Berlin, 4 December 2012 Source: ENTSO-E Ten-Year Network Developemnt Plan 2012 2 - Loop flows / unplanned power flows / unannounced power flows physical phenomena that occurs when generation and load centers diverge thus resulting in differences between commercial schedules and physical flows. Unplanned power flows result from: 1. internal transactions between Northern (supply of wind generation) and Southern Germany (demand) but also 2. exchanges within a common market area of Germany and Austria There are no explicit limits to these flows even if they are heavily using the networks of the neighbors. 3 Sweden Export: 303.3 GWh Import: 1467.0 GWh Out: 277.5 GWh In: 1513.6 GWh Germany Export: 2609.9 GWh Import: 195.3 GWh Out: 432.1 GWh Export: 7233.6 GWh Import: 1983.5 GWh Export: 0.0 GWh Import: 59.6 GWh Out: 0.0 GWh In: 59.6 GWh In: 5135.6 GWh Ukraine Export: 3035.9 GWh Import: 224.4 GWh Out: 8261.5 GWh Export: 1284.5 GWh Import: 37.2 GWh Czech Republic Out: 3051.6 GWh In: 44.0 GWh Source: Polish Energy Regulatory Office In: 26.6 GWh Slovakia 4 Operational security •The system security in Poland, Czech Republic, Hungary and Slovakia is seriously distorted (threat of regional blackouts) Market integration and efficiency •Continuous decrease of capacity used for cross-border trade Infrastructure •Can hamper cross-border investment (as such investment might not be beneficial for investing country) 5 Problems associated with loop flows increased both in numbers and scale massive renewable energy sources development not corresponding with grid development Energiewende Source: Position of ČEPS, MAVIR, PSE Operator and SEPS regarding the issue of Bidding Zones Definition 6 Regulation No 714/2009 and Congestion Management Guidelines Point 3.1. capacity allocation at an interconnection shall be coordinated by involved TSOs. If commercial exchanges between two countries affect physical flow in third country – coordination between all affected TSOs. Point 3.2. coordinated congestion management method shall be applied by not later than 1 January 2007 in regions: Central Eastern Europe (Germany, Poland, Czech Republic, Slovakia, Hungary, Austria and Slovenia) - 7 Many initiatives aiming to address the problem: 1. The European Commission - study 2. ACER 3. ENTSO-E 4. BNetzA and Federal Ministry (internal) Many possible solutions: short-term – better coordination and cooperation between TSOs related to operational security (re-dispatching) mid-term – correct market design (adequate bidding zones) long-term – infrastructure enhancement (interconnectors and internal grids) Phase Shifters is it a real solution Problem Shifters ??? 8 Source: Polish Energy Regulatory Office 9 ZRC ALY Legend: DRG SLK 750 kV 400 kV GDA DUN ELB ZDK ZYD 220 kV OLM OLS GLN GRU VIE POM MON BIA JAS PKW KRA LMS BYD GOR CZE GUB PDE PAT OLT PPD PLB EIS MOR KOZ PAB OSR POL CRN PIO ROG PAS HAG ABR SWI MIK DBN CPC KIE ANI HCZ BOG ZBK GRO JOA RAD MKR PEL TCN LAG JAM KAT HAL KOP KLA CHA BIR WAN PRB DOB RZE LUA BYC CZT KOM KHK SIE WIE LIS STW LOS ROK ALB NOS ZAM CHM BLA MOS CHS OSC KPK WRZ KED LSY PUL ROZ BEK TRE WRC Power Evacuation_NORTH PIA JAN ZUK SDU STN WSI ZGI ADA LES Power Evacuation_DBN MIL WTO LSN Power Evacuation_OST MSK SOC KON KRM Wind Integration PLO WLA PLE Ger-Pol Improvements ROS NAR OST TEL BCN Ger-Pol Power Bridge Power Evacuation_KOZ ELK PLP` PLC 400 kV temporary at 220 kV DC cable 450 kV GBL GDP REC SKA ATA BGC TAW KRI BUJ ZAP LEM Source: PSE Operator SA 10 Phase shifting transformers: 1. • • better management of unplanned transits DE-PL-CZ enhancement of transfer capacity on Polish synchronous profile. Expected NTC increase: • 500 MW for import and 1500 MW for export • • greater security and reliability of the regional transmission network in Poland and in other countries of the CEE region increased capability to accommodate more renewable energy resources in a safe and reliable manner 1. Third DE-PL interconnector: ◦ strengthening market integration between member states ◦ increasing NTC by 1500 MW for import and 500 MW for export on PL-DE/SK/CZ synchronous profile ◦ improving network security - project contributes to increase of security of supply and flexibility of the transmission network 11