rte, french power grid operator - … · • rte is responsible for assets development and funding...

RTE, FRENCH POWER GRID OPERATOR Presentation for ….

European Electricity today 32 interconnected countries (27 EU Members)

- security of the power system in real time

- economic optimisation

- security of supply

5 synchronous zones

Scandinavia, United Kingdom, Ireland,

Continental Europe, Baltic countries

Installed capacity : 850 GW

Consumption : 3,400 TWh/year

Peak Load : 500 GW

Physical exchanges : 400 TWh/year

Population : 500 Million

4000 kms

28/10/2014 2 RTE PRESENTATION

Electricity market organization in Europe

• Europe has a highly diversified generation mix (Nuclear, gas, coal, hydro, wind and solar) ….That has to be optimised, to reduce prices and impact on environment

• The market organization aims at this global optimisation :

- Decentralised economic agents in competition : gencos, traders and suppliers

- Monopolies to operate the Networks (Transmission and distribution)

- Market tools : Power exchanges, interconnection allocation mechanisms,

balancing mechanism…

- Regulators regulate monopolies and monitor the markets

• European market integration is a long process … still in progress :

• 1st directive CE 1996/92, 2nd directive CE 2003/54, 3rd directive 2009/72 in 2009…

• still need to develop new interconnections, market coupling, harmonized network codes and tariffs, … and a future supergrid ?


RTE has a central position in the system

Generators (EDF and others)

Transmission (63 kV – 400kV)

CRE The French

Energy Regulator Imports

from other TSOs

Exports to other TSOs

Distribution (ERDF and others)

Industry

SME-SMI

Households


Players connected to the French network • Generators:

628 power plants owned by EDF, ENDESA France, Suez - Gaz de France and other generators (co-generation, household waste, wind farms, etc.)

• Distributors:

27 distribution companies, including ERDF (Electricité Réseau

Distribution France) which is the major one, and other LDCs (Local ones)

• Industrial sites:

534 sites directly connected to the transmission network

With 175 trading or supplying companies, who buy and sell energy on the wholesale market or supply consumers directly, these are RTE's customers


RTE History Up to 1946 : the French EHV network (110 – 220kV) grows and become the most dense in the world (12 403 km), belonging to 93 interconnected companies.

8 avril 1946 : all the electricity companies (generation, distribution and transmission) are nationalized and gathered in a new public company, EDF (Electricité de France). 1st national transmission entity was created inside.

from 60’s to 80’s : 400kV is quickly deployed, accompanying the development of the nuclear program and cross border interconnexions

1st of July 2000 : RTE is created, following the CE1996/92 directive. It remains a service of EDF, but is now clearly distinct from the rest of EDF, with independant management and unbuilded accounts.

1st of september 2005 : RTE becomes a stand alone company, following the CE2003/54 directive, with a supervisory board and an executive board. It remains integrated in EDF Group, as a 100% subsidiary.

1st June 2011 : According to the CE2009/72, the rules of independence are reinforced (staff independence, ITO certification process of RTE by the CRE granting independence, designation of a Compliance Officer)


RTE’s Public Service Missions

Guaranteeing the secure operation of the power system (carrying electricity 24 hours a day, 7 days a week) , balancing electricity generation with consumption at all times

Maintaining and developing the network to allow generators, distribution networks and consumers to be connected, as well as interconnection with neighbouring countries

Guaranteeing non-discriminatory access to the transmission network, whilst ensuring that commercially sensitive information remains confidential

Integrating transmission installations into the environment and ensuring the security of people and property

Facilitating the European Electricity Market Integration

… all at the most economical cost possible


Relationships with the state and the regulator

• CRE, the French Energy Regulatory Commission

(Short and Medium term): o receives details of RTE's budget and accounts

o approves RTE's investment program

o set the tariffs for transmission network access

o arbitrates on disputes with network users

o Certificates RTE as an Independent Transmission Operator

• The Minister for Energy (long term): o approves development plans for the transmission network

o adopts specifications for the transmission network

o can refuse tariffs if not compatible with energy policy


RTE operation activities Management of assets

• RTE operates and maintains the French transmission grid

• RTE is responsible for assets development and funding

Management of electricity flows through the grid

• Operation of the system including balancing offer and demand

• Margin estimation and operation

• Estimation and purchase of electric losses

• Energy/power measurement, settlement of unbalances with balance

responsible entities

Management of grid access

• Contracts with grid users in France

• Transmission grid access (Consumers and suppliers), access to

interconnectors, balance responsible contracts, balancing mechanism ...


RTE key figures

(year of reference : 2013)

• Electricity transmitted : 550 TWh

• International exports 79 TWh & imports: 32 TWh

• Average duration of power outages: 2 min 59 s

• Staff: 8421

• Length of circuits: 104 000 kms

• Substations: 2600

• Turnover: 4 702 M€

• Investments: 1 446 M€


RTE Organization

Supervisory Board : 4 assigned by shareholders, 4 assigned by the state, 4 elected by the employees

CEO, Chief of the executive board

D. Maillard

Management staff Compliance officer

General secretariat Economy, Market and

innovation General Director

Finance, Purchasing and IT General

Director

Operations General Director

Human Resources General Director

Legal Dir.

Communication Dir.

Public Affairs Dir.

Audit and rizk Dir.

Sustainable Devt Dir.

R&D and Innovation Dir.

Economy, perspectives and transparency Dir.

Customers and Markets Dir.

European Affairs Dir.

Real Estate and logistics

Finance Dir.

IT and telecom Dir.

Purchasing Dir.

Transformation and Development Dir.

HR Operations Dir.

7 Regional HR offices

Training Center

National Network Expertise Center (CNER)

Maintenance Dir.

Operation Dir.

Development and engineering Dir.

National Control Center (CNES)

Development & Engineering

Operation

Maintenance

Regional entities (x 7)

National entities


Regional entities • 7 Maintenance entities

• Asset management

• Safety of peoples and goods

• Troubleshooting interventions

• 7 Operation entities • Balancing & Flow management

• From provisional studies to real time

• 7 development and

engineering entities • Development, renwewal and

refurbishment projets

• Connexions of users

• From studies to commissioning

Reorganised in 2013 (before : 7 system units & 7 transmission units)


Cross Border Exchanges in 2013

* Contractual Cross Border exchanges


GREAT-BRITAIN

Exports 12.3 TWh

Imports 1.8 TWh

BELGIUM

Exports 15.2 TWh

Imports 2.3 TWh

SWITZERLAND

Exports 23.9 TWh

Imports 7.4 TWh

GERMANY

Exports 5.3 TWh

Imports 15.1 TWh

ITALY

Exports 16.9 TWh

Imports 1.5 TWh

SPAIN

Exports 5.8 TWh

Imports 4.1 TWh

TOTAL FRANCE

Exports 79.4 TWh

Imports 32.2 TWh

Balance 47.2 TWh

Cumulative 111.6 TWh

Low costs for low tariffs

RTE has a commitment toward the regulator to reduce its costs (especially staff

and other operation expenses) in order to maintain tariff as low as possible.

Long distances

Short distances

‘

RTE has a long experience of benchmark with other TSO on different topics (economic performance, regulation, tariff, finance, quality of electricity …)


RTE current challenges

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Main issues :

1- Generation from RES to confirm its take-off…

2- Electricity demand slows down, but …

3- Higher cross border capacities are needed…

4- Developing grids is increasingly difficult…

RTE strategy :

A- Improving Market Design

B- Developing infrastructures

C- Promoting European coordination

D- Innovating with smart grids

28/10/2014 RTE PRESENTATION

Wind energy : • 8.1 GW installed (6% of total capacity )

• + 0.6 GW last year

• Target : 25 GW by 2020 (incl. 6 GW offshore)

• Thanks to feed in tariffs : 82 €/MWh for 10 years, then between 28 and 82 €/MWh for 5 years according to efficiency

Solar energy : • 4.3 GW installed (3% of total capacity)

• + 0.7 GW last year

• Target : 5.4 GW by 2020

• Thanks to feed in tariffs : between 105 €/MWh (Ground Farm) and 354 €/MWh (Households)

1- Generation from RES to confirm its take-off…

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Annual growth (MW)

Installed capacity (MW)

Annual growth (MW)

Installed capacity (MW)

Solar

Wind


Demand slows down : +0.7%/year

• Economic activity in the short term (GDP Growth)

• New thermal standards for building

• Energy savings and efficiency measures

• Incertainties on how switching of energy demand from

fossil fuels to electricity may accelerate under new energy

policy (price of electricity quite low, taxation on CO2,

Electric vehicules and transportations)

=> affects the revenues growth

But : • Electricity demand sensitivity to temperature remain

very high (2400 MW/°C) because of electric heating

• Consumption in some areas is growing much faster than the average (Brittany/ French Riviera). Production is not sufficient in these areas…

=> Still need to develop grid

2- Electricity demand slows down, but …

17 28/10/2014 RTE PRESENTATION

• Congestion revenues are about 2Bn€ each year in Europe (around 300M€ for RTE alone)

because of un-sufficient market integration

• Energy mix and demand are changing

• Fast development of Generation from RES (Wind, Solar…)

• Decision of some countries to stop nuclear

• Or/and to close polluting plants

• Various changes in demand (depending on economic situation and energy savings)

Higher cross border capacities are needed

- Optimisation of ressources in a large scale

- European Market integration

- Security of supply and system reliability

3- Higher cross border capacities are needed


Local opposition and permitting issues • NIMBY transmission infrastructure no longer seen as

positive, and highly resisted by locals

• NOCEBO despite all evidence, fear that long term

exposure to low frequency EMF could generate health trouble is on the rise

• A multi-layer administrative and regulatory framework permits increasingly difficult to obtain

=> Developing grids like in the old good days is no longer an option

Economical and funding issues • A pressure to keep tariffs under control, to preserve

the purchasing power and the competitiveness of enterprises (and slow growth of volumes doesn’t help…)

• A need to keep a good financial profile With the financial crisis, Capital providers and stakeholders are very cautious and challenging

4- Developing grids is increasingly difficult

19

Up to 7 years of consultation

before having a chance to get

necessary permits! (and then build…)

Prior Consultation

Project’s technico-economic valuesubmitted by RTE to Administration

Declaration of Public Interest

Public Debate

Amicable agreementsif no agreement: easement / expropriation

Building Permit Work Authorisation

Construction


Clever market designs can spare the need for additional physical infrastructure :

• Market coupling implemented from Nov. 2006 between France, Belgium and the Netherlands, extended to Germany in 2010 and to be extended to Spain, UK and Italy

• Flow based market coupling to be implemented in 2013 on CWE to improve handling of network constraints

• Intra day exchanges mechanisms to react to uncertainties

• Coordination of TSO’s balancing mechanisms

…. which paves the way for a progressive integration of market areas…

Other Market Design improvements are in study : Capacity mechanism, Incentives on generation location, Demand Respond framework, better RES integration in market design…

A- Improving Market Design

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TLC launch

impressive results as regards price convergence – and use of interconnectors…

Market Coupling

Current status


1st : Optimising the existing grid

• Extending grid’s working life : pushing the limits (assets management rehabilitation, supervision and conditional maintenance)

• Using the existing grid to its full potential (upgrades with high performance conductors, PST, Phase-Shifters, FACTS, capacitors…)

• Adopting advanced techniques (Live working, airborne work…)

Increasing the use of underground cables

• 2012 : 75% of new circuits from 63 to 225kV underground

• HVDC as an alternative to new 400 kV overhead (in tunnels : France-Spain, France-Italy …)

Improving social acceptability and environmental insertion

• Promoting shared solutions with regional and local stakeholders

• Improving the integration into the landscape

• Improving the integration into the social environment (compensating inconvenience, accompanying local economic development)

B- Developing infrastructures


RTE is fully involved in ENTSO-E, the European TSO association

Development planning

• Coordinated Ten-Year Network Development Plan (ENTSO-E)

• European Commission aims at using this plan as planning tools

• New EC legislation : Infrastructure Package (permiting and funding)

Coordination for secure operation

• CORESO operational since 2009 - NGET, Terna, Elia, 50 Hz and RTE

• Relaying information between TSOs, pro-active assessment of the security level of the network & proposing coordinated actions

• Now implementing Regional Security Coordination Initiatives

Harmonisation with Network codes

• Network codes will be binding for the states when adopted

• Developed by ENTSO-E, ACER and market actors. 7 topics : Capacity allocation & congestion management, balancing, generator connection, on DSO & industrial load connection, operational security, operational planning & scheduling, load frequency control & reserves

C- Promoting European coordination


D- Innovating with smart grids

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Turn Smart Grids into a means to relaunch investments and increase grid security Smart grids matter of course at the local level for distribution (smart meters, etc.)…but also for transmission grid

Interface with active consumers for price signal reponse System for generating emergency signals for voluntary individual households to participate in demand-response (in Brittany)

Tools for forecasting and integrating renewables New system operating since November 2009 (for wind power), and then extended to PV-solar (IPES, Safewind)

Real-time flows monitoring in power grids New technologies for infrastructure and control

European R&D projects on relative topics PEGASE : Large scale, multicountries network calculation models TWENTIES : new technologies to welcome more RES safely in the grid OPTIMATE : market design optimization for RES integration …and others

Lo

ad

(M

W)

Supply #2 (priority RES)

Supply #1 (dispatchable generation)

Demand


RTE International


A strong experience recognized worldwide

25

• A wide involvment in international bodies

• Many cooperation agreements

• A company dedicated to International services

to promote RTE experience and know-how


Our fields of intervention (1/3)

26

Assets management and operation

• Maintenance strategy and policies

• Organization, planning, feed back, IT system

• Expertise in equipments : substations, lines & cables, protections, telecontrol and telecoms

• Safety : rules, operation procedures, responsibilities

• Management and monitoring of quality of supply

• Specific issues: storms, lightnings, thermography …

Live works

• Implementation of LW for lines / substations

• Feasibility study, tools, regulation corpus, training, audits

• Assistance for setting up a laboratory

Helicopter works

• Visual patrols and control of overhead lines

• Construction and maintenance (inc. Liveworks and cargos)

• Studies, training, tools and technology transfer



27

System operation

• Frequency and voltage control, margins management

• Flows management, protection plan, security & stab analysis

• Incidents management, defense plan, network restoration

• Crisis management and organization

• Feedback organization, management of the system safety

• Interconnexions management, TSO coordination

• Implementation & use of tools for operations (SCADA)

• Operators training, simulators & training engineering

Grid design and engineering methods :

• Technico-economic doctrina, target network, network plan

• Grid studies, strategies & decision process

• Generation connection , queues, incentives for location

• DC lines design and construction, underground or underwater

Integration of RES (Wind & Solar)

• Master plans, reception areas, access rules

• Connection and access contracts

• Forecasts, margins management, IT System



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Markets design

• Unbundling & third parties access to the network

• Transmission tariff & regulation

• Contractual framework : network access, connections, ….

• Meters deployment, management & reading

• Powermarket, balancing mechanism & balancing entities,

• Ancillary services, capacity mechanism

• Interconnexions access , Market coupling

• Transparency, market information

Environment

• Environmental studies & grid insertion into environment • Public concertation process • Wastes management (incl. SF6 management) • Sustainable development policy (incl. carbon footprint)

Corporate functions

• Finances, controlling, purchases, … • Human Ressources (training, tatents, security…) • Governance, audit and internal control, legal, …


Potential needs for your company

• Benefit from external expertise

• Access to new technologies

• Evaluate your practises

• Update your knowledge

• Improve your know-how

• Access to advanced techniques

• Train your staff

• Optimize your processes

• Succeed your new projects

• Adapt your company to new stakes

• Improve your performance

29

Customers satisfaction

System reliability

Quality of supply

Safety in works

Market efficiency

Environnement

Profitability


We have many solutions to offer

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Seminars

Audits

Trainings

Consulting

Technical assistance

• We can address your need with a full range of tailor made services.

• We have a decicated International senior project managers

• We rely on RTE experts in all fields & on our knowledge base

• We can also use our numerous partnerships

(other TSO, consulting companies, manufacturers…)


A strong track record Since 2006, RTE International has successfully carried out

• more than 100 projects

• with the support of 250 professionals within its experts’ network

• in more than 30 countries.

Some of our recents success :

• Australia : Audit of LW team for substation and support to LW’s’ implementation’s policy

• China: Seminars on Power System

• Libya: Technical assistance for transmission activities and system operation & LW

maintenance training

• Algeria: Technical assistance and staff training in the field of engineering

• Senegal: unbundling of SENELEC, in partnership with CapGemini Consulting.

• Saudi Arabia: Technical assistance for the synchronization of the Gulf interconnection

system in partnership with Elia and Tractebel Engineering.

• Malaysia: Implementation of a substation live working team

• Turkey : Opening cross border market and improvement of the system operation

• Ivory Coast: Technical assistance and staff training for system operation and grid

maintenance


THANK YOU FOR YOUR ATTENTION !!


Additional slides


RTE Executive board

Dominique MAILLARD

Chairman of the Executive Board

• Chairman of RTE since 2007, Dominique MAILLARD was reappointed for an additional five years term on 31 August 2010

• Other appointments: President of HGRT, member of the Board of Directors of Réseau Ferré de France, representative of the French government and President of Coreso

• Former High Commissioner at the Energy Regulatory Commission (2000-2007), Dominique MAILLARD also chaired the management board of the Energy International Agency (2002-2003)

Philippe DUPUIS

Member of the Executive Board – General Director in charge of Finance Procurement & IT

• Other functions: Member of the Board of Directors of Powernext SA, member of the Board of Directors of Agence nationale pour la

gestion des déchets radioactifs, and representative of the French government, president of Airtélis

Hervé LAFFAYE

Member of the Executive Board - General Director in charge of Operations

• Other functions: Member of the Board of Directors of Declaranet, president of @rtéria


RTE(ITO) Relationships with EDF

• Relationships with EDF are overseen by a Compliance officer: o Belonging to RTE but appointed after CRE audition and approval

o With guarantee of independence

• The Compliance Officer is responsible for:

o Ensuring that ITO practices comply with the independence rules (non-discrimination, confidentiality, independence)

o Overseeing RTE compliance with the undertaking set out in good practice program

• The Compliance Officer’s tools are:

o A free access to all the data and publication of RTE, working groups and meetings

o Participation to all the main management instances of RTE : Supervisory board, Management board, financial and Technical committees…

o Audits

o Publication, at least once a year, of the report on implementation of the good practices code.


RTE Subsidiaries

Pole « valuation » Pole « collaboration»

Pole «Valuation» : gathers companies that value RTE's assets and skills . They operate in the competition field

Pole « collaboration » : gathers companies operating in the international extension of RTE’s missions. They are engaged predominantly in the regulated field


RTE Subsidiaries Company name Corporate purpose % of equity held

ARTERIAPromotion, operation and maintenance of optic fibers networks and any related or

complementary activities100%

RTE InternationalPromotion and marketing of international consulting activities, in order to value abroad

RTE's know how and experience in all TSO's skills100%

AIRTELIS Provision of services by one or more jumbo helicopters to value RTE's assets and skills 100%

HGRTSubscription, acquisition, sale, possession and management of any shares or other

securities issued by the Power Exchange Company51%

INELFE Construction of a 400 kV line through the Pyrenees, between France and Spain 50%

CORESOCoordination of transmission network operation, gathering France, UK, Germany,

Benelux and Italy. 22,49%

DECLARANETContribution to ensure the security of persons and property as well as infrastructures

protection during third party works12%

CASC-EU Operation of electricity cross border capacity auctions across Europe 8,33%

MEDGRIDProvision of feasibility studies and advices for a transmission network between the

northern and southern shores of the Mediterranean sea5%


5,26%

12,14%

RTE’s EHV network development

Before 1946 :

~100 transmission companies, with different voltage and frequency standards

1946 : EDF is born

One of the main tasks: Voltage & frequency standardisation



1970 :

400 kV Paris loop completed

Coal plants in the eastern part of France connected

Interconnections to Spain, Italy, Switzerland, Germany…

Start of French nuclear power plan



1990 : In about ten years, most of today’s network has been built

New interconnexion to Italy, Switzerland

New DC interconnexion to England



2000 : Consumption has been slowing down… and opposition has been growing up !

An attempt to build some missing links…

Bretagne (West peninsule)

South East

New interconnexion to Spain

… but they are still missing today


RTE’S EHV Network

104 000 km of EHV

and HV lines among :

- 21 500 km at 400 kV

- 26 500 km at 225 kV

2 600 substations

1 National Control Centre

7 Regional Control Centres


• 104 000 km of lines :

400 kV : 21 500 km

225 kV : 26 500 km

90 kV : 17 000 km

63 kV : 38 000 km

100000 km overhead and

4000 km underground

• 2 600 substations

RTE’S EHV Network


Interconnections

46 cross-border lines

Interconnections with 7 countries and 9 TSO’s


Contractual exchanges in 2013

Exports 79.4 TWh

Imports 32.2 TWh

Balance 47.2 TWh

Cumulative 111.6 TWh

Main ongoing projects


RTE’s complementary Businesses

The power system and flow management the supply - demand balance

network access

security of the power system

management of network development projects

Electricity transmission

and network management network maintenance

operation of infrastructures

network development engineering

different, yet complementary skills and businesses

~ 1,500 people

~ 6,000 people


The national dispatching centre (CNES)

is in charge of :

Balance P = C

International exchanges of energy

Safety of the electrical system

The regional dispatching centres are in

charge of :

Quality of electricity to the end user

Link with the producers

Interventions on the grid

Organisation of power system and flow management


French power generation mix

• Installed capacity at the end of 2013 : 128 GW

• Electricity generation in 2013 : 551 TWh


Hydro20%

Thermal20%

Nuclear49%

Wind6%

Other Renewable

5%

Hydro14%Thermal

8%

Nuclear73% Wind

3%

Other Renewable

2%

French consumption

• French electricity consumption in 2013 : 495 TWh

• Highly sensitive to the temperature in winter : 2400MW/°C

• Peakload reached 102,1 GW in February 2012


RTE financial key figures (year of reference : 2013)

• Turnover : 4 702 M€

• EBITDA : 1 788 M€

• EBIT : 1 120 M€

• Net income : 494 M€

• Investments : 1446 M€

• Net debt : 7 459M€

• ROCE (Return On Capital Employed): 8.5%

• ROE (Return On Equity) : 9.6%

• Gearing (net debt / equity) : 1.45


Electricity Quality in terms of Equivalent time of interruption


dont 2min10 Sticking snow

2013

RTE’s Turnover (2013)


RTE’s cost structure (2013)


Balance sheet (end of 2013)


Share of transmission in electricity cost


RTE’s Investments (current €M)


rte, french power grid operator - … · • rte is responsible for assets development and funding...

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