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The Future of the Transmission Grid in Central Europe Energy Conference, 15 October 2013, Prague Gert Schwarzbach, 50Hertz Transmission GmbH 1. Grid development in Central Europe 2. Market Development in Central Europe 3. Problems and Solutions

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Page 1: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

The Future of the Transmission Grid

in Central Europe

Energy Conference, 15 October 2013, Prague

Gert Schwarzbach, 50Hertz Transmission GmbH

1. Grid development in Central Europe

2. Market Development in Central Europe

3. Problems and Solutions

Page 2: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague 2

EU-TYNDP

- reflect EC Energy Policy

- support decision making

- support PCI selection

- biennial (2012, 2014)

- non-binding

- Prognosis of power generation

in 5-15 years ( 2025)

- Modelling of integrated network

- Development of scenarios

- Evaluation of validity

- Based on needs of grid users

- Identification of investment

gaps

- Analysis of constraints for

cross-border capacities

National TYNDPs

- reflect national Energy Policy

- annual (2012, 2013, 2014)

- binding

- Actual and prognosed supply

needs

- Efficient measures for

guaranteeing adequacy of the

net and security of supply

- Identification of transmission

system infrastructure to be built

- Based on reasonable

assumptions for development

of generation, consumption

and power exchange

Regulatory Authorities

check on compatibility

6 Regional investment plans

1. Europe-wide and national TYNDP

Page 3: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

1. Projects of Common Interest (Extract)

3

50Hertz area Czech Republic

Internal line between Vernerov and Vitkov (CZ)

Internal line between Vitkov and Prestice (CZ)

Internal line between Prestice and Kocin (CZ)

Internal line between Kocin and Mirovka (CZ)

Internal line between Mirovka and Cebin (CZ)

Interconnection between Eisenhűttenstadt (DE)

and Plewiska (PL)

Interconnection between Vierraden (DE) and

Krajnik (PL)

Includes coordinated installation and operation

of phase shifting transformers on the

interconnection lines between Krajnik (PL) –

Vierraden (DE) and Mikulowa (PL) –

Hagenwerder (DE)

Internal DC line (DE) between Lauchstädt and

Meitingen

Internal AC line (DE) between Halle/Saale and

Schweinfurt

Interconnection between Ishőj/Bjæverskov (DK)

and Bentwisch/Gűstrow (DE) via offshore wind

farms Kriegers Flak (DK) and Baltic 1/2 (DE)

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 4: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

1. German Grid Develop-

ment Plan 2013

Optimisation of existing lines

– Construction of new AC lines on

existing routes: 3,400 km

– AC reinforcements

and AC retrofitting

– on existing routes: 1,000 km

– Conversion to DC circuit: 300 km

Grid expansion on new routes

– Construction of new routes: 1,700

km

– 4 DC corridors

- transmission capacity: 12 GW

- Route length: 2,100 km

+2 GW

New measures in the NDP 2013

(Lead scenario B 2023)

Estimated investment: € 21 billion

4 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 5: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

1. 50Hertz grid expansion projects

5

South-West Interconnector (partially under construction) 4

380 kV overhead line "Nordring Berlin" 3

Uckermark line Neuenhagen – Bertikow 2

6 3rd interconnector to Poland

8 Offshore connections in the Baltic Sea

1 Northern line Krümmel – Görries

‒ Accelerated grid expansion in 2012 thanks to

political backing

‒ Plan approval decision for second section of

South-West Interconnector

‒ Agreement on Kriegers Flak Combined Grid

Solution signed

Placement of new conductors on the Remptendorf line 5

9

1

6

2

3

4

5

8

10

9

10 Kriegers Flak Combined Grid Solution

Construction of Baltic 2 offshore connection

1

7 Bärwalde-Schmölln line

7

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 6: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

§§72ff. VwVfG

1. Speeding up grid expansion fixed in German law

§§43ff. EnWG

EnLAG (2009) NABEG (2012)

6

Enacting of 2 laws to facilitate the approval processes for grid expansion projects:

24 grid expansion projects

with high priority are

regulated by law

4 pilot areas for underground

cabeling

Nation-wide cost sharing

mechanism

Based on EU guidelines for

Trans-European Networks

National requirements plan

attached

Speeding up the expansion of

cross-border high-voltage

transmission lines and

connection lines for offshore

substations

Regulates development of

projects of outstanding public

interest

Based on selected corridors

Not valid for EnLAG-projects

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 7: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

2. Market developments in Europe

50Hertz is in the centre of the merging of the European electricity market.

Long-term goal is the establishment of a single European power market.

Implementation of the implicit market coupling of North-West-Europe (NWE) in 2013

Establishment of the methodical and operative basics for the single European Price Coupling (EPC)

Development of joint solutions for Central-East-Europe (CEE)

Marketing of the 50Hertz interconnectors in NWE by

and in CEE by

2010

2014

7 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 8: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

Regional initiatives with German participation

2. Facilitation of cross-border power trading

8

NE

CEE

CWE

Facilitation of cross-border power trading in the meshed grid of Central Europe leads to

complex procedures and increased transit flows in 50Hertz control area.

NE = Northern Europe: Germany, Norway, Sweden, Denmark, Poland and Finland

CEE = Central Eastern Europe: Germany, Austria, Czech Republic,

Hungary, Poland, Slovakia and Slovenia CWE = Central Western Europe: Germany, France, Belgium, Netherlands

and Luxemburg

Tasks of regional initiatives

Co-ordinated congestion management in market areas. Start with NWE (CWE+NE), later connection of other regions (SWE, CEE, …).

Establishment of service providers like auction offices for congestion management (CAO, CASC, EMCC) and TSOs security initiatives (TSC, Coreso) in the respective regions.

Development and implementation of flow-based capacity calculation mechanisms. For CWE ongoing tests, start after NWE market coupling go-live. For CEE under development.

Development and implementation of a European solution for implicit capacity allocation. Price Coupling of Regions (PCR) is the chosen capacity allocation mechanism. PCR is to be provided by co-ordinated action of PXs. Algorithm is in test phase.

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 9: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

Goals:

Implementation of Flow-Based Market Coupling in the CEE region compatible with the CWE

Flow-Based approach and NWE Price Coupling and being of benefit for each country involved.

Elaboration of adjusted FB technical solution for CEE region based on today’s bidding zones

considering the influence arising from unplanned flows

Present activities:

CEE TSOs decided to develop a modified flow-based method addressing current challenges in

the region. Two different options for adjusted FB method are under investigation: Security

oriented option (SOO) and Financial Compensation oriented option (FCOO).

NRAs have prepared a draft MoU between NRAs, PXs, TSOs of the region based on their Joint

Declaration and discussed the draft with TSOs and PXs. MoU is about to be signed.

CEE TSOs have liaised with PCR in order to perform an assessment of the PXs algorithm.

Confidentiality issues have not been solved yet and seem to be overestimated by PXs.

CEE TSOs have updated the High Level roadmap for implementation of FB MC. The overall

timeframe for the implementation of the FB MC in CEE region will be at a level of around 27

month starting with the signature of the MoU.

In parallel, and without influence on the implementation of FB MC in CEE, an explicit trilateral

market coupling between CZ, SK and HU is to be enlarged by RO. PL rejected to join.

Auction Rules for 2014 will be published soon. Activities have been started in order to

harmonize auction rules in whole Europe.

2. Update from CEE-Region

9 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

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3. The grid load increases dramatically

due to the changes in the power generation sector

10

2009 2012

Load ≥ 70% ____

Load ≤ 50% 50% < Load < 70% ____ ____

2010 2011 2012 1. half 2013

Days with interventions in the grid to ensure system security 160 213 262 103

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 11: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

3. Unplanned power flows resulting from

changes of generation (renewable, nuclear)

11

Redispatch

("virtual PST")

Phase shifters

(physical PST)

Grid expansion

reduces SoS-relevant

flows

ensuring efficiency

and cost

effectiveness =

challenge

reduces SoS-relevant

flows

investment required

ensures SoS in entire

system

enables integrated

European market

Proposals by 50Hertz from May 2012 to deal with unplanned flows

short-term middle-term long-term

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 12: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

3. Virtual PST – Principle and 1st

Activation

Charge by unplanned power

flows

Discharge by virtual PST

measures

Change of power plant output

Trigger Power Flow Limit

First activation on DE-PL border on January 27th 2013

3,420 GWh / up to 400 MW redispatch from PL generators

Close operational cooperation 50Hertz-PSE

During a pilot phase 01-04/2013 vPST was activated 13

times including generators from PL, DE, CZ and AT.

Po

wer

Flo

w v

PS

T M

easu

re

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 13: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

[Based on agreed Executive Summary and out of common presentations of 50Hertz and PSE to CEE Electricity Forum

on 18th June 2013 and ACER Electricity Stakeholders Advisory Group on 4th July 2013]

vPST Pilot Phase was an enriching experience and a helpful tool to deal with

unplanned flows.

At the same time the pilot identified important limitations of an approach based only on curative

redispatching measures.

Limitation of available redispatch capacity occurred on 25th March, resulting in long-lasting N-1

violations in 50Hertz and PSE control areas.

In the view of 50Hertz the experience of the Pilot Phase confirms the

requirement of installing Phase Shifting Transformers at the German-Polish

border. PSE shares this opinion.

Operational Phase of vPST to be implemented before pPST devices are installed.

Redispatch measures could complement pPSTs when their technical abilities are exhausted.

Room for improvement in the operational procedures for planning and activation of vPST measures

was identified.

Need of integration of the vPST procedures into a wider co-operation, i.e. into European TSO

Security Cooperation (TSC) processes (DACF and IDCF).

3. Conclusions from the vPST pilot phase

13 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 14: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

3. PST Agreements with PSE, Status with ČEPS

14

PST Agreements with PSE:

18th December 2012: Signature by PSE and 50Hertz of

Agreement on virtual Phase Shift Transformer (vPST)

LoI on (physical) Phase Shift Transformers (PST)

vPST pilot phase from 08.01.-30.04.2013: 13 activations took place

(total cost of approx. 3 m€). A report is close to finalization and will

be published.

Negotiations on a PST Agreement in order to replace LoI on PST

and to start with vPST operational phase is close to finalization..

Co-operation with PSE receives positive feedback (mentioned as

‘Blueprint’ at the Florence Forum). Agreement was reached to

apply for PCI-status of PSTs on DE-PL border.

Status with ČEPS:

Despite several attempts no agreement could be reached so far.

50Hertz is open for similar agreements as with PSE. Several CZ-DE

Ministerial Meetings and TSO HLM took place. So far, little

convergence. By letter sent 6 September 50Hertz proposed to ČEPS

to integrate solutions for PST installation in order to reach a joint

implementation and operation of PSTs.

HGW-MIK

ca. 1,500 MW (380kV)

VIE-KRA

ca. 600 MW (220kV)

ROE-HRA

ca. 1,700 MW (380kV)

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 15: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

The future transmision grid in Central Europe is under development

(TYNDP, PCI). It will provide a sound basis for further market

development characterised by Flow-Based Market Coupling.

Grid development in Germany has been accelerated in order to follow

changes in power generation (renewables, nuclear). Unplanned flows

cannot be avoided in grids with fluctuating parameters. Power

generation has a strong influence on such flows having burdening or

relieving character for transmission lines.

50Hertz clearly aimes to actively limit power flows endangering

secure system operation by co-ordinated transparent action.

Initiatives of 50Hertz have reached different status with PSE and

ČEPS. The concept of a „virtual phase shifting transformer“ can

bridge the time until installation of physical PST. Installation and

operation of PST should be co-ordinated as well as the further

development of the European transmission grid.

Summary

15 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 16: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

16

Many thanks for your attention.

Gert Schwarzbach

Head of Interconnectors

50Hertz Transmission GmbH

Eichenstraße 3A

12435 Berlin, Germany

Phone: +49 (0) 30 5150 2703

eMail: [email protected]

www.50hertz.com

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 17: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

Backup

17 2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 18: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

50Hertz Transmission – a Fully Unbundled TSO

18

Amprion

Transnet

BW

TenneT TenneT

Energinet.dk

50Hertz with two shareholders and as member of the European Elia Group

60 % 40 %

Eurogrid GmbH PL

CZ

A CH

F

L

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

Page 19: The Future of the Transmission Grid in Central Europe · EnLAG (2009) NABEG (2012) 6 ... (TSC, Coreso) in the respective regions. Development and implementation of flow-based capacity

The main challenges of the new energy era for the

electric system

19

Production of renewable energy

• Gradual integration of

renewable energy

• Offshore wind expansion

• Liquidity buffer in the EEG

apportionment

• Energy efficiency

measures

• Question of the socially

acceptable increase in

costs

Grid expansion

• Preparation of the national

grid development plan

• Rapid grid expansion

• Accelerating, simplifying

and harmonising approval

procedures

• Increasing acceptance

through information,

dialogue and

compensation

System security

• Short-term stabilisation

of the system, e.g. in the

Hamburg area

• Participation of all

stakeholders to maintain

the system security

• Improving real-time data

exchange and operation

of EEG plants

• Storage development

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

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Ten-Year Network Development Plan 2012

20

The 1st TYNDP 2012 was published on 5 July 2012.

The 2nd TYNDP 2014 is expected to be released for stakeholders’ consultation

in March 2014. The final version should be published end of June/

beginning of July 2014.

Key findings of TYNDP 2012:

Permitting: 1 of 3 planned projects is delayed in implementation

due to long permitting processes. Proposals to deal with the delays:

fast-tracking of transmission infrastructure projects,

“one-stop-shop”,

defined time lines for permit granting procedures

RES: The TYNDP 2012 identifies the need to invest €104 bn in the refurbishment or construction of

roughly 52 300 km of extra high voltage power lines clustered into 100 investment projects across

Europe. 80% of the identified 100 bottlenecks are related to the direct or indirect integration of renewable

energy sources (RES) such as wind and solar power.

Market Integration: The commissioning of projects of pan-European significance could result in CO2

savings of 170 MtCO2, of which 150 MtCO2 result from the connection of renewable generation

technology and 20 MtCO2 which stem from savings due to further market integration.

Grid Extension: Extending the grid by only 1.3% a year enables adding 3% generation capacity and the

reliable integration of 125 GW of renewable energy sources. For less than 2€ per MWh of end-users’

electricity bills over the decade, the in the TYNDP 2012 proposed investments allow achieving the EU

energy and climate goals in the most efficient and secure way.

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

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TYNDP – Next steps

21

The next target for the TYNDP WG and the regional groups is the release of the next Ten-Year

Network Development Plan in June 2014. The 2014 release will include six Regional Investment

Plans and a System Outlook and Adequacy Forecast (SOAF) alongside the Europe-wide

development plan, which formed the core of the first TYNDP. As the level of detail and sophistication

of the TYNDP increases, ENTSO-E hopes and expects that it will increasingly be seen as the key tool

for aiding decision making regarding electricity transmission investments.

Improvements in the TYNDP 2014 are:

Tackling a longer time horizon by incorporating 2030 visions

New procedure on inclusion of the third party projects in the 2014 version of the TYNDP

Intermediate update of the TYNDP 2012 table of projects

Creation of the Long-Term Development Stakeholder Group

Cost and Benefit Analysis (CBA) methodology

Release of the TYNDP 2014

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

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The path of lowest resistance

Power flow types

22

internal flow

loop flow

import/export

transit flow

Loop and transit flows

result from power

exchange between

generators and

consumers

Unplanned power flows

are the difference

between traded and

physical power flows

Unplanned power flows

can charge or discharge

lines within the entire

grid

Vgl. Homann (BNetzA), 2. HLRC 31.10.2012, EC Brüssel

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague

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-1000

-500

0

500

1000

1500

2000

2500

IV I II III IV

2011 2012

Physik DE-PL

Day-Ahead Fahrplan DE-PL

Power flows between Germany and Poland

23

MW

DEPL

PLDE

Physical flow DE-PL

Day-Ahead schedule DE-PL

2013-10-15 | Gert Schwarzbach. 50Hertz, Energy Conference Prague