IG Meeting Transmission Development activities in the CEE Region in the scope of

Coordinated Transmission System Development WG and UCTE Central East ForumSvatopluk Vnoucek, CEPSVienna, May 9th.2008

Presentation Outline

Challenges and problems facing TSOsCTSD WG/CE RF activitiesCreation of Transmission Plan (TP)TP methodology and main outcomesOther issues - plan for 2008

EU ObjectivesThe promotion of the internal electricity market as well as the preservation and promotion of security of supply and the establishment of an ecologically sustainable energy supply, are part of the major objectives of the European Community

Future of Power Industry - TrendThe electricity supply industry is undergoing a profound transformation worldwide. Market forces, scarcer natural sources, and an ever-increasing demand for electricity are some of drivers responsible for such an unprecedented change

Therefore the challenges to TSOs:Increase in Power Trading with fast varying load patterns is contributing to an increasing congestion and bottlenecks (Insufficient Transport Capacity).

The demand for a high reliability of power supply and high power quality.

The dramatic global climate developments have increased the demand of Clean Energy (RES).

Clogging of the available Transmission Capacity caused by Unexpected and Unwanted Circulating Power Flows.

Problems: Against the later mentioned rapid evolution Transmission Developments of many TSOs are being thwarted by a variety of well-founded, environmental, land-use, aesthetic considerations and regulatory pressures that prevent the licensing and construction of New Transmission Lines

Integration of European Market Contradictory requirements - maximizing security and minimizing the total cost A lot of uncertainties on the locations, on the amounts of future generation units and on the associated transmission needsGoals remain unchanged:Sustainability of power supply must be providedThe Electricity Network Developments of the future must be Secure, Cost-effective and environmentally compatible

Coordinated Transmission System Development Working GroupEstablished on its April high level meeting of 8 TSO, in 2006CEPS, E-ON, ELES, MAVIR, PSE-Operator, SEPS, VATTENFALL, APG VerbundThe mission of group was defined (according to minutes from meeting): compile a list of already planned grid enforcements and extensions in the region build a platform for regular meetings of grid planning experts

BackgroundBenefits and advantages of cooperation of TSOs could be clearer if the following points are considered:TS in CEE region are influencing substantially each other as is given by existing meshed network and/or intensive international market with energy.Current transmission system weak points are very often border profiles between TSOs.New transmission system installations have effect not just for particular TSO but also for adjacent ones.Mutual exchange of information gives possibility to optimize development plans.Transmission development activities (planning and preparing investments) have long-term nature.

Expectations: Through exchange of information within the group the members will be informed of plans and progress of other TSOs. They will have an opportunity to extract, adapt and learn those practices, methodology, structures, procedures and approaches that are being used and have proved to bring good results. Whenever possible a compilation of technical issues for planning purposes from TSO members in the group. Compilation of list of projects in CEE region

Activities: Creation of Terms of Reference. Creation of Internal Guidelines. Review of common technical aspects related to development planning, e.g. N-1 Criterion. Presentation of experiences in the area of Development Planning from each TSO in the group. Additional role: Central East Regional Forum In the frame of UCTE Working Group Coordinated Planning the WG CTSD acts and performs all activities subjected to Central-East regional forum. In this context WG CTSD prepared a CEE Transmission Development plan. Final version of this CEE Transmission Development Plan is available. WG held 7 meetings since its establishment. Creation of CEE Transmission Development Plan.

Transmission Development Plan (TP)On Regional Level 5 Regional Fora: Central West, South West, Central South, Central East and South East..

Central East Regional Forum: 7 countries and 8 TSOs were involved.

On UCTE Level contribution from UCTE member states. 23 countries are involved.

Organization - Map

Creation of CEE Transmission PlanIn September 2007 WG started creation of CEE Transmission plan.

Basic input was detailed list of projects in CEE region compiled in the first half of year 2007.

TP was created, discussed, commented, amended, corrected by members during meetings and via e-mail.

CEE TP is completed and available

At present UCTE Transmission plan is being set up from contributions of UCTE TSO members

Creation of Transmission Plan

Transmission plan - methodologyMethodology based on forecast depending on scenarios Consumption growthGeneration projectsPower exchangesThe adequacy of the TS dimensioning is verified in normal and contingencies conditions

Strategies to reinforce the network are set up in order to minimize: Costs of generationRedispatchingUnsupplied energyLosses

Transmission plan - structureIntroductionPurposeContext of the Transmission planOrganization & ParticipantsMethodology & Data representativenessDescription of CEE systemPresent situation consumption, generation, energy, power balanceScenarios for each TSO consumption/generationSynthesis of consumption/generation

Transmission plan - structureInternational interconnectionsPresent situation - interconnection lines, NTC, historical exchanges, auction an market couplingNational comments to market development and exchangesDevelopment of interconnectionsTransmission network developmentIndividual TSO network developmentAppendices list of all projects in CEE region Map of all projects in regionIndividual TSOs development maps

Transmission plan - examples

Figure 1: National Annual Energy Consumption Growth Rate

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3%

Transmission plan - examples

Figure 2: National Net generating Capacity Growth Rate

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3%

Transmission plan - examples

Figure 4: National Numbers of Months with Limited Remaining Capacity w/o Exchanges

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Never 3%

(4 %

> 4%

Transmission plan - examples

Transmission plan - examples

Transmission plan - examples

Transmission plan - examples

Transmission plan - examples

Transmission plan - examples

51

22

23

15

4

10

xx

12

13

xx

xx

xx

xx

11

xx

50

14

xx

projects up to 2012 projects after 2012 internal projects interconn. projects

Transmission plan - examples

Transmission plan main outcomesCEE TP TP for 8 TSO over the next 13 years55 projects with effect on CEE TS Prepared in accordance with each individual TSO TP in the CEETP complies with the requirements imposed to TSOs in accordance with Statutory Instrument 445 (2000), EC (Internal Market in Electricity) Regulations, 2000.Integration of European MarketContradictory requirements - maximizing security and minimizing the total cost A lot of uncertainties on the locations, on the amounts of future generation units and on the associated transmission needs

Transmission plan main outcomesCEE transmission development Prolongation of time required to commission new grid equipmentsDifficult assessment of the future congestionsVolatility of inputs applications for connection, energy exchanges, legislation framework Resulted in greater uncertainties of future TD and considerably increasing number of scenariosTP & futureFirst document that of the TD in the CE regionBased on the individual TP and TSOs bilateral studiesProposal update every two years, future extension by regional study and analysis?

Other issues - plan for 2008Acting as UCTE coordinated development regional forumCoordination of building the first planning databaseFollowing and commenting materials working out in UCTE WG authorization procedures, priority projects selection, planning policy in UCTEImportant projects and trends in regionInformation exchange, discussion and analysis Determination of side effects on the other TSOsCoordination of developments plan in CEE regionExperience sharing in the field of TDMarket development and its influence on TS Grid planning procedures, planning approachesLegislation, coming changes of TS devel. due to EU

Thanks for your attention.