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SUMMARY PROJECT FICHE

Project Number …

1. Basic Information

1.1. CRIS Number:

1.2. Title: Improvement of the frequency performance of the Turkish power system in accordance with the UCTE criteria. 1.3. Sector: Energy

1.4 Location: Turkey, TEIAS headquarters (Ankara) and various power plants throughout the country. 1.5. Duration: The total duration of this project is 26 months.

2. Objectives

2.1 Overall Objectives

The overall objective is to ensure the integration of the Turkish electricity market into the EU Internal Electricity Market.

2.2 Project Purpose

The purpose of the project is to improve the frequency control performance of the Turkish power system to the level required by the UCTE for the commencement of synchronized parallel operation of the Turkish power system with the UCTE network.

2.3 Accession Partnership and NPAA Priority

AP – Chapter 4 (Priorities)

Short term:

• Establish a programme for the adoption of the energy acquis, particularly that concerning issues other than the internal energy market.

• Ensure the establishment of a competitive internal energy market, in compliance with the electricity and gas directives.

Medium term:

• Remove restrictions on the cross-border trade in energy.

• Promote the implementation of projects in Turkey listed as projects of common interest in the European Community TEN-Energy Guidelines.

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NPAA - Section 4.14 (Energy)

PRIORITY 14.1 Full alignment with the internal energy market

Task 14.1.2 Remove restrictions on the cross-border trade in energy

Priority Description: “Once physical capacity and necessary regulation is in place, integration with the EU internal energy market will be facilitated.”

PRIORITY 14.3 Promote the implementation of projects in Turkey listed as projects of common interest in the European Community TEN-Energy Guidelines

2.4 Contribution to National Development Plan

It is not possible to evaluate since Turkey has not yet completed the preparation of the first National Development Plan. However, the “Preliminary National Development Plan” which has been prepared by the State Planning Organization, depicts the activities for the interconnection of Turkish power system to the UCTE as “in line with the ultimate aim of interconnecting national electricity market to the EU internal energy market, activities are underway to enable the synchronous parallel operation of Turkish power system with the UCTE system”.

2.5 Cross Border Impact

The connection of Turkish power system to the UCTE (Union for the Co-ordination of Transmission of Electricity) network may have impacts not only on the local power systems but also on the entire UCTE system. This project will ensure the compliance of the frequency control performance of the Turkish power system with the UCTE criteria.

This will enable Turkey to be safely interconnected to the UCTE system via tie lines between Turkey and Bulgaria as the first step and between Turkey and Greece, as the second step, without any negative impact on other power system. Such physical interconnection constitutes an essential step towards achieving the full integration of the Turkish energy market into the EU internal energy market.

On the other hand, the connection of the Turkish power system to the UCTE system will also contribute to the UCTE system to operate more securely and efficiently given that the Turkish power system encompasses high hydro power installed capacity, which provides more economical live standby reserve potential for compensating the detrimental effects of potential sudden generation losses.

3. Description

3.1 Background and Justification

The Turkish Electricity Market Law was prepared in line with relevant EU acquis and became effective on 3 March 2001 (Law 4628). The Law concentrates mainly on defining the sector’s new structure and the status of the power sector actors, including restructuring and unbundling of utilities. This is closely tied to the Constitutional Amendment of August 1999 (Law 4446), which for the first time explicitly permitted privatization of state enterprises and assets including energy

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utilities. Whilst the state will retain control over power transmission; generation and distribution activities are to be opened to competition.

In summary, the new Electricity Market Law includes the following key elements:

− An autonomous Energy Market Regulatory Authority (EMRA),

− A new licensing framework for market participants,

− An energy market based on bilateral contracts between market participants,

− Eligible consumer concept to ensure freedom for eligible consumers to choose their suppliers,

− A transition mechanism to be implemented over a two-year programme

EMRA became operational immediately after the appointment of the Board on 19 November 2001. Until now, significant number of secondary legislation has already been issued by the EMRA.

The former TEAS, Turkish Electricity Generation and Transmission Corporation has been unbundled into three utilities in October 2001: EUAS (Electricity Generation Corporation), TETAS (Turkish Electricity Trade and Contracting Corporation) and TEIAS (Turkish Electricity Transmission Corporation). TEIAS is the owner and operator of the transmission network as well as the operator of the electricity market in Turkey.

The restructuring of TEIAS to ensure its adaptation to the new market conditions is still underway. In this respect, in compliance with the responsibilities of TEIAS as envisaged by the Electricity Market Law, Electricity Market Services and Financial Reconciliation Unit was established to provide the balancing and settlement services in the market.

The Ministry of Energy and Natural Resources is the main institution responsible for the formulation and implementation of energy policies and programmes in coordination with the relevant government institutions and other key sector actors. Coordination, supervision, assessment, execution and management of international relations regarding cross boundary energy transportation projects, are among its functional duties.

The full integration of the Turkish electricity market into the EU Internal Electricity Market requires not only the alignment of the national legislation concerning the electricity market with the relevant EU acquis but also the synchronous parallel operation of the Turkish power system with the European electricity transmission network, the UCTE (Union for the Co-ordination of Transmission of Electricity) network at full compatibility with the UCTE technical standards and requirements. The importance of this issue has also been underlined in the 2003 Regular Report on Turkey’s Progress towards Accession.

The connection of the Turkish power system with the former UCPTE (presently, UCTE) power system has been on the agenda of Turkey since 1975. In the past, tie lines were built with all neighboring countries except Greece but the priority has always been given to the synchronous connection with the UCTE power system. None of these tie lines have been operated in synchronism and used only for energy exchanges with island supply and directed generation methods.

In addition to the 400 kV link with Bulgaria, which was commissioned in 1975, the second 400 kV link was completed in September 2002. A Memorandum of Understanding was signed on 28 March 2002, in Ankara, for the construction of Babaeski–Filippi 400 kV tie line between Greece and

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Turkey, which is projected to be completed by end-2006. The necessary funds for the construction of the Turkish segment (about 50 km) were secured through a World Bank loan.

On 21 March 2000,former TEAS made an application to UCTE for membership. The UCTE Steering Committee took a decision on 26 April 2000 to consider and evaluate all possibilities for the synchronous interconnection of the Turkish power system to the UCTE power system.

For the purpose of determining the technical conditions under which the Turkish power system may be synchronized with the UCTE power system, a project titled “Complementary Technical Studies for the Synchronization of the Turkish Power System with the UCTE Power System” has been adopted and financially supported by the European Union through Pre-Accession Financial Programme 2003. It will ensure the determination of power exchange capacity between the Turkish Power System and the UCTE Power System, identification of technical risks and possible counter-measures, and monitoring the Turkish Power System by the UCTE, as required by the UCTE procedures. That project composed of the following components:

− The Static Studies that will explore the impacts of Turkey’s interconnection at the regional level (i.e. on the network at the vicinity of Turkey) are to be performed by the local UCTE Transmission System Operators (TSO’s) in the region.

− The Stability Studies that will analyze the impacts of Turkey’s interconnection on the entire UCTE system are to be performed by UCTE TSO’s with the leadership of the RWE of Germany.

This project is at contracting stage at present.

In parallel to the determination of the technical conditions for synchronized interconnection, it is also necessary to ensure the compliance of the frequency control performance of the Turkish Power System with the UCTE criteria so as to provide commencement of synchronized parallel operation of the Turkish Power System with the UCTE by the end of 2006 as envisaged in the implementing schedule of the agreement reached between TEIAS and UCTE.

In this context, TEIAS, as the transmission system operator, will determine the primary and secondary frequency control performance levels of the selected power plants listed in Annex 7 to ensure their compliance to the UCTE criteria and, afterwards, ensure the optimum system operation.

3.2 Sectoral Rationale

Not applicable.

3.3 Results

The activities which shall be carried out under the project and which are described in section 3.4 are expected to lead to the following results:

• The current frequency control performance of the Turkish power system is determined.

• Mathematical models for speed control systems of the selected power plants are

developed.

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• Speed control systems of the selected power plants are adjusted in accordance with the

UCTE requirements.

• The optimization of frequency control performance of Turkish power system is realized.

• Where necessary, the ancillary services agreements are modified; amendments in the

Grid Code are proposed to the EMRA for approval.

• Skills and knowledge of TEIAS staff on theoretical and practical aspects of frequency

control of power plants is increased.

• A frequency control test manual for future guidance is in place

3.4 Activities

In order to achieve the results depicted in section 3.3, the following activities shall be performed by the Technical Assistance Team (TAT):

3.4.1. Preliminary Training on Frequency Control Concept, Testing, Analysis of Results and Optimization:

The TEIAS staff assigned to this project has to closely work with the Technical Assistance Team (TAT) during the implementation of all activities, in particular on-site testing of power plants and subsequent work to be carried (including system adjustment and optimization). Therefore, before the start of testing process, the TEIAS staff in question must be trained by the TAT concerning the theoretical and practical aspects of frequency control concept, testing methodologies, and test equipments. Before the initiation of the tests, TAT will provide training to TEIAS engineers on the theoretical and practical aspects of the below-listed activities. The theoretical part of the training programme will be performed in Turkey, whereas the practical part shall be performed in a UCTE member country in order to better observe the implementation practices for various type of generation facilities, including coal fired, natural gas fired and hydro power plants as well as at the Load Dispatch Centre. Two study visits, each lasting a week, will be organized to UCTE member countries. 5 TEIAS personnel, who will take active role in the realization of this project, will participate in each study visit

The training will cover, but is not limited to, the following issues: • Explanation of appropriate test methodologies for Primary Frequency Control performance

tests taking into account of different speed-control systems of various power plants;

• Evaluation of various frequency control methods used in the UCTE member Countries. • Experience gained in other UCTE countries in conducting similar preparatory studies before

connecting to the UCTE system. • The description of frequency-load control and optimization methods of the systems having

market structure similar to that of Turkish System.

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• Description and use of various test equipments to be used, recommendations for any additional equipment needs.

• Detailed explanation on the tests to be performed. • Methods used in evaluation of the probable test results. • Any other issue that may emerge for clarification during the course of training.

3.4.2 Assessment of Current Frequency Control Performance of the Selected Power Plants:

TAT will provide assistance to TEIAS in the assessment of the power plants, which need to be tested and adjusted for frequency control performance (listed in Annex 7). Assessment study will focus on:

• Determination and evaluation of the existing technical data related to the frequency control systems for each unit of the 34 power plants possessing different technologies and specifications.

• Determination of a proper “Test Procedure” for monitoring of the power plants to be visited.

• Assessment of the existing secondary frequency control performance of the Turkish Power System.

3.4.3 Modeling of speed control and related systems:

TAT will provide assistance to TEIAS in the following issues: • Performing the primary frequency control tests, deriving of the “Trend Curves” of the

parameters recorded during the tests such as turbine speed, valve position, steam pressure etc.

• Performing the function tests in each unit of the power plants in order to derive mathematical models of speed control and related systems.

• In order to realize dynamic performance analysis for each unit of 34 power plants connected to the Turkish power system by using computer simulations, “Mathematical Models” of speed-control and related systems will be developed. In this regard, the following data will be collected:

o Generator electrical data, o Data with regard to generator model and parameters, o Saturation curves, o Active-reactive diagram, o Excitation system data, model and parameters, o Boiler-control system (for thermal power plants) data, model and parameters, o PSS (Power System Stabilizer) data, model and parameters, if PSS exist in

power plants.

• The models and parameters derived or obtained from the power plants by the TAT during the tests will be converted into the format of the specific software currently utilized by TEIAS in dynamic performance analysis.

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3.4.4 System Adjustments: If the results of the tests reveal that a series of necessary measures are to be taken and necessary adjustments are to be executed by the operators of the power plants, the TAT will provide assistance in the preparation of a list of required measures and adjustments for each unit of the power plants by the operators. Realization of these measures and adjustments is binding for the operators of the power plants according to the Grid Code issued by EMRA.

In accordance with these measures and adjustments performed at the control systems of the power plants, the parameters of Load-Frequency Control (LFC) programme, used by the National Load Dispatch Center, shall be updated.

3.4.5 Optimization Study:

Following the conclusion of the tests and adjustments made at the power plants, the TAT will support the TEIAS in the realization of an optimization study, through which the reserve amounts related with the primary and secondary frequency control in the Turkish power system in compliance with UCTE criteria and the distribution of the units of all power plants including those that already participate in the frequency control operations, will be determined. This study will take into consideration;

- the system minimum load conditions, - the winter peak load conditions, - the summer peak load conditions, - the geographical structure of Turkey, - the situations of existing and planned transmission lines, - cost-benefit analysis,

In this way, appropriate responses (they should either increase or decrease active power output) of the above-mentioned power plants to frequency deviations will be ensured. 3.4.6 Preparation of Test Manual

Given that the frequency control performance tests require to be conducted by TEIAS regularly after the completion of this project, the TAT will prepare a detailed test manual for providing guidance to the TEIAS staff in the conduct of future tests.

3.4.7 Legislative Adjustments:

If the result of the above-mentioned activities performed within the framework of UCTE criteria requires amendment of the Electricity Market Grid Code, any other relevant legislation, and/or the Ancillary Services Contracts, the TAT will assist TEIAS in drafting amendment proposals. The amended texts will then be submitted to the EMRA for approval of the Board. The entire project shall be carried out by a Technical Assistance Team.

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3.5. Linked Activities

There are a number of linked activities supported by the European Commission, the World Bank or internally pursued which are completed, planned or underway:

3.5.1 EU Activities

• Feasibility And Evaluation Study of the Electricity Interconnection Greece–Turkey; partially financed by TEN; completed.

• Stability Study for the Synchronously Interconnected Operation of the Electricity Networks of UCTE/CENTREL, Bulgaria and Romania", financed by TEN; completed,

• Euro Mediterranean regional project “Euro Mediterranean Energy Forum - Support to the Ad Hoc Groups” financed through MEDA Programme; for supporting the three Ad Hoc groups, Energy policy, Economic Analysis and Interconnections which were created according to the action plan of Euro Mediterranean Energy Forum, to achieve their objectives; in progress.

• Euro Mediterranean regional project “MEDRING”, for the technical and economical assessment of the interconnection of the electricity transmission networks of the Mediterranean countries, financed through MEDA Programme; in progress.

• Southeast Europe Electricity Regulatory Forum (SEEERF) Initiative for the creation of a regional electricity market in the South Eastern Europe for its further integration into the Internal Electricity Market (IEM) of the EU; in progress.

• “Complementary Technical Studies for the Synchronization of the Turkish Power System with the UCTE Power System” project supported within the 2003 Financial Cooperation Programming between Turkey and the EU; for determining the technical conditions under which the Turkish power system may be synchronized with the UCTE power system; in progress.

3.5.2 World Bank Activities

• National Transmission Grid Project. Financed from the World Bank loan in the amount of USD 230 million. Covers restructuring of the sector and also the construction of transmission facilities, including the Turkish part of the 400 kV Turkey-Greece interconnection line; in progress.

• A new “Renewal and Extension of Turkish National Load Dispatch System Project “ was signed in 2001 between TEIAS and Siemens, which is financed from World Bank loan in the amount of USD 20 million. Siemens has established new SCADA System which includes hardware and software in the National Control Centre. It is expected to be completed in 2004.

3.5.3 Internal Activities

The following projects are carried out by TEIAS in collaboration with Tubitak-Bilten (The Scientific and Technical Research Council of Turkey – Information Technologies and Electronics Research Institute):

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- System Studies for interconnection of Turkish Electric System to The Balkan Countries and UCTE; completed.

- Study of Situation Determining for Primary Frequency Control and System Frequency

Performance Tests, in 2002.

- Primary Frequency Control Performance Tests and the Statistical Analysis of Line Frequency, in 2003.

See Annex 4 for detailed information about Tubitak-Bilten projects.

The Tubitak-Bilten project revealed that the frequency control performance of Turkish power system can be improved to the level required by UCTE through the realization of a more detailed and comprehensive study involving the optimization of the system as a whole and dynamic performance analysis for each unit of the selected power plants that will participate in frequency control operation.

3.7. Lessons Learnt

The past experience of the UCTE with previous system extensions (such as to CENTREL and former Yugoslavia) proved that, prior to any system extension, static and stability studies and as the complementary component, the studies related with the quality of the frequency control performance have to be conducted in order to eliminate possible negative impacts of the new interconnection on the security of the systems at the vicinity as well as the entire UCTE system. The investigation of system expansion, identification of possible risks and taking of proper counter-measures are essential pre-conditions to establish an effective interconnection.

4 Institutional Framework

TEIAS performs its activities under the organizational structure composed of a head office situated in Ankara and the regional units such as 18 regional transmission networks, construction and management directorates and central (national) and regional load dispatch center directorates. The current organizational chart of TEIAS is given as Annex 8.

TEIAS National Load Dispatch Centre (NLDC) has a hierarchical structure. The National Load Dispatch Centre is at the top of the hierarchy. Below the NLDC, 8 Regional Load Dispatch Centres (RLDC) which have been located at the different places (Ankara, Adapazari, Istanbul, Izmir, Samsun, Elazig, Adana, Erzurum) are currently at service.

The results of the project will not affect the existing institutional framework as described above.

The beneficiary of the Project is the TEIAS, and the project is planned to be performed under the supervision of the Steering Committee composed of TEIAS Deputy General Manager (as the chairperson), Head of Research Planning and Coordination Department, Head of Load Dispatch Department, Manager of Ancillary Services Division, and to be coordinated by a Project Team composed of the representatives of the relevant departments of TEIAS, such as Research Planning and Coordination Department, Load Dispatch Department, and Communication, Control and

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Automation and Data Processing Department, in cooperation with relevant power plant operators (see Annex 7), which are both publicly and privately owned. The Project Team leader is;

Mr. Mehmet ALKAN,

Manager of the Ancillary Services Division in Load Dispatch Department of TEIAS.

Address: Inonu Bulvari No:27 /14067 Bahcelievler-Ankara Turkey

Phone: (90-312) 215 39 87; Fax: (90-312) 222 69 42; E-mail: mehmet.alkan@teias.gov.tr

5 Detailed Budget (million €)

Total Budget will be 2.500.000 Euro for the technical assistance.

EU Support

(million €)

2004 Investment

Support

Institution

Building

Total EU (=I+IB)

National Co-financing* IFI*

TOTAL

(million €)

Service 2,5 2,5 2,5

Total 2,5 2,5 2,5

6 Implementation Arrangements

6.1. Implementing Agency

Responsibility for the administration related to the procedural aspects of procurement, contracting and accountancy of the service part will rest upon the CFCU. The tendering and contracting will be carried out by the CFCU and shall follow standard DIS rules.

6.2. Twinning Not applicable

6.3. Non-standard aspects Not applicable

6.4. Contracts Service Contract 2,500,000 EUR

7 Implementation Schedule

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7.1. Start of the tendering/ Call for proposals: 4th quarter 2004 7.2. Start of project activity: 2nd quarter 2005 7.3. Project completion: 2nd quarter 2007

8 Equal opportunity

Equal opportunity principles and practices in ensuring equitable gender participation in the project will be guaranteed. Male and female participation in the project will be based on the relevant standards of the EU. The main criteria for staff recruitment will be appropriate qualifications and experience in similar projects, not sex or age. Both men and women will have equal opportunities and salaries.

9 Environment

Not applicable, since this project deals only with the improvement of the frequency control performance of the power plants and does not require major modifications at the existing physical structure of the power plants.

10 Rates of return

Not applicable

11 Investment criteria

Not applicable

12 Conditionality and Sequencing

The EU financing to this project is conditional upon the completion of the procurement of the necessary test equipment by TEIAS prior to signing of service contract.

ANNEXES TO THE PROJECT FICHE

1. Logical framework matrix in standard format

2. Detailed implementation chart

3. Contracting and disbursement schedule by quarter for full duration of programme (including disbursement period)

4. Reference list of feasibility/pre-feasibility studies

5. Reference list of relevant laws and regulations

6. Reference list of relevant strategic plans and studies

7. List of Power Plants that will be visited during the project

8. Current organization chart of TEIAS

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Annex 1 to Project Fiche

Programme name and number:

Date of drafting: January 2004

LOGFRAME PLANNING MATRIX “Ensuring the compliance of the frequency performance of Turkish Power System with UCTE criteria”

Contracting period expires: November 2006

Disbursement period expires: September 2007

Project Number Total Budget: €2,500,000

EU contribution: €2,500,000

Overall objective Objectively Verifiable Indicators Sources of Verification To ensure the integration of the Turkish electricity market into the EU Internal Electricity Market

• Commercial and physical electricity exchanges take place between Turkey and EU Member States within 2007

• UCTE reports • IEA reports • Annual reports of EMRA • Annual reports of the

concerned Transfer System Operators

Project purpose Objectively Verifiable Indicators Sources of Verification Assumptions and Risks To improve the frequency control performance of the Turkish power system to the level required by the UCTE for the commencement of synchronized parallel operation of the Turkish power system with the UCTE network.

• UCTE reported that the primary frequency quality of the Turkish power system meets UCTE criteria, by 2007, before the commencement of synchronous parallel operation.

• In case of inconsistencies in the Turkish power system, frequency fluctuations fall into the limits of “trumpet curve” within the required time periods determined in the UCTE criteria.

• Correspondence between UCTE and the Ministry of Energy and Natural Resources of Turkey and/or TEIAS

• NLDC (National Load Dispatch Center) frequency monitoring reports

• UCTE confirms the interconnection of the Turkish power system.

• If required, sufficient investments are made on the Turkish system to fulfill the UCTE requirements.

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Results Objectively Verifiable Indicators Sources of Verification Assumptions and Risks • The current frequency control

performance of the Turkish power system is determined.

• Mathematical models for speed

control systems of the selected power plants are developed.

• Speed control systems of the

selected power plants are adjusted in accordance with the UCTE requirements.

• The optimization of frequency

control performance of Turkish power system is realized.

• Where necessary, the ancillary

services agreements are modified; amendments in the Grid Code and relevant legislations are proposed to the EMRA for approval.

• Skills and knowledge of TEIAS

staff on theoretical and practical aspects of frequency control of power plants is increased.

• A frequency control test manual

for future guidance is in place

• Inadequacies of Turkish Power system as compared to the UCTE frequency control performance criteria are identified in an Assessment Report and accordingly proper testing procedure is prepared.

• Derived mathematical models fit into the software utilized by TEIAS and produce valid results for dynamic performance analysis.

• Reports indicate that power plants provide appropriate responses to the deviations from nominal frequency level required by UCTE criteria.

• Frequency levels measured by NLDC

meet the UCTE criteria. • Revised Grid Code and Ancillary

services agreements are in place • TEIAS personnel involved in training

prepare evaluation reports and an evaluation survey conducted.

• Detailed test manual is in place

• Evaluation reports submitted to steering committee

• Monthly reports submitted by NLDC to the UCTE

• Correspondence between UCTE and TEIAS

• Reports by EMRA • Annual reports by TEIAS

• The quality of data derived from the power plants is high enough for the formulation of the modeling of speed control systems for each unit of power plants.

• Power plant operators cooperate with the testing teams and comply with the requirements of the adjustment checklists in accordance with the Grid Code.

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Activities Means Conditionality • Preliminary Training on

Frequency Control Concept, Testing, Analysis of Results and Optimization.

• Assessment of Current Frequency Control Performance of the Selected Power Plants

• Modeling of speed control and related systems.

• System Adjustments • Optimization Study • Preparation of Test Manual • Legislative Adjustments

• Technical Assistance

• The EU financing to this project is conditional upon the completion of the procurement of the necessary test equipment by TEIAS prior to signing of service contract.

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ANNEX No. 2

DETAILED IMPLEMENTATION SCHEDULE OF ACTIVITIES

Year 2005 2006 2007

Month J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Service

3.4..1. Preliminary Training on Frequency Control Concept, Testing, Analysis of Results and Optimization

3.4.2. Assessment of Current Frequency Control Performance of the Selected Power Plants

3.4.3. Modeling of speed control and related systems

3.4.4. System Adjustments

3.4.5. Optimization Study

3.4.6. Preparation of Test Manual

3.4.7. Legislative Adjustments

Tender

Project Execution

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ANNEX No 3

COMMITMENT AND DISBURSEMENT SCHEDULE (in €)

Contracted I/2005 II/2005 III/2005 IV/2005 I/2006 II/2006 III/2006 IV/2006 I/2007 II/2007 III/2007 IV/2007 Service (EU Support) 2.500.000

Supply (National Co-Financing)

Annual Cumulated 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000

Disbursed 690.000 420.000 420.000

420.000

420.000 130.000

Service (EU Support)

Supply (National Co-Financing)

Annual Cumulated 690.000 690.000 1.110. 000 1.110.000 1.530.000 1.530.000 1.950.000 1.950.000 2.370.000 2.500.000

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ANNEX No 4

Reference List of Feasibility/Pre-Feasibility Studies 1) In 2000-2001, with the financial support of the Commission of the European Union, a comprehensive technical and economic feasibility study on the “Project of Electricity Interconnection of Turkey with Balkan Pool and UCTE” has been carried out on task sharing basis among PPC (Greece),former TEAŞ (Turkey), NEK (Bulgaria) and EKC (F. Yugoslavia). These studies included; energy balance, load flow and security assessment, steady-state and transient stability analysis, primary and secondary frequency control, short circuit analysis, switching over voltages studies, cost/benefit evaluation. After the completion of the studies, the relevant Report has been presented to the approval of European Commission by PPC and approval granted. Name and performer of the above mentioned studies are as follows;

• PPC - “Cost/benefit Evaluation-Summary Report” Athens, 2001 • EKC - “Energy Balance-Primary Frequency Control Analysis-Steady State

and Transient Stability Analysis” , Belgrade, 2001 • NEK - “Load Flow and Security Assessment” Sofia, 2001 • NEK and former TEAŞ - “Secondary Frequency Control” Sofia and Ankara,

2001 • Former TEAŞ - “Short Circuit and Fault Level Analysis- Line Energization

and Switching Overvoltages” Ankara, 2000. The part of the studies which were attributed to former TEAŞ has been performed in collaboration with a Turkish scientific institute named Tübitak-Bilten. 2) In accordance with the decision of UCTE to initiate test procedure at some pilot power plants of Turkish power system in the year 2004, TEIAS signed a project contract with Tübitak-Bilten to view the primary frequency control performances of the power plants before the tests to be carried out by UCTE committee. Within the scope of this contract, three types of power plants (Hydro, coal-fired, natural gas fired power plants), were selected and the observation of current situation and the primary frequency performance tests were carried out and reported for one unit of the selected power plants.

In this regard, following activities have been pursued:

A- Feasibility Studies for the Primary Frequency Control Performance Tests of certain Power Plants in Turkey, and for the Performance Analysis of Turkish Electricity Frequency (July 2002 to Oct. 2002).

Control systems of speed governors of Bursa Natural Gas Combined Cycle Power Plant (2x720 MW), Cayirhan Thermal Power Plant (4x160 MW), and Ataturk Hydro Power Plant (8x300 MW) in Turkey were investigated and suitable test set up required for the primary frequency control performance tests of the generating units were determined,

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Automatic Generation Control (AGC) system at National Load Dispatch Center (NLDC) of Turkey was investigated and hardware and software requirements of AGC system for electrical system frequency performance analysis were determined,

A conclusive report, which covers all of the investigations, determinations and recommendations for the tests and analysis, was prepared and presented to TEIAS.

B- Primary Frequency Control Tests and Performance Analysis of Turkish Electricity Frequency (April 2003 to December 2003).

Hardware and software configurations were set up for the primary frequency control performance tests of the power plants in Turkey,

Hardware and software configurations were set up for National Dispatch Center in order to monitor and analyze (statistical analysis) the Turkish electricity frequency.

Primary frequency control performance tests of the above-mentioned Power Plants were performed.

Conclusive reports, which cover the performed tests and results, prepared and presented to TEIAS.

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ANNEX No 5

Reference List of Relevant Laws and Regulations Communiqué Regarding Connection and Use of System, March 2003 Communiqué Regarding Settlement, March 2003 Distribution Code, February 2003 Communiqué Regarding Regulatory Accounting Guidelines, January 2003 Grid Code, January, 2003 Communiqué Regarding Meters, December 2002 Communiqué Regarding Wind and Solar Measurements, October 2002 Customer Service Regulation, September 2002 Import and Export Regulation, September 2002 Eligible Consumer Regulation, September 2002 Electricity Market Licensing Regulation, August 2002 Electricity Market Tariffs Regulation, August 2002 Electricity Market Law March 2001

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ANNEX No 6

Reference List of Relevant Strategic Plans and Studies 1- 8th Five Year Development Plan (2000-2005) of Turkey (prepared under the leadership of State Planning Organization with the participation of all the relevant public and private utilities and approved by the Parliement), which envisages the Energy Sector Reform, 2- Energy Sector Reform Study (carried out by the Ministry of Energy and Natural Resources together with the all relevant utilities in Turkey and the World Bank and by the support of foreign consultant company) As an outcome of this study, draft Electricity Market Law was prepared and unbundling in the energy sector was realized.

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ANNEX No 7

LIST OF POWER PLANTS THAT WILL BE VISITED DURING THE PROJECT

LIST OF POWER PLANTS THAT WILL BE VISITED DURING THE PROJECT (HES: Hydraulic Power Plant TS: Termic Power Plant DGKÇ: Natural Gas Fired Power Plant)

Unit Yearly

GR Power Production

Capacity Fuel Type LOCATION Name of the Power Plant and Installed Capacity

NO Date of Commissioning kW GWh / year 1 26.07.1989 150.000 1 ÇATALAĞZI-B TS

(300 mw) 2 05.02.1991 150.000 1.950 Hard Coal ZONGULDAK1 07.07.1984 340.000 2 23.05.1984 340.000 3 25.01.1986 340.000 8.840 Lignite K.MARAŞ

2 ELBİSTAN TS (1355 MW)

4 21.11.1987 335.000 1 22.12.1989 150.000 2 20.12.1990 150.000 2.925 Lignite SİVAS 3 KANGAL TS

(457 MW) 3 09.06.2000 157.000 1 16.12.1993 210.000 2 31.05.1994 210.000 4.095 Lignite MUĞLA 4

KEMERKÖY TS (630 MW)

3 27.01.1995 210.000

5 ORHANELİ TS (210 MW) 1 05.01.1992 210.000 1.365 Lignite BURSA

1 25.07.1973 150.000 2 06.03.1973 150.000 3 08.11.1977 150.000 3.900 Lignite KÜTAHYA

6 SEYİTÖMER TS (600 MW)

4 16.02.1989 150.000 1 26.06.1957 22.000 2 20.12.1958 22.000 285 Lignite MANİSA 1 29.09.1981 165.000 2 02.08.1982 165.000 3 30.05.1985 165.000 4 20.02.1986 165.000 6.435 Lignite MANİSA 5 02.08.1991 165.000

7 SOMA-A-B TS (990 MW)

6 25.03.1993 165.000 1 20.10.1982 210.000 2 09.06.1983 210.000 4.095 Lignite MUĞLA 8 YATAĞAN TS

(630 MW) 3 20.12.1984 210.000 1 15.04.1956 32.000 2 18.08.1956 32.000 3 18.08.1956 65.000 2.790 Lignite KÜTAHYA 4 15.08.1977 150.000

9 TUNÇBİLEK TS (429 MW)

5 10.10.1978 150.000 1 17.09.1986 210.000 10 YENİKÖY TS

(410 MW) 2 23.02.1987 210.000 2.730 Lignite MUĞLA A1 23.11.1985 100.000 11 TRAKYA DGKÇ

(HAMİTABAD)(1200 MW) A2 06.02.1986 100.000

22

A3 22.04.1987 100.000 B1 04.04.1986 100.000 B2 16.05.1986 100.000 B3 01.08.1987 100.000 7.800 Natural Gas KIRKLARELİ C1 01.12.1987 100.000 C2 07.12.1987 100.000 C3 10.02.1989 100.000 D1 06.04.1988 100.000 D2 01.06.1988 100.000

D3 13.04.1989 100.000 1 09.08.1988 138.800 2 20.08.1988 138.800 3 24.09.1988 138.800 4 21.11.1988 138.800 5 02.06.1989 138.800 8.780 Natural Gas İSTANBUL 6 09.06.1989 138.800 7 20.09.1990 172.700 8 20.01.1991 172.700

12 AMBARLI DGKÇ (1350,9 MW)

9 27.02.1991 172.700 1 09.01.1967 110.000 2 25.03.1967 110.000 3 27.08.1970 110.000 3.465 Fuel Oil İSTANBUL 4 17.06.1971 150.000

13 AMBARLI Fuel Oil TS (630 MW)

5 06.12.1970 150.000 A1 09.08.1998 239.000 A2 22.02.1999 239.000 A3 22.02.1999 238.000 9.500 Natural Gas BURSA B1 01.06.1999 239.000 B2 01.06.1999 239.000

14 BURSA DGKÇ (1432 MW)

B3 01.06.1999 238.000 1 18.07.1988 175.000 2 10.06.1988 175.000 3 06.04.1988 175.000 1.632 Hydro DAM 4 09.12.1987 175.000 Kızılırmak

15 ALTINKAYA HES (700 MW)

5 2.550 Samsun 1 11.05.1984 46.000 DAM 2 21.06.1984 46.000 569 Hydro Ceyhan 16 ASLANTAŞ HES

(138 MW) 3 31.08.1984 46.000 Adana 1 13.06.1992 300.000 2 06.07.1992 300.000 3 03.10.1992 300.000 DAM 4 16.11.1992 300.000 Hydro (KADEME) 5 13.02.1993 300.000 8.100 Firat 6 04.05.1993 300.000 Şanlıurfa 7 20.09.1993 300.000 8 24.11.1993 300.000

17 ATATÜRK HES (2400 MW)

9 5.000 1 24.03.1997 56.300 DAM 2 28.05.1997 56.300 596 Hydro Seyhan 18 ÇATALAN HES

(168.9 MW) 3 20.08.1997 56.300 Adana 1 12.01.2000 55.000 DAM(KD) 19 DİCLE HES(110 MW) 2 14.05.2001 55.000 298 Dicle/ D.Bakır1 22.05.1994 53.125 DAM 2 02.10.1994 53.125 528 Hydro Ermenek 20 GEZENDE HES

(159.4 MW) 3 01.12.1994 53.125 İçel

23

1 27.03.1976 92.800 DAM (KD) 2 02.11.1973 92.800 400 Sakarya 21 GÖKÇEKAYA HES

(278.4 MW) 3 12.01.1974 92.800 Eskişehir 1 02.12.1979 125.000 2 28.12.1979 125.000 Hydro DAM 3 06.02.1983 125.000 1.217 Yeşilırmak

22 HASAN UĞURLU HES (500 MW)

4 29.12.1982 125.000 Samsun 1 08.01.1960 32.000 2 08.01.1960 32.000 Hydro DAM 3 08.01.1960 32.000 300 Kızılırmak

23 HİRFANLI HES (128 MW)

4 07.08.1983 32.000 Kırşehir 1 06.03.1987 300.000 2 01.07.1987 300.000 3 27.10.1987 300.000 7.500 Hydro DAM 4 03.03.1988 300.000 (KADEME) 5 10.06.1988 300.000 Fırat

24 KARAKAYA HES (1800 MW)

6 25.02.1989 300.000 Diyarbakır 1 15.12.1999 31.500 2 13.01.2000 31.500 3 09.02.2000 31.500 652,0 Hydro DAM 4 17.02.2000 31.500 (KADEME) 5 31.03.2000 31.500 Fırat

25 KARKAMIŞ HES (189 MW)

6 26.04.2000 31.500 G.Antep 1 30.08.1974 157.500 2 27.08.1974 157.500 3 15.11.1974 157.500 4 25.02.1974 157.500 Hydro DAM 5 14.11.1981 175.000 6.600 Fırat 6 18.02.1982 175.000 Elazığ 7 20.05.1982 175.000

26 KEBAN HES (1330 MW)

8 25.08.1982 175.000 1 16.03.1990 60.000 Hydro DAM 27 KILIÇKAYA HES

(120 MW) 2 30.07.1990 60.000 332 Kelkit/Sivas 1 27.07.1984 135.000 2 25.05.1984 135.000 Hydro DAM 3 27.02.1984 135.000 1.620 Manavgat

28 OYMAPINAR HES (540 MW)

4 16.01.1984 135.000 Antalya 1 14.10.1999 85.000 Hydro DAM 29 ÖZLÜCE HES

(170 MW) 2 15.12.1999 85.000 413 Peri/Elazığ 1 31.10.1992 31.000 2 03.11.1992 31.000 Hydro DAM 3 11.03.1993 31.000 515 Ceyhan

30 MENZELET HES (124 MW)

4 27.03.1993 31.000 K.maraş 1 24.10.1956 40.000 DAM 31 SARIYAR HES

(80 MW) 2 24.10.1956 40.000 Hydro Sakarya 1 01.02.2002 170 Ceyhan 2 04.02.2002 170 1668,0 Hydro ADANA 32 BERKE HES

(510 MW) 3 11.04.2002 170 1 94,5 Ceyhan 2 94,5 725 Hydro K.Maraş 33 SIR HES

(283.5 MW) 3 94,5 1 01.06.1987 150.000 2 21.12.1987 150.000 4.030 Lignite ANKARA

34 ÇAYIRHAN TS (620 MW)

( Park Termik) 3 30.10.1998 160.000

24

4 06.04.1999 160.000

25

ANNEX No 8 Current Organization Chart of TEIAS

BOARD OF DIRECTORS

BOARD OF SECRETARIAL OFFICE

GENERAL MANAGER

PRIVATE OFFICE

DEPUTY GENERAL MANAGER

DEPUTY GENERAL MANAGER

DEPUTY GENERAL MANAGER

CIVIL DEFENCE SECTION

BOARD OF INSPECTORS

TRAINING DIVISION

LEGAL AFFAIRS

ENERGY TRANSMISSION LINES PROJ.CONST.EXPROP.&ENVIRONMENT DEPT .

MATERIAL MANAGEMENT AND COMMERCE DEPT.

TRANSFORMERS SUBSTATIONS PROJ.CONST.&CIVIL WORKS DEPT.

PRESS AND PUBLIC RELATIONS DIVISION

FINANCIAL AFFAIRS AND FINANCE MANAGEMENT DEPT

HEALTH CARE DIVISION

HUMAN RESOURCES &SUPPORTING SERVICES DEPT

WORLD BANK PROJECTS COORDINATION DIVISION

COMMUNICATION CONTROL AUTOMATION AND DATA PROCESSING

TRANSMISSION NETWORKS OPR.&MAINT.

LOAD DISPATCH DEPT.

RESERCH PLANNIG AND COORD.DEPT

ELECTRICITY MARKET SERV.&FINANCIAL COINC.DEPT

INTERNATIONAL RELATIONS DIVISION