Vocabulary

Aggregation: Aggregation means combining regulation-capable, smaller electricity production, consumption and storage sites into larger entities that enable electricity trade in different electricity marketplaces.

Balancing power markets: The balancing power markets help maintain a balance in real time between electricity production and consumption. Fingrid orders up- or down-regulating power according to the needs of the electricity market. Up-regulation refers to an increase in generation or reduction in consumption. Down-regulation refers to a decrease in generation or increase in consumption.

Clean power system (also low-carbon power system): A power system where electricity generation is based on carbon-free production, such as wind, solar, biomass, hydro or nuclear power.

CrossFlex project: A flexible resource project in which the TSOs of Finland, Estonia and Åland aim at promoting the large-scale utilisation of the flexibility provided by distributed decentralised resources locally, nationally and between Finland and Åland as well as between Finland and Estonia.

Day-ahead market: The day-ahead market refers to an electricity marketplace where electricity is sold and purchased for different hours of the following day.

Demand-side management: Demand-side management means reducing the consumption of electricity or transferring it to another point in time based on price. Electricity consumption is reduced when the price in the electricity market is high.

Digital fieldbus: A substation which uses less copper wire for data transmission (measurement, protection). Copper wiring is replaced by optical fibre.

Electricity exchange: A public platform for selling and purchasing electricity.

Electricity market participants: Electricity producers, electricity retailers and electricity consumers – including households that participate in the electricity market.

Emergency and Restoration network code: Network code concerning the emergency and restoration of the electricity network.

ENTSO-E: ENTSO-E is the European Network of Transmission System Operators of Electricity. Its task is to develop the European Union’s electricity market and to improve co-operation between TSOs. The organisation is headquartered in Brussels, Belgium.

eSett: A company that carries out the imbalance settlement of the Nordic electricity market parties’ actual electricity consumption and production. eSett Oy is owned equally by the Nordic TSOs Energinet, Fingrid, Svenska Kraftnät and Statnett.

GRI (Global Reporting Initiative): Sustainability reporting standards that are used globally on a large scale.

Horizon2020: An international project financed by the EU Commission. The project aims at developing a new kind of platform for electricity market flexibility services and related processes.

Imbalance power: For the electricity consumer, imbalance power is the difference between the electricity purchased and actual electricity consumption. For the electricity producer, it refers to the difference between the electricity sold and the actual electricity produced.

Inertia: In physics, inertia means an object’s resistance to change in its velocity. Electricity grid inertia refers to the kinetic energy in the electricity grid. The energy is contained in machines at power plants and factories which rotate at the same frequency as the electricity grid. The rotating machines’ mass produces inertia for the electricity grid.

INTERRFACE project: The European INTERRFACE flexibility services market platform project is one of the research projects financed under the EU’s extensive Horizon 2020 programme. Fingrid and Elering are involved in the project, which seeks solutions for flexibility services market platforms that enable the utilisation of distributed resources for both maintaining power system balance and the needs of distribution system operators and balance responsible parties.

IoT solutions in grid operations: In future, the Internet of Things and digitalisation will help monitor the condition and lifecycle of substation equipment, making the substation condition management more effective and reducing transmission outages for customers.

ITAMS: International Transmission Asset Management Study. ITAMS evaluates the efficiency of TSOs’ asset management. The study has been carried out five times, and Fingrid has placed at the top each time. Fingrid focusses especially on making use of digitalisation, which is one factor behind the good success in the study.

Materiality analysis: The materiality analysis is used to identify topics that are the most important for Fingrid’s basic business and corporate responsibility. It includes an assessment of the substantial financial, social and environmental impacts of Fingrid’s operations, as well as of the impacts on stakeholders’ decision-making based on, among other things, operating environment and stakeholder analyses and a strategy update.

Net Promoter Score: The percentage of promoters, i.e. those willing to recommend the company, minus that of detractors. Example: if 42% are promoters and 6% are detractors, NPS is 42% – 6% = 36%. The maximum score is 100 per cent.

Network codes: The goals of the EU’s third energy package adopted in July 2009 for an internal electricity market in the European Union. The main players preparing the network codes are the European Commission, energy sector control authorities through the co-operation agency ACER and European TSOs through their co-operation organisation ENTSO-E.

PCI (Project of Common Interest) status: Such status can be granted to projects that are essential to the EU’s internal energy market and to achieving the targets of the EU’s energy policies. Projects with PCI status can benefit from, among other things, faster permit processing, and they are entitled to later apply for financial support from the EU.

Reserve markets: The amount of electricity generated and the amount consumed must be equal at any given moment. The electricity market parties draw up an advance plan for balancing their consumption and production, but the balancing of deviations during each hour of operation requires reserves, which Fingrid acquires from the markets it maintains.

SDG (Sustainable Development Goals): In 2015, the UN member states agreed on the Agenda 2030 for sustainable development. It includes 17 global sustainable development goals to be achieved by 2030.

Sector coupling: Sector coupling combines electricity, gas, heating, cooling and transport systems into a smart integrated energy system. This increases the use of electricity, when electricity produced with zero emissions is used for reducing the emissions from other sectors.

Security of supply: Security of supply refers to how reliable the electricity supply is.

Smart grid: The smart grid, i.e. intelligent electricity system, is an electricity network that makes broad use of digitalisation and which is connected to electricity generation and consumption, and in future, increasingly to stored energy. Smart grids provide customers with more possibilities to actively participate in the electricity market.

TCFD (Task Force on Climate-related Financial Disclosures): International, voluntary disclosures of business risks and opportunities resulting from climate change for use by companies.

TYNDP (Ten-Year Network Development Plan): Europe-wide 10-year plan for grid development, drawn up by ENTSO-E, the European Network of Transmission System Operators of Electricity every two years.

Weather-dependent electricity generation: Electricity production capacity that is dependent on the prevailing weather conditions. Examples of weather-dependent electricity generation are wind and solar power, and some hydropower.