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An Intelligent Pan-European Network: The Supergrid

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FEPS, Budapest 10 December 2013Ana Aguado, CEO, Friends of the Supergrid

The Friends of the Supergrid

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The Friends of the Supergrid

EU objectives related to Supergrid

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Offshore wind

Solar

Hydro

• Carbon neutral Europe by 2050

• Single European electricity market

• Secure and sustainable supply

• Transformed energy system

• Innovative technology to use and export

• Skilled employment opportunities

What is the Supergrid?

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Offshore wind

Solar

Hydro

• Supergrid is the fundamental architecture of European electricity generation and supply.

• Without it we have a collection of sub-optimised national markets

Definition of Supergrid?

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Offshore wind

Solar

Hydro

The Supergrid is a pan-European transmission network facilitating the integration of large-scale renewable energy and the balancing and transportation of electricity, with the aim of improving the European market

OBJECTIVES OF ALL ENERGY PACKAGES

● Create competition for the industry and the consumers

● Production where most efficient/existing and consumption from anywhere

A unique open market integrated and

competitive

The Reality after 18 years

● National approaches● Expensive energy: variable RES plus switchable

fossil power● Greater external dependency● Increased CO2 emissions● Capacity contracts

28 energy markets7

Example of Supergrid Phase 1

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Phase 0 – 2015-2020

Phase 1 – 2020+

Financing 1st Face of Supergrid connecting 4 Member States

● “Merchant”: paid by the direct users of the system:

1,55-4,67 cents/kWh● “Socialized”: paid by all consumers

0,23 cents/kWh increase in tariff over a period of 40 years

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OffshoreGrid Study: Connecting MSs would save €14 billion. Further additions would bring benefits of €16-21bn

Investments foreseen

Distribution: ~ 400 bn

Transmission: ~ 200 bn

Total investment needs in the electricity and gas sector between 2010-20: over 1 trillion €

Power generation: ~ 500 bn Transmission and distribution: ~ 600 bn

RES: ~ 310 – 370 bn

Electricity: ~ 140 bn

Gas: ~ 70 bn

NB: approximative figures, mainly from DG ENER calculations based on data from PRIMES, ENTSOs, KEMA etc.

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4.2

9.1

9.8

14.0

3.3

Natural Gas Electricity

TSO Investment

Average 2005 -2009 p.a.

TSO Invest-ment Forecast 2010 - 2020 p.a.

Supergrid Requires

Strong political support in order to: • Plan the network at EU level and not

only national• Adjust returns to attract investors• Optimise generation at EU level• Secure the supply at EU level and not

28 times

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Le contexte européen

Mêmes défis pour tous les pays: Une production renouvelable décentralisée Une production intermittente Une pression sur la rentabilité des unités thermiques Une responsabilité diluée en matière de sécurité

d’approvisionnement

Même constat dans tous les pays:Le marché n’y arrive pas seul

Le contexte européen

Mais pas de vision européenne:Chaque pays cherche sa recette propre, déterminent ses priorités dans le triangle

Tous fixent la sécurité d’approvisionnement comme pré-requise Par contre, les choix environnementaux (sortie ou pas du nucléaire, choix technologiques) et

de partage des coûts entre les types de consommateurs varient

Meshed HVDC Grid system Here breakers are needed to isolate faults on the DC side from the remaining healthy parts

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In a future power network with a high density of DC converter station it is logical to connect them also on the DC side to have a combined AC and DC transmission grid

Recent Key DevelopmentsTechnical landmarks during 2012

● DC current interruption enable planning of the HVDC Supergrid now. Building blocks Hybrid HVDC Breaker and Half bridges Full bridge with fast switches

● Capacity increase in cable factories, ships, production and engineering facilities are announced Gearing up for anticipated larger future volumes

● The number of interconnection and embedded HVDC links in construction increases rapidly with higher power ratings E.g. South-West link SE, EWIP IR-UK, INELFE FR-ES, Western

link UK ● FOSG technology members spend every year around 4%

of their turnover on R&D: large part on transmission 16

What should be easier????

●Further European integration via a common project of total cost 600-800bn€ in 30 years

● Negotiating nationaly driven long-term contracts with third countries for gas and oil of 400bn€ every year

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No Transition without Transmission

www.friendsofthesupergrid.eu

Ana Aguado Cornago