ManagementManagementof the Italian electric systemof the Italian electric system Current status and challenges

Luca D’AgneseGRTN CEO

Beijing, 24-25 October 2005

2

Summary

POWER SYSTEM FEATURES AND DEVELOPMENTS

OPERATIONAL EXPERIENCE

– NTC assessment

– Integrated control and telecontrol system

CHALLENGES

3

Power System Features

Peak Load Demand 54 GW

National Power Generation

84 GW(*)

Imports 7,2 GW

Voltage levels of transmission grid

380-220-150-132 kV

Network configuration

Mesh (EHV)– Radial (HV-MV)

Interconnections AC – DC links

SLOVENIA

FRANCE

AUSTRIASWITZERLAND

430

2203850

2650

300

Market zones and Transmission constraints(Winter limits – peak hours)

035

0

20002000

34002000

360

0

170

0

500

(*) updated at the end of year 2004

4

48,955,5 55,5 55,5 55,5

5,5

4,6 2,4 4,5 6,77,2

7,27,2

2005 20062003 2004

67,2

54,4

60,1

1,3 (2%)1,3 (2%)

2007

65,1

CAGR*** +3,3%

CAGR*** +3,3%

6,6 (12%)6,6 (12%) 11 (20%)11 (20%) 11,1 (19%)11,1 (19%)10,5 (19%)10,5 (19%)

69,4

Capacity vs. Load Demand Summer load demand 2003-2007GW

Load DemandAvailable capacity

Power plants changes*

Import

Internal generation

Reserve margins (GW, % of load demand)

* New power plants and changes due to conversion to combined cycle** Available capacity increase*** Compound Average Growth Rate

58,3

53,553,1

54,156,7

5

Transmission system critical areas 380 kV line overloads

ALBERTVILLE

VILLARODIN

AIROLO

SOAZZA

DIVACCIA

Slovenia

Switzerland

Austria

France

FIUME SANTOCODRONGIANOS

VILLASORSELARGIUS

CAGLIARI SUD

RUMIANCAPORTOSCUSO

SORGENTE

PATERNO’

CHIAROMONTE G.

RIZZICONI

FEROLETOSCANDALE

ROSSANOLAINO

MATERA

GALATINA

Linea a 400 kV c.c.

Greece

BRINDISI

TARANTO N.

BARI OVEST

ANDRIAFOGGIA

MONTECORVINOSTRIANO

BENEVENTO

PATRIA S.SOFIA

S.MARIA C.V.

GARIGLIANO

LARINO

VILLANOVA

TERAMO

CEPRANO

LATINA

VALMONTONEROMA S.

ROMATORVALDALIGA S.

TORVALDALIGA N.MONTALTO

ROSARA

CANDIA

FANO

S.GIACOMO

SUVERETO

PIAN DELLASPERANZA

TAVARNUZZE

CALENZANO

POGGIO A CAIANO

MARGINONE

ACCIAIOLOLIVORNO

LA SPEZIA

VADO LIGURE

S.MARTINOFORLI’

RAVENNA C.COLUNGAMARTIGNONE

S.DAMASO

CARPI

RUBIERA

PARMA

FERRARALA CASELLA

VIGNOLE

CASTELNUOVO

MAGLIANO

VENAUSACC.FERRERO

CASANOVA

PIOSSASCO

LEINI’

RONDISSONE

PLANAIS

REDIPUGLIA

UDINEOVEST

CORDIGNANO

SALGAREDA

VEDELAGOSANDRIGO

VENEZIA N.

DOLOCAMIN

ADRIA

RFX

DUGALE

NOGAROLEROCCA MALCONTENTA

PIASTRA

TRINO N.

TURBIGO

RONCOV.EDOLO

S:FIORANO

OSTIGLIACAORSO

ROSEN

PORTO TOLLE

PORTO CORSINI

MONFALCONE

PIOMBINO

VILLAVALLE

PRESENZANO

ATI

ISAB

SARLUX

BARGI

Power PlantsElectrical StationElectrical station under constructionSingle-circuit lineDouble-circuit lineLine under construction

North-East

Milan

Campania-Calabria

Naples

LombardiaPiem.-Valle d'Ao.LiguriaTrentino’s pathPugliaOthers

Overload*

Area

High-medium critical area

*telemeasured on 380kV-220kV network

34,0%

13,8%

11,2%

8,7%

7,9%5,9%4,8%

7,5%

3,5%2,8%

6

Grid Reinforcements New lines 2006-2010

North–C.North

Yearly time-period percentage of critical market separation

C.North-C.South

C.South-

South

South-

Calabria

Calabria-

Sicily 49%

23%

14%

1%

5%

C.North-Sardinia 31%

* 380kV conversion

Foggia - Benevento

Udine Ovest - Okroglo

Redipuglia - Udine Ovest

Venezia N. - Cordignano

Trino - Lacchiarella

Fano-Abbadia

Sardinia – Mainland Interconnection

Chiaramonte - Ciminna

Montecorvino - Benevento

Sorgente - Rizziconi

Colunga – Calenzano*

Grid reinforcement to avoid market zone separations and inter-area congestions

Other new line to improve security/quality of the grid and to increase the interconnection capacity

7

Summary

POWER SYSTEM FEATURES AND DEVELOPMENTS

OPERATIONAL EXPERIENCE

– NTC assessment

– Integrated control and telecontrol system

CHALLENGES

8

NTC assessmentChanges & review of applied methodology

IMPORT

MW

tPeak hours Off-Peak hours

Off-Peak hours

IMPORT

MW

tPeak hours Off-Peak hours

Off-Peak hours

IMPORT

MW

tPeak hours Off-Peak hours

Off-Peak hours

2003 2004 2005

Flat, 1 NTC value

Off-peak hours/peak hours, 2 NTC values for

modulation

Balanced, 4 NTC values for

modulation

9

Integrated Control and Telecontrol System

PRESENT SYSTEM

PRESENT SYSTEM

NEW SYSTEM

NEW SYSTEM

• Fixed configuration

• Hierarchical

• Business continuity based

on back-up

• Technology obsolescence

• Not linkable

• Flexible configuration

• Not hierarchical

• Business continuity based

on other control centers

• New technology

• Easy integration with other

systems

• Network visibility

enlargement

• Advanced EMS functions

New System Features: 3 Control centers 3-5 Telecont.

Centers 250 RTU Data acquisition:

• Central acquisition concentrators at Control centers (SIA-C)

• Regional acquisition concentrators (SIA-R)

10

Summary

POWER SYSTEM FEATURES AND DEVELOPMENTS

OPERATIONAL EXPERIENCE

– NTC assessment

– Integrated control and telecontrol system

CHALLENGES

11

Internal GenerationPower plants rated power for different technologies and sources % of total installed capacity

Thermal power plants

Hydro power plants

Wind power plants & Others

26% 25% 22%

1% 1% 3%

73% 74% 75%

2001 2005 2007

100% 100% 100%

52%52% 37%37% 40%40%

12%12% 23%23% 23%23%

% Steam turbine

% Combined Cycle

Combined cycled and coal power plants increase

12(Values updated by the end of August 2005)

SLOVENIASLOVENIA

FRANCEFRANCE

SWITZERLANDSWITZERLAND AUSTRIAAUSTRIA

299

344

TOTAL (MW) 1.603

TOTAL (MW) 1.603

Development of wind farms by the end of 2007, Scenario 2005 MW

Wind Power plants increase

664780 874

1132

1603

23562496

0

500

1000

1500

2000

2500

3000

2001 2002 2003 2004 2005 2006 2007

MW

Sardinia

At the end of 2007 43% of off-peak load

demand Sicily

At the end of 2007 38% of off-peak load

demand

11

194

755

13

OverviewTSO Integration

GRTN

Terna

+

Network management

Network ownership

New investments• choice of asset

owner• authorisation• construction

System planning

Maintenance

System Operation

• Direct assignment or bidding

• Pre-authorisation discussions

• Support discussions with local authorities

• Development plan

• Co-ordinated schedule of maintenance of grid and other transmission facilities

• Plant dispatching

• Grid supervision/reconfiguration

• Development

• Authorisation application

• Work execution

• Financial plan

• Proposals for grid maintenance works

• Work execution

• Physical operation of grid