The Integration of the Lithuanian Power System into the European Power System

Vidmantas Grusas, CEO of LITGRID UAB01/06/2010

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Contents

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1. Introductions of the Lithuanian TSO – LITGRID

2. BEMIP – the Baltic Energy Market Interconnection Plan

3. BEMIP: Electricity market integration

4. BEMIP & TYNDP – the Ten-Year Network Development Plan

5. BEMIP: Electricity interconnections – Strategic Projects

6. Conclusions

Structure of LITGRID

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Transmission grid today

4

Key activities of LITGRID

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Dispatch control of electricity system

Maintenance and development of electricity transmission grid (110- 330 kV)

Ensuring the reliability of power system operation

Operational planning

Strategic objectives of our activity

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Reliable and safe electricity supply to the Lithuanian consumers

Integration into the electricity market of the Baltic Sea region

Readiness for the implementation of the Third Energy Package of the European Union

Technological development based on a scientific progress

Modern and efficient management and social liability

BEMIPBaltic Energy Market Interconnection Plan

7

Start of the Baltic market integration

FR

ESPT

CONTINENTALSOUTH WEST

DE

FR

IT

CH AT

CONTINENTALCENTRAL SOUTH

PLDE

AT

CZ

ROHU

SK

RS

HU

IT

SI RO

BA

HR

BG

GR

MK

CONTINENTALCENTRAL EAST

CY

SI

SIHR

CONTINENTALSOUTH EAST

DE

NO

EE

LV

LT

PL

DK

SE

FI

BALTIC SEA

NI

GBNL

DE

FR

DK

NO

BE

RoI

LU

NORTH SEA

ME

FR

ESPT

CONTINENTALSOUTH WEST

DE

FR

IT

CH AT

CONTINENTALCENTRAL SOUTH

PLDE

AT

CZ

ROHU

SK

RS

HU

IT

SI RO

BA

HR

BG

GR

MK

CONTINENTALCENTRAL EAST

CY

SI

SIHR

CONTINENTALSOUTH EAST

DE

NO

EE

LV

LT

PL

DK

SE

FI

BALTIC SEA

NI

GBNL

DE

FR

DK

NO

BE

RoI

LU

NORTH SEA

ME

• 2008, Initiator European Commission President J. M. Barroso – EC

• 2009, set a High Level Group

• June 2009, release of the Baltic Energy Market Interconnection Plan

• 17 June 2009, signed the Memorandum of Understanding on the BEMIP by its 9 members

BEMIP goals

The two main goals of the BEMIP initiative, within the context of the EU's 20/20/20 objectives are:

- the full integration of the three Baltic States into the European energy market, through

- the strengthening of the interconnections with their EU neighboring countries.

BEMIP (Action Plan) covers the following 3 areas:

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Electricity market integrationElectricity market integration

Electricity interconnections and generationElectricity interconnections and generation

Gas internal market and infrastructureGas internal market and infrastructure

Electricity Market integration

• Access to the consumer to choose freely whether to change electricity supplier

• Competition among power producers, importers and suppliers

• Abolish restrictions on the marketing power of the EU countries

• Conditions of the clear trading of electricity imported from outside the EU

• Clear organization of the market and supervisory mechanisms under the Nord Pool practice

Integration of the regions Nord Pool

+ Lithuania, Latvia, Estonia,

Poland, Germany

Market peculiarities of the Baltic sea region (BSR) countries

• BSR countries have extensive access and trade with non-EU countries

• In order to establish the Common Baltic electricity market the following issues should be addressed:

– congestion management mechanism

– transit compensation mechanism

– common position for trading with non-EU countries

Market establishment stages

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NO

RD

PO

OL

PX

Polish PXGielda Energii

Estlink I

Polish PXGielda Energii

Estlink IIEstlink I

Swedish-Baltic

link LitPollink

NO

RD

PO

OL

PX

Polish PXGielda Energii

Common Baltic

electricity market

Estlink I

2009

Isolated Baltic electricity market

2010 - 2013

Single market of the Baltic States

2014 - 2015

Integration of the Baltic States electricity market

in the Nordic and continental European

electricity markets

Common Baltic

electricity market

Electricity interconnections and generation

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BEMIP & TYNDP* Investments and strategic projects

* Ten-Year Network Development Plan

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Background for TYNDP

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TYNDP is a forward-looking (5–15 years) plan for electricity transmission infrastructure investments, updated every 2 years

Mandate for TYNDP is given to ENTSO-E by 3rd Legislative Energy Package (Reg. 714/2009, Art 8.3)

Objectives: - raising transparency of electricity transmission grid- support decision-making process at regional & European level

BEMIP projects in the TYNDP

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TYNDP BEMIP

Investments into electricity transmission and generation

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0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Synchronous connection to ECN

Development of Transmission Grid related with the construction of New Nuclear Power Plant

Construction of Lithuania - Poland interconnection

Construction of Lithuania - Sweden interconnection

IT systems and technologies

Reconstruction and Development of Transmission Grid

mln. LTL

The Baltic Sea projects – statistics

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FR

ESPT

CONTINENTALSOUTH WEST

DE

FR

IT

CH AT

CONTINENTALCENTRAL SOUTH

PLDE

AT

CZ

ROHU

SK

RS

HU

IT

SI RO

BA

HR

BG

GR

MK

CONTINENTALCENTRAL EAST

CY

SI

SIHR

CONTINENTALSOUTH EAST

DE

NO

EE

LV

LT

PL

DK

SE

FI

BALTIC SEA

NI

GBNL

DE

FR

DK

NO

BE

RoI

LU

NORTH SEA

ME

FR

ESPT

CONTINENTALSOUTH WEST

DE

FR

IT

CH AT

CONTINENTALCENTRAL SOUTH

PLDE

AT

CZ

ROHU

SK

RS

HU

IT

SI RO

BA

HR

BG

GR

MK

CONTINENTALCENTRAL EAST

CY

SI

SIHR

CONTINENTALSOUTH EAST

DE

NO

EE

LV

LT

PL

DK

SE

FI

BALTIC SEA

NI

GBNL

DE

FR

DK

NO

BE

RoI

LU

NORTH SEA

ME

0

2

4

6

8

10

12

14

16

bn

€

BALTIC SEA

41%mid term

59%long term

82%

18%

AC > 300 kV 11591 km

99%

Total projects BS 17846 km

DC 5301 km

AC < 300 kV 954 km

new

upgrade

Strategic projects

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Lithuanian–Polish interconnection project LitPol Link

Lithuanian–Swedish interconnection project NordBalt

Interconnection of Baltic power systems for synchronous operation with the ECN

Development plan in the Baltic Sea Region

Krievija

Ukraina

BaltkrievijaPolija

Čehija

Vācija

Lietuva

Latvija

Igaunija

Somija

Norvēģija

Dānija

Zviedrija

NORDEL

ENTSO-E/

Russia

BelorusPoland

Czech

Germany

Lithuania

Latvia

Estonia

Finland

Norway

Denmark

Sweden

IPS/UPS

NORDEL

CONTINENTAL Europe

ESTLINK 1 & 2 350 MW + 650 MW

Lithuania - Sweden700 MW

Lithuania – Poland

1000 MW

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Lithuanian–Polish interconnection LitPol Link project

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Project progress

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Progress

• Preparation of territorial planning documents for 400 kV transmission line• Preparation of environmental impact assessment in Lithuania and Poland• Technical feasibility study for back-to-back station, 400kV substation, extension of 330kV substation• Investment realization and operation model of the interconnection

Further work

• Environmental impact assessment in Lithuania and Poland• Preparation of territorial planning documents for 400 kV transmission line• Land ownership issues• Preparation of the technical project for the line, substation, back-to-back station• Permits and licensing issues• Construction of interconnection

Lithuanian–Swedish interconnection project NordBalt

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Project progress

•Preparation of territorial planning documents for interconnection on land•Lithuanian and Swedish TSOs signed an agreement on implementation of investment•EC granted financial EU assistance to the project EUR 131 million from EEPR program•Baltic seabed survey works completed•Selected VSC (Voltage Source Converter) technology for interconnection•Preparation of the technical specifications for cable and converter stations

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Progress

Further work

•Preparation of territorial planning documents on land in Lithuania and Sweden

•Land ownership issues•Tender for supply of cable and

converter stations• Preparation of technical project

for interconnection• Permits and licensing issues• Construction of interconnection

Interconnection of the Baltic power systems

for synchronous operation with ECN

Strategic objective of the Baltic States –

to interconnect power systems of the Baltic States for synchronous

operation with European Continental Network (ECN)

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ENTSO-E regions plan

Project information

• If this financial support is received, feasibility study will be started in January, 2011 and will be finished by December, 2012. The completed study should provide possible technical solutions regarding interconnection of the Baltic power systems for synchronous operation with ECN.

• In January, 2010 a meeting of six TSOs of ENTSO-E (PSE-Operator, Amprion, Transpower, Elering, LITGRID, Augstsprieguma Tikls) was held where it was agreed among the transmission system operators to implement a feasibility study.

• In April, 2010 Baltic (LT, LV, EE) transmission system operators, in compliance with PL and DE operators, prepared and presented a new application for the financial support regarding the interconnection study “Feasibility study on interconnection variants for the integration of the Baltic States to the EU Internal Electricity Market“. An application was presented for TEN-E - the program of the European Commission.

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ENTSO-E regions plan

Development of the Lithuanian transmission grid by 2020

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700 MW

500-1000 MW

N. Vilnia

Existing 330 kV TS

Existing power plants Existing 750 kV OHL Existing 330 kV OHL

Prospective 330 kV TS

Prospective 330 kV OHL

Bitėnai

Conclusions• LITGRID – the Lithuanian TSO as a member of ENTSO-E plays an active

role in the establishment of the single market of the Baltic States ensuring a high level of reliability and quality of management of the power system and its integration into the Western European power systems.

• The infrastructure projects listed by BEMIP show remarkable consistency with the projects within TYNDP which sets six mains investment needs clusters including the Baltic States integration.

• The strategic projects that LITGRID takes active part in involve:– 3041 km of line upgrades and 14805 km of new lines– Completion of 7 317 km of lines out of the total of 17 846 km in the next 5 years– Investments worth 11-13€ billion over the next 5 years

• Successfully implementing the cross-border interconnection projects LITGRID aims at the European Energy Policy targets:

– Security of Supply

– Integration of RES

– Market Integration29

Thank you!

www.litgrid.eu