbodyholdingsystemresponsibilitythatdoesnotownthenetwork,canbeacceptedasapossiblesecond-bestsolution.Itentailsonecompanytakingcareofoperation,planningexpansionofthenationalgridandenergymarketissues,whileoneorseveralseparatecompaniesownandhaveeconomicresponsi-bilityfortheactualnetworks.
TheNordicenergyministersappointedacommissionduringthesummerof2007toinvestigatethebenefitsanddisbenefitsofaNordicISO.
Work within ETSOAsaresultoftheproposalforthethirdpack-age,duringtheyearETSOhascommenceddiscussionswiththeregionalorganisationsforsystemoperators(UCTE,Nordeletc.).TheambitionistosetupENTSOonavoluntary
basisassoonaspossibleandtostartworkinthespiritofthepackagebeforeitisofficiallyadoptedinsomeform.
Theissueoftransitcompensationremainshighupontheagenda.Overanumberofyearsseveralauthoritieswhoholdsystemresponsibi-lityhavesignedvoluntaryagreementstocom-pensateeachotherfortransitflowsthroughthenationalgridscausedbyinternationalelectri-citytrade.However,ithasnotbeenpossibleforallpartiestoagreeonafinaldistributionmo-del.However,during2007allcountriesagreedonaninterimmodelforallocationofcompen-sationfor2008and2009.Thisisintendedtocreatetimetofindafinalmodelthatcanapplyfrom2010.
Theworkofincreasingtransparencyintheelectricitymarketcontinues.TheinformationplatformETSOVista(www.etsovista.org)hasbeenlaunchedandfurtherdeveloped.OtherissueswithwhichETSOhasbeeninvolvedincludebalanceregulation,dealingwithcon-gestionandpeakpowerbalances.
Regional work – Market coupling2007hasseenamarkeddevelopmenttowardsso-calledmarketcouplinginEurope.Theelectricityexchangesandpartieswithsystemresponsibilityindifferentcountriesarecoo-peratingtocreateamoreeffectivecommon
market,bysellingelectricityandtransmis-sioncapacitysimultaneously.ThisispartlyaconsequenceoftheEUCommissionandsupervisorybodieshavingtakentheinitiativeinthecreationofregionalforumstodeveloptheEuropeanelectricitymarketmorerapidly.
Marketcouplinghaspreviouslyonlybeenappliedbetweentheareasbelongingtothesamespotmarket.NordPoolwasapioneerinthiscontext.However,marketcouplinghasbeenunderwaybetweenFrance,BelgiumandtheNetherlandssinceNovember2006.Thishasproducedamoreefficientelectricitymar-ket,oftenwithacommonexchangepriceinallthreecountries(approximately60percentofthetime).Therearenowdifferentpricesonthethreeexchangesonly2percentofthetime.ThegoalistoexpandthecollaborationtoincludeGermanyandLuxembourgandtocreateacommonelectricityexchangein2009.
InJanuary2008anewcable,NorNed,wasputintooperationbetweentheNether-landsandNorway.Theintentionistomanagethetradingcapacityinthecablebymeansofmarketcoupling,howeverthereisstillnosuitablesolutionanditcanthereforenotbestarteduntilJanuary2009.Untilthentradingcapacitywillbesoldthoughaconventionalauctionthattakesplacebeforetheelectricitypricesareset.
AnotherprojectinvolvestheGerman-Da-nishlinkswheremarketcouplingistobein-troducedfromJune2008.Thecollaborationisbeingconductedwithinaspecialorganisa-tion,EMCC,thatisownedbytheconcernedbodieswithsystemresponsibilityandelectrici-tyexchanges.DiscussionshavebeeninitiatedbetweenBalticCable,EMCCandSvenskaKraftnättoalsomanagethecapacityintheSwedish-Germanlink,BalticCable,usingmarketcoupling.
Ifallplansareimplemented,fiveelectricityexchangesinninecountrieswillbeintercon-nectedin2009.ThisrepresentsamajorstepforwardfortheelectricitymarketinEurope.
UCTE–UnionfortheCoordinationofTransmissionofElectricity(organisationforsystemoperatorsinContinentalEurope)
BALTSO–TheorganisationforBalticsys-temoperators
ETSO–EuropeanTransmissionSystemOperators
GIE–GasInfrastructureEurope
ACER –AgencyforCooperationofEnergyRegulators
ENTSO–TheworkingnameforEuropeanNetworkofTransmissionSystemOperators
EMCC–EuropeanMarketCouplingCompany
Active participation in the development of the natural gas market in the Nordic region and in Europe is an
important task for a number of Svenska Kraftnät’s employees. This includes participation in the organisa-
tion for cooperation between the companies with system responsibility for gas (GIE).
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SvenskaKraftnät’senvironmentalresponsibili-tydoesnotonlycomprisethedirectimpactofitsactivitiesontheenvironment,forexample,theimpactofpowerlinesonthelandscape,thenaturalenvironmentandresidentialenvironments.Itsresponsibilityalsoentailstakingtheglobalenvironmentintoconsidera-tion,forexamplewhendesigningtheSwedishnationalgridforelectricitytofacilitatetheexpansionofrenewableenergygenerationinthecountry.
During2007theenvironmentalworkhasbeenfocussedonthefollowingoverallgoals:
EfficientenergyuseandalimitedimpactonclimateLimiteduseandlowestpossibleemissionsofhazardoussubstancesAlowlevelofencroachmentfrompower-linesandstationsRichbiologicaldiversityinourpowerlinecorridors
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InitsenvironmentalpolicySvenskaKraftnätundertakestotakeenvironmentalresponsibil-itythrough:
continuallyendeavouringtoreducetheenvironmentalloadofitsactivitiesintegratingenvironmentalissuesintoallactivitiesincludingenvironmentalconsid-erationsinalldecisionssettingclearenvironmentaltargetsanddesigningproceduresforfollowing-up,evaluatingandimprovingtheenvironmen-talworktakingaccountofenvironmentalaspectsinprocurementsbysettingenvironmen-talrequirementsforoursuppliersandcontractors
ThedecisiontoconstructtheSouthWestLinksupportsthenationalenvironmentalqualityobjective’’Limitedimpactonclimate’’byprovidingbetterpreconditionsformanag-inganextensiveexpansionofwindpower
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andothernewformsofgenerationsuchasbiofuelsandnaturalgas.
Transmissionlossesinthenationalgridarealsoanimportantenvironmentalaspectwithaglobalconnection.Oneofthefactorsthatdeterminesthesizeofthelossesisthetechni-caldesignoftheplants.Anewtooltoenableminimisationofthelossesduringoperationhasbeendeveloped.Thetoolmakesitpossibleforthestaffinthecontrolroomstosimplydeter-minewhatcontrolmeasuresthatwillbestlimitthetransmissionlosses.Thetoolisexpectedtobeoperationalinlate2008.
SvenskaKraftnätisworkingactivelytore-duceemissionsofthegreenhousegassulphurhexafluoride(SF
6)fromcircuit-breakersand
gas-insulatedswitchyards.Theamountofgasthatisputintotheequipmentiscontinuallymeasuredwiththeaimofdetectingandrec-tifyingabnormallyhighleakage.Equipmentthatleaksisreplacedorsealed,anddemandsareplacedonthemaintenancecontractors
Environment
Biological diversity in the powerline corridors is one of Svenska Kraftnät’s environmental goals. The recurrent clearances in the power line corridors create po-
tential refuges for endangered species that thrive in open habitats that are similar to the pastureland that was once common. Demonstration areas have been
set up in, for example, Lydinge in Uppland in order to emphasise the potential of the powerline corridor.
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withregardtohandlingthegas.SvenskaKraftnätisalsograduallytighteninguptherequirementsonsealswhenpurchasingnewproducts.Emissionsfromthenationalgrid’sfacilitiesarelow,lowerthanwhatisrequiredfornewequipmentaccordingtointernatio-nalstandards.
CO2emissionsfrombusinesstripswere
lowerin2007thanin2006,despitethefactthatSvenskaKraftnät’sinvestmentactivitiesaregrowingandthusprecipitatingagreaterrequirementfortravel.
AsSvenskaKraftnätisamajorpurcha-serofcontractservices,itisimportanttoensurethatthecontractorsengagedtaketheenvironmentintoconsideration.Themostimportanttoolsaretheenvironmentalrequi-rementsthatareincludedinthecontractualagreementsalongwithfollowing-upthattherequirementsaremet.Anumberofenviron-mentalauditsofconstructionandmainte-nancecontractshavebeencarriedoutduringtheyear.Theexperiencesgainedfromtheseauditshasledtoanumberofenvironmentalimprovementstothecontracts.Severalenvi-ronmentalauditswillbeundertakenduring2008withtheaimofachievingfurtherim-provements.
EquipmentfilledwithoilisusedinSvenskaKraftnät’sstationfacilities.Apro-jectisunderwaytocarryoutaninventoryofthedimensionsandstatusofoilcollectionpits.AnotherprojectinvolvessystematicallyregisteringallPCBanalysesthathavebeencarriedoutofoilsinpowertransformersandreactors.ThereareonlyasmallnumberoflocaltransformersthatarecontaminatedwithPCB.Aninventoryofbuildingswillbecar-
riedoutduring2008outtoclarifywhetheranybuildingscontainPCB.
During2007workhasbeencompletedontheconstructionofembankmentsaroundthesubsidiarySvenskaKraftnätGasturbinerAB’sfueltanksinthreeofthegasturbinefacilities.Thistherebyremovestheriskofalargeamountofoilbeingabletocontaminategroundandwaterintheeventofanydamagetoatank.Thelargesttankholds1�,500m�ofoil.
SvenskaKraftnät’senvironmentalprizewasawardedforthefirsttimeinMarch2007.Theaimofawardingtheprize,whichamountstoSEK100,000,istoencourageenvironmentalimprovementswithinSvenska
Kraftnät’sfieldofoperations.ThefirstprizewassharedbetweenthecompanyABB,whichhasdevelopedacircuit-breakerwithalargenumberofenvironmentalbenefits,andthebutterflyexpertIngemarFrycklund,whohasdemonstratedthroughmanyyearsofstudythatpowerlinecorridorsrepresentimportantsitesandrefugesforspeciesthatareotherwiseendangered.
Adaptingthemanagementofthepowerlinecorridorstobenefitbiologicaldiversityisalong-termgoal.Inventoriesofanumberofpowerlineshavebeencarriedoutduring2007withrespecttobiotopesthatarerichinspecies.Demonstrationareashavebeenorganisedwheretheresultsoftheadaptedmanagementpracticescanbestudied.Ama-nagementplanhasbeendrawnupincollabo-rationwiththecountyadministrativeboardinUppsalacountyforasectionofpowerlinewiththeaimofincreasingthenumbersoftheendangeredmarshfritillarybutterflyanditsdistributioninthearea.CollaborationwiththecountyadministrativeboardinJönköpingcountryisalsounderwayinaprojectwherethenaturalvaluesinpowerlinecorridorsareassessedandfollowed-up.
Duringtheyearallstaffhavecompletedaweb-basedenvironmentaltrainingcoursefollowedbyatest.Inadditionsomefiftyper-sonshavecompletedbasic,teacher-ledenvi-ronmentaltrainingandaroundthirtyprojectmanagersandmaintenancemanagershavereceivedtraininginwastemanagement.
A more detailed description of Svenska Kraftnät’s environmental work is to be found towards the end of the annual report.
Svenska Kraftnät’s prize for efforts that promote the environment was awarded for the first time in
early 2007.
All Svenska Kraftnät’s employees have successfully completed a web-based environmental training
course. The aim is to enable employees to use their knowledge to make active choices to benefit the
environment both at work and outside it.
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An attractive employer – characterised by re-sponsible enterpriseSvenskaKraftnätshallbeanattractiveemployerwithcompetentemployeeswhoarehappyintheirwork.
SvenskaKraftnät’svaluesareefficiency,quality,socialresponsibility,spiritofcoop-erationandteamwork.Thevaluesserveasguidanceinthetaskofachievingresponsibleenterpriseandbeingperceivedasanattrac-tiveemployer.Thefactthattheworkplaceisvalues-ledwithactiveresponsibilityforsocialdevelopmentattractsnewemployees.
SvenskaKraftnätensuressatisfactoryskillsprovisionbyeffectiveplanningandreplacementofexpertise.SvenskaKraftnäthasexplicittargetsforpresenceandabsenceduetoillness,moreevenageandgenderdistributionandincreasedethnicdiversity.SvenskaKraftnätcollaborateswithandsup-portsselecteduniversitiesinordertobolstertherecruitmentbaseandhasalsoinitiatedtargetedinputsinrelationtouppersecond-aryschools.
Staffshouldperceivethattheirresourcesareusedeffectivelyandthattheoperationisrunwithahighlevelofquality.
LeadershipwithinSvenskaKraftnätshouldbetarget-oriented,clear,transparentandexercisedincooperationwiththestaff.
Staff in 2007Thenumberoffull-timeemployedstaffintheGroupatyear-endwas287(289),ofwhom202(20�)weremenand85(86)women.Staffturnoveramountedto6.2(�.9)%.Sickleaveduringtheyearwas2.5(�.8)%.Theaverageagewithinthecom-panyis�7(�7).Distributionaccordingtoageandgenderisshowninthetablebelow.
Atotalof55employeesareduetoretirefromSvenskaKraftnätwithinthenextfiveyears.
Goals and outcomes for 2007During2007,SvenskaKraftnäthasper-formedanumberofactivitiesaimedatachievingthefollowinggoals:
ThestaffwillcontinuetoregardSvenskaKraftnätasanattractiveemployer.Theproportionoffemaleemployeeswillincreaseto�0%,aswilltheproportionoffemalemanagers.Staffturnoverwillremainatalowlevel.Sickleavewillbereducedtobelow�.0%andtheproportionoflong-termhealthyemployeeswillbe60%.Anewmanagementprogrammeforpro-spectivemanagerswillbestarted.Agedistributionwillincreasethroughtherecruitmentofyoungerstaff.Eachemployeeshallhaveapersonalde-velopmentplanbasedonafundamentalskillsanalysis.SvenskaKraftnätshallactivelypromoteaplannedtransferofexperiencefromoldertoyoungeremployees.SvenskaKraftnätshallberegardedboth
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asacompanythatoffersequalopportuni-tiesandasaverygoodemployerfortheparentsofyoungchildren.Collaborationwithselecteduniversitieswillbefurtherdeveloped.Ethnicandculturaldiversityshallbepromoted,e.g.throughrecruitment.Thenumberofemployeeswhochangejobsinternally(jobrotation)willincreaseto15.
During2007atotalof18employeeswererecruited,8ofwhomwerewomenand10men.Theaverageageofthesenewemploy-eesis�8(�6).Staffturnoverhasincreasedduringtheyear,and10employeeshaveleftthecompany.8employeeshaveendedtheiremploymentduetoretirement.Duringtheyear11employeeschangedunitordepart-mentwithinthecompany.
Duringtheyear6trainees–threewomenandthreemen,allcertifiedengineers–com-pletedthetraineeperiodandweregivenper-manentpositions.
Theproportionoffemalestaffremains
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Employees
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45
40
35
30
25
20
15
10
5
025 –29 30–34 35–39 40–44 45–49 50–54 55–59 >60
Women Men
Quantity
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atthesamelevelaslastyear,justover29%.Theproportionoffemalemanagershadho-weverdecreasedto21%atyearend.
DuringtheyearSvenskaKraftnäthascontinuedtofocusoncreatingahealthiercompany.Keep-fitactivitiesarecentredonfouroverarchinggoalswiththelong-termaimthatSvenskaKraftnätwilltoanevengreaterextentbeasoundandhealthywork-place.Theseare:
Sickleaveshallbemax2.5%Thenumberoflong-termhealthyemployeesshallbeinexcessof65%Physicalfitnessshallonaverageincreaseby20%Thereshallbenowork-relatedlong-termillnesses
Inordertomeetthesetargets,thecompanyisconductingactivitiesinfoursub-areas:workingenvironment,leadership,fitnessandrehabilitation.Absenceduetoillnesshasfallensubstantiallycomparedwithlastyear,chieflyduetoaneffectiveprocessofgettingthelong-termsickbacktowork.
Theproportionoflong-termsickleave(longerthan60days)hasdecreasedto1.1(2.�)%,whichhashadasignificanteffectonthetotalincreaseinsickleave.51(55)%ofthestaffhavenothadonesingledayofsickleaveduringthecourseoftheyear.Attheendoftheyearoneofthecompany’semployeeswassickonalong-termbasis.
DuringthecourseoftheyearthecompanyhasinvestedSEK1�,000peremployeeinex-ternaldevelopmentactivities.DuringtheyearSvenskaKraftnätinstigatedaleadershippro-grammefor11managersthatwillcontinueduring2008.
Almostallemployeeshavehadatleastoneperformanceappraisalduringtheyear,whichhasalsoincludedarecordoftheneedfordevelopment.
Anannualanalysisismadeoftheexpe-rienceandexpertiseofemployeeswhoareduetofinishworkingatSvenskaKraftnätoverthenextfive-yearperiod.Thistasken-tailscompilingwhattypesofknowledgeareofcriticalimportancetothecompanyandwhichmustbetransferredtootheremploy-eesinsomeform.Onetotwoyearsbeforeanemployeeisduetogointoretirement,anas-
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sessmentismadeofwhichactivitiesneedtobecarriedoutsothatimportantknowledgeisretainedwithinSvenskaKraftnät.During2007,thecompanyhasplannedforthistypeofskillstransferfor22employees.
Thegenderequalityplanandtheworkenvironmentplanhasbeenupdatedduringtheyearandthecompany’sperceptionisthatworkongenderequalityandtheworkenvironmentisregardedaspositive.Thestaffregardthecompanyasaverygoodemployerforparentsofyoungchildren.DuringtheyeartheSwedishAssociationofGraduateEngineersdesignatedSvenskaKraftnätasSweden’smostfamilyfriendlycompany,amongcompanieswhichemployalotofengineers.
Duringtheyearthecompanyhaspar-ticipatedinfourcareersfairs;twodaysatKTHinStockholm,onedayatChalmersinGöteborgandonedayattheUniversityinHalmstad.
Svenska Kraftnät’s goals for 2008SvenskaKraftnät’sstaffshouldperceivethattheirresourcesareusedeffectivelyandthattheoperationisrunwithahighlevelofqualityandwithsocialresponsibilityforsus-tainabledevelopment.SvenskaKraftnätwillfocusitsworkfor2008withinthefollowingtargetareas:
SkillsplanningHealthandfitnessGenderequalityanddiversityLeadershipWell-being,cooperationandgoodworkingconditions
Asurveyofattitudeswillbeimplementedduring2008togaugehowwellSvenskaKraft-nätisfulfillingitsgoals.
Skills planningDuring2008theincreasedrateofinvestmentwillhaveapronouncedeffectonskillsplan-ning.Therateofrecruitmentwillincreaseaswellastheneedforallstafftodeveloptheirownskillsinlinewiththesechanges.SvenskaKraftnätwillalsohavetoincreaseitsefforts
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tostimulatejobrotationandgenerategreateropportunitiesforplannedskillstransfer.
Skillsplanningshallalsofocusonfuturemanagementprovisionandthedevelopmentofspecialists.Itisalsobasedonchangesthatrequirespecialefforts,primarilytheeffectofalargenumberofretirements.SvenskaKraftnätmustalsobeactiveatuppersecondaryschoolsanduniversitiesinordertosecurenewgenera-tionswithintheelectricityindustry.
Goals for 2008:Eachemployeeshallhaveapersonalde-velopmentplanbasedonafundamentalskillsanalysisSvenskaKraftnätshallactivelypromoteaplannedtransferofexperiencefromoldertoyoungeremployeesStaffturnoverwillremainatalowlevelCollaborationwithselecteduniversitiesanduppersecondaryschoolswillbefurtherdeveloped
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Sick leave (%) Up to 29 years old 30–49 Over 50 Total
Women 0,4 4,6 3,4 3,8
Men 0,6 1,3 2,4 1,9
Total 0,5 2,6 2,6 2,5
The proportion of women in Svenska Kraftnät is almost 30 %. Despite the company having a large number of engineers, the goal is to increase the proportion.
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AgedistributionwillincreasethroughtherecruitmentofyoungerstaffThenumberofemployeeswhochangejobsinternally(jobrotation)willincreaseto15.SvenskaKraftnätwillinvestatleastSEK15,000peremployeeinskillsdevelop-ment
Health and fitness
DuringtheyearSvenskaKraftnätwillconti-nuetofocusoncreatingahealthycompany.Keep-fitactivitieswillbebothpreventiveandremedialandwillleadtoareductioninabsenceduetoill-healthandconsequentincreaseinattendanceatwork.Aclearlyarticulatedgoalisthatnoemployeesshouldbesickonalong-termbasis.
Goals for 2008• Sickleavewillbereducedtounder2.5%• Theproportionoflong-termhealthy
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employeeswillincreaseto60%• Thereshallbenowork-relatedillnesses• Alllong-termsickshallreturntowork
Gender equality and diversitySvenskaKraftnätwilltakeactivemeasurestopromotebothgenderequalityanddiver-sity.Thelargenumberofretirementswillfacilitateactiverecruitmentofbothfemalestaffandemployeesfromothercultures.Thecompanyshallalsoberegardedasbeneficialfortheparentsofyoungchildren.
Goals for 2008Theproportionoffemaleemployeeswillincreaseto�0%andtheproportionoffemalemanagersto25%SvenskaKraftnätshallberegardedbothasacompanythatoffersequalopportu-nitiesandasaverygoodemployerfortheparentsofyoungchildrenEthnicandculturaldiversityshallbepro-moted,e.g.throughrecruitment
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LeadershipFirst-rate,clearleadershipisanimportantprerequisiteincreatinganattractivecom-pany.SvenskaKraftnätmustactivelydevelopitsmanagers,butalsoensurethatitproducesagoodsupplyofmanagersforthefuture
Goals for 2008• Aprogrammetoproducefuturemanagers
shallbeimplementedduringtheyear• Amanagementprogrammefornewmana-
gersshallcommenceduringtheyear• Theproportionoffemalemanagerswithin
thecompanymustincrease
Well-being, cooperation and good wor-king conditionsTheannualsurveyofattitudeswillgivethecompanyinformationonhowwellwearelivinguptobeingacompanyinwhichemployeesfeelinvolved,arecontent,partici-pateandperformsatisfactorily.
Theattitudesurveywillfocusonmeasur-ingthefollowingtargetareas:
ThatthestaffcontinuetoregardSvenskaKraftnätasanattractiveemployerThatthestaffconsiderthatthereiscoo-perationinrelationtoimportantissuesThatSvenskaKraftnäthassufficientresourcestocarryoutitscommissionssatisfactorilyThattheworkischaracterisedbyef-ficiencyandqualityThattheleadershipwithinthecompanymaintainsahighqualityThatthestaffexperiencejobsatisfactionThattheworkenvironmentisregardedashealthyandsafeThatthestafffeelwell-informedThatskillsplanningisthoroughandfocusedonthefutureThatthestaffarehealthy,enjoytheirworkandconsidertheirworkingcondi-tionstobegood
Goals for 2008/2009Thesubstantiallyincreasedrateofinvest-mentwillhaveapronouncedeffectonthecompany’sskillsprovisioninthecomingyears.
Theprospectsforrecruitingskilledemployeeswillcontinuetobegood.WewillactivelyincreasetheproportionofwomenandfemalemanagerswithinSvenskaKraft-nät,primarilyintheengineeringdepartments.
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The proportion of women in Svenska Kraftnät is almost 30 %. Despite the company having a large number of engineers, the goal is to increase the proportion.
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SvenskaKraftnätalsointendstoinvestinmeasuresthatfurtherreducesickleaveandincreasethenumberoffull-timehealthyemployees.
SvenskaKraftnätwillcontinuetocon-ductemployeesurveysinordertomeasuretheextenttowhichemployeesaresatisfiedwiththeirworkandthecompany.
Thefocusfor2008/2010willbe:NewrecruitmentofspecialistsinordertocopewiththeincreasedrateofinvestmentandlargenumberofretirementsActiverecruitmentofyoungacademicsandfemaleemployeesandmanagersSkillsanalysesandpersonaldevelopmentplansforallemployees
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IncreasedfocusonourmanagersAfocusonthetransferofskillsfromoldertoyoungeremployeesSickleavereducedtounder2.5%Theproportionoffull-timehealthyemployeesshallbeatleast60%Goodcontactswithuppersecondaryschoolsanduniversities
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Incentive programme 2007
ThepurposeofSvenskaKraftnät’sincen-tiveprogrammeistocreateinvolvementinordertoachieveahighlevelofoperationalreliability,asoundfinancialresult,goodcosteffectivenessandawell-function-ingcompany.ThiswillenableSvenskaKraftnät’sprimaryobjectivetobefulfilled:areliableandeffectivenationalgrid.
In2007therewerealsosub-goalsforreducedcarbondioxideemissionsduringbusinesstravel,environmentallyapprovedconstruc-tionandmaintenancecontractsandimple-mentationofcoursesintheenvironmentandIT-security.TheprogrammecoversallemployeesapartfromtheDirectorGeneral,whosefinancialconditionsaredeterminedbytheGovernment.
Theincentiveprogrammeisstructuredsothatthemaximumbonusisonemonth’ssalary.Theoutcomefor2007was100%ofamonthlysalary.Theallocationfor2007isSEK1�.�(7.9)million,includingnationalinsuranceexpenses.
Governance for the Group
TheoperationsoftheSvenskaKraftnätGroupfor2007havebeenregulatedprimarilythroughtheOrdinance(1991:201�),includ-ingtheinstructionfortheparententitySvenskaKraftnät,andthroughtheannualletterofgovernance.Inconnectionwiththeadoptionofthenationalbudgetforthenextyear,ParliamentdecidesonSvenskaKraftnät’sinvestmentsandfinancialoperations.Theletterofgovernance,withintheexpensearea21Energy,describestheassignmentsandregulatesthescope,conditionsandauthoriza-tionsforSvenskaKraftnät.
ThegovernmentappointstheBoardofDirec-torsandtheDirectorGeneralforSvenskaKraftnät.Accordingto5§oftheOrdinanceincludingtheinstructionforSvenskaKraft-nät,theDirectorGeneralandstaffrepresenta-tivesarealsoincludedintheBoard.
Accordingtotheletterofgovernance,thestatementofaccountsinSvenskaKraftnät’sannualandinterimreportsshallfollowthepoliciesandguidelinesintheStateowner-shippolicywheretheseareapplicablefortheSvenskaKraftnätGroup.
From1January2008theGovernmenthasissuedanewregulatoryordinance(2007:515),whichappliestoallGovern-mentauthoritiesandpublicutilities.AnewinstructionfortheparententitySvenskaKraftnät(2007:1119)hascomeintoeffectfrom1January2008.Anewordinanceoninternalgovernanceandcontrol(2007:60�)forSvenskaKraftnätasanauthorityalsoap-pliesfromthesamedate.
continued from previous page
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The Board of Directors
The Board of Directors and its work
TheBoardofSvenskaKraftnätconsistsoftenmembersincludingtwostaffassocia-tionrepresentatives.TheBoardhasheldfivemeetingsduringtheyear.
During2007theworkoftheBoardhasbeenprimarilyfocusedon:
Thecompany’slong-termdevelopmentFinancialefficiencyOngoinginvestmentprogramme
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TheneedforinvestmentinthenationalgridTheexpansionofwindpowerinSwedenTheNordicelectricityexchangeEnvironmentalissues
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Svenska Kraftnät’s internal controls
Theprimaryinternalcontroltakesplaceintheordinaryoperationinthelineorganisa-tion.Theinternalreport-andcontrolsystem
isbasedonannualfinancialplanningwithmonthlyreports.Inadditionthereisaninternalauditorwhoiscommissionedto
reviewtheoperationaccordingtoanannualauditingplan.
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Income statements – the Group
Jan–Dec Jan–Dec
MSEK Note 2007 2006
Operating revenue
Network revenue 1 3 377 3 050
System responsibility revenue – electricity 2 2 531 3 388
Telecommunications revenue 71 67
System responsibility revenue – natural gas 41 36
Renewable electricity certificates 10 20
Government grant for power contingency planning 3 264 253
Activated work for own account 4 32 24
Total operating revenue 6 326 6 838
Operating expenses
Personnel expenses 5 -251 -208
Purchase of loss power -762 -698
Purchased balancing power -2 177 -3 024
Other operating expenses 6 -1 751 -1 651
Depreciation of tangible
and intangible fixed assets 13,14 -590 -569
Total operating expenses -5 531 -6 150
Share of income in associated companies 7 69 48
Operating income 8 864 736
Result from financial investments
Result from other securities and receivables
that are fixed assets 9 11 2
Interest income and similar income items 10 7 3
Interest expenses and similar expense items 11 -145 -60
Income after financial items 737 681
Tax on income for the year 12 -5 -5
Net income for the year 732 676
Income attributable to:
The state 733 678
Minority shares -1 -2
Financial reports
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Operating revenue and expensesTheSvenskaKraftnätGroup’soperatingrev-enueamountedtoSEK6,�26(6,8�8)million,adecreaseofSEK512million.
TheGroup’snetworkrevenueincreasedbySEK�27millioncomparedwiththepreviousyear.TheincreaseisduetothesubstantialrisesincongestionrevenueduringthesecondhalfoftheyearthattotalledSEK6�1millioncom-paredwithSEK�20millionlastyear.EnergydependentrevenuesfromtransmissionsonthenationalgridalsoincreasedduringthelatterhalfoftheyearandtotalledSEK1,271(1,2��)million.
SystemresponsibilityrevenueforelectricityamountedtoSEK2,5�1millionanddecreasedbySEK857million.Includedinthisitemissoldbalancingpower,whichdecreasedbySEK799millionasaresultoflowerelectricitypricesduringtheyear.Thetelecommunicationsop-eration’sexternalrevenueincreasedduringtheyearafteranewagreementwiththecustomers,andamountedtoSEK71(67)million.SystemresponsibilityrevenuefornaturalgaswasSEK�1(�6)million.Theincreaseinrevenueisduetothefactthatcustomercontractshavebeenmodified.
ContingencyplanninghasutilisedfundsamountingtoSEK26�(25�)million,whichisequivalenttothecostsofcontingencymeasuresundertaken.Ofthese,SEK250(2�0)millionhasbeenfinancedbyappropriationsandSEK12(12)hasbeenreceivedintheformofgrantsfromtheSwedishEmergencyManagementAgencyandSEK2(1)millionfromtheNa-tionalPostandTelecomAgency.
Managementofrenewableelectricitycer-tificatesproducedrevenueofSEK10(20)mil-lion.Thefeesforrenewableelectricitycertifi-catesaresetbythegovernmentandregulatedinaccordancewiththeordinance(200�:120)onrenewableelectricitycertificates.TheleveloffeeswasloweredinOctober2006,whichexplainsthereducedrevenue.
TheGroup’soperatingexpensesamountedtoSEK5,5�1(6,150)million.
StaffexpensesamountedtoSEK251mil-lion,anincreaseofSEK��millioncomparedwithlastyear.Theincreaseisprimarilyduetonewmortalityassumptionsforcalculatingtheparententity’spensionliabilityandaprovisionforpayrolltaxonthepensionliability,togetherSEK22million.Lastyearadownwardadjust-mentwasmadetotheopeningpensionliabilityofSEK8million.
ExpensesforpurchaseoflosspowerwereSEK762million,whichisanincreaseofSEK
6�million.Theincreaseincostsisduetothefactthattransmissionlosseswere0.�TWhgreaterthanin2006.
ExpensesforbalancingpowerdecreasedbySEK8�7millionduringtheyearasaconse-quenceofthegenerallylowerelectricityprices.
TheGroup’sotheroperatingexpensesin-creasedbySEK100million.Costsforcoun-ter-tradeincreasedbySEK120millionduringtheyearasaresultofanumberoffactors.InFebruarySvenskaKraftnäthadtoresorttocounter-tradeinordertoreducetransmissionofelectricitytoanothersectionofthenationalgridwhentwoextremeoperationalsituationsaroseonaccountoflossofnucleargeneration.ExpensesforthesemeasuresamountedtoSEK80million.FurthercounterpurchasingwasimplementedduringthesummertoavalueofSEK��millioninconnectionwiththeworkofinstallinganewswitchyardnorth-eastofVarberg.
DepreciationoftangibleandintangiblefixedassetsamountedtoSEK590(569)mil-lion.
Operating incomeOperatingincomefortheGroupincreasedbySEK128milliontoSEK86�million.Operat-ingincomeconsistsofexternalrevenueandexpensesinthebusinesssegmentsandtheshareofincomefromassociatedcompanies.TheoperatingincomeincludesGroupdepreciationandwrite-downs.
ThepredominantbusinesssegmentinSvenskaKraftnät’soperationsisNetwork,withanoperatingincomefortheyearofSEK791(677)million.Theimprovedincomeislargelyduetoincreasedcongestionrevenuesduringthelattersixmonths.SomeitemsconcernboththebusinesssegmentsNetworkandSystemre-sponsibilityforelectricity.Ithasnotbeenpossi-bletoattributesomeactivitiestoasinglebusi-nesssegment.Thecostsforsuchactivitieshavebeenallocatedonastandardbasisbetweenthetwosegments.
ThebusinesssegmentSystemresponsibilityforelectricitygeneratedanoperatingincomeofSEK-�8(-�1)million.ThisisSEK�millionmorethanlastyearandisexplainedbysome-whatlowerexpensesforprimaryregulationonaccountofthelowerpriceofelectricity.
OperatingincomefromtelecomoperationsamountedtoSEK�0million,whichisadete-riorationofSEK1millioncomparedwithlastyear.Themainexplanationisincreaseddepre-ciationduring2007.
Therewasadecreaseinoperatingincome
fromtherenewableelectricitycertificateopera-tionofSEK7milliontoSEK7millionandSystemresponsibilityfornaturalgasshowedapositiveoperatingincomeofSEK5(7)mil-lion.
TherearesixassociatedcompaniesinthegroupandSvenskaKraftnätonlyincludesitsownshareofincomeintheresultsofthesecompaniesintheaccounts.Theshareofin-comefor2007amountedtoSEK69(�8)mil-lion.NordPoolASAisresponsibleforSEK59millionoftheSEK69millionthataffectstheoperatingincomeafterincreasedactivitywithintheclearingoperationduringtheyear.
TheoperatingmarginfortheGroupamountedto1�.7(10.8)%,whichis2.9per-centagepointshigherthanthepreviousyear.
Net financingTheGroup’snetfinancialincome/expenseamountedtoSEK-127(-55)million.ThisisadeteriorationofSEK72millioncomparedwith2006.
Theresultfromothersecuritiesandreceiva-blesthatarefixedassetsamountedtoSEK11(2)millionandhasbeenpositivelyaffectedduringtheyearasaresultofexchangeratedif-ferencesofSEK9million.
TheGroup’sinterestincomerosebySEK�milliontoanoutcomeofSEK7milliononac-countofhigherinterest-ratelevelsduring2007.
TheGroup’sinterestexpensesandsimi-laritemsamountedtoSEK1�5andtherebyincreasedbySEK85million.Theincreasedinterestexpensesareprimarilyduetothefactthattheparententityhasallocatedaprovisionforindexationofthecompany’spensionliabil-ityinaccordancewithnewsecuritygroundsthattheNationalGovernmentEmployeePen-sionsBoardhasadoptedforpublicutilities.SvenskaKraftnäthaschosentoapplythisfrom�1December2007.InterestexpensestherebyincreasedbySEK66million.Groupinterestexpenseshavegenerallyincreasedonaccountofhigherinterest-ratelevelsoninterest-bearingliabilities.
Theinterestcoverageratiofellto6.1(12.�)asaconsequenceofthis.
Net income for the yearTheGroup’snetincomefor2007amountedtoSEK7�2million,whichisSEK56millionhigherthanin2006.Theresultmeansareturnof8.9(7.9)%onadjustedequity.
Thenetprofitmarginwithadeductionforstandardtaxwas8.�(7.1)%.
Comments on Income Statements
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Balance sheet – the Group
MSEK Note 2007-12-31 2006-12-31
ASSETS Fixed assets Intangible fixed assets 13 226 224Tangible fixed assets 14 8 549 8 545Shares and participations in associated companies 16 403 357Long-term receivables 59 55 Income taxes recoverable 5 4 Total fixed assets 9 242 9 185
Current assets Inventories 93 89Current receivables 17 418 306Prepaid expenses and accrued income 19 577 412 Liquid funds 51 59 Total current assets 1 139 866
Total assets 10 381 10 051
EQUITY AND LIABILITIES
Equity referable to owners Government capital 600 600Other paid-up capital 3 314 3 314 Retained earnings incl. net income for the year 2 873 2 579 The Government’s capital 6 787 6 493
Minority interests 45 46
Total equity 6 832 6 539
Long-term liabilities Interest-bearing liabilities 20 1 616 1 960Non-interest-bearing liabilities 327 356Advance payments from customers 93 102Deferred tax 24 19 Provisions for pensions 21 361 253 Total long-term liabilities 2 421 2 690
Current liabilities Interest-bearing liabilities 22 98 98 Accounts payable 400 274Other liabilities 57 60 Accrued expenses and prepaid income 23 573 390 Total current liabilities 1 128 822
Total equity and liabilities 10 381 10 051
Pledged securities None None
Contingent liabilities 24, 25 20 20
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Comments on Balance Sheets
Balance sheet totalTheconsolidatedbalancesheettotalamountedtoSEK10,�81(10,051)million,whichisanincreaseofSEK��0million.
Fixed assetsSvenskaKraftnät’sintangiblefixedassetsconsistoflandrights,rightsofuseforfibre-opticcables,licencesandcapitalizedexpenditureforcomputerprograms.ThebookvalueoftheseisSEK226(22�)mil-lion.TheincreaseisduetothefactthatinvestmentsincomputerprogramsofSEK�5(�6)million,includinganewsettlementsystem,aregreaterthandepreciationfortheyear.
Thetangibleassetsconsistprimarilyofpowercables,stations,buildingsandland,fibre-opticconnectionsandothertechni-calfacilitiesandconstructioninprogress.ThevalueofthetangibleassetsamountedtoSEK8,5�9(8,5�5)million,whichisaslightincreaseofSEK�million.Netinvest-mentsduringtheyearhavebeenhigherthandepreciation.
Theotherfixedassetsconsistofpartici-pationsinassociatedcompanies,long-termreceivablesfromassociatedcompaniesandincometaxesrecoverable.ParticipationsinassociatedcompaniesamountedtoSEK�0�(�57)million.Profitparticipationinthefi-nancialstatementsisSEK69million,whichincreasedSvenskaKraftnät’sparticipationsinassociatedcompanies.Duringtheyear,theparententityreceivedadividendofSEK2�(19)fromNordPoolASA.
Current assetsCurrentassetsamountedtoSEK1,1�9(866)million.Theincreasemainlyrelatestoahigherlevelofaccountsreceivableandhigherprepaidexpensesandaccruedincomecomparedwith�1December2006.LiquidfundsamountedtoSEK51(59)millionatyearend,adecreaseofSEK8million.
Equity Equityatyear-endwasSEK6,8�2(6,5�9)million,ofwhichSEK2,87�(2,579)mil-lionconsistedofretainedearnings.Duringthecourseoftheyear,SEK��9(1,57�)
millionhasbeendistributedtotheGovern-ment.NetGroupincomefortheyearamountedtoSEK7�2(676)million.
Long-term liabilitiesTheGroup’slong-termliabilitiesthatareinterest-bearingconsistoftheparententity’sloanswiththeNationalDebtOfficeofSEK�71(709)millionandSwePolLink’sbankloansofSEK1,1�5(1,251)million.
Theinterest-bearingborrowingrequire-mentsintheGrouphavedecreasedduring2007bySEK���million.TheaverageinterestontheloansfortheGrouphasbeen�.9(�.�)%.
Advancepaymentsfromcustomerswith-infibre-opticoperationsamountedtoSEK9�(102)million.Theagreementperiodsvaryfrom15to25yearsandtheadvancepaymentsaretakenupasincomeduringthisperiod.
ThelevelofthenetloandebtdecreasedbySEK228millionandamountedtoSEK2,02�(2,252)million.Thedecreaseispri-marilyduetoimprovedoperatingincomefortheyear,whichdeliveredtheopportuni-tytoreducethedebttotheNationalDebtOffice.Thishadanimpactonthedebt/eq-uityratio,whichincreasedduringtheyearto��(�8)%.
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Cash flow statements – the Group
MSEK 2007 2006The year’s operations Operating income 864 736
Adjustment for items not included in cash flow
Depreciation 590 569
Other items -2 -22
Interest paid -79 -58
Cash flow from operations before changes in working capital 1 373 1 225
Changes in working capital Change in inventories -4 -16
Change in current receivables -277 58
Change in current liabilities 306 -31
Cash flow from the year’s operations 1 398 1 236
Investment activities Investments in tangible and intangible fixed assets -596 -478
Change in long-term receivables 0 0
Sale of fixed assets 0 2
Cash flow from investment activities -596 -476
Financing activities Change in interest-bearing liabilities -344 627
Change in other long-term liabilities -29 -26
Advance payments from customers 2 7
Dividend paid -439 -1 573
Cash flow from financing activities -810 -965
Cash flow for the year -8 -205
Liquid assets at the beginning of the year 59 264
Liquid assets at year-end 51 59
Comments on Cash Flow Statements
ThepurposeoftheCashFlowStatementistodescribethecapacityoftheSvenskaKraftnätGrouptogenerateliquidassetsandtoserveasacomplementtotheincomestatementandbalancesheetdescriptionsofprofitabilityandfinancialposition.Liquidassetsisunderstoodtobecashandbankbalances.
The year’s operationsCashflowfromtheyear’soperationsbeforechangesinoperatingcapitalincreasedbySEK1�8millioncomparedwiththepreviousyearandamountedtoSEK1,�7�
million.Cashflowfromtheyear’soperationsamountedtoSEK1,�98(1,2�6)million.Theimprovementisprimarilyaresultofthehigherlevelofoperatingincome.
Investment activitiesInvestmentsmadebytheGroupincreasedduringtheyearandamountedtoSEK596(�78)million.InvestmentsintheparententityamountedtoSEK557(�62)million,SEK�(10)millioninthesubsidiarySwePolLinkandSEK�6(6)millioninSvenskaKraftnätGasturbinerAB.
Financing activitiesTheGroup’sinterest-bearingliabilitiesdecreasedbySEK���million,whereastheyincreasedbySEK627millionin2006.
Interest-bearingliabilitiesintheparententitydecreasedbySEK2�8million,andinthesubsidiarySwePolLinkexternalin-terest-bearingliabilitiesdecreasedbySEK106million.SvenskaKraftnätGasturbinerAB’sin-Groupinterest-bearingliabilitywasunchangedatSEK157million.SEK��9(1,57�)millionhasbeenpaidtotheGov-ernment.
CashflowfortheyearamountedtoSEK-8millioncomparedwithSEK-205millionin2006.
Thedividendpaidisreportedagainstanincometitle,linkedtotheGovernmentbudget,inaccordancewiththetableonthenextpage,inTSEK.
�5
Referable to the Government Referable Total Government capital Other Profit brought Total to minority equity
paid-up forward incl. interests capital net income for MSEK the year
Opening balance 2006 600 3 314 3 474 7 388 48 7 436
Dividend — — -1 573 -1 573 — -1 573
Net income for the year — — 678 678 -2 676
Closing balance 2006 600 3 314 2 579 6 493 46 6 539
Opening balance 2007 600 3 314 2 579 6 493 46 6 539
Dividend — — -439 -439 — -439
Net income for the year — — 733 733 -1 732
Closing balance 2007 600 3 314 2 873 6 787 45 6 832
Change in equity – the Group
Profitbroughtforwardincludingnetincomefortheyearisconstitutedbyprofitaccruedintheparententity,insubsidiariesaswellasSvenskaKraftnät’sshareofprofitsfromassociatedcompanies.Previousprovisionstorestrictedreservesareincludedinthiscapitalitem.
TheabovestatementiscompiledasifSvenskaKraftnätwereanindependentgroupwithformalownership.SvenskaKraftnätisapublicutilityandapartoftheSwedishGovernment.
Theallocationofprofitproposedintheannualreportfor2006ofSEK��9millionwasadoptedbytheGovernment.
Profit brought forward including net income for the year
Income title, TSEK Amount to Amount
pay in paid in
2116 Parent entity’s delivered dividend 439 000 439 000
�6
�7
Jan–Dec Jan–Dec
MSEK Note 2007 2006
Operating revenue
Network revenue 1 3 162 2 849
System responsibility revenue – electricity 2 2 532 3 389
Telecommunications revenue 71 67
System responsibility revenue – natural gas 41 36
Renewable electricity certificates 10 20
Government grant for power contingency planning 3 264 253
Activated work for own account 4 32 24
Total operating revenue 6 112 6 638
Operating expenses
Personnel expenses 5 -250 -208
Purchase of loss power -762 -698
Purchased balancing power -2 191 -3 027
Other operating expenses 6 -1 748 -1 652
Depreciation of tangible
and intangible fixed assets 13, 14 -446 -426
Total operating expenses -5 397 -6 011
Operating income 715 627
Result from financial investments
Result from other securities and receivables
that are fixed assets 9 41 26
Interest income and similar income items 10 7 2
Interest expenses and similar expense items 11 -89 -17
Income after financial items 674 638
Income statements – Parent Entity
�8
Balance sheets – Parent Entity
MSEK 2007-12-31 2006-12-31
ASSETS Note Fixed assets Intangible fixed assets 13 Capitalized expenditure for computer programmes 21 24Land rights 64 67Rights of use 46 49Construction work in progress 95 84Total intangible fixed assets 226 224 Tangible fixed assets 14 Buildings and land 223 169Machinery and equipment 5 832 5 989Construction work in progress 662 450Total tangible fixed assets 6 717 6 608 Financial fixed assets Shares and participations in Group companies 15 12 12Receivables from Group companies 145 144Shares and participations in associated companies 16 177 177Receivables from associated companies 59 55Total financial fixed assets 393 388
Total fixed assets 7 336 7 220 Current assets Inventories 6 2 Current receivables Accounts receivable 314 210Receivables from Group companies 29 26Receivables from associated companies 3 4Other receivables 48 18Receivables from the public utility’s cheque account 18 28 48Prepaid expenses and accrued income 19 574 411Total current receivables 996 717 Cash and bank balances 28 11 Total current assets 1 030 730 Total assets 8 366 7 950
�9
Balance sheets – Parent Entity
MSEK Note 2007-12-31 2006-12-31
EQUITY AND LIABILITIES
Equity
Restricted equity
Government capital 600 600
Restricted reserves 3 314 3 314
Total restricted equity 3 914 3 914
Retained earnings incl. net income for the year 1 875 1 676
Net income for the year 674 638
Total unrestricted equity 2 549 2 314
Total equity 6 463 6 228
Interest-bearing provisions
Provisions for pensions 21 361 253
Interest-bearing long-term liabilities 20 471 709
Non-interest-bearing long-term liabilities
Non-interest-bearing liabilities 0 1
Advance payments from customers 93 102
Total non-interest-bearing long-term liabilities 93 103
Non-interest-bearing current liabilities
Accounts payable 388 264
Other liabilities 19 27
Accrued expenses and prepaid income 23 571 366
Total non-interest-bearing current liabilities 978 657
Total equity and liabilities 8 366 7 950
Pledged securities None None
Contingent liabilities 24, 25 20 20
50
Cash flow statements – Parent Entity
MSEK 2007 2006
The year’s operations
Operating income 715 627
Adjustment for items not included in cash flow
Depreciation 445 426
Other items 55 30
Interest paid -26 -16
Cash flow from operations before changes in
working capital 1 189 1 067
Changes in working capital
Change in inventories -4 3
Change in current receivables -279 49
Change in current liabilities 321 -39
Cash flow from the year’s operations 1 227 1 080
Investment activities
Investments in tangible and intangible fixed assets -557 -462
Change in long-term receivables 0 0
Sale of fixed assets 0 0
Cash flow from investment activities -557 -462
Financing activities
Dividend received 23 19
Change in interest-bearing liabilities -238 709
Change in other long-term liabilities -1 -1
Advance payments from customers 2 7
Dividend paid -439 -1 573
Cash flow from financing activities -653 -839
Cash flow for the year 17 -221
Liquid assets at the beginning of the year 11 232
Liquid assets at year-end 28 11
Liquid assets at year-end 11 232
Change in equity – Parent Entity
Profit brought forward
Other paid-up incl. net income
MSEK Government capital capital for the year Total
Opening balance 2006 600 3 314 3 249 7 163
Dividend — — -1 573 -1 573
Net income for the year — — 638 638
Closing balance 2006 600 3 314 2 314 6 228
Opening balance 2007 600 3 314 2 314 6 228
Dividend — — -439 -439
Net income for the year — — 674 674
Closing balance 2007 600 3 314 2 549 6 463
51
MSEK 2007 2006 2005 2004 2003 2002 2001
Income statement
Operating revenue 6 326 6 838 5 885 5 335 5 633 5 096 4 887
Operating revenue excluding depreciation -4 941 -5 581 -4 445 -4 201 -4 717 -3 967 -3 551
Depreciation -590 -569 -558 -537 -527 -512 -493
Share of income in associated companies 69 48 30 23 19 40 37
Operating income 864 736 912 620 408 657 880
Financial items -127 -55 -29 -67 -118 -109 -145
Income after financial items 737 681 883 553 290 548 735
Tax on income for the year -5 -5 -3 -15 1 -5 6
Net income for the year 732 676 880 538 291 543 741
Balance sheet
Intangible fixed assets 226 224 207 171 132 110 74
Tangible fixed assets 8549 8 545 8 655 8 916 9 081 9 240 9 424
Financial fixed assets 467 416 391 372 364 372 178
Inventories 93 89 73 69 71 59 62
Current receivables 995 718 776 681 677 835 715
Liquid funds 51 59 264 120 99 165 212
Total assets 10 381 10 051 10 366 10 329 10 424 10 781 10 665
Equity 6 832 6 539 7 435 6 892 6 664 6 729 6 661
Long-term liabilities
Interest-bearing 1 616 1 960 1 333 2 423 2 667 2 813 2 968
Non-interest-bearing 444 477 505 111 112 104 104
Provisions 361 253 240 220 195 190 168
Current liabilities
Interest-bearing 98 98 98 128 127 138 138
Non-interest-bearing 1 030 724 755 555 659 807 626
Total equity and liabilities 10 381 10 051 10 366 10 329 10 424 10 781 10 665
Key business ratios
Return on adjusted equity after tax % 8,9 7,9 10,1 6,2 3,5 6,6 8,9
Return on total capital % 8,6 7,3 8,9 5,8 3,9 8,3 7,7
Return on capital employed % 10,7 9,0 10,8 6,7 4,6 8,4 10,6
Equity/assets ratio % 58,8 58,5 62,8 59,2 57 55,5 55,4
Operating margin % 13,7 10,8 15,5 11,6 7,2 12,9 18,0
Net profit margin after tax % 8,3 7,1 10,8 7,0 3,7 7,6 10,7
Capital turnover ratio % 61,9 67,0 56,9 51,4 53,1 48,1 45,6
Debt/equity ratio % 33 38 22 43 49 50 51
Self-financing level times 2,1 2,8 4,4 2,6 2,0 2,3 3,3
Interest coverage ratio times 6,1 12,4 21,5 7,6 3,3 4,6 5,6
Other
Internally allocated funds MSEK 1 364 1 225 1 417 1 089 844 989 1 230
Net liability MSEK 2 024 2 252 1 407 2 651 2 897 2 982 3 062
Investments MSEK 596 478 338 410 411 460 363
Average no. of employees 289 282 277 269 261 249 241
Energy supplied to the national grid TWh 120,5 119,8 127,7 123,5 117,7 125,2 125,1
Energy extracted from the national grid TWh 117,7 117,3 124,5 120,7 115,2 122,5 122,3
Energy losses TWh 2,8 2,5 3,2 2,7 2,5 2,7 2,8
Seven year review for the Group
52
Additional information and notes
Accounting and valuation principlesBasis for drawing up the reportsSvenskaKraftnät’saccountscomplywithOrdinance(2000:606)onpublicauthor-itybook-keepingandtheSwedishNationalFinanceManagementAuthority’s(ESV’s)regulationsandgeneraladvice.Theordi-nancecorrespondswiththeBook-KeepingActbutisadaptedtothespecialprecondi-tionsthatapplyforGovernmentauthoritiesandutilities.WithcertainexceptionsthatarestipulatedinthedocumentonGovern-mentappropriations,theAnnualReportisdrawnupinaccordancewiththeOrdinance(2000:605)onannualreportsandbudgetinputandESV’sregulationsandgeneraladvice.PartofSvenskaKraftnät’soperations–contingencyplanning–isfinancedviaGovernmentgrants.Forthisparticularactiv-ity,theprovisionsofOrdinance(1996:1189)ongrantsalsoapplies,whichamongotherthingsregulatestheprinciplesforgrantset-tlementandhownon-utilisedfundsmayberetainedbetweendifferentbudgetyears.
SvenskaKraftnäthasmadedeparturesfromtheaboveordinancewhenpreparingtheGroup’sincomestatementsandbalancesheets,cashflowstatementsandchangesinequity.ThisisinordertoprovideamoretrueandfairpictureoftheGroup’sfinancialstatusandbettercomparabilitywithSwedishgroupsquotedonthestockexchange.
Preconditions for the drafting of the Group’s financial reportsTheparententity’sfunctionalcurrencyforreportingisSwedishkronorforboththeparententityandtheGroup.Allamountsthataregivenareroundedofftothenearestmillionkronor(MSEK)unlessotherwiseindicated.Itemsrelatedtoincomestatementsrefertotheperiod1January–�1December.Itemsrelatedtobalancesheetsreferto�1December.Figureswithinbracketsapplytothepreviousyear’svalues.
Consolidated accounts principlesThe extent of the groupSvenskaKraftnätcomprisestheparententity,theSvenskaKraftnätpublicutility,alongwiththreesubsidiariesandsixas-sociatedcompanies.TheparententityisaSwedishpublicutilitythathasitsheadofficeinStockholm.TheGroupisunderthecontrollinginfluenceoftheSwedishgovernment.
Thesubsidiariesandassociatedcom-paniesarelimitedliabilitycompaniesorcompanieswithacorrespondinglegalstatusabroad.
Oneofthesubsidiaries,SwePolLinkAB,hasinturnitsownwholly-ownedsubsidiaryinPoland.Consolidation principlesTheconsolidatedaccountsaredrawnupinaccordancewiththeacquisitionmethod,whichmeansbrieflythattheacquisitioncostforthesharesinthesubsidiaryareelimi-natedagainsttheequitythatexistsinthesubsidiaryatthetimeoftheacquisition.TherecommendationsoftheSwedishFinancialAccountingStandardsCouncilconcerningconsolidatedaccountsareapplied.
Minorityparticipationsinthenetin-comeandequityinpart-ownedsubsidiariesarepresentedseparatelyinthecalculationoftheGroup’snetincomeandequity.InternalprofitswithintheGroupareeliminatedintheirentirety.
Associatedcompaniesarereportedinaccordancewiththeequitymethod.ThismeansthatthebookvalueofsharesandparticipationsinassociatedcompaniesintheconsolidatedaccountsisvaluedattheGroup’sshareoftheassociatedcompanies’equity.SvenskaKraftnät’sshareoftheassoci-atedcompanies’resultistherebyincludedintheGroup’sresultanddividenddistributed.Theshareisincludedintheprofitbroughtforward.
Untaxed reserves/appropriationsWhendrawinguptheconsolidatedaccounts,untaxedreservesandappropriationsreportedintheindividualcompanieshavebeendividedupintodeferredtaxandrestrictedequity.Thedeferredtaxliabilityhasbeencalculatedatthecurrenttaxrate.Translation of foreign subsidiaries and associated companiesForallcompanieswithintheGrouplocalcur-rencycorrespondstothefunctionalcurrencyforthecompany.Swedishkronor,whichistheparentcompany’sfunctionalandreport-ingcurrency,isusedintheconsolidatedac-counts.Assetsandliabilitiesaretranslatedtotheexchangerateonthebalancesheetdate.Unrealisedexchangerategainsandexchangeratelossesareincludedintheresult.
ThesubsidiarySwePolLinkAB’sPolishsubsidiary’sannualaccountshavebeentrans-latedintoSwedishkronorinaccordancewiththemonetarymethod,whichmeansthatmonetaryitemsaretranslatedintothebal-ancesheetdaterateandnon-monetaryitemsintotherateatthetimeoftheinvestment.Thetranslationdifferencebetweenmon-etaryassetsandliabilitiesisincludedinthenetincomefortheyearfortheGroupandisreportedintheincomestatement.Themon-etarymethodisusedbecausetheoperationsofthePolishcompanyareregardedasanintegratedpartofSwePolLinkAB’sactivities.Revenue accountingRevenuesarereportedtotheextenttowhichitislikelythatthefinancialadvantageswillbetothebenefitoftheGroupandthattherevenuescanbecalculatedinareliableway.RevenuesarereportednetofVAT.Intra-groupsalesareeliminatedintheconsolidatedaccounts.
Network revenueNetworkrevenueconsistsofbothpowerchargesandenergydependentfees.Power
5�
chargesarefixedannualfeesforsubscrip-tionsthatarereportedasincomelinearlythroughouttheperiodwhichthefeeismeanttocover,whiletheenergy-dependentfeeisreportedasincomeinconnectionwiththeuseofSvenskaKraftnät’sservices.
System responsibility revenue for electricity Revenueconsistsofpowersoldforbalanceservices,revenuefortheuseoftheITsystemEdielandrevenueinordertocoverthecostsofpowerreserves.From1January2005theGroupreportsitsrevenueandexpensesgrossforsystemresponsibilityperhourinsteadofaspreviouslyperfourteendayperiod.Ifthecustomerhasoverallpurchasedpowerduringtheperiod,thisisshownasbalancingpowerrevenueforSvenskaKraftnätwhereasifthecustomerhasinsteadoverallsoldpower,itisreportedasabalancingpowercost.
System responsibility revenue for natural gas Revenueconsistsofsoldnaturalgasforthepowerbalancingservice.Systemresponsibil-ityfornaturalgasgeneratesbothrevenueforsoldnaturalgasaswellasexpensesforpurchasednaturalgas.Thisisreportedandsettledonagrossbasisperday.
Otheroperatingrevenueisreportedasrevenueinconjunctionwiththeprovisionoftheservice.Toacertainextent,customerscanpayinadvance.Theadvancepaymentisthendeductedagainstrevenueastheserviceiscarriedout.Segment accounting or line of businessTheSvenskaKraftnätGroup’sprimarysegmentsarelinesofbusiness.TheGroup’soperationsaredividedintosixbusinessseg-ments.Abusinesssegmentisaunitidentifia-blewithinSvenskaKraftnät’saccountsthatisdistinguishedfromotherbusinesssegmentsonthebasisoftherisksandopportunitiesinvolvedineachassignment.Interest incomeInterestincomeisreportedconcurrentlyasitisaccrued,i.e.itisaccountedintheincomestatementintheperiodinwhichitarises.Interest expensesInterestexpensesconsistofinterestandotherexpensesthatarisewhenborrowingcapital.Interestexpensesarereportedintheperiodtheyrelateto.InterestexpensesduringtheconstructionperiodareactivatedwiththeconstructionofcapitalassetsinexcessofSEK50million.
Receivables and liabilitiesAssetsandliabilitieshavebeenvaluedattheacquisitionvalueifnototherwisespecified.Doubtfuldebtsareenteredattheamountthatisestimatedwillbepaidafterindividualassessment.Receivables and liabilities in foreign currencyReceivablesandliabilitiesinforeigncurrencyarevaluedattheexchangerateonthebal-ancesheetdate.Thedifferencebetweenthevalueonthedateofacquisitionandthebal-ancesheetdatehasbeenaddedtotheresult.InventoriesTheinventoryconsistsofnaturalgasandfuelforoperatinggasturbines.Thestockhasbeenvaluedatthelowestoftheacquisitionvalueandtherealvalue.Liquid fundsLiquidfundscomprisecashandbankbal-ances.
Reporting of leasing agreementsAllleasingagreementsarereportedasopera-tionalleasesandwritten-offlinearly.Therearenofinancialleasingagreements.
Tangible fixed assetsTangiblefixedassetsarereportedattheiracquisitionvaluewithadeductionmadeforaccumulateddepreciationandwrite-downs.Investmentsareregardedasbeingnewcon-structionaswellasconversionsandexten-sionsthatinthelongtermincreasestandard,qualityorperformance.
Expenditureforrepairsandmaintenancearereportedasanexpenseintheperiodinwhichtheyoccur.Includedundermainte-nanceareworksthatareneededinorderforittobepossibleforafacilitytobeusedintheoriginalwayintended,butwhichdonot
increaseitsperformanceorsignificantlyex-tenditslifetime.
InterestexpensesduringtheconstructionperiodareactivatedwiththeconstructionoffacilitiesinexcessofSEK50million.Intangible fixed assetsExpenditureforlandrights,rightsofuseinfibre-opticconnections,licences,construc-tioninprogressanddevelopmentexpensesforcomputerprogrammesarecarriedfor-wardandwrittenofflinearlyoverthedura-tionofuse.Allintangiblefixedassetshavealimitedperiodofuse.Since2002landrightsarewrittenoffaccordingtotheassessedperiodofuse,whichforacableconcessionisusually�0years.
Rightsofuseareforfibre-opticcablesandarewrittenoffoveraperiodofbetween15and25yearsinaccordancewiththelengthofthecontractperiod.
Depreciation Depreciationaccordingtoplanisbasedontheacquisitionvalueoftheassetsandtheestimatedperiodofuse.Lineardepreciationisusedforallfixedassets.
ProvisionsAprovisionisreportedinthebalancesheetwhenthereisalegalorinformalundertak-ingasaconsequenceofaneventthathasoccurred,anditislikelythatanoutflowofresourcesisrequiredtosettletheundertakingandthattheamountcanbeestimatedinareliableway.TaxesSvenskaKraftnät’ssubsidiariesareobligedtopayincometaxforlimitedliabilitycom-panies,whereasSvenskaKraftnätasapublicutilityandpartoftheSwedishstateisfreefromincometax,i.e.isnotataxsubject.Deferredtaxfordifferencesbetweenthe
Theresidualvalueanddurationofuseofassetsisregularlycheckedandadjustedwhennecessary.
Annual depreciation rates Transmission lines, excluding submarine cables and associated lines 2,5 % Submarine cables, excluding SwePol Link, and associated lines 3,3 % SwePol Link 5,0 % Control equipment in stations 6,7 % Other station components 3,3 % Fibre-optic connections 4,0 % Spare parts 6,7 % Telecom and information systems 6,7 – 20,0 % Gas turbine plants 5,0 %
PCs and equipment 33,3 %
5�
reportedandfiscalresultisnotreportedbytheparententityandtheSvenskaKraftnätGroup,withtheexceptionofSwePolLinkPolandandforuntaxedreservesintheSwe-dishsubsidiaries.Deferredtaxreceivablesarereportedtotheextentthatsufficienttaxablesurplusisdeemedlikelytobeavailablewithintheforeseeablefuture.Pension commitmentsSince200�anewpensionagreement,PA-0�,appliesforstateemployeesbornin19��orlater.Foremployeesbornin19�2orearlierPA-91stillapplies.ThesizeofthepensionprovisioniscalculatedbytheNationalGo-vernmentEmployeePensionsBoard(SPV).PA-0�includesold-agepension,survivors’pensionanddisabilitypension.PA-0�includesthefollowingold-agepen-sions:
Contributionpensions–individualold-agepensionandsupplementaryold-agepension,Kåpan.Premiumsarepaidforthese.Defined-benefitpensions–old-agepen-siononincomesover7.5basicincomeandold-agepensioninaccordancewithtransitionalrulesforemployeesbornbetween19��and1972.
Thesecommitmentsarereportedundertheitem,Provisionforpensions.
Theyear’spensionprovisionshavebeenwrittenofftogetherwithpremiumspaid.Theinterestcomponentintheyear’spensionexpensesisreportedasaninterestexpense.Inadditiontothe2.5%interestrate,thein-terestcomponentalsoincludesindex-linkingofcertainbenefits.Some7%oftheemploy-
•
•
eeswerenotupdated,whichmeansthattheirpensionprovisionhasbeencalculatedatastandardrate.UpdatingmeansthatSPVcar-riesoutanoverallreviewofallthepositionsastateemployeehasheld,inboththepublicandprivatesectors.Iftherearegapsintheperiodofemploymentthepensionprovisionisenteredatastandardrate.Amongotherthings,thismeansthatSPVassumesthattheemployeehasbeeninstateemploymentfromtheageof28,andthattheprovisioniscalcu-latedwithafactorof0.95.Thismeansthattheactualprovisionmightbelessormore.SvenskaKraftnätconsidersthatthepensionprovisionisnottoolowandhaschosentore-portthepensionprovisioncalculatedbySPV.
Thepensionliabilityreportedisconsti-tutedbythetechnicallycalculatedassump-tionsthatSvenskaKraftnätisresponsibleforaccordingtothePA-91andPA-0�pensionagreements.Thepensionprovisioniscalcu-latedinaccordancewiththebasisthattheboardofSPVhaslaiddown.Thepensionprovisionincludescommitmentswithrespecttobothactivepersonnelandpensioners.
SvenskaKraftnätpaysaspecialpayrolltaxonpaidoutpensionsinaccordancewithOr-dinance(1991:70�)ontheestablishmentofspecialpayrolltaxonstatepensionexpensesandnotbasedonallocationsforpensions.Sincethepensionprovisionisforfuturepen-sionoutlays,anallocationismadeforspecialpayrolltaxbasedonthesizeofthepensionprovisionattheendoftheyear.
Government supportExternalcontributionstoinvestmentsreducetheacquisitionvalueoftheinvestmentbyanequivalentamount.
Research and development expensesDevelopmentworkisanintegratedaspectoftheoperationandreferstomeasuresforlong-termimprovementsthatarewrittenoffcontinuouslyduringtheyear.SvenskaKraftnätconductsresearchanddevelopmentworkwiththeaimofincreasingreliabilityperformance,effectivenessandenvironmen-taladaptationofthenetworkandsystemop-erations.Noexpensesarethereforeactivatedfordevelopment.Cash flow statementThecashflowstatementisdrawnupinac-cordancewiththeindirectmethod.There-portedcashflowcomprisestransactionsthatentailreceiptsandpayments.Thismeansthatdiscrepanciescanoccurcomparedwithchangesinindividualitemsinthebalancesheet.BorrowingBorrowingisreportedatanominalamount.Shares and participations in Group companiesSharesandparticipationsingroupcompa-niesarereportedatacquisitionvaluewithdeductionsforanywrite-downs.Dividendsreceivedarereportedwhentherighttoadividendisdeemedtobesecure.Supervisory AuthorityThesupervisoryauthorityfornetworkope-rationsistheEnergyMarketInspectorate,whichisanindependentauthorityfrom1January2008.
Group Parent entity
MSEK 2007 2006 2007 2006
Power revenue 1 061 1 074 1 096 1 109
Energy-dependent revenue 1 271 1 233 1 271 1 233
Congestion revenue 641 320 641 320
Transit revenue 112 139 112 139
Swe Pol Link 246 232 - -
Other revenue 46 52 42 48
Total 3 377 3 050 3 162 2 849
Group Parent entity
MSEK 2007 2006 2007 2006
Sold balancing power 1 994 2 793 1 995 2 794
Sold final power 121 66 121 66
Sold supportive power 72 125 72 125
Sold regulation power 212 247 212 247
Peak-power reserve 126 151 126 151
Ediel 6 6 6 6
Total 2 531 3 388 2 532 3 389
NotesNote 1 Network revenue Note 2 System responsibility revenue
– electricity
Soldbalancingpowerisforinvoicedincomefortheimbalancethatbalanceprovidershavecausedinthenationalelectricitysystem.
55
Note 5 Staff Theaveragenumberofemployeesduring2007wasinthegroup289(282),ofwhom287(280)intheparententityand2(2)inPolandintheSwePolLinkGroup.
Thedistributionbetweenmenandwomenatyear-endcanbeseenfromthetablebelow.Thereisonemanandonewomenem-ployedinPoland.
TheGroup’sstaffexpensesamountedtoSEK251(208)mil-lion,ofwhichthepayrollcostswereSEK1�2(1�1)million.TothisshallbeaddedsocialfeesofSEK97(7�)million.IncludedintheseamountsarepensioncostsofSEK26(22)million.
Theincreaseinstaffexpensescomparedwithlastyearisprimarilyduetonewmortalityassumptionsforcalculatingtheparententity’spensionliabilityandaprovisionforpayrolltaxonthepensionliabil-ity,togetherSEK22million.Lastyearadownwardadjustmentwas
madetotheopeningpensionliabilityofSEK8million.DuringtheyeartheparententityhasreceivedSEK1.�(1.7)millioninfundingfromtheNationalBoardofTradetoemployyoungacademics.
ThefeepaidtotheChairmanoftheBoardamountedtoSEK78,996.ThefeespaidtootherBoardmembershaveamountedtoSEK52,992permemberforthewholeyear.NofeesarepaidtoBoardmemberswhoareemployedwithinSvenskaKraftnät,apartfromtheirnormalsalaries.
ThesalaryofthedepartedDirectorGeneralamountedtoSEK0.�(1.2)millionandthepensionexpensefortheyeartoSEK1.6(0.5)millionaccordingtocalculationsfromtheNationalGovernmentEmployeePensionsBoard.TheDeputyDirectorGeneralbecameactingDirectorGeneralon1April.HissalaryfortheyearasawholeamountedtoSEK1.2(1.0)millionandpensionexpensesamountedtoSEK0.5million.
ThecompositionoftheBoard,excludingstaffrepresentatives,canbeseenfromthetablebelow.
Grants accounts for the parent entity:
Political area Opening Allocation for the year Total Expenses Closing
Total defence amount as per annual letter of disposable amount
(TSEK) governance funds
7:5 Emergency preparedness
- Appropriation item 3, 10 031 250 000 -2 577 257 454 - 249 949
Electricity emergency measures
Inadditiontoappropriations,grantshavealsobeenreceivedfromtheEmergencyManagementAuthorityandtheNationalPostandTelecomAgencyforanamountofSEK1�,06�thousand,ofwhichSEK85thousandisnon-utilizedfundsfromthepreviousyear.OftheseSEK1�,920thousandwereutilized.
Forthisappropriation,thereisalsoaframeworkforauthorisation,thataccordingtocivillawisabindingundertakingthatentailsfutureexpensesassetoutinthetablebelow.
ThegrantsconsumedduringthecourseoftheyearamountingtoSEK26�(25�)millionhavebeenusedforthetrainingofconscripts,asacontributiontotheemergencyreserve,forthepurchaseofequipmentforimmediaterepairsinconnectionwithpowerlinefailuresingridandregionalnetworks,mobilecommandsupportforcrisismanagement,purchaseofequipmentforimmediaterepairsinconnectionwithpower-linefailuresandmeasuresinpowerplantstopermitislandoperation.
Allocated framework for Opening Outstanding Forecast
outstanding undertakings, TSEK commitments commitments 2008 2009 2010
230 000 174 378 333 959 138 655 86 271 70 577
Group and Parent entity
MSEK 2007 2006
Construction work in progress 27 18
Activated development of computer programs 5 6
Total 32 24
MSEK Group Parent entity
(Number) 2007 2006 2007 2006
Women 84 86 83 85
Men 203 203 202 202
Total 287 289 285 287
The Board 2007 2006
Women 3 2
Men 5 5
Total 8 7
Note 3 Government grant for power contingency planning
Note 4 Activated work for own account ThisitemconcernslabourcostsforSvenskaKraftnät’sownper-sonnelthatareactivatedagainstinvestmentprojects.InvestmentprojectsreferontheonehandtoconstructionworkinprogressandontheothertoactivatedITdevelopmentprojects.
56
Note 6 Other operating expenses
IncludedinSystemoperationservicesarecostsforcounter-tradepro-videdbytheBalanceServiceamountingtoSEK181(6�)million.TheitemOtherincludespaymentstoaccountantsinthefollowingamounts:
Auditingcomprisesexaminationoftheannualaccountsandbook-keepingaswellastheadministrationbytheBoardofDirectorsandtheDirector-General/ManagingDirectorsandothertasksthatfallwithintheresponsibilityoftheparententity’sandthesubsidiaries’auditorstoperform.Includedamongothertasksareconsultationsinsubsidiaries.
Note 7 Share of income from associated companies
Shareofincomefromassociatedcompaniesisreportedaftertax.TheshareofincomefromtheotherassociatedcompanieswaslessthanSEK1million.
Note 8 Business segments
ThepredominantbusinesssegmentswithintheGroupareNetworkandSystemresponsibilityforelectricity.
Includedintheoperatingincomearethebusinesssegments’exter-nalrevenueandexpenses.ActivatedownworkisincludedinNetwork,seenote�.
SomeitemsconcernboththebusinesssegmentsNetworkandSys-temresponsibilityforelectricity.Whenithasnotbeenpossibletolinktheseactivitiestoabusinesssegment,thecostshavebeendistributedonastandardbasis.
BusinesssegmentTelecommunicationshasperformedservicesforNetworktoavalueof�2(�2)million,whichisreportedasoperatingincomeforTelecommunicationsandacorrespondingincreaseinoper-atingexpenseforNetwork.ActivatedownworkisincludedintheNet-workbusinesssegment’srevenueatanamountofSEK�2(2�)million.
WithinbusinesssegmentSystemresponsibilityforelectricity,thebalanceprovidershaveagreementswiththeparententityonfrequencymaintenanceandsettlementoftheirimbalances.Profittrendsintheparententityareshownbelowfortheyears2007and2006.
Group Parent entity
MSEK 2007 2006 2007 2006
Energy crediting 334 366 334 366
Operation & maintenance 276 261 239 233
Leases on fixed assets 46 45 46 45
Transit expenses 131 142 131 142
System operation services 458 330 485 358
Peak-power reserve 129 133 142 151
Own contingency planning costs 8 8 8 8
Research and development 27 22 27 22
Contingency planning expenses 198 190 212 203 Other 144 154 124 124
Total 1 751 1 651 1 748 1 652
Fees and expenses Group Parent entity
MSEK 2007 2006 2007 2006
Swedish National Audit Office 0,7 0,8 0,7 0,8
Other auditors 0,4 0,2 - -
Auditing expenses 1,1 1,0 0,7 0,88
Consultation, Deloitte & Touche - 0,3 - 0,3
Consultation, Ernst & Young 0,3 - 0,2 - Total 1,4 1,3 0,9 1,1
Group
MSEK 2007 2006
Nord Pool ASA 59 36
Nord Pool Spot AS 7 10
STRI 2 1 Kraftdragarna AB 1 1
Total 69 48
Group
Operating revenue Operating income
MSEK 2007 2006 2007 2006
Network 3 409 3 074 791 677
System responsibility – electricity 2 531 3 388 -38 -41
Telecommunications 103 99 30 31
System responsibility – natural gas 41 36 5 7
Renewable electricity certificates 10 20 7 14
Associated companies - - 69 48
Contingency 264 253 0 0
Segment elimination -32 -32 - -
Total 6 326 6 838 864 736
Parent entity
MSEK 2007 2006
Operating revenue
Balancing power revenue 2 382 3 232
Peak-power reserve 127 151
Ediel 6 6
Other system revenue 17 0
Total operating revenue 2 532 3 389
Operating expenses
Balancing power expenses -2 187 -3 023
System operation, primary regulation -181 -190
Disturbance reserve -45 -42
Peak-power reserve -142 -151
Ediel -4 -4
Other expenses -16 -20
Depreciation -1 -1
Total operating expenses -2 576 -3 431
Operating income -44 -42
Returnoncapitalemployedforthegroupis10.7(9.0)%.Thepre-dominantproportionofthecapitalemployedbelongstotheNetworkbusinesssegment.
57
Note 9 Result from securities and receivables accounted for as fixed assets
Note 10 Interest income and similar income items
Note 11 Interest expenses and similar expense items
Note 12 Tax on income for the year
SincethemajorityoftheGroup’sincomebeforetaxisearnedintheparententity,whichisrelievedfromincometax,noaccountisgivenoftheconnectionbetweenthetaxexpensefortheyearandtherepor-tedincomebeforetaxintheGroup.
Group Parent entity
MSEK 2007 2006 2007 2006
Dividend on shares and participations in associated companies - - 23 19
Interest income on long-term receivables in subsidiaries - - 7 5
Interest income on long-term receivables in associated companies 2 5 2 5
Other interest income 4 1 4 1
Exchange rate differences 5 -4 5 -4
Total 11 2 41 26
Group Parent entity
MSEK 2007 2006 2007 2006
Interest income from bank balances 2 2 2 1
Other interest income 5 1 5 1
Total 7 3 7 2
Group Parent entity
MSEK 2007 2006 2007 2006
Interest expenses, Pension debt 71 5 71 5
Interest expenses, long-term credit 52 43 0 0
Interest expenses, National Debt Office loan 23 14 23 14
Interest expenses, current liabilities 3 1 3 1
Capitalised interest for new construction -9 -4 -9 -4
Exchange rate differences 2 1 - 1
Other financial expenses 3 - 1 -
Total 145 60 89 17
Group
MSEK 2007 2006
Current tax -3 -2
Deferred tax -2 -3
Total -5 -5
Group and Parent entity Capitalized Land Rights of use Construction Total expenditure for rights rights for fibre- in progress MSEK computer programs -optic cables
Opening acquisition value 52 170 65 84 371
Acquisitions - 0 - 35 35
Sales/disposal - - - - 0
Reclassifications 7 - 2 -24 -15
Closing accumulated acquisition value 59 170 67 95 391
Depreciation brought forward 28 103 16 0 147
Sales/disposal - - - - -
Depreciation for the year 10 3 5 - 18
Accumulated depreciation carried forward 38 106 21 0 165
PLANNED REMAINING VALUED CARRIED FORWARD 21 64 46 95 226
Depreciation previous fiscal year 10 4 4 - 18
Note 13 Intangible fixed assets
Intangiblefixedassetsconsistoflandrightsintheformofeasementsandlinerights,rightsofuseforfibre-opticcables,licencesandcapitalisedexpenditureforcomputerprograms.
58
Group Buildings Machinery and Construction Total and land other technical in progress MSEK facilities
Opening acquisition value 911 16 112 457 17 480
Acquisitions 0 18 543 561
Sales/disposal -6 -96 -1 -103
Depreciation in connection with disposal 0 -11 0 -11
Reclassifications 51 278 -311 17
Closing accumulated acquisition value carried forward 956 16 301 688 17 944
Depreciation brought forward 413 8 522 - 8 935
Sales/disposal -25 -76 0 -101
Depreciation for the year 37 524 0 561
Accumulated depreciation carried forward 425 8 970 0 9 395
PLANNED REMAINING VALUED CARRIED FORWARD 531 7 331 688 8 549
Depreciation previous fiscal year 36 511 - 547
Parent entity Buildings Machinery and Construction Total and land other technical in progress MSEK facilities
Opening acquisition value 436 13 770 450 14 656
Acquisitions - - 522 522
Sales/disposal -6 -97 - -103
Depreciation in connection with disposal - -11 - -11
Reclassifications 50 277 -310 17
Closing accumulated acquisition value 480 13 939 662 15 081
Depreciation brought forward 267 7 781 0 8 048
Sales/disposal -24 -77 - -101
Depreciation for the year 14 403 - 417
Accumulated depreciation carried forward 257 8 107 0 8 364
PLANNED REMAINING VALUED CARRIED FORWARD 223 5 832 662 6 717
Depreciation previous fiscal year 13 392 - 405
Note 14 Tangible fixed assets
TheitemMachineryandothertechnicalfacilitiesincludesinparticularswitchyardequipment,powercables,submarinecables,controlequip-ment,fibre-opticactivitiesaswellastelecommunicationsandinformationsystems.Disposalsariseprimarilyinconnectionwiththecommission-ingoffacilitiesafterreinvestments.
ThetaxvalueforpropertiesintheGroupamountstoSEK�61(�61)million.Inthegroup,thesubsidiarySvenskaKraftnätGasturbinerABreceivedappropriationfundslastyearofSEK17millionforaninvestmentofSEK17millioninthegasturbineplantinArendal,Göteborg.
Company Corporate Domicile Share % Quantity Nominal Book
number value, MSEK value, MSEK
Svenska KraftKom AB 556575-7274 Stockholm 100 1 0 0
Svenska Kraftnät Gasturbiner AB 556451-0260 Stockholm 100 900 9 9
SwePol Link AB 556530-9829 Stockholm 51 306 000 3 3
Total 12 12
Note 15 Shares and participations in Group companies
59
Note 16 Shares and participations in associated companies
Book value, MSEK
Company Corporate Domicile Share % Quantity Group Parent
number entity
Nord Pool ASA NO 965662952 Lysaker 50 100 000 367 172
Nord Pool Spot AS NO 984058098 Lysaker 20 2 880 19 0
Stri AB 556314-8211 Ludvika 25 375 9 4
Kraftdragarna AB 556518-0915 Västerås 50 5 000 7 1
Elforsk AB 556455-5984 Stockholm 25 750 1 0
Triangelbolaget D4 AB 556007-9799 Stockholm 25 525 0 0
Total 403 177
Theacquisitionvalueisthesameasthebookvalueintheparententity.SvenskaKraftnätownsafurther10%ofNordPoolSpotASviaNordPoolASA.
Note 17 Current receivables
Group
MSEK 2007 2006
Accounts receivable 336 230
Receivables from associated companies 3 4
Other receivables 51 24
Receivable from the public utility’s overdraft facility 28 48
Total 418 306
Note 18 Receivable from the public utility’s overdraft facilityThereceivablecarriedforwardofSEK28(�8)millionconsistsofthedifferencebetweenwithdrawn/depositedfundsfromthepublicutility’soverdraftfacilityanddeductedexpenses/depositedincome
Group and Parent entity (TSEK) 2007 2006
Opening balance (receivable +, liability -) 48 363 48 708
Settled against Government budget:
Appropriation 249 949 239 655 Income titles, dividend and small-scale energy -439 000 -1 573 000
Settled against public utility’s overdraft facility:
Appropriation funds withdrawn -270 000 -240 000
Dividend paid in 439 000 1 573 000
Balance carried forward 28 312 48 363
Group Parent entity
MSEK 2007 2006 2007 2006
Prepaid expenses Telecommunications 1 0 1 0
Other 16 14 13 14
Accrued income Network 233 292 233 292
System responsibility 317 97 317 97
Renewable electricity certificates 3 2 3 2
Natural gas 6 2 6 2 Telecommunications 0 3 0 4
Other 1 2 1 0
Total 577 412 574 411
Note 19 Prepaid expenses and accrued income
Note 20 Long-term interest-bearing liabilities
Group Parent entity
MSEK 2007 2006 2007 2006
The National Debt Office 471 709 471 709
Credit institutions 1 145 0 0 0
Loans, other external 0 1 251 0 0
Total 1 616 1 960 471 709
TheliabilitytotheNationalDebtOfficeisforthecurrentbankover-draft.Oftheotherexternalloans,atotalofSEK8�9(8�6)millionfallsdueforpaymentafterfiveyearsinthecaseoftheGroupandSEK0(0)millionfortheparententity.
60
Note 22 Current interest-bearing liabilities
Group Parent entity
MSEK 2007 2006 2007 2006
Short-term part of long-term loans
Credit institutions 98 0 0 0
Other external 0 98 0 0
Total 98 98 0 0
Group Parent entity
MSEK 2007 2006 2007 2006
Accrued expense, balancing power 259 113 259 113
Accrued expense, primary regulation 10 0 10 0
Accrued expenses, power reserve 8 11 8 11
Accrued expense, energy compensation 40 37 40 37
Accrued expense, transmission losses 73 62 73 62
Transit compensation 54 29 54 29
Accrued staff expenses 32 24 32 24
Accrued leases on fixed assets 11 10 11 10
Accrued maintenance expenses 17 46 16 46
Accrued contingency expenses 41 13 41 13
Accrued expenses, natural gas 9 1 9 1
Accrued interest expenses 0 8 0 0
Accrued fuel expenses 0 12 0 0
Accrued expenses, other 7 10 6 6
Prepaid Telecommunications revenue 11 13 11 13
Prepaid income, other 1 1 1 1
Total 573 390 571 366
Note 23 Accrued expenses and prepaid income
Group and Parent entity MSEK 2007 2006
Opening balance 253 240
Adjustment for pension liability previously reported at too high a level - -8
Pensions paid -5 -4
Annual indexation of pension liability, 2007 calculation principle 20 19
Allocation for payroll tax, 2007 calculation principle 5 6
Indexation of pension liability at 2008 calculation principle 71 -
Indexation of payroll tax at 2008 calculation principle 17 -
Balance carried forward 361 253
Note 21 Provisions for pensions
61
Note 24 Contingent liabilities
AguaranteehasbeenissuedforaloanofSEK20(20)milliontoStriABfortheacquisitionofaproperty.
Intheparententity’sassessment,SvenskaKraftnätanditssubsi-diariesarenotpartytoanylegalmaterialproceedingsthatcouldhaveasignificantnegativeimpactontheGroup’sresult.
Note 25 Future leasing commitments
Agreedfutureleasingfeesfalldueforpaymentasindicatedbelow.Allrentalagreementsareoperationalleasingagreements.TheamountsinthecaseoftheparententityalsoincludecommitmentstothesubsidiarySvenskaKraftnätGasturbinerAB.
Group Parent entity
MSEK 2007 2006 2007 2006
Within one year 198 233 246 283
Later than one year but within five years 286 312 452 480
Later than five years 194 6 277 132
Total 678 551 975 895
62
Proposed disposition of earnings
SvenHulterström StureLarssonChairman Director General
Anna-StinaNordmark-Nilsson TomasBruceDeputy Chairman
BoDiczfalusy KarinStierna
ChristerSamuelsson Ann-SofieDanielsson
AgataPersson StureTörnstamStaff representative Staff representative
Stockholm21February2008
TheGroup’snon-restrictedequityamountstoSEK2,87�million,ofwhichtheresultfortheyearamountstoSEK7�2million.Oftheparententity’snon-restrictedequityofSEK2,5�9million,ofwhichtheresultfor
theyearamountstoSEK67�million,itisproposedthatSEK�76millionisallocatedfordividendinaccordancewiththedivi-dendpolicyandthatthesurplusbecarriedforward.
Theboardsuggeststhattheparententity’sincomestatementandbalancesheetaswellastheGroup’sincomestatementandbalancesheetareadoptedfor2007.
and adoption of income statements and balance sheets
TheSwedishNationalAuditOfficehasauditedthepublicutilitySvenskaKraftnät’sannualaccountsandconsolidatedaccountsagreedon21-02-2008,forthefinancialyear2007.
ThemanagementofthepublicutilitySvenskaKraftnätisresponsibleforensuringthattheoperationsareconductedefficient-lyandconstitutionally.ThisresponsibilityincludesensuringthattheGovernmentre-ceivesreliablefeedbackontheoperationsintheannualaccounts.
ItistheresponsibilityoftheSwedishNa-tionalAuditOffice,inaccordancewithgoodauditingstandards,toexaminethepublicutility’sannualaccounts.Thepurposeof
theinspectionistojudgewhethertheac-countsandunderlyingaccountingrecordsarereliableandthebookstrueandcorrect,andwhethertheadministrationoftheman-agementfollowsapplicableregulationsandspecialGovernmentdecisions.
Theaudithasbeenconductedinaccord-ancewithsoundauditingstandards.Thesestandardsrequirethattheauditbeplannedandconductedwiththeaimofobtainingreasonablegroundstoassesswhetherthean-nualaccountsandtheconsolidatedaccountsaretrueandcorrect.Theaudithasthusbeenmadeonaselectionofimportanttransac-tionsandadministrativedecisions.
TheNationalAuditofficedeemsthat
theauditcarriedouthasprovidedreason-ablegroundsonwhichtobasethefollowingstatement.
Theannualaccountsandtheconsolidat-edaccountshavebeenpreparedinaccord-ancewiththeOrdinanceonannualaccountsandbudgetdata,theGovernment’sappro-priationsdocumentandotherrulingsrelat-ingtothepublicutility.
TheSwedishNationalAuditOfficedeemsthattheannualaccountsareinalles-sentialrespectstrueandcorrect.
AuditDirectorGöranSelandermadethedecisioninthismatter.AuditManagerAnneBrynecontributedwiththedecision.
Auditor’s report for the Svenska Kraftnät public utility
TheAuditor’sReportoftheNationalSwedishAuditOfficewassubmittedon28.02.08.
GöranSelander AnneBryne
6�
The Board of Directors
StureLarssonborn19�7,appointedactingDirectorGeneralinApril2007.Technicaldirec-torofSvenskaKraftnät.
Christer Samuelsson born195�,appointed2001.MDandPartner,SensaCorpo-rateAdvisorsAB.
Anna-Stina Nordmark-Nilsson,Deputy Chairmanborn1956,appointed200�.MD,Företagarna
Other directorships:ChairpersonoftheNovumFoundationsCentreattheKarolinskaInsti-tute.BoardmemberofDiösFastigheterAB,SveaSkogAB.
Sven Hulterström, Chairman born19�8,appointed200�.
Other directorships:ChairmanofABStokab.
Tomas Bruceborn19��,appointed200�.ManagingDirector,SvenskaKolinstitutet.
Other directorships:ChairmanofCapitalCoolingEuropeAB,SvenskaOrienteringsförbundet.BoardmemberofABBorlängeEnergi,MobotecEuropeAB,GaiaLeadershipAB.
Karin Stierna born1970,appointed2007.Municipalcommissioner,Ström-sundmunicipality.
Agata Perssonborn19�6,appointed200�.Staffrepresentative.RepresentativeoftheSwedishConfederationofProfessional
Ann-Sofie Danielssonborn1959,appointed2007.Accountsandfinancedirec-tor,NCCAB.
Sture Törnstamborn19�7,appointed2005.Staffrepresentative.RepresentativeoftheSwedishFederationofCivilServantsST.
Bo Diczfalusyborn1952,appointed2005.Director,TheMinistryforIndustry,EmploymentandCommunications.
Other directorships:IEA(In-ternationalEnergyAgency).
6�
Wind power – a challenge for Svenska Kraftnät
During2007around1TWhofelectricitywasgeneratedinSwedenfromwindpower.Expansionhasremainedatarelativelycon-stantlevelofaround50MWperyearinre-centyears,withtheexceptionof2007whenitincreasedtoapprox.2�0MW(largelythankstotheLillgrundprojectinÖresund).ItistheelectricitycertificatesystemthathasproducedtheeconomicprerequisitesfortheexpansionofrenewablesourcesofenergyinSweden.Thecertificatesystemhasbeendesignedtoenable17TWhofnew,renew-ableelectricityproductiontobeconstructedbetween2002and2016.Thewindpowerindustry’stradeorganisationSwedishWindPowerestimatesthatapprox.7TWhofwindpowerisaccommodatedwithintoday’selectricitycertificatesystem.Therestofthe17TWhofenergywillbeconstitutedbycombinedheatandpowerplantsusingbiofu-els,andhydroelectricpower.
Inlate2007theSwedishEnergyAgencyproposedanewnationalplanningtargetof�0TWhofwindpowerby2020,dividedinto20TWhonlandand10TWhatsea.Thetargetrepresentsasignalofhowmuchwindpoweritmustbepossibletohandleinthephysicalplanning.ForSvenskaKraftnätthetargetoffersaguideastohowthenation-algridforelectricityneedstobeexpanded.
Thereareconsequentlylarge-scaleexpecta-tionsridingontheexpansionofwindpowerinSweden.Therearealargenumberofmajorwindpowerfacilitiesinplanningthroughoutthecountry.Themapbelowshowsaselectionofplannedwindpowerfacilitieslargerthan25 MW.Iftheplantsarebuilt,theywillgen-erateatleast�0TWhperyear.Furthermore,itshouldbeaddedthatalargeexpansionofwindpowerisbeingplannedinourneigh-bouringcountries,aboveallinNorway.TheexpansiontherewillnaturallyalsohaveanimpactontheSwedishsystem.
SvenskaKraftnäthasbeenengagedforsometimeinalargenumberofactivitiesin-volvingtheintroductionoflarge-scalewindpowerintheSwedishpowersystem.Con-nectingwindpowertothenationalgridwillbeoneofSvenskaKraftnät’slargestchallengesinthenextfewyears.
Consideration of the environment in all decisionsDuringtheyearSvenskaKraftnäthasbeenworkingactivelytofacilitatetheconnectionoffurtherwindpowertothepowersystem.Thisisalsoinlinewithourenvironmentalpolicy.Environmentalissuesareintegratedintoactivitiesandconsiderationtotheenvi-ronmentisweighedupinalldecisions.Ifitisassumedthatwindpowerwillreplacecoalpoweratthemargins,everykWhofelectric-itygeneratedfromwindpowerwillrepresentareductionincarbondioxideemissionsof850g.If18TWhofwindpowerwastoreplacecoalpower,itwouldconsequentlyentailadecreaseincarbondioxideemissionsof15.�milliontonnes.
Theproductionofelectricitythatisre-quiredtocoverthelossesthatariseincon-junctionwithtransmissionofelectricityonthenationalgridentailamajorenvironmen-
talimpact.ForSvenskaKraftnätacentraltaskinitsenvironmentalworkisthereforetoreducethelossesinthenationalgridwiththeaimofreducingthisenvironmentalimpact.Fromalossesperspectiveitismorebeneficialtoproduceelectricityclosetotheconsum-ers.AsalargeproportionofconsumptionisinSouthernSweden–whichisadeficitareaintermsofelectricitygeneration–thereareconsequentlytwoenvironmentalbenefitsinestablishingwindpowerthere:environmen-tally-friendlyelectricityproductionisintro-ducedandtransmissionlossesarereduced.
On�1May2007SvenskaKraftnätpub-lishedthereport”Large-scaleexpansionofwindpower–somepreconditionsandconsequences”,whichproposesmeasurestofacilitatetheconnectionofwindpower.Amongotherthingsitproposesthatacer-tainamountofoversubscriptioninradialpowerlinesinthenationalgridispermitted.
Planned wind power plants. If all the plants are built, they will generate at least 40 TWh per year.
Source: The Swedish Energy Agency.
Årjäng55 st
Tönsen30 st
Taggen60 st
Laholm22 st
Bondön18 st
Storrun12 st
Sjisjka30 st
Havsnäs48 st
Brattön10 st
Kårehamn21 st
Forsmark15 st
Blaiken100 st
Saxberget18 st
Uljabuouda12 st
Trolleboda30 st
Lillhärdal90 st
Kyrkberget11 st
Bliekevare20 st
Skottarevet30 st
Lunnekullen50 st
Korpfjället15 st
Glötesvålen30 st
Utgrunden II24 st
Finngrunden130 st
Tolvmanstegen24 st
Stor-Rotliden40 st
Luongastunturi60 st
Kriegers Flak128 st
Gabrielsberget40 st
Töftedalsfjället23 st
StoraMiddelgrundet
110 st Södra Midsjöbanken180-230 st
Rautiorova-Taka-Aapua19 st
Markbygden400-1000 st
Klocktjärnan132 st
Storgrundet53 st
Vindpark Vänern10 st
Säliträdberget8 st
Hedboberget15 st
Key to symbols
Construction underway
Being planned
Lakes
Land areas
Offshore banks
65
Thismeansthatalargergenerationcapac-itythanthemaximumcapacityoftheradialpowerlinesispermittedtobeconnected.Occasionswhenthecapacityisexceededarethenhandledbymeansofso-calledcounter-trade.SvenskaKraftnätpaysaproducertoreduceitsproductionuntilthereisonceagaincapacityavailableinthepowerline.Newreg-ulationshavealsobeendrawnupwithregardtoconnectionofwindpowertocross-borderinterconnectors,accordingtothesameprin-cipleasforradialpowerlines.
Inearly2007theGovernmentdecidedtoappointacommissiontolookintocon-nectionofplantsforrenewableelectricityproductiontothenetwork.SvenskaKraftnätisparticipatinginthecommission’sexpertteam.Themaintaskistoevaluatewhetherthecurrentregulationscreateobstaclestoalarge-scaledevelopmentandexpansionofrenewableelectricitygeneration,andalsotoofferproposalsforchangestotheextenttheyareconsiderednecessary.ThecommissionsubmitteditsfinalreportinFebruary2008anditispossiblethatnewregulationswillbeinplaceby2009attheearliest.
European study of consequencesDuring2007SvenskaKraftnäthastakenpartinaEuropeanwindpowerstudy–EWIS(EuropeanWindIntegrationStudy).TheEuropeannationalgridcompaniesareimplementingthestudytogetherinordertoassesstheimpactoftheexpectedexpansionofwindpoweronthepowersystem.Thestudy,whichisbeingfinancedbytheEU,focusesontheexpansionofwindpowerinEuropeupto2015.Thecurrentsituationinthevariouscountriesisbeinganalysedasafirststep:establishedwindpower,regulations,gridcodes,subsidiessystemetc.Thiswillbefollowedbyfuturescenariosupto2015fordevelopmentoftheexpansion.Thescenariosaresubsequentlyanalysedinasimulationtooltoassesstheconsequencesoftheexpansionofwindpowerinthesystem.Theoverallcostsandbenefitstosocietyofwindpowerwillalsobeestimated.Measurestodealwiththeexpansionwillbeproposedwithregardto,forinstance,reinforcingnetworks,thein-creasedneedforbalanceregulation,technicalrequirementsonwindpower.Afinalreportwillbepublishedinautumn2009.
”Taskforceforrenewableenergy”,whichanswerstotheNordicCouncilofMinistershaslaunchedtheprojectNordVind,withtheparticipationofSvenskaKraftnät.Phase1oftheNordvindprojectwascompleteddur-ing2007.Thisstageinvolvedthemapping
ofcentralareasthatareofimportancefortheexpansionofwindpower,suchasofficialplanning,networkplanning,networkcon-nectionsandmarketingdesign.Therehasalsobeenanattempttocharttheconditionsineachcountrywithregardtoplanning,permitprocesses,acceptancebythegeneralpublic,networkconnectionandeconomy.Phase2oftheworkstartedattheturnoftheyear2007/2008.Inthisphase,inconjunc-tionwithGermanyandDenmark,SvenskaKraftnätwillworkontheKriegersFlakwindpowerprojectinordertoexchangeexperienc-esandtoinstigatejointnetworkplanning.
SvenskaKraftnätisalsoundertakingtwostudiesinwhichtheexpansionofwindpow-erisanimportantfactor.Theyareexpectedtobecompletedinearly2008.Onestudyfocusesonthetransmissionsection2,whichisabottleneckinthenationalgridinCentralSweden,andtheotheronSouthernSweden.Bothstudiesanalysetheconsequencesofad-ditionalwindpowerforthenationalgrid’scapacitytotransmitelectricity,andalsoiden-tifytheneedfornetworkreinforcements.
New system development plan from NordelAmajortaskisunderwaywithinNordel,thecollaborativeNordicorganisation,todrawupthenextsystemdevelopmentplan.Workontheplanhasincludedtheanticipateddevel-opmentofwindpowerintheNordicregionasanimportantaspect.Theaimoftheplanistoprovideproposalsforfuturereinforce-
mentstothenetworkthatarenecessaryandprofitableintheNordicpowersystem.Theanalyseshavefocusedondevelopmentupto2015,howevertheyhavealsobeencheckedagainstscenariosupto2025.Nordel’snewnetworkdevelopmentplanwillbepresentedinearly2008.
Togetherwiththeregionalnetworkcom-paniesVattenfall,FortumandE.ON,in2007SvenskaKraftnätestablishedaspecialteamforwindpowerissues.Theelectricitynet-workmustdealwiththeexpansionofwindpowerandtheteamisdiscussingtheoverallaspectsintermsofsystems.
SvenskaKraftnäthasreceivedalargenumberofenquiriesduringtheyearregard-ingconnectionofwindpowerfacilitiestothenationalgrid.Thenecessaryanalysesandin-vestigationshavebeencarriedouttoestablishtherequirementformeasurestobetakeninthenationalgrid.Theenquiriesaredealtwithinaccordancewiththeproceduresdescribedonourwebsite,inthedocument”SvenskaKraftnät’sguidelinesforwindpowerconnec-tion”.Thedocumenthasbeenproducedasassistanceandguidanceforcompaniesthatwanttoconnectwindpowerplantstothenationalgrid.
SvenskaKraftnätisinadditionamemberofreferencegroupsforanumberofwindpowerstudies,andisinvolvedinseveraldoctoralprojectsrelatedtowindpoweratuniversities.
Svenska Kraftnät is working actively to facilitate the connection of more wind power into the power system.
The report ”Large-scale expansion of wind power – some preconditions and consequences”, was published
during 2007.
66
The Nordic national grid is being expanded
Historically,planningforthenationalgridhasbeenconductedintermsofnationalconsiderationsintheNordicregion,duringthelastdecadehowever,thedevelopmenthasmovedincreasinglytowardsmoreintegratedNordicjointplanningandexpansionofthenationalgridintheNordiccountries.TheNordicnationalgridcompanieshavebeenconductingjointstudiesforsomeconsider-abletimeofhowtheNordicelectricitynet-workshouldbedevelopedinordertomeettherequirementssetbythevariousoperatorsintheelectricitymarket.TheworkiscarriedoutonanongoingbasiswithinNordel,theorganisationforcooperationbetweentheNordiccountries,anditispresentedinsystemdevelopmentplansthatareproducedregularly.ThisregionalcooperationwithinnetworkplanninganddevelopmentbetweentheNordicnationalgridcompaniesisuniqueinEuropeandshowsthatNordelisafront-runnerintheworkofproducingawell-func-tioningregionalelectricitymarket.TheworkhasresultedinthreejointNordicsystemdevelopmentplansduringthelastdecade.
Successful Nordic cooperationEvidenceofthesuccessthattheNordiccoop-erationrepresentsisthefactthattransmissioncapacitybetweentheNordiccountriesis20–60%ofthemaximumconsumptionineachcountry,wellinexcessofthetargetthattheEUhassetof10%.
DraftingaNordicsystemdevelopmentplanisanextensivetaskthatwilltakeacou-pleofyears.TheworkiscarriedoutinteamswithrepresentativesfromtheNordicnationalgridcompanies.Anoverarchingcriterionfortheworkisthatthedevelopmentofthenet-workiscarriedoutfromaNordicperspec-tive,takingintoconsiderationenvironmen-talissues.ItisthusabenefitfortheNordicelectricitymarketasawholeandthepowersystemthatconstitutesthebasiswhenevalu-atingthedifferentprojects’profitability.
TheNordicnationalgridcompaniesarehowevernotcontentwiththeseresultsbutarenowlookingforwardtothenextstageinthedevelopmentoftheNordicelectricitymarket.Strategicplansforthisdevelopmenthavebeendrawnup,andforthecontinuedexpansionofthenetworkitmeansthattheplanningareawillbeenlarged.Nordelisnowworkingontheestablishmentofamulti-re-gionalplanningprocessincludingtheadja-centgeographicalareas.ThiscorrespondswellwiththeworkthatisnowbeingconductedwithintheEUforamoreintegratedEuro-peanelectricitymarket,whereregionalinitia-tivesarewelcomedinordertolinktheEuro-peansub-areasmorecloselytoeachother.
InadditiontheNordicnationalgridcom-panieswillreviewthedecisionandpermitprocessesineachcountryinordertostudytheprospectsofbothobtaininganevenmoreefficientplanningprocess,andspeedingup
theleadtimesfortheinvestmentprojects–toenablethenecessaryinvestmentstobeeffect-edinashortertimethanisthecasetoday.
The Nordic system development plans ThefirstplanthatwasproducedbyNordelwaspublishedin2002.Thesystemdevel-opmentplanwasbasedoncalculationsofenergybalancesanditsaimwastoidentifythecongestedtransmissionconstraintswherereinforcementsofthenetworkwereconsid-eredtobeofinterestforfurtherstudies.Theplanfocusedontheenergyandpeakpowerbalancefor2005andspecifiedanumberofareasintheNordicregionforfurtherstudiesthatwereofgreatsignificancefortheelectric-itymarket.Theplandidnotpresentanycon-creteproposalsforinvestments,astechnicalsolutionstoachieveincreasedtransmissioncapacityandcostsforthemwerenotpartofthestudy.
Five priority projectsNordel’snextsystemdevelopmentplanwascalled”Priorityconstraints”andwaspub-lishedin200�.Theplanfocusedontheen-ergysituationintheNordicregionin2010andstudiedwhichinternalNordicpowertransmissionconnectionswereimportantforawell-functioningNordicelectricitymarket.Criticallycongestedtransmissionsectionswereidentified.Measurestoincreasetheca-pacitywerestudiedandtheircostswerecal-
Evidence of the success of Nordic cooperation in developing the network in the Nordic region is the fact that the transmission capacity between the Nordic
countries is 20–60 % of the maximum consumption in each country, which clearly surpasses the target of 10 % set by the EU.
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culatedandsetagainstthebenefitsthattheincreasedtransmissioncapacitydelivered.
Theoverallevaluationledtothepresenta-tionofapackageoffivepriorityprojectstoreinforcefivecongestedtransmissioncon-straintsintheNordicsystem.Thefiveprior-ityprojectsare:
AreinforcementoftransmissioncapacityinSouthernSwedenAnew�00kVpowerlinebetweenJärpströmmeninJämtlandandNeainNorwayAnewHVDClinkbetweenSwedenandFinlandAnHVDClinkovertheGreatBeltbe-tweenJutlandandZealandinDenmarkAnewHVDClinkbetweenNorwayandJutlandinDenmark
ThenationalgridcompaniesintheNordiccountriesmadesubstantialundertakingstoimplementthesefiveprojectsthatwereofimportancefortheNordicelectricitymarket.Andtodayfourofthefiveprojectshavebeenauthorised.Twooftheprojectshavearrivedatanadvancedstageintheirimplementationandareexpectedtobeputintooperationin2009and2011respectively.Thismustbeviewedasremarkablyrapidprogressofsuchlarge-scaleinfrastructureprojects.Thecurrentsituationforthefiveprojectsisasfollows:
SvenskaKraftnättookthedecisiontoimplementthereinforcementoftransmis-sioncapacitytoSouthernSweden,theprojectthathasbeencalled”theSouthernLink”,oneyearaftercompletionofthede-velopmentplan.InJanuary2008SvenskaKraftnätalsotookthedecisiononwhichtechnologywastobeused.Itwillbeacom-binationofDC-andACtechnology.AnACpowerlinewillbeinstalledinanexistingpowerlinecorridorbetweenHallsbergandastationclosetoJönköping.Fromthissta-tionnewDCtechnologywillbeusedbothsouthtoSkåneandwestintoNorway.Theexpandedprojecthasbeengiventhename”SouthWestLink”.
ThereinforcementbetweenJärpström-meninSwedenandNeainNorwayisbeingconstructedasa�00kVoverheadline.Allpermitshavebeenreceivedforthepowerlinethatisestimatedtobereadybythesummerof2009.
Fenno-Skan2,thenewHVDClinkbetweenSwedenandFinland,willruninparallelwiththeexistingHVDClink.Sven-skaKraftnätandFingridhavedecidedto
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undertakereinforcements,andtheworkofprocurementandobtainingthenecessarypermitsisunderway.Thelinkisexpectedtobereadytobeputintooperationin2011.
ThenewconnectionovertheGreatBelthasbeenauthorisedandprocured.Comple-tionoftheHVDClinkisestimatedfor2010.
ReinforcementoftheexistingHVDClinkbetweenNorwayandJutlandisstillbeingin-vestigatedbyStatnettandEnerginet.dk.Adecisiononwhethertogoaheadwiththeprojectisexpectedduringthefirsthalfof2008.
System development plan 2007Nordelisnowinthefinalphaseoftheworkofproducingthenextsystemdevelopmentplan.ThisreviewstheenergyandpeakpowersituationintheNordicregionfor2015andforanumberofdifferentscenariosfor2025.Thescenariosfor2015includereinforcementofallfivepriorityconstraintareasthatweredescribedaboveandtheenergybalanceintheNordicregionisexpectedtobebolsteredcomparedwithprevioussystemdevelop-mentplans.TheanalysesclearlydemonstratethatthereinforcementsofthefivepriorityconstraintareasthatNordelrecommendedin200�,andthatarenowbeingimplemented,willdeliverasignificantboosttotheNordicnationalgrid.
TherearearelativelysmallnumberofbottleneckswithintheNordicpowertrans-missionsystemthatrequirefurtherstrength-eningaccordingtotheanalysesfor2015.TheanalysesalsoshowthattheimprovedNordicenergybalancemakesstudyingtheconnec-tionstocountriesoutsidetheNordicregionofinterestaswell.Thesystemdevelopmentplansummarisesthemostimportantnet-workreinforcementsthatarebeinginvesti-gatedwithineachcountryandthatwillalsocontributetoabetterfunctioningelectricitymarket.Thepossiblereinforcementsofcon-straintareasforwhichNordelisrecommend-ingfurtherstudiesare:
ReinforcementofthenetworkonthewestcoastinSweden,andalsothenetworkaroundOsloinNorway(theSouthWestLinkwillfulfilthisrequirementforrein-forcement)Increasedcapacityinnorth-southdirec-tionintheareaaroundTrondheiminNorway,whichwillincreasethecapacityintheNordicnetworkIncreasedcapacityinthefarnorthofNorway
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IncreasedreinforcementfromtheNordicregiontothesurroundingworldInternalnetworkreinforcementineachcountry
InadditiontothereinforcementsthathavebeenidentifiedwithinNordel’soverallplan-ning,anumberofreinforcementsarealsobeingplannedwithineachcountry,whichdirectlyorindirectlyhaveapositiveeffectontheelectricitymarket.Theaimoftheplannedreinforcementsistoincreasethecapacityinthenationalgrid,butalsotoimproveopera-tionalreliability,whichistothebenefitofallpartiesinthemarket.
Animportantpartofthisisthepro-grammethatSvenskaKraftnäthasbeenpur-suingforanumberofyearstorenewswitch-ingstations.Theaimistoimprovethedesignofanumberofthemostimportantstationsbyreplacingtheoldswitchyardswithmoderndoublecircuit-breakerswitchyardsexecutedwithso-calleddisconnectioncircuit-break-ers.Hitherto,twoorthreestationshavebeenrenewedperyear,andtheprogrammewillcontinueforafewyearstocome.
Anotherimportantreinforcementistheongoingproject”StockholmsStröm”,theaimofwhichistoboostfuturesupplytotheStockholmarea.Ofthesubprojects,specialattentionshouldbedrawntotheplanned�00kVcablethatistobelaidunderStock-holm’scentraldistrictstolinktogetherthenetworkintheregion’snorthernandsouth-ernparts.
ThereinforcementintheGöteborgregionthathasbeendecided,entailingtheconstruc-tionofanew�00kVpowerlinebetweenStenkullenandLindome,willtakeplaceinthenearerfuture.Thispowerlinehasthead-ditionaladvantageofalsoreinforcingpartsofthetransmissioncorridorthatrunsalongtheSwedishwestcoastandthatisimportantfortheelectricitytradewithNorwayandDenmark.
Anotherprojectthatisunderinvestiga-tionisaDCconnectionbetweenSwedenandLithuania.Thelinkisexpectedtobe700MWandconnectedinoneoftheexis-tingsubstationsinSouthernSweden.Adeci-siononsuchalinkisexpectedduring2008.
ThefinalphaseofconnectingupanewDClinkbetweenNorwayandHollandiscurrentlyunderwayinNorway.The550kmlongcablewillbeabletotransmit700MWandwillbethelongestsubmarinecablelinkintheworld.
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Twenty four hours in our control room
SvenskaKraftnätcontrolsandmonitorstheelectricityandnaturalgasnetworksfromtwocontrolrooms.Thenationalcontrolroom,NetworkControl,islocatedinconnectiontotheheadofficeinRåckstatogetherwitharegionalcontrolcentreforSouthSweden.AregionalcontrolcentreforthenorthernpartofthecountryissituatedinSollefteå.Therearetwoprincipalgoalsfortheoperation.Firstly,thatnobodyworkinginourplantsshouldruntheriskofcomingintocontactwithlivecomponents.Secondly,thattheelectricityandgasnetworksshouldbeoper-atedwithahighlevelofreliabilityandnodisruptions.
Thisarticlegivesanaccountofwhataunique,butneverthelesstypical,2�-hourscanbelikeinourcontrolrooms.Butfirstafewwordsonthevariousrolesthatthestaffhave.
The task of the control centre operation (DC)istoregulatethevoltageonthena-tionalgridforelectricity,monitorandrectifyfaultsthatariseinSvenskaKraftnät’splants,controlDClinksandgasturbinepowerstations,restorethenetworkafterdisrup-tionsanddisconnectplantsinconjunctionwithmaintenanceorinvestmentwork.DuringthenightDCsarealsotheextendedarmsofthedutyengineer(vhi)whenthispersonisoncallinanadjacentroom.Frombeingmannedbyonepersonatnight-timeinRåcksta–whichmonitorstheentiregrid–staffinglevelsforDCsrisetothreeinRåckstaandtwoinSollefteåduringday-timetosubsequentlybegraduallyreducedduringtheevening
The main task of the Balance Serviceistoberesponsibleroundtheclockformaintainingabalancebetweenthecountry’sproductionandconsumptionofelectricity.Iftheautomaticresources–whichincreaseordecreasethelevelofproduction–arenotsufficient,theBalanceServiceactivatesstartorstopofproductionwithoperatorsthathavesubmittedsuchbids(so-calledregula-tionbids).TheworktakesplaceinclosecooperationwithothersystemoperatorsintheNordicregion,primarilywithNorway.TheBalanceservicealsodealswithSvenskaKraftnät’sresponsibilityforthebalanceinthegasnetwork.
The duty engineer,vhi,havetheoverallresponsibilityforthepowersystemandthemostimportanttasksarecalculatingthecapacityinthenetworkandtherequirementforreserveswithwhichtooperatethesystemreliably.Inaddition,eachmorningthedutyengineerallocatecapacitytotheelectricityspotmarketandotherexportsforthenext2�hours.
The telecommunications control engi-neer,tki.Acentralpartofthecontrolandmonitoringofthepowersystemisaccesstoinformationandancillarysystemstoenabledecisionstobetakenwiththecorrectdata.ToensurethattheancillarysystemsandinformationgatheringisfunctioningthereisatkiinNetworkControlwiththetaskofcontrollingandmonitoringtheseoperations.ThetkiispresentinNetworkControlduringofficehoursandisonstandbyatothertimes.
The nightThenightisnormallythemostcalmperiod.Ofcourse,thereasonisthatconsumptionthenislowerandthereareonlyminorvari-ations.NetworkControlismannedduringthenightbyonepersoneachfortheControlCentreoperationandtheBalanceService.
Tonightitisrelativelycalm.DCconnectsanumberofdevicestokeepdownvoltagelevelsinthenetwork,whichisacommonmeasurewhenconsumptionislow.Inad-ditiona�00kVpowerlineinthenorthisdisconnectedinordertoreducetheso-calledcoronalosses.Coronaoccursinconjunction
withtheformationoffrostonthepowerlinesandresultsindischargestowardsthesur-roundingair,whichcauselossesthatcanbegreaterthanthosewhichariseintherestofthenetworkifthepowerlineisdisconnected.FortheBalanceServicethemostdramaticeventisthataproductionfacilityinDen-markofapprox.�00MWisdisconnectedduetoafault.Tocovertheresultantdeficit,approximatelyanequivalentamountofhy-droelectricgenerationisstartedinSwedenfordeliverytoDenmark.
The morning
UnlesssomethingunforeseenhappensthevhiarrivesatNetworkControlataroundsixinthemorning.Thingsmainlygoasplannedthismorningandtherearemarginsinthetransmissioncapacityandreserves,sotheworkofestablishingtheavailablecapac-ityfortheelectricityspotmarketandotherexportsforthenext2�hoursgetsunderway.Oneparameterinthisjobistheconsump-tionofelectricity.Cold,windandalowlevelofsunshineproduceincreasedconsumption,weatherforecastsarethereforeanimportantbasisforconsumptionforecasts.Aconsump-tionforecastisproducedforeachofthedif-ferentpartsofthecountrythatareborderedbycongestioninthenationalgrid.Aforecastissubsequentlyproducedofhowmuchistobeproducedwithineacharea.FinallyaplanisdrawnupofthelikelyoutcomefortheelectricitytradedbetweenSwedenandthenearbycountriesforthenext2�hours.
The control room in Råcksta is manned round the clock.
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Thedifferentpartsarebroughttogetherandtheresultisaforecastofhowmuchelec-tricityisexpectedtoenterthenationalgridinthenext2�hours.Thevhi´staskisthentoallocatetransmissioncapacitytotheelec-tricityspotmarketandotherexportsonthebasisofthecapacitythathasbeencalculatedinthenetwork.
– RING! The alarm goes!Anuclearpowerblockisdisconnectedfromthenetworkduetofaultsinitscoolingequipment.1,200MWofproductioninSouthSwedendis-sappearsandregulationresources,primarilyinNorwayandNorthernSwedenautomati-callyincreaseproductiontocompensateforthemissingnuclearpower.Thisresultsinincreasedtransportofelectricityinasouth-erlydirectionandabottleneckissoheavilyloadedthatitspermittedtransmissionlimitisexceeded.ThevhigivesinstructionsforgasturbinepowerstationsinSouthernSwedentostartproductionequivalenttotheamountbywhichtransmissionexceedsthebottle-neck.ThemajorityofthegasturbinesarestartedbytheDCviaremotecontrolfromNetworkControl.Increasedtransmissiononthenationalgridalsoentailslowervoltage,whichmeansthattheDCneedstoregulate
thevoltageupwardsbyconnectingso-calledshuntcondensors.Afterabouttenminutesthegasturbinesareproducingthepowerorderedandtransmissioninthebottleneckisbelowtheapplicablelimit.Thevhireceivestheinformationthatthenuclearpowerblockisexpectedtobephasedintothenetworkagainwithinfivehours,whichwouldmeanthesituationreturningtonormalbytheeveningwhenconsumptiononceagainrises.Sothattherelativelycostlyoperationofthegasturbinescanbediscontinued,theBalanceServiceimplementsonepowertransactionwithPolandandonewithDenmark,whichtogethermeanthatallthegasturbinescanbeshutdownwithinanhour.
Thedisturbanceoccursduringaperiodofthemorningwhenconsumptionrisesandtheexchangeofpowerbetweenthevariousneighbouringcountrieschanges.Evenwith-outdisturbancesthisisanintensiveperiodfortheBalanceService,asalotofplannedstartsbyproducersaremovedinordertofendoffdiscrepanciesinthefrequencythatexceedthosepermitted.Dependingonwhichmeasuresaretaken,upwardsordown-wardsregulationpriceshavetobesetforeve-ryhourasabasisforpricinginthebalance
settlement.InthisworktheBalanceServiceenjoysclosecooperationwiththecom-panywithsystemresponsibilityinNorway,whichnormallyhasplentyofeasilyregulatedhydroelectricpower.Towards9–10inthemorningtheconsumptionlevelstabilisesandthesituationcalmsdown.
ThecontrolcentreinSollefteåwasbusydisconnectinga�00kVpowerlinewhenthedisturbanceoccurred.Thereasonwasplannedmaintenanceandasalwayswithsuchconnections,theytakeplaceaccordingtowritteninstructions,aso-calledswitchingschedule.Themostimportantfunctionoftheswitchingscheduleistoensurethatno-bodyworkingattheplantriskscomingintocontactwithlivecomponents.Onaccountofthedisturbancetheconnectionsaretem-porarilystopped,toberesumedwhenthesituationiscalmer,andthemaintenancethatwasplannedwillhavetowait.
Justafter8o’clockthevhideterminesthetransmissioncapacitiesthataretoapplyfortheelectricityspotmarketandforotherim-portsandexportsforthenext2�hours.ThevaluesaredispatchedtoNordPoolSpotforpublicationandasinputdatafortheelectrici-tyspottradeforthenext2�hours.Oncethis
The Balance Service is located in Stockholm. It is important to ensure that there is a constant balance between production and consumption.
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hasbeenpublished,thecapacitiesareguaran-teedfortheoperators,andeventsthatcausethecapacitiestobereducedtolevelsbelowwhattheoperatorsneedhavetobedealtwithbymeansofso-calledcounter-trade.
DaytimeThepowertransactionswithPolandandDenmarkcanbeconcludedataround11a.m.asthetransmissionlevelonthenationalgridhasfallen.TheBalanceServiceensuresthatthesetransactions,alongwiththosethatarearesultofoperatingthegasturbines,areenteredintothesettlementsystem.Thecalm-ersituationalsomeansthatthecontrolcentreinSollefteåcancontinuewiththedisconnec-tionofthe�00kVpowerlineandsubmitaso-calledworkcertificatetothecontractorswhoaregoingtoundertakethemaintenance.Whenthepowerlinehasbeendisconnected,asystemthatperformscalculationsinrealtimeenablesthevhitoascertainthesizeofthetransmissioncapacitywithoutthepowerline.Inthiscasetheanalysesthatwerecarriedoutinadvancearecorrectandthecapacityisonlyreducedmarginally.
ThevhiiscontactedbyhiscolleaguesinDenmark.Acoal-firedpowerstationonZealandhastobetakenoutofoperationto-morrowandthereservecapacitywillbetoolowunlessEnerginet.dktakesmeasures.OnepossibilityisthatSvenskaKraftnäthasasur-plusinSouthernSwedenthatDenmarkcanutilize.However,apreliminaryanalysisshowsthatthiscapacityisnotavailable,adefinitivedecisioncanbegivenlaterintheafternoonwhentheelectricityspotmarkethasfin-ishedandtheoperatorshavesubmittedtheirproductionplans.ThedecisionmeansthatEnerginet.dkwillpreparetostartupanother
powerstation.AtthispointitistimefortheBalanceServicetodeterminetomorrow’slim-itsinthenaturalgasnetwork.Indistinctiontotheelectricitynetwork,theredoesnotneedtobeaprecisemomentarybalancebetweensupplyanddemand.Inertiainthenaturalgasnetworkmeansthatonashorttermbasisthebalanceproviderscanborroworsupplymoregasthantheactualconsumption.
Thisimbalanceisaccumulatedinaso-calledbalanceaccountforeachbalancepro-vider.TheSwedishnaturalgasmodeltherebyallowstheoperatorsthatareresponsibleforbalancestohaveacertainimbalanceper2�hours.TheBalanceServicethereforecalcu-lateseveryday,takingoperationalreliabilityandtheprevailingpressureinthenetworkintoaccount,howmuchroomthebalanceprovidersarepermittedtouse,andtherebytheextenttowhichtheyarepermittedtomakechangesintheirbalanceaccounts.
AfternoonTheresultsfromtheelectricityspotmarketarepublishedintheearlyafternoonandonlythencanthevhiobtainananswerastowhetherthereissufficienttransmissioncapacitybetweenSwedenandtheneigh-bouringcountries.Whentherearelargediscrepancies,whichmeanthatthenationalgrid’scapacityisinsufficient,itcanbeneces-sarytoactivatemeasuresatthisearlystagefortomorrow.Forexample,itmightinvolveproductionfacilitiesthathaveastart-uptimeof10–20hours,orpowertransactionswithourneighbouringcountriesthatrequireadvanceplanning.Thedatafortomorrow’stransmissionisfurtherimprovedlaterintheafternoonwhenallthebalanceproviderssubmittheirproductionplans.Atthispointthevhicanobtainarelativelyprecisepicture
oftomorrow’stransmissionbasedontheseproductionplansandourownforecastsforconsumption,importandexport.ThevhiandtheBalanceServicetogethergothroughthepreconditionsanddecidewhetheranyspecialmeasuresneedtobetaken.
Thenuclearpowerstationprovidesnoti-ficationthattheearlierplanforrestartisnotpossibleandgivesanewtimeof12tomor-row.Thedecisionmeansthatthevhiwillneedtostartacoupleofgasturbineswhendarknessfallsandconsumptionincreases.Theanalysisoftomorrow’stransmissionshowsthatthetransmissionlimitsarenotexceededandnoadditionalmeasuresareneeded.
TheonsetofdarknessproducesasimilarsituationfortheBalanceServiceasduringthemorning’sloading.Severalplannedpro-ductionstartsbytheproducersneedtobebroughtforwardtomatchtheupturnintheconsumptionlevel.
EveningThecontractornotifiesthatmaintenanceonthe�00kVpowerlinehasbeencompletedandsubmitsaso-calledoperationcertificatetotheDCinSollefteå,whichsubsequentlycontinuestheconnectionsinaccordancewiththeswitchingscheduleandputsthepowerlineintooperation.
Theincreaseinelectricityconsumptiongraduallysubsides.Consumptiondecreasesinlinewiththepopulationfinishingcooking,startingtoturnofflightsandfinallygoingtobed.Duringthisperiodthestaffinthecontrolroomsisgraduallyreducedtofinallyendupwherewestarted,withtwopeopleinNetworkControl.Auniquedayofoperationsisatanend.
Svenska Kraftnät has a control centre in Sollefteå that primarily monitors the northern section of the
national grid, but also the rest of the grid if it becomes necessary.
The control centre operation in Stockholm primarily
monitors the southern section of the national grid.
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Fairy flax thrives in the powerline corridor.
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Duringthe1990sasawholeandthefirstyearsafterthemillennium,thefocushasbeenonadministrationofthenationalgridforelectricity.Inprinciplenonewpower-lineswerebuiltduringthisperiodandtheoperationhasbeencharacterisedbystability.Themajorinvestmentsweremadeduringthe1950sand1960swhenthenationalgridwasconstructed,andduringthe1980swhennuclearpowergenerationwasconnected.Butnowthisischanging.NewmarketandenvironmentalrequirementsarebeingplacedonSwedishelectricitytransmission.ThenationalgridmustdealwithfuturewindpowerandnewconnectionsfromboththeNordiccountriesandothersintheEUhaveeitherbeendecidedorareunderdiscussion.Furthermore,alargenumberofswitchyards,transformersandconnectionstationsneedtoberebuiltorreplacedintheirentirety.Therateofinvestmentwillthereforeincreasesubstantiallyinthenexttenyears.Thereisamajorneedtorecruitskillednewemployees,andthepressureonrecruitmentwillnotbehelpedbythefactthatinthenextfive-yearperiod55employeeswillretirefromSvenskaKraftnät,mostofwhomarehighlyskilled.Itisthereforeimportantthatweclearlydem-onstratethatweareanattractiveemployer.
Major infrastructure projects Ouremployeeswillbegreatlyaffectedbythemajorinfrastructureprojectsthatareplanned.Oneexampleisthe”SouthWestLink”whereSvenskaKraftnätisgoingtoconstructthelargest,longestandmost
powerfulgroundcableintheworld.SvenskaKraftnätneedstobolsteritsexpertisewithinalargenumberofareas,includingprojectmanagersandengineerswithinelectricpowerandIT,butwealsoneedtostrengthenourpositionwithintheareasofmarketandadministration.
Interesting job assignments in a high-technology companySvenskaKraftnätalmostexclusivelyrecruitsgraduates.Thejobassignmentswithinthecompanyhavebothdepthandbreadthandoftendealwithnewtechnologies.SvenskaKraftnätoffersattractivejobassignmentsthatarechallengingandprovidedevelop-mentforbothgroupsandindividuals.
Weregularlyconductsurveysandanaly-sesonwhetherthereisaneedtoexpandthecapacityofourtransmissions.Wealsoworkwithlandandpermitissuesanddescriptionsofenvironmentalconsequencesofplannedconstruction.Knowledgeofcontrolequip-mentandtechnologyensuresthatwemakethebestchoiceoftechnology.Aprocurementphaseissubsequentlyinstigatedinwhichcontractorssubmittenders.Thebestbidisacceptedandthentheactualconstructioncommences–whichisoftenimplementedoveraperiodofseveralyears.Whenthecon-structionphaseiscompletedourmainte-nanceteamtakesoverandensuresthatthequalityofthenationalgridismaintained.
Theoperationalactivitiesensuresthattheelectricityinthenationalgridflowsroundtheclock.Operationsneedtobe
plannedandthisisdonethroughjobas-signmentssuchasdealingwithscheduledoutages,determiningcapacity,switchingschedules,operationalinstructionsandreli-abilityissues.SvenskaKraftnätisalsoabletosimulateourpowersysteminapowerfulreal-timesimulator.
Onthemarketsideweareworkingonformulatingregulationstocontributetoanelectricitymarketthatisopenandwithnorestrictionsoncompetition.
WithintheITfieldweareworkingondevelopment,administrationandoperationofthesystemsthatareneededtoenablethenationalgridtobebuiltandmonitored,sothattradecanbeconductedandthatallelectricityflowscanbereadandconvertedintoinvoices.
European cooperationThefutureoftheelectricitysupplyisanimportantissuethatisundercontinualdiscussionwithintheEU.Theissuesrevolvearoundfuturegeneration,transmissioncapacitybetweencountries,environmentalimpactandtechnicaldevelopment.SvenskaKraftnät’sstaffparticipateinworkingpartiesthroughoutEuropewheretheseissuesarediscussed.
Modern new premisesIn2009SvenskaKraftnätwillmoveintoanewlybuiltbuildingofitsown.Itwillprovidetheopportunitytocreatemodernandflexibleworkplaceswiththegreatestpos-sibleenvironmentalconsiderationinterms
We are making our organisation more attractive
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ofconstructionmethod,choiceofmaterials,interiorfittingsandrunningofthebuilding.Thegoalistocertifythebuildingasa”greenbuilding”.
Healthy and parent-friendly companySvenskaKraftnätisahealthyworkplace.In2007sickleavewasunder2.5%andmorethanhalfofthestaffdidnothaveasingledayoffsick.Ourworkisbothpreventiveandremedial,withaclearobjectivethatallstaffshouldreturntoworkafteralong-termillness.
AtthestartoftheyearSvenskaKraftnätwasdesignatedthemostparent-friendlycom-panyamongthecompaniesthatemployalotofengineers.Adistinctionthatclearlydem-onstratesthatthecompany’sgenderequalityworkhasbeensuccessful.
Focus on environmental issuesSvenskaKraftnäthasaclearfocusonenvironmentalissues.Wesetahighlevelof
environmentalrequirementswhenprocuringconstructionandmaintenancecontracts.Ifwearetoattractnewemployeesitisveryim-portantthatSvenskaKraftnätworksactivelywiththeseissues.
Social responsibilitySvenskaKraftnätisacompanythatisimpor-tanttosociety.Itisourresponsibilitythatelectricityistransferredfromproductiontoconsumptionatalltimes,withinthecountry,butalsotoourneighbours.Ifthenationalgridforelectricityisnotoperationalthereareconsequencesinalmostallareasofsociety.StaffatSvenskaKraftnätarekeenlyawareofthisresponsibilityandalwayshavethisover-ridinggoalinfrontofthem–theelectricitymustgetthrough!Inlinewiththiswemustbeperceivedasaresponsiblecompanythattakesresponsibilityfortheenvironment,itsemployeesanditsfinancialsituationinboththeshortandthelongterm.
TeamworkOneofSvenskaKraftnät’sfundamentalval-uesisteamwork.Wewanttohavestaffthatenjoycooperatingbothwithinthecompanyandexternally,andwhounderstandthesignificanceofsharingtheirskills.Whentheoperatingsystemisunderpressureitisadditionallyimportantthatcommunicationandcooperationworkwell,bothinsideandoutsidethecompany.
A stable company with a high turnover and good financial resultsAfundamentalpreconditionwhenapplicantsareselectingtheirfutureemployeristhatithasasatisfactoryfinancialsituation.SvenskaKraftnätputstheemphasisonastablelong-termfinancialsituation,atthesametimeasmeetingtheyieldrequirementsthatareaskedofus.Inthelasttenyearswehavemetthesetargetsninetimesoutoften.
At Svenska Kraftnät it is perfectly alright to combine a managerial position with being a parent. At the start of 2007 the Swedish Association of Graduate Engine-
ers designated Svenska Kraftnät as Sweden’s most parent friendly company of the companies that employ a lot of engineers.
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New features in the natural gas sector
Natural gas market opened upOn1July2007thefinalstageinthederegulationofthenaturalgasmarketwasimplemented,givingdomesticcustomerstheopportunitytofreelyselecttheirsupplierofnaturalgas.Deregulationcommencedin2001whenlargeindustrialconsumerswereabletoselectsupplier.Sincethentheprocesshastakenplaceinstages,untilthefinalstagehalfwaythrough2007.
Svenska Kraftnät’s roleWhenthenewNaturalGasActcameintoeffecton1July2005SvenskaKraftnätwasappointedastheauthorityholdingsystemresponsibility.ThismeansthatSvenskaKraftnätisresponsibleformaintainingtheshort-termbalancebetweeninputandex-tractionfromtheSwedishnaturalgassystem.OneaspectofthisisthatSvenskaKraftnätsignsagreementswithbalanceproviders.TherearecurrentlyfivebalanceprovidersintheSwedishnaturalgasmarket.Thesecompaniesundertaketoplanforbalancesforthecustomersforwhichtheyhavebalanceresponsibilityandtheyarefinanciallyrespon-siblefortheimbalancestheycause.SvenskaKraftnätisresponsibleformonitoringthesystemandwhennecessaryimplementingmeasurestomaintainthebalanceinthesystem.
Togetherwiththetwotransmissionnet-workoperators,SwedegasandEONGasSverige,SvenskaKraftnätsupervisestheworkoftheGasMarketCommittee,whichin-cludesrepresentativesofbothbalanceprovid-ersanddistributionnetworkoperators,alongwithconsumersandthetradeassociationofthegasmarket.Thecommitteeisaninfor-mationandcooperationforumforSvenskaKraftnätandtheoperatorsofthetransmis-sionnetworks,anditdealswithissuescon-cerningtariffs,developmentofcontractualtermsandothermoregeneralissuesregardingthedevelopmentofthegasmarket.
Duringtheyearconsumptionofnaturalgasamountedtoapproximately11.5TWh(measuredingrosscalorificvalue).
What is happening in the market?
New combined heat and power plants
ThenewRyacombinedheatandpowerplantwascommissionedinGöteborgattheturnoftheyear2006/2007.Theplanthasacapacityof260MWofelectricityand290MWofheatandiscurrentlythelargestsingleconsumerofnaturalgasinSweden.InMalmötheÖresundplantisbeingcon-vertedintoamoderngas-firedcombinedheatandpowerplant.Thisplantwillhaveacapacityof�00MWofelectricityand�50MWofheatandwilltherebybesomewhatlargerthantheRyaplant.ThenewÖresundplantisexpectedtobeputintooperationon1January2009.Theoverallannualcon-sumptioninthesetwoplantsmayamountto7–8TWh.However,thepowerstationsarepartiallyreplacingotherplants,whichmeansthatthenetincreaseinconsumptionofnaturalgasismorelikelytobearoundhalfthatlevel.
Storage facility for gasThereisastoragefacilityfornaturalgasinSwedenthatwascommissionedon1May2006.Thestoreisademonstrationfacilityanditisrelativelysmall,comprising10mil-lionnormalcubicmetres.AsSwedendoesnothavetherightgeologicalconditionsforthetypeofstoragefacilitythatisnor-mallyusedforseasonalstorageofnaturalgas,Sweden’smarketwillcontinuetobedependentonstorageinothercountriesinordertoevenoutthefluctuationsintheconsumptionpattern.Theclosestlargestor-agefacilityislocatedinDenmark.
Biogas in the natural gas network
TodaysmallamountsofbiogasaremixedintotheSwedishnaturalgasnetwork.Inmostcasesthebiogasisaresidualprod-uctfromactivitiesatsewageworksandwastedisposalplants.Afterprocessingtheupgradedbiogascanbefedintothenaturalgasnetworkanddistributedtocustomers.Accordingtovariousstudiesthereiscon-siderablepotentialforproductionofbiogas
The natural gas network offers an opportunity to distribute biogas to customers, at the same time as it pro-
vides an equalisation effect and back-up in the event of disruptions to biogas production. According to vari-
ous studies there is considerable potential for production of biogas in Sweden. The potential from biological
processes (from, for instance, sewage slurry, manure and energy crops) is estimated at about 15 TWh.
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inSweden.Thepotentialfrombiologicalprocesses(from,forinstance,sewageslurry,manureandenergycrops)isestimatedatabout15TWh.Thenaturalgasnetworkoffersanopportunitytodistributebiogastocustomers,atthesametimeasitprovidesanequalisationeffectandback-upintheeventofdisruptionstobiogasproduction.BothGöteborgandMalmöarecurrentlyplanningforlargebiogasproductionfa-cilitieswithso-calledthermalgasificationofwoodenrawmaterials.TheplantinGöteborgisplannedtobe100MWandisestimatedtoproducearound0.8TWhofbiogasayear.TheplantwillbeconnectedtotheSwedishnaturalgasnetworkandcommissioningisplannedfor2012.
Supply to the Swedish marketSincenaturalgaswasintroducedontotheSwedishmarket,SwedishcustomershavebeenexclusivelysuppliedwithgasfromtheDanishNorthSeafields.OvertheyearsthesehaveofferedasecuresupplyofgastoSwedishcustomers.AstheDanishnaturalgasfieldsarenowapproachingpeakproduction,fallingproductionlevelsarehowevertobeexpectedinthenearfuture.ThismeansthatthereisreasontolookatalternativeoptionsforsupplyingtheSwedishmarketwithgas.ForsomeyearspreliminaryproceedingshavebeenjointlyunderwaybetweenSwedishandNorwegianoperatorstoexaminethepossibilityofreal-isinganewoffshorepipeline,Skanled.ThepipelinewillextendalongtheNorwegian
southcoasttotheindustrialareassouthofOsloandonwardovertotheSwedishwestcoast.ItalsoincludesanoffshoottoDen-markandtheDanishnaturalgassystem.Adecisiononinvestmentisexpectedduring2009,anditwouldtherebybepossibletoputthepipelineintooperationin2012.
ThenewsupplypipewouldenableScandinavia’slargestoilrefinery,PreeminLysekil,toreplaceoilwithnaturalgas.Itwouldtherebybepossibletoachievelargereductionsincarbondioxideemissions.ThechemicalindustryisconsideringnewinvestmentsinStenungsundiftheprojectisrealised.AnothersupplyroutetoSwe-dencouldalsodeliverimprovementstothecompetitionsituationinthemarket.
Besidesthepositiveeffectsdetailedabove,anadditionalsupplypipewouldgiveSwedenimprovedsecurityofsupplyinconjunctionwithcriticalsupplysitua-tions.Ashort-livedcriticaleventoccurredduringautumn2007whenproductionwasstoppedontheDanishplatformsonac-countofaseverestorm.Ifasimilardisrup-tiontosupplieswastooccurinthefuture,asecondsupplyroutewouldgivetheSwedishnaturalgasmarketacompletelydifferentsupplyoption.
The world around usInconjunctionwithNordpool,Energinet.dkisplanningtostartagasexchangeinDen-markinearly2008.Theexchangewillfacili-tatetradewithpartiesthatarenotcurrentlyabletotradeanonymouslyinDenmark.Anexchangealsobringsaboutmoretranspar-entpricefixing.AtpresentthereareasmallnumberofmarketplacesforgasinEurope.TwonewmarketplacesforgasweresetupinGermanyduring2007.
Since2006ajointprojectbetweentheregulatoryauthoritiesandthecompanieswithsystemresponsibilityhasbeenunderwaywithintheEUtoimprovetheregulationsforthecommercialoperators.TheobjectiveistoachieveincreasedcompetitionintheEurope-annaturalgasmarket.TheworkgoesunderthenameoftheGasRegionalInitiativeandSwedenispartofthenorthwestregion.TheworkwasinitiatedbytheEUCommission.
Attheendof2007theEUCommissionpublishedtheso-calledthirdenergypolicypackageincludingaproposalformorestrin-gentdirectivesfortheEuropeanelectricityandnaturalgasmarkets.Amongotherthingstheproposalsentailarequirementforsepara-tionbetweentradingandnetworkopera-tions.Itisalsoproposedthattheregulatoryauthoritiesaregivenmoresubstantialpowersinthemarket.
The Swedish natural gas network. Source: Swe-
dish Gas Association
The Rya combined heat and power plant came on line in Göteborg at the turn of the year 2006/2007. The
plant has a capacity of 260 MW of electricity and 290 MW of heat and is today the largest single consumer of
natural gas in Sweden.
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Environment and sustainability
SvenskaKraftnäthasasolidambitiontobearesponsiblecompanyasouroperationisextremelyimportanttosocietyandislong-termincharacter.InrecentyearsSvenskaKraftnäthasreinforceditsenvironmentalworkinanumberofways,includingthroughsupportingtechnicaldevelopmentsthatareenvironmentallycompatible,adoptingastrictmagneticfieldpolicyandsettingenvironmentalrequirementswhenprocuringcontractservices.
SvenskaKraftnätisanimportantplayerwhenitcomestodeliveringtheSwedishenvironmentalgoals.Asastateutility,Sven-skaKraftnäthasaspecialresponsibilitytocontributetobeneficialsocialdevelopmentinSweden.Itsroleintermsoftheenviron-mentdoesnotthereforeonlyincludetakingresponsibilityforthedirectimpactofitsop-erationsontheenvironment,theimpactoffacilitiesonthelandscape,thenaturalenvi-ronmentandresidentialenvironment,forex-ample.AnimportantaspectofenvironmentalresponsibilityisalsotoconfiguretheSwedishnationalgridtofacilitatetheexpansionofre-newableenergyproductioninthecountry.
Asamajorpurchaserofcontractservices,itisimportanttoensurethatthecontractors
engagedtaketheenvironmentintoconsidera-tion.Themostimportanttoolsaretheenvi-ronmentalrequirementsthatareincludedinthecontractualagreementsalongwithfollow-ing-upthattheenvironmentalrequirementsaremet.Inconjunctionwithcontractors,during2007SvenskaKraftnäthasfocuseditsworkinparticularonimprovementswithinthisarea.
Environmental policy and goals SvenskaKraftnäthashighambitionswithregardtotakingenvironmentalresponsibility,anditisdoingsoby
continuallyendeavouringtoreducetheenvironmentalloadofitsactivitiesintegratingenvironmentalissuesintoallactivitiesincludingenvironmentalconsid-erationsinalldecisionssettingclearenvironmentaltargetsanddesigningproceduresforfollowing-up,evaluatingandimprovingtheenviron-mentalworktakingaccountofenvironmentalaspectsinprocurementsbysettingenvironmen-
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talrequirementsforoursuppliersandcontractors.
Thefollowingoverarchingenvironmentalgoalshavebeenformulatedfortheoperation:
Theemissionsofgreenhousegasescausedbyoperationsshallbecontinuouslydecreased.Stationsandpowerlinesshallbelocatedanddesignedinanenvironmentallycom-patiblemannerinordertopromotetheexpansionofrenewableenergyproductioninthecountry.Hazardoussubstancesshallbesuccessivelyphasedout.Thosehazardoussubstancesthatareusedshallbehandledsothattheydonotleakoutintotheenvironment.Theprecautionaryprincipleregardinglow-frequencyelectricalandmagneticfieldsshallbefollowedthroughtheap-plicationofSvenskaKraftnät’smagneticfieldpolicy.Biologicaldiversityinthepowerlinecor-ridorsshallbebenefitedandthehabitatsofendangeredspeciespreserved.
SvenskaKraftnät’sstaffaredisplayinggreatcommitmenttotheenvironmentalwork.
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A number of environmental audits have been carried out during the year in relation to construction and maintenance contracts in order to check whether the
environmental requirements we set out in contractor agreements are being met. As Svenska Kraftnät is a major purchaser of contract services, it is important
to ensure that the contractors we engage take the environment into consideration. The experiences gained from the audits has led to a number of environmental
improvements to the contracts.
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During2007theincentiveprogrammehascontainedthreegoalswithintheenvironmen-talfield.Allthreegoalswereachieved.Thegoalswere:
Approvedresultsshallbeachievedinenvi-ronmentalauditsoffiverandomlyselectedconstructionandmaintenancecontracts.Bytheendoftheyearallstaffmusthavesuccessfullycompletedaweb-basedenvi-ronmentaltrainingcourse.EmissionsofCO
2frombusinesstravel
shalldecreasein2007comparedwith2006.
Processes with an environmental impact Planning the national gridPlanningthenationalgridentailsanenvi-ronmentalimpactintermsofdecisionsthataretakenonforthcomingextensions,wherepowerlinesandstationsaretobelocatedandwhichtechnicaldesigntheyaretohave.AnimportantglobalenvironmentalaspectisthatthesolutionsselectedmustfacilitatetheexpansionofrenewableenergyproductioninSweden.Anotherglobalenvironmentalaspectistheenergylossesthatoccurfromtheelectricitynetwork.Oneofthefactorsthatdeterminesthesizeofthelossesisthetechni-caldesignoftheplants.
Locationanddesignofpowerlinesandstationsnaturallyalsohasaneffectonthelocalenvironment.Landthatispartofcul-tivation,forestryorrecreationareascanbeutilized.Indenselypopulatedareaspeople’slocalenvironmentcanbeaffectedthroughtheimpactonthelandscape,exposuretoelectromagneticfieldsandnoisepollution.
Furtherenvironmentalaspectstotakeintoaccountwhenplanningthenationalgridarethesubstancesandmaterialsthatareintheplants.Suchsubstancesthatarehazardousfortheenvironmentareusedinassmallamountsaspossible.
Thenationalenvironmentalgoalsthataffectplanningofthenationalgridare:
Limitedimpactonclimate–choiceoftechnicalsolutionandlocationofplantscanbeofmajorsignificancefromaclimateperspective,forinstance,throughtheextentofenergylosses.Non-toxicenvironment–thechoiceoftechnicaldesigndetermineswhatamountsof,forinstance,oilandmetalswillbeused.Swarmingwetlands,Livingforests,Rich
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agriculturallandscapesandMagnificentmountainenvironments–impactscanariseifdifferenttypesofvaluablenaturalenvironmentneedtobeutilized.Goodbuiltenvironment–powerlinesandstationsaffectthelandscape,noisepollu-tioncanarise.Saferadiationenvironment–locationanddesignofpowerlinesdeterminethelevelofexposuretoelectromagneticfieldspeopleinthelocalitywillbesubjectto.Arichplantandanimallife–therecanbeanegativeeffectifinstallationofanewpowerlineentailsdamagingvaluablenaturalareas,andpositiveifthepowerlinecorridorcanbeaarefugeforendangeredspecies.
Goals and measures Itgoeswithoutsayingthatnowadaysenvi-ronmentalaspectsaretakenintoaccountandweighedupinnetworksurveysandfeasibilitystudies.Onmanyoccasionsenvironmentalissuescanbedecisiveinplanninganddesign-ingnewplants.
Extensiveworkisputintodraftingenvi-ronmentalimpactassessments(EIA)inourpowerlineprojects.TheEIAisanimportantpartofthepermitapplicationforapower-line.AnEIAprovidesadetailedaccountoftheenvironmentalimpactaplannedpow-erlineisexpectedtoentail.Alternativesolu-tionsareanalysedandareportiscompiledofconsultationswithauthorities,localresi-
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dentsandinterestgroups.IntheStockholmsStrömprojectSvenska
Kraftnäthasinvestigatedanentirelynewde-signforthefuturenetworkfortheStockholmregion.150kilometresofoldpowerlineswillberemoved.Mostoftheserunthroughdenselypopulatedareas.Greatconsidera-tionhasbeenpaidtotheenvironmentwhendesigningthenewplantsthatareneeded.Insomeplacespylonsandstationbuildingswillbedeignedinconsultationwithdesignersandarchitects.
SvenskaKraftnätisworkingactivelytofacilitatetheexpansionofwindpowerinthecountry.Theguidelinesforconnectingelec-tricitygenerationfacilitiestotheelectricitynetworkhavebeenreviewedinareportthatwassubmittedtotheGovernmentinJune2007.Itwilltherebybeeasiertoconnectfa-cilitiessuchaswindpowerplants.
Agoalfor2007wastohavestartedaprogrammeforresearchanddevelopment(R&D)focusedontheenvironment.TheenvironmentisanimportantareainSvenskaKraftnät’sresearchanddevelopmentopera-tion.Severalprojectsareunderwaywiththeaimofdevelopingnewtechnologythatwillreducetheenvironmentalimpactofourplants.AtotalofSEK�millionwasusedforR&Dwithintheenvironmentalareaduring2007.
SvenskaKraftnät’senvironmentalprizewasawardedforthefirsttimeinMarch2007.Theaimofawardingtheprize,which
Green cars comprised 60 % of Svenska Kraftnät’s company cars during 2007.
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amountstoSEK100,000,istoencourageenvironmentalimprovementswithinSven-skaKraftnät’sfieldofoperations.ThefirstprizewassharedbetweenthecompanyABB,whichhasdevelopedacircuit-breakerwithalargenumberofenvironmentalbenefits,andthebutterflyexpertIngemarFrycklund,whohasdemonstratedthroughmanyyearsofstudythatpowerlinecorridorsrepresentim-portantsitesandrefugesforspeciesthatareotherwiseendangered.
Extensions and conversionsAlargeproportionofSvenskaKraftnät’senvironmentalimpactarisesinconnectionwithnewbuildingandconversionsofpow-erlinesandstations,andalsoinconjunctionwithscrappingoldequipment.Emissionstakeplacefromcontractor’smachineryandvehicles.Sensitivegroundandvegetationcanbedamagedinconjunctionwithconstructionwork.Environmentallyhazardoussubstancescanbepresentintheequipmentthatisdemolished,whichiswhythehandlingprocesswhendismantlingplantsisoftheutmostimportance.Whennewequipmentandmaterialsarepurchasedtheremustbeaguaranteethatnoundesirablesubstancesareincluded.AllconstructionforSvenskaKraftnätiscarriedoutbycontractors.The
mostimportanttoolstoavoidenvironmentalimpactarethereforesettingenvironmentalrequirementswhenprocuringcontractsandfollowinguptheenvironmentalrequirementswhenthecontractsareimplemented.
Extensionsandconversionisaffectedprimarilybythefollowingnationalenviron-mentalgoals:
Limitedimpactonclimate,Freshairandonlynaturalacidification–emis-sionsfromcontractor’smachineryandtransports.Non-toxicenvironment–dischargeofcontaminantsintogroundandwaterinconnectionwithconstructionworkanddemolitionofoldequipment.Goodbuiltenvironment–wastedisposal.
Goals and measuresDuring2007SvenskaKraftnätstartedtoapplynewenvironmentalrequirementsforconstructionandplantcontractsthatweredrawnupinconjunctionwiththecontractor.Specialtoolshavebeendevelopedtoevaluatetendersandfollowing-upofenvironmentalrequirements.Aweb-basedenvironmentaltrainingcourse,speciallyadaptedforthecon-tractors’projectmanagers,sitemanagersandsupervisors,hasalsobeenproduced.In2007�7personssuccessfullycompletedthecourse.
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Onegoalduring2007wasthatapprovedresultsshallbeachievedinenvironmentalauditsoffiverandomlyselectedconstructionandmaintenancecontracts.Inordertogetanideaofwhatshortcomingstheremightbeinthecontracts,tostartwithtwotrialauditswerecarriedout.Theexperiencesfromtheseledtoanumberofenvironmentalimprove-mentsinthecontractsduringtheautumn.Thefivecontractorsthatwereauditedattheendoftheyearwerejudgedtobeverysatis-factoryinmostareas.Severalenvironmentalauditswillbeundertakenduring2008withtheaimoffurtherimprovingtheenviron-mentalworkinthecontracts.
MaintenanceThemaintenanceoperationisimportantforSvenskaKraftnät’senvironmentalperform-ance.Itinvolveshandlingsubstancesandmaterials,personsandequipmentaretrans-portedandmachineryisusedforjobssuchasclearanceandgrasscutting.Therearerisksofundesirableemissionsofhazardoussub-stances,suchasthegreenhousegassulphurhexafluoride(SF
6)incircuit-breakersand
gas-insulatedswitchyards,andoilsinvarioustypesofequipment.Animportantareaiswastedisposalandhowwornoutequipmentisdealtwith.Themaintenanceiscarriedout
A long-term environmental goal for Svenska Kraftnät is to adapt the management of the power line corridors to benefit biological diversity. Four areas in Uppland
have been arranged as viewing areas where the results of adapted maintenance can be studied in powerline corridors. There are information boards in the areas
that describe the maintenance and the species of interest that are to be found in the area.
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bycontractors,environmentally-compatibleprocurementisthereforeacentralissueincontrollingtheenvironmentalimpact.
Ithasbeenshownthattherecurrentclear-ancesinthepowerlinecorridorscanbringaboutpositiveeffectsforplantandanimalspeciesthataredependentonopenground.Somepowerlinecorridorsareextremelyrichinspeciesandconstitutehabitatsforspeciesthatareindangerofextinction.
Anumberofnationalenvironmentalgoalsaffectthemaintenanceprocess:
Limitedimpactonclimate,Freshairandonlynaturalacidification–emissionsfromtransportsandcontractors’machin-eryandalsoemissionsofSF
6-gas.
Non-toxicenvironment–dischargeofcontaminantsfromoldequipmentintogroundandwater.Goodbuiltenvironment–wastedisposal,noisepollution(fromtransformersandpowerlines).Arichplantandanimallife–someenvi-ronmentscanbedisturbedbyclearanceswhileotherenvironmentshaveincreasedinnaturalvaluethroughkeepingthegroundopen.
Goals and measuresEnvironmentalauditshavebeenimple-mentedinfourmaintenancecontractsduring2007.Seethesection”Newbuildingandconversions”.Theauditshaveledtoanumberofmeasurestoimprovethemain-tenanceoperation.Othermorelongtermmeasureswillbeimplementedduring2008.Amongotherthings,betterroutinesandsystemsforenvironmentalreportingwillbeproduced.Thiswillmakeiteasiertofollowupincidents,consumptionofoilandothersubstances,dealingwithwasteetc.
SincethepropertiesofSF6-gasthataffect
theclimatebecamegenerallyknown,SvenskaKraftnäthasbeenactivelyworkingtoreduceemissionsfromtheplants.Theamountofgasthatisputinismeasuredcontinuously.Thisisdonetoenableabnormallylargeleakstobetracedandrectified.Equipmentthatleaksisreplacedorsealed,anddemandsareplacedonthemaintenancecontractorswithregardtohandlingthegasandtrainingstaff.SvenskaKraftnätisalsograduallytighteninguptherequirementsonsealswhenpurchasingnewproducts.Emissionsfromthenationalgrid’sfacilitiesarelow,lowerthanwhatisrequiredfornewequipmentaccordingtointernationalstandards.DuringtheyearmeasureshavebeentakentoreduceabnormallylargeleakageofSF
6fromoneofourcircuit-breakers.New
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testingequipmenthasalsobeenpurchasedtomeasuredewpointandtheproportionofSF
6
incircuit-breakers.ThisenablestheSF6-gas
tobeutilizedinsteadofbeingreleasedaswithprevioustestingequipment.InconjunctionwiththerepairofaGISplant(gas-insulatedswitchyard)10kgofSF
6-gaswasmistakenly
released.Anumberofincidentsentailingdischarge
ofoilhaveoccurredduringtheyear.Howev-er,decontaminationalwaystakesplaceimme-diatelyafteradischarge,whichiswhythereisrarelyanylastingcontaminationofthegroundasaresult.DamagetotheÖresundcablecausedabout�,000litresofoiltoleakout.Extensivedecontaminationworkmeantthatthebulkoftheoilcouldbedealtwith,butacoupleofhundredlitresofoilwerelostinthesea.Aprojectisunderwaytocarryoutaninventoryofthedimensionsandstatusofoilcollectionpits.Sofaronlyonedefectivepithasbeenfound.Thiswillbedealtwithduring2008.AnotherprojectisunderwaytosystematicallyregisterallPCBanalysesofoilsinpowertransformersandreactors.ThereareonlyasmallnumberoflocaltransformersthatarecontaminatedwithPCB.Aninven-toryofbuildingswillbecarriedduring2008outtoclarifywhetheranycontainPCB.
Along-termgoalistoadaptthemanage-mentofthepowerlinecorridorstobenefitbiologicaldiversity.Severalmeasureswereimplementedduring2007.Inventoriesofanumberofpowerlinecorridorsinrespectofspecies-richbiotopeshavebeenundertakeninconnectionwithforestinspections.FourareasinpowerlinecorridorsinUpplandhavebeenarrangedasdemonstrationareaswherethere-sultsofadaptedmaintenancecanbestudied.Informationboardsdescribethemaintenanceandthespeciesofinterestthataretobefoundinthearea.Duringthesummerinventoriesofbutterflieswerecarriedoutintheseareas.In
oneareaaspeciesofbutterflywasdiscoveredthathasneverpreviouslybeenfoundinSwe-den,Ancyliskenneli.InconjunctionwiththecountyadministrativeboardinUppsalacoun-ty,wehavedrawnupamaintenanceplanforasectionofpowerlinewheretheendangeredmarshfritillarybutterflyistobefound.Theaimisthatbyadaptingthemaintenanceofthepowerlinecorridorthebutterflywillbeencouragedtoincreaseinnumbersandspreadthroughoutthearea.Wehavealsocollabo-ratedwiththecountyadministrativeboardinJönköpingcountryinaprojectwherethenaturalvaluesinpowerlinecorridorsareas-sessedandfollowedup.Acontinuationofthisprojectisplannedduring2008.
Grid operationsNationalgridoperationscomprisespartlyashorttermplanningstageformeasuresthathavetobetaken,partlyamonitoringstageinrealtimethattakesplaceinthecontrolcen-tres.Tosomeextentthisoffersthepossibilityofaffectingthesizeofthenetworklossesthroughoperationalmeasures.Thiscantakeplacethrough,forinstance,disconnectingpowerlines,whichreducesthevoltage.
AsubsidiarywithinSvenskaKraftnätownsanumberofgasturbineplants.Thegasturbinesareusedsolelyasback-uppowerstationsduringshortperiodsinordertodealwithdisturbancesandextremesituationsinthepowersystem.Theemissionsfromthesegasturbinesinvolveanimpactontheclimate,amongotherthings.
Thenationalenvironmentalgoalsthatpri-marilyconcernoperationalmeasuresare:
Limitedimpactonclimate–operationaldecisionsthataretakenaffecttransmis-sionlosses,thereareemissionsfromgasturbinesiftheyhavetobeused.
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The rare butterfly species Ancylis kenneli.
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Goals and measuresAnewtooltominimisethenetworklossesinthenationalgridhasbeendeveloped.Thetoolwillenablestaffinthecontrolroomstosimplydeterminewhatcontrolmeasuresthatwillbestreducethetransmissionlosses.During2007theuserinterfacehasbeendevelopedandtestedwithsatisfactoryresults.During2008thetoolwillbegivenatrialrunandevaluatedsothathopefullyattheendoftheyearitwillbepossibletoputitintooperation.
Thegasturbineshavebeenrunmoredur-ing2007thanduringtheprecedingyears.ThismeansthatemissionsofCO
2havealso
beengreater.ThemainreasonthatthegasturbineshavebeenrunisthattheForsmarknuclearpowerstationhasperiodicallybeenshutdownduringtheyear.Workconstruct-ingembankmentsaroundthefueltanksinthreeofthegasturbineplantswascompletedduring2007.Thistherebyremovestheriskofalargeamountofoilbeingabletocon-taminategroundandwaterintheeventofanydamagetoatank.Thelargesttankholds1�,500m�ofoil.
Office activitiesEnvironmentalaspectsintermsofofficeactivitiesareheating,ventilation/coolingandconsumptionofelectricityinpremises,inte-riorfittings,ITequipment,consumptionofofficesuppliesandwaste.Oneenvironmentalaspectsofrelativelymajorsignificanceisthebusinesstripsmadebystaff.
Thenationalenvironmentalgoalsthatcon-cernofficeactivitiesare:
Limitedimpactonclimate,Freshairandonlynaturalacidification–emissionsfromtransportsandbusinesstrips,heatingandconsumptionofelectricity.Goodbuiltenvironment–wastedisposalandgoodinteriorenvironment.
Goals and measuresOnegoalduringtheyearhasbeenthatCO
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emissionsfrombusinesstravelwillbelessthanthatfor2006.ItwaspredictedthatthegoalwouldbedifficulttoachieveasSvenskaKraftnät’sinvestmentoperationisgrowing,andthusprecipitatingagreaterrequirementfortravel.Despitethisthegoalhasbeenachievedwithsomemargin.Contributoryfactorsarereducedairtravel,reducedcartravel(morecarshares),moregreencarsetc.
Anothergoalfor2007wasthatallstaffwouldcompleteaweb-basedenvironmentaltrainingcourseandpassasubsequenttest.ThecoursedealtwithbothenvironmentalissuesthatconcernSvenskaKraftnät’sopera-tionsandmoregeneralenvironmentalissues.Thegoalwasachievedandwillhopefullyleadtoalargenumberofemployeesbecomingmoreenvironmentallyawarethanpreviously.
AgoalthathaslongbeeninplaceisthatallnewlyemployedstaffatSvenskaKraftnätwillreceivebasicteacherledenvironmentaltraining.Some50personshavecompletedthiscourseduring2007.Inadditionatrain-ingdayonwasteandwastedisposalwasim-plementedforsome�0projectmanagersandmaintenancemanagers.
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Environmental performanceTheenvironmentalimpactfromSvenskaKraftnät’smainprocesseshavebeendescribedabove.Thetwoenvironmentalqualitygoals,LimitedimpactonclimateandNon-toxicenvironmentcanberegardedasthemostimportantgoalsonthebasisofSvenskaKraftnät’soperationsandsociety’svalues.Themeasuresthathavebeenimplementedtocon-tributetotheachievementofthesegoalsaredescribedaboveundertherespectiveprocess.
Limited impact on climateTheSwedishenvironmentalgoal,Limitedimpactonclimatemeansthatthecontentofgreenhousegasesintheatmospheremustbestabilisedatanamountlowerthan550partpermillion(ppm).TheSwedishemissionsofgreenhousegasesmust,asanaveragevaluefortheyears2008–2012,beatleastfourpercentlowerthantheemissionsin1990.Inonepro-posaltheGovernmentmakestheassessmentthatemissionsforSwedenin2020shouldbe25percentlowerthanemissionsin1990.
ItisimportantthatSvenskaKraftnätisanexamplewhenitcomestoreducingemissionsofgreenhousegases.SvenskaKraftnät’sactivi-tiesaffecttheclimatethroughthetransmis-sionlossesthatoccurinthenationalgrid,throughemissionsfromourgasturbines,emissionsofSF
6-gas,transportsandtravel,as
wellasenergyconsumptioninstationsandoffices.
Key indicators – Non-toxic environment
2007 2006 2005
Discharge of oil into ground and water, litres5 46506 - -
Environmental deconta- mination, cost, TSEK 780 - -
Mercury, amount removed, kg 0,1 1781 -
Pylons impregnated with arsenic, number removed 44 - -
Key indicators – Impact on climate
2007 2006 2005
Energy losses, % of energy extracted from the grid 2,4 2,1 2,6
Reduced losses as a result of operational measures, GWh1 2.5 2,6 -
CO2 emissions, own gas turbines,
tonnes 6018 4760 3805
Amount of SF6-gas added, kg, 68 27 762
Emissions of SF6 -gas, tonnes
CO2-equivalents3 1510 599 1687
SF6-gas emissions, proportion
of installed quantity, % 0,3 0,1 0,44
Emissions of CO2, all business
trips, tonnes 395 428 -
% of company cars that are environmental cars 60 40 30
Notes1Referstocoronalosses
2Ofwhich��kgduetobreakdowns
�TheGWPvalueforSF6is22200.
�Emissionsnotduetobreakdownsamountedto0.2%
5Thebulkofthisoilhasbeendecontaminatedanddestroyed
6Ofwhichonedischargeof�,000litreswascausedbydamagetotheÖresundcable
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Quaking-grass in powerline corridor.
Non-toxic environmentWhenchemicalproducts,goods,buildingsetc.aremanufactured,usedandscrapped,thereisariskofchemicalsubstancesenter-ingtheenvironment.Theenvironmentalgoal,Non-toxicenvironmentmeansthatwithinthespaceofageneration
theproportionofsubstancesthatoccurnaturallyintheenvironmentshouldbeclosetothebackgroundlevels
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theproportionsofnon-naturalsubstanc-esintheenvironmentshouldbeclosetozeroandtheirimpactontheecosystemnegligiblecontaminatedareasshouldbeinvesti-gatedandifnecessarydealtwith.
SvenskaKraftnäthasarelativelylargeimpactintermsoftheenvironmentalgoal,Non-toxicenvironment.Thisispartlyduetothe
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responsibilityforlargescaleequipmentthatinmanycaseswasinstalledlongagowhenknowledgeofmaterialsandenvironmentaleffectswaslessthanitistoday.Insomecasesthereisnonew,lessenvironmentallyhazard-oustechnologyavailablethatcanreplacetheoldequipment.Oil,woodpreservative(creo-sote),otherchemicalsandheavymetalsaresubstancesthatareusedinouroperations.
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Ancillary services Procuredservices,primarilyfrompowerpro-ducers,whicharenecessaryforthetechnicaloperationofthesystem.Theseservicesprimarilycomprisefrequencyregulationandaccesstogasturbinesasanemergencyreserve.
Balance power Theimbalancethatthebalanceproviderhascausedinthenationalelectricitysystem.
Balance provider PowertradingcompanythathasenteredintoabalanceresponsibilityagreementwithSvenskaKraftnät.Balanceprovidersareobligedtoensurethatastateofbalanceexistsbetweenthesupplyandconsumptionofpowerinrespectoftheirundertakings.
Balance settlement SvenskaKraftnät’scalculationofthebalanceproviders’imbalancesonanhourlybasis(balancepower).Thisresultsinafinancialsettlementbeingproducedeveryfourteendaysintheformofaninvoice(SvenskaKraftnäthassoldbalancepower)orpayment(thebalanceproviderhassoldbalancepower).
Bottleneck Sectionoftheelectricitynetworkwherethetransmissioncapacityisinsufficientandwherecongestionsappearfrequently.
Congestion Asituationwhenthedemandfortransmissionthroughasectionofthegridisexceedingthecapacity.
Counter trading Thepurchase/saleofelectricitybythesystem,oper-ator,i.eSvenskaKraftnätinSweden,toreducethetransmissionofelectricityinacongestedsectiononthegrid.Countertradingpreventscustomersfromexperiencingtransmissionlimitations.
Final power Thedifferencebetweentheactual,meteredvaluesafter1�monthsandtheprovisionallycalculatedvalues.
Final settlement SvenskaKraftnätcalculatesthedifferencebetweenthebalanceproviders’actualdeliveriestoprofilecustomers(customerswhoseconsumptionisnotmeasuredonanhourlybasis)andtheirprovision-ally-calculateddeliveriestothesecustomers.Finalsettlementmeansthatthecostsareredistributedbetweenthebalanceproviders.
Island operation Entailsanelectricitysystembeingoperatedlocallywithinalimitedgeographicarea(production,trans-missionandconsumption).Islandoperationcanbenecessaryifdamagetothetransmissionnetworkmakesitimpossibleforanareatobeconnectedtotheelectricitysystemotherwise.
Load frequency control SvenskaKraftnätisresponsibleforpermanentlymaintainingthefrequencyoftheelectricalgridataround50Hz.Deviationsarecompensatedforviatherapidregulationofproduction.
Point of connection tariff Chargingmodelforutilizingtheelectricitynetwork.Thesizeofthechargeisdependent
upon,amongotherthings,theconnectionpoint’sgeographicallocation.
Profile settlement Amodelforcalculatinganddistributingthevolumeofconsumedelectricitynotmeasuredonanhourlybasis.Indoingso,deliveriescanbedistributedamongtheplayersconcerned.
Spot market NordPool’sspotmarket,whichisamarketplaceforpower.Agreementsaremadeatlunchtimeforall2�hoursofthefollowingcalendarday.
System protection Automaticsystemforboostingtransmissioncapacityand/oroperationalreliability.Forexample,systemprotectionexistsontheDClinksbetweenSouthernSwedenandtheContinent.Systemprotectionim-mediatelyreduceselectricityexportsontheDClinksiftransmissionlevelsinconstraint�(alinerunningapproximatelyfromOskarshamntoVarberg)riskbecomingtoohigh.
System-responsible company (Transmission System Operator, TSO) Acompanyresponsibleforthereliabilityandbalanceofthenationalelectricitysystem.SvenskaKraftnäthasthisroleinSweden.
Transit Thetransmission,ortransiting,ofpowerviaa”thirdcountry”.
Transmission losses
Theenergylossesoccurringinanetwork.
Power industry terms
Debt/equity ratio Interest-bearingliabilitiesdividedbyadjustedequityincludingminorityshares.
Equity/assets ratio Adjustedequityatyearendinrelationtototalcapital.Adjustedequityisdefinedunder“Returnonadjustedequity”.
Interest coverage ratio Theincomefortheyearplusinterestchargesdividedbyinterestcharges.
Net loan liability Allocationandinterest-bearingliabilitieswithdeduc-tionsforfinancialinterest-bearingassets.
Net profit margin Theincomefortheyearwithdeductionsforstand-ardtaxat28%inrelationtooperatingrevenues.
Operating margin Operatingincomeinrelationtooperatingrevenues.
Return on adjusted equity Theincomefortheyearwithdeductionsforstandardtaxat28%inrelationtoadjustedequity.Adjustedequityisdefinedastheaverageoftheyear’sopeningandclosingrestrictedequity(treasurycapitalandrestrictedreserves)and72%ofthenon-restrictedequity.
Return on capital employed Theresultfortheyearplusinterestchargesinrela-tiontoaverageemployedcapital.Averageemployedcapitalisthethebalancesheettotallessnoninter-est-bearingliabilitiesincludingdeferredstandardtaxinequity.
Return on total capital Theresultfortheyearplusinterestchargesinrela-tiontototalaveragecapital.
Self-financing level Cashflowpriortochangesinoperatingcapitalandinvestmentsdividedbyinvestmentsfortheyear.
Definitions
Financial development
Operating income (MSEK)1 000
900
800
700
600
500
400
300
200
100
0
408
620
912
736
2003 2004 2005 2006 2007
Operating and net profit margin (%)
Operating margin Net profit margin with a deduction for tax
2003 2004 2005 2006 2007
18,0
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
Net income for the year (MSEK)1 000
900
800
700
600
500
400
300
200
100
0
291
538
880
676
2003 2004 2005 2006 2007
732
Operating revenue (MSEK)8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
5 335
5 885
6 838
2003 2004 2005 2006 2007
6 326
5 633
Operating revenue per business segment 2007
Adjusted equity (MSEK) and return on adjusted equity (%)
Adjusted Equity Return on AE
6 500 12,0
10,0
8,0
6,0
4,0
2,0
0,0
6 000 5 9116 068
6 264 6 149
5 500
5 000
4 500
4 000
3 500
3 0002003 2004 2005 2006 2007
5 946Contingency planning
4%
Network 54%
System responsibility
– electricity40%
System responsibility – natural gas
1%Telecommunications
1%Electricity certificates
0,1%
864
2007inbrief
2007 2006
Operationsduringtheyear
Energy supplied TWh 120,5 119,8
Reliabilityperformance
Number of operational disturbances
in the national grid 150 181
Number of operational disturbances
with breakdowns 5 15
Non-supplied energy MWh 13 95
Financialfacts
The Group’s operating revenue MSEK 6 326 6 838
Consolidated income MSEK 732 676
Return on adjusted equity* % 8,9 7,9
Debt/equity ratio times 0,33 0,38
Investments MSEK 596 478
* after tax equivalence, 28 %
Financial overview 2007
Picturesonthefrontpage
Motorways for electricity! Svenska Kraftnät plans, builds, operates and maintains the national grid for electricity.
Parent-friendly company! In 2007 Svenska Kraftnät was acclaimed as the country’s most parent-friendly of the companies which employ a lot of engineers.
Serving society – around the clock! The Network Control Centre is manned day and night. From here Svenska Kraftnät monitors the national grid for electricity and ensures that there is a balance between generation and demand in the electricity system, and that there is a balance in the natural gas system.
We take responsibility for the environment! Through conscious maintenance of the powerline corridors we are promoting biological diversity. The Northern Brown Argus is a butterfly species that is present in our powerline corridors, but is red-listed in several European countries.
SvenskaKraftnät,HeadOfficeBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 00 Fax: +46 8 37 84 05 Website: www.svk.se e-mail: [email protected]
SvenskaKraftnät,HalmstadBox 819 301 18 Halmstad Visitors: Kristian IV:s väg 3 Tel: +46 35 18 22 40, +46 35 18 22 30 Fax: +46 35 18 22 41, +46 35 18 22 39
SvenskaKraftnät,SollefteåNipan 51 881 52 Sollefteå Tel: +46 620 78 76 10 Fax: +46 620 121 46
SvenskaKraftnät,SundsvallBox 138 851 03 Sundsvall Visitors: Erstagatan 2 Tel: +46 60 19 57 00 Fax: +46 60 19 57 09
SvenskaKraftnät,VästeråsMelker Kontorshotell721 83 VästeråsVisitors: Kopparbergsvägen 6Tel: +46 21 32 89 87 Fax: +46 21 32 89 88
SvenskaKraftnät,ÅsbroTrainingCentre690 45 Åsbro Tel: +46 582 838 00 Fax: +46 582 512 10
ElforskAB101 53 Stockholm Tel: +46 8 677 25 30 Fax: +46 8 677 25 35 Website: www.elforsk.se
KraftdragarnaABSeglargatan 15 721 32 Västerås Tel: +46 21 17 04 80 Fax: +46 21 17 04 85 Website: www.kraftdragarna.se
NordPoolASAP.b. 373 NO-1326 Lysaker, NorwayTel: +47 67 52 80 00 Fax: +47 67 52 80 01 Website: www.nordpool.com
NordPoolSpotASP.b. 373 NO-1326 Lysaker, NorwayTel: +47 67 52 80 10 Fax: +47 67 52 80 01
STRIABBox 707 771 80 Ludvika Tel: +46 240 795 00 Fax: +46 240 150 29 Website: www.stri.se
SvenskaKraftnätGasturbinerABBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 00 Fax: +46 8 37 84 05
SwePolLinkABBox 526 162 15 Vällingby Visitors: Jämtlandsgatan 99 Tel: +46 8 739 78 46 Fax: +46 8 37 50 39 Website: www.swepollink.se
TriangelbolagetD4ABBox 26237 21 Bjärred Tel: +46 705 29 28 11 Fax: +46 46 29 28 11 Website: www.triangelbolaget.se
Addresses
Editor: Johnny NorlingDesign & production of printed matter: Wikströms Tryckeri, UppsalaPhoto: Håkan Flank (pages 1, 3, 7, 8, 12, 13, 17, 18, 21, 22, 23, 25, 26, 27, 29, 30, 31, 32, 34, 36, 37, 39, 43, 63, 65, 66, 68, 69, 70, 73, 74, 76, 77). Johnny Norling (pages 5, 33, 34, 70, 78, 83). Jan Bergsten (butterfly, pages 1, 79). Eva Grusell (pages 71, 81). Krister Engström (page 75). Jonas Nilsson (page 46). Fortum (page 28).
•Somewhathighertransmission:118(117)TWh
•Turnoverofthebusiness:SEK6,326(6,838)million
•Excellentfinancialresults:SEK732(676)million
•Majorinvestmentprogrammetocome
•Environmentalissuesmoreinfocus
Annual report2007
Svenska Kraftnät
HVDC
HVDC
HVDC
StenungsundKungälvGöteborg
Varberg
Falkenberg
Gnosjö
Halmstad
Ängelholm
Helsingborg
LundMalmö
Trelleborg
(220 k
V)
(220
kV)
Lübeck
Flensburg
Ringhals
Helsing-borg
Cøpen-hagen
Gothen-burg
MalmöKarlshamn
Norrköping
Oskars-hamn
HasleStavanger
BergenRjukan
Oslo
Stockholm
Enköping
Nea
Trondheim
Tunnsjødal
Umeå
Sundsvall
Røssåga Rana
MelfjordSvartisen
Salten
Ofoten
Kobbelv
Narvik
Loviisa
Olkiluoto
Tallin
HVDC
Kristiansand
Rauma
Forsmark
0 100 200 km
N
Luleå
The power transmission networkin the Nordic Countries 2008
Hydro power plant
Thermal power plant (CHP)
Transformer or switching station
400 kV line
300 kV line
Joint operation link forvoltages below 220 kV
220 kV line
Extend 2008 CableOverhead line
275 kV AC –75 km
220 kV AC 4295 km
130 kV AC 7 km
The Swedish grid, comprises mainly 220 and400 kV lines, switchyards and transformerstations and foreign links for alternating (AC)and direct current (DC).
400 kV AC 4 km10643 km
Planned/under construction
Sweden
Norway
Finland
Denmark
Rovaniemi
HelsingforsÅbo
Vasa
Tammerfors
Kemi
Uleåborg
–
HVDC (High Voltage DC) 459 km115 km
–
Viborg
Slupsk
Tekn
ikre
dakt
örer
na A
B 2
008
HVDC
HVDC
HVDC
Rostock
The Swedish Natural GasNetwork(high pressure)
Eemshaven
Box 526, SE-162 15 Vällingby. Tel Swbrd: +46 8 739 78 00. Fax: +46 8 37 84 05 Visitors: Jämtlandsgatan 99. Corp. ID. no: 202 100-4284. Website: www.svk.se
Svenska K
raftnät Annualreport2
007