OSLO, Dec 10 (Reuters) - Norway and Sweden are set to ease recent cuts to their respective cross-border power flows, power grid operators Statnett and Svenska Kraftnaet said on Friday, after changes in its generation mix forced Sweden to curb energy exports.
Statnett will offer an additional 250 megawatts of capacity at its border with southern Sweden from Sunday, it said, citing closer cooperation with Swedish counterpart Svenska Kraftnaet.
Capacity will rise to 1,450 MW out of capacity of 2,200 MW, Statnett said in a market message.
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Statnett cut available capacity between the Norwegian bidding zone NO1 and Swedish price zone SE3 to 1,100-1,200 megawatt (MW) in late November.
It did so after Svenska Kraftnaet curbed capacity to neighbours including Norway as it grappled with power flow changes due to nuclear plant closures, new power connections between the Nordics and continental Europe and rapid wind power expansion.
Separately, Svenska Kraftnaet said it is raising capacity in the opposite direction by 150 MW to 550 MW out of 2,095 MW, citing improved flow forecasts.
It is also raising increasing capacity to Finland by 100 MW to 400 MW out of a possible 1,200 MW, as well as lifting capacities from northern to southern Sweden.
Collaboration with Svenska Kraftnaet has now resulted in measures that will improve capacity and plans for further improvements, Statnett said in a separate statement.
"We are now together with Svenska Kraftnaet in the process of turning all stones to find ways to increase capacity further both ways," Statnett CEO Hilde Tonne said in the statement.
However, Statnett said it would continue to refrain from applying so-called system protection settings, which increase trading capacity but also carry a certain operational risk, which led to the initial cut.
Power markets are experiencing a period of tight reserve supplies and the use of system protection contributed to smaller margins and lower flexibility, Statnett said.
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Reporting by Nora Buli, editing by Terje Solsvik and Jason Neely and Louise Heavens
Our Standards: The Thomson Reuters Trust Principles.
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