The influence of high cable penetration in distribution networks on earth fault currents and the operation of relay protection.

Recent Storms in Nordic countries were a reason of long power outages in huge territories. After these disasters distribution networks' operators faced with a problem how to provide adequate quality of supply in such situation. The decision of utilization cable lines rather than overhead lines were made, which brings new features to distribution networks. The main idea of this work is a complex analysis of medium voltage distribution networks with long cable lines. High value of cable’s specific capacitance and length of lines determine such problems as: high values of earth fault currents, excessive amount of reactive power flow from distribution to transmission network, possibility of a high voltage level at the receiving end of cable feeders. However the core tasks was to estimate functional ability of the earth fault protection and the possibility to utilize simplified formulas for operating setting calculations in this network. In order to provide justify solution or evaluation of mentioned above problems corresponding calculations were made and in order to analyze behavior of relay protection principles PSCAD model of the examined network have been created. Evaluation of the voltage rise in the end of a cable line have educed absence of a dangerous increase in a voltage level, while excessive value of reactive power can be a reason of final penalty according to the Finish regulations. It was proved and calculated that for this networks compensation of earth fault currents should be implemented. In PSCAD models of the electrical grid with isolated neutral, central compensation and hybrid compensation were created. For the network with hybrid compensation methodology which allows to select number and rated power of distributed arc suppression coils have been offered. Based on the obtained results from experiments it was determined that in order to guarantee selective and reliable operation of the relay protection should be utilized hybrid compensation with connection of high-ohmic resistor. Directional and admittance based relay protection were tested under these conditions and advantageous of the novel protection were revealed. However, for electrical grids with extensive cabling necessity of a complex approach to the relay protection were explained and illustrated. Thus, in order to organize reliable earth fault protection is recommended to utilize both intermittent and conventional relay protection with operational settings calculated by the use of simplified formulas.

Market anomalies and tactical asset allocation: Utilising market anomalies in multiple asset class portfolios with the Black−Litterman model

This thesis discusses the basic problem of the modern portfolio theory about how to optimise the perfect allocation for an investment portfolio. The theory provides a solution for an efficient portfolio, which minimises the risk of the portfolio with respect to the expected return. A central feature for all the portfolios on the efficient frontier is that the investor needs to provide the expected return for each asset. Market anomalies are persistent patterns seen in the financial markets, which cannot be explained with the current asset pricing theory. The goal of this thesis is to study whether these anomalies can be observed among different asset classes. Finally, if persistent patterns are found, it is investigated whether the anomalies hold valuable information for determining the expected returns used in the portfolio optimization Market anomalies and investment strategies based on them are studied with a rolling estimation window, where the return for the following period is always based on historical information. This is also crucial when rebalancing the portfolio. The anomalies investigated within this thesis are value, momentum, reversal, and idiosyncratic volatility. The research data includes price series of country level stock indices, government bonds, currencies, and commodities. The modern portfolio theory and the views given by the anomalies are combined by utilising the Black-Litterman model. This makes it possible to optimise the portfolio so that investor’s views are taken into account. When constructing the portfolios, the goal is to maximise the Sharpe ratio. Significance of the results is studied by assessing if the strategy yields excess returns in a relation to those explained by the threefactormodel. The most outstanding finding is that anomaly based factors include valuable information to enhance efficient portfolio diversification. When the highest Sharpe ratios for each asset class are picked from the test factors and applied to the Black−Litterman model, the final portfolio results in superior riskreturn combination. The highest Sharpe ratios are provided by momentum strategy for stocks and long-term reversal for the rest of the asset classes. Additionally, a strategy based on the value effect was highly appealing, and it basically performs as well as the previously mentioned Sharpe strategy. When studying the anomalies, it is found, that 12-month momentum is the strongest effect, especially for stock indices. In addition, a high idiosyncratic volatility seems to be positively correlated with country indices on stocks.

Entry Modes of Finnish Food Enterprises in Chinese Market

China’s phenomenal economic growth and social development have brought along interesting opportunities for Finnish companies. One intriguing sector offering significant growth potential is the food industry. Due to the local food safety issues, rising disposable income level and changing consumer habits, the demand for foreign food is increasing. Finnish food companies have much to offer in terms of high quality, food safety in production, technological development and innovation. The purpose of this study is to examine how the Finnish food enterprises choose their entry modes in the Chinese market. This study increases understanding of entry modes the Finnish companies can use to successfully enter the unpredictable market of China in the food industry context. The study examines the industry specific challenges and the possible solutions to them. Qualitative research is selected as research methodology for this study because the intention is to understand the reasons behind the Finnish food enterprises’ entry mode choices in the Chinese market. The study is conducted as a qualitative case analysis. Six Finnish case companies operating in the food industry were interviewed. The results of the research indicate that most of the food industry companies use exporting as their entry mode to China; only one case company used an investment mode. This study illustrates the significance of the factors related to company’s background, mode concerns and Chinese market influences in the entry mode choice.

Impacts of increased levels of wind penetration on the Electric Power System of the Åland Islands

The application of VSC-HVDC technology throughout the world has turned out to be an efficient solution regarding a large share of wind power in different power systems. This technology enhances the overall reliability of the grid by utilization of the active and reactive power control schemes which allows to maintain frequency and voltage on busbars of the end-consumers at the required level stated by the network operator. This master’s thesis is focused on the existing and planned wind farms as well as electric power system of the Åland Islands. The goal is to analyze the wind conditions of the islands and appropriately predict a possible production of the existing and planned wind farms with a help of WAsP software program. Further, to investigate the influence of increased wind power it is necessary to develop a simulation model of the electric grid and VSC-HVDC system in PSCAD and examine grid response to different wind power production cases with respect to the grid code requirements and ensure the stability of the power system.

Households’ willingness to engage in demand response in the Finnish retail electricity market: an empirical study

If electricity users adjusted their consumption patterns according to time-variable electricity prices or other signals about the state of the power system, generation and network assets could be used more efficiently, and matching intermittent renewable power generation with electricity demand would be facilitated. This kind of adjustment of electricity consumption, or demand response, may be based on consumers’ decisions to shift or reduce electricity use in response to time-variable electricity prices or on the remote control of consumers’ electric appliances. However, while demand response is suggested as a solution to many issues in power systems, actual experiences from demand response programs with residential customers are mainly limited to short pilots with a small number of voluntary participants, and information about what kinds of changes consumers are willing and able to make and what motivates these changes is scarce. This doctoral dissertation contributes to the knowledge about what kinds of factors impact on residential consumers’ willingness and ability to take part in demand response. Saving opportunities calculated with actual price data from the Finnish retail electricity market are compared with the occurred supplier switching to generate a first estimate about how large savings could trigger action also in the case of demand response. Residential consumers’ motives to participate in demand response are also studied by a web-based survey with 2103 responses. Further, experiences of households with electricity consumption monitoring systems are discussed to increase knowledge about consumers’ interest in getting more information on their electricity use and adjusting their behavior based on it. Impacts of information on willingness to participate in demand response programs are also approached by a survey for experts of their willingness to engage in demand response activities. Residential customers seem ready to allow remote control of electric appliances that does not require changes in their everyday routines. Based on residents’ own activity, the electricity consuming activities that are considered shiftable are very limited. In both cases, the savings in electricity costs required to allow remote control or to engage in demand response activities are relatively high. Nonmonetary incentives appeal to fewer households.