Swedish oil power plant ran 5 hours on Monday to curb flows from Poland

OSLO, Dec 8 (Reuters) - A Swedish reserve oil-fired power plant ran for five hours on Monday to help limit power flows from Poland amid a capacity crunch there, Swedish transmission system operator Svenska Kraftnaet (Svk) said on Wednesday.

Polish transmission system operator PSE had requested help from system operators in Lithuania, Sweden, Germany and Ukraine to help balance its system.

PSE only discovered that it might lack 1,700 megawatt (MW) of capacity to cover demand on Monday after the settlement of the day-ahead auction on Sunday, Svenska Kraftnaet said.

"Thus, they had in principle promised away too much electricity to their neighbouring countries, including us in Sweden," said Pontus de Mare, Svk's head of operations.

Day-ahead auctions determine the flow of electricity between different markets. Southern Sweden and Poland are connected by a 600 MW subsea power link and while baseload power for southern Sweden (SE4 price zone) for Monday settled at 290.06 euros ($327.48) per megawatt hour, its Polish equivalent settled at 1,084.61 Polish zloty ($266.68), with power to flow to Sweden.

To limit power flows out of Poland, PSE and Svk agreed to start up Sweden's capacity reserve plant Karlshamnsverket, an oil-fired unit, which would provide 300 MW of capacity in Sweden.

Karlshamnsverket produced electricity between 1000 and 1500 GMT, with Poland footing the bill, Svk said.

Polish balancing power prices spiked to 1,696 zloty ($417.00) in some hours on Monday.

($1 = 0.8857 euros)

($1 = 4.0671 zlotys)

(Reporting by Nora Buli, editing by Terje Solsvik)

((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters Messaging: nora.buli.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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