Electricity Plenary 24 October 2018 - European Commission · 10/24/2018 · Internal line in Serbia between Obrenovac and Bajina Basta (section 3) Line between Serbia (Bajina Basta)

Source: Directorate-General for EnergySource: Directorate-General for Energy

CESEC regional cooperationElectricity Plenary 24 October 2018

European Commission, DG Energy

Source: Directorate-General for Energy

Agenda – CESEC Electricity Plenary

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09:00-09:15 Welcome and Opening remarks

09:15-10:15 CESEC Infrastructure priority projects – update on the state of play by the Commission and

comments/discussion

10:15-10:30 Coffee break

10:30-11:30 CESEC Electricity markets: trading and market coupling – update on the state of play by the

Commission and the Energy Community Secretariat, followed by comments/discussion

11:30-11:45 Presentation by the Energy Community Secretariat on market coupling between Bulgaria and

the former Yugoslav Republic of Macedonia, followed by comments/discussion

11:45-12:30 Bottlenecks related to non-harmonised VAT and public procurement regimes: follow-up to the

CESEC HLG in Sofia – presentation of the assessment by the Energy Community Secretariat

and comments/discussion

12:30-12:45 CESEC Electricity security of supply: update on the state of play by the Commission and

ENTSO-E

12:45-13:00 AOB and conclusions


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• The Commission sees regional co-operation as a key building block forthe Energy Union

• Close cooperation between key actors can advance EU energy policyobjectives, help integrate energy markets and increase security of supply

• Central and South Eastern Europe Energy Connectivity (CESEC) has beena successful initiative bringing together EU Member States and EnergyCommunity Contracting Parties

• CESEC recipe for success: priority to projects with biggest value addedbut still realistic and feasible, high-level political commitment, clearroadmap

Energy

Achievements so far

• Prioritisation of key projects in the region

• High level political commitment

• Concrete regulatory deliverables with agreed

timeline

• Mobilisation of EU financial support

MATURE Process = New Key Areas

- Electricity Trading and Market Coupling

- Power Grid Infrastructures

- Renewable Energy and Energy Efficiency

Central and South Eastern Europe Gas Connectivity (CESEC)

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CESEC "upgrade" – electricity, renewables, energy efficiency

Bucharest September 2017The agreed goals complement the 2015 Memorandum ofUnderstanding, the concrete actions are enshrined in adedicated Action Plan and the revised governance in the Termsof reference which have been signed in Bucharest.

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NSIEast Corridor: More than 20 PCIs to be implemented in

CESEC countries

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CESEC electricitypriority projects

• 1) Bulgaria-Greece Interconnection

• 2) Black Sea Corridor

• 3) Mid-Continental East Corridor

• 4) Transbalkan Corridor

• 5) HU-SL-CR Interconnections

• 6) Hungary-Slovakia Interconnections

• 7) Integration of UA and MD systems

• 8) SINCRO.GRID

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Interconnection Bulgaria-Greece (PCI Cluster 3.7)

• Construction of a new AC 400kV interconnection between Bulgaria and Greece and 3new AC 400kV overhead lines at the south part of Bulgaria

• Promoter: ESO, ADMIE

• Financing: the project has received CEF grants for studies and works (€28.3M)

State of play

• Environmental Impact Assessment, Detailed Development Plan and Detailed Designsfor all of the lines in the cluster are finalised

• Selected contractor for the construction of PCI 3.7.3.

• Currently public procurement for the selection of a contractor for PCI 3.7.4 and apublic procurement in accordance with EBRD Rules will be launched for PCI 3.7.2

• CBCA Decision issued by the Bulgarian and Greek NRAs (August 2018) for PCI 3.7.1

• CEF application for grants for works submitted (October 2018)

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Black Sea Corridor(PCI Cluster 3.8: 2 internal reinforcements projects in Romania and 1 in Bulgaria)

This project will allow transfer of generation from the Western cost of the Black Seatowards consumption and storage centres in Central Europe and South-Eastern Europeand contribute to the integration of RES generation

• Promoter: ESO & Transelectrica

State of play (3.8.1 in Bulgaria)

• Environmental Impact Assessment, Detailed Development Plan and Detailed Designshave been finalized

• Currently public procurement procedure for the selection of a construction contractor

• Selected contractors for the construction of the facilities in the two end substations(substation Burgas and substation Varna) for connection of the line to the existingpower system.

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Black Sea Corridor(PCI Cluster 3.8: 2 internal reinforcements projects in Romania and 1 in Bulgaria)

This project will allow transfer of generation from the Western cost of the Black Seatowards consumption and storage centres in Central Europe and South-Eastern Europeand contribute to the integration of RES generation

• Promoter: ESO & Transelectrica

State of play (3.8.4, 3.8.5 in Romania)

Project 3.8.4:

• The CEF financing agreement (€27M) was signed in April. The constructionauthorisations were obtained and the procurement procedure for construction works isongoing.

Project 3.8.5

• Expropriation decisions have been issued.

• Next steps: completion of the expropriation procedure, obtaining constructionauthorisation, procurement procedure and signing of the execution contract.

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Mid Continental East Corridor(Romania-Serbia-Montenegro-Italy)

PCI Cluster 3.22

Romania-Serbia: PCI 3.22.1-2-3-4

The project consists of one double circuit 400 kV line between Serbia and Romania andreinforcement of the network along the western border in Romania. It aims at enhancingthe transmission capacity along the East-West corridor in south-eastern and centralEurope. It will provide access to the market for more than 1000 MW installed new windgeneration in Banat area (Serbia and Romania)

3.22.1 Interconnection between Resita (RO) and Pancevo (RS)

(also part of the Trasbalkan Corridor)

• The Serbian part of the line was completed in December 2017

• However, the bankruptcy of the company in charge of the construction of the substation in Romania has delayed the full commissioning of the line, which is expected to take place by the end of 2019. Until then, it has been operating at a lower voltage only on the Serbian side

• The execution work was finalized on 30.03.2018 11


PCI Cluster 3.22

Romania-Serbia: PCI 3.22.1-2-3-4

The project consists of one double circuit 400 kV line between Serbia and Romania andreinforcement of the network along the western border in Romania. It aims at enhancingthe transmission capacity along the East-West corridor in south-eastern and centralEurope. It will provide access to the market for more than 1000 MW installed new windgeneration in Banat area (Serbia and Romania)

3.22.2 Internal line between Portile de Fier and Resita (RO)

3.22.3 Internal line between Resita and Timisoara/Sacalaz (RO)

3.22.4 Internal line between Arad and Timisoara/Sacalaz (RO)

3.22.2: Application for removal of affected areas from forestry fund in July.

Rehabilitation works on the LEA 400 kV s.c Anina - Reşiţa section under

construction to be completed by 15.12.2018.

3.22.4: April 2018: Contract for the design services (including documentation for

obtaining approvals)

Commissioning for both lines planned for 2022 12


PCI Cluster 3.22

Montenegro – Italy: PCI 3.22.5

Project promoter: Terna

The interconnection between Villanova (Italy) and Lastva (Montenegro) iscurrently under construction and it is expected to be commissioned by January2019 and put in operation in June 2019.

The suspension of the third and fourth section of the Transbalkan corridor inSerbia has affected the construction of the Montenegro-Italy subsea cable in itssecond half capacity:

the first HVDC link which will realise 600 MW transmission capacity betweenItaly and Montenegro (electricity will flow through the existing grid), but thesecond HVDC link cannot be developed (up to the full interconnection capacity1200 MW) if there is no certainty about the commissioning of the fullTransbalkan corridor and the integration of the electricity markets in the Balkanarea

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Transbalkan Corridor(Romania-Serbia-Montenegro)

This priority project aims at enhancing the transmission capacity along the East-Westcorridor in South-Eastern and Central Europe. It will provide access to the market formore than 1000 MW of installed new wind generation in the Banat area in Serbia andRomania. The project comprises:

Interconnection between Romania (Resita) and Serbia (Pancevo) (section 1)

Internal line in Serbia between Kragujevac and Kraljevo (section 2)

Internal line in Serbia between Obrenovac and Bajina Basta (section 3)

Line between Serbia (Bajina Basta) – Bosnia and Herzegovina (Visegrad) -Montenegro (Pljevlja) (section 4)

Section 2: The construction phase would commence in 2018

Expected to be completed in 2020

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Transbalkan Corridor(Romania-Serbia-Montenegro)

Internal line in Serbia between Obrenovac and Bajina Basta (section 3)

Line between Serbia (Bajina Basta) – Bosnia and Herzegovina (Visegrad) -Montenegro (Pljevlja) (section 4)

Section 3: The implementation has been suspended

Application for WBIF Grant from WBIF (EUR 15.5 million)

New Feasibility Study to be completed in Q1 2019

Section 4: Substation in Bosnia completed.

The suspension of section 3 jeopardizes the implementation of the

Montenegrin part of the project, which has received a 25 million

investment grant from the EU, under WBIF with KfW as lead IFI

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Electricity Interconnections Hungary — SlovakiaPCIs 3.16 & 3.17

3.16.Interconnection Hungary – Slovakia between Gabčikovo (SK) and Gönyű (HU) and VeľkýĎur (SK)

3.17 Interconnection Hungary – Slovakia between Sajóvánka (HU) and Rimavská Sobota (SK)

The projects will increase the transfer capacity between Slovak and Hungarian transmissionsystems, improve security and reliability of operation both transmission systems and supportNorth - South RES power flows in CCE region.

Project promoters: MAVIR, SEPS

In Hungary permits would be granted towards the end of 2018 for theinterconnection Gabčikovo (SK) - Gönyű (HU) - Veľký Ďur (SK)

Slovakia

- Building permit obtained in Slovakia

- Procurement process (preparation of tender documentation for construction)

- 3rd Quarter of 2019 start of works

- Commissioning expected in December 2020 16

PCI 3.9: Croatia — Hungary — Slovenia between Žerjavenec/Hévíz and Cirkovce

The project consists of a new double circuit 400 kV line Cirkovce-Pince and anew 400 kVCirkovce substation (Slovenia) by which a new connection to one circuit of the existingdouble circuit interconnection line between Hungary and Croatia will be made, thuscreating two new cross-border interconnections between Slovenia and Hungary andbetween Slovenia and Croatia

Project promoter: ELES

State of play: Permitting phase

• Environmental permit (the major issue thus far) issued in spring 2018

• Building permit for Substation Cirkovce issued in August 2018

• Building permit for OHL Cirkovce - Pince to be issued first semester of 2019

• Working towards obtaining the “right of way” for the whole corridor

• Public procurement process for Substation Cirkovce currently in progress

• Construction of Substation Cirkovce to commence in spring 2019 and construction ofHV line in autumn 2019

• Commissioning expected at the end of 2021

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Infrastructures supporting the integration of Ukraine and Moldova power systems into European electricity market (PMIs)

i) Interconnection between Ukraine (Mukacheve) and Slovakia (V. Kapusany)

State of play

• Common bilateral grid study assessing how and when to increase the transmissioncapacity of this line has finished

• SEPS and UKRENERGO agreed that the line after reconstruction will operate as a singlecircuit OHL with transmission capacity between 2000A and 2500A with the possibility torebuild the line to double circuit OHL easily (without the need to destroy the singleOHL)

• On the Ukrainian side the line will be reconstructed by 2023 and on the Slovak side thiswill be done by 2030.

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Infrastructures supporting the integration of Ukraine and Moldova power systems into European electricity market (PMIs)

ii) Interconnection between Moldova (Vulcanesti-Chisinau) and Romania (Issacea)

The expected capacity of the interconnection is 600 MW which would be sufficient to cover55% of the Moldovan peak demand in the winter time and full off-peak demand in thesummer period. In Romania, it would benefit from existing connection in the Dobrogea regionwhere there is significant wind generation, and a 1400 MW nuclear power plant (inCernavoda).

State of play

• In Romania, the project enters in designing phase in 2018 and is to be commissioned in2022

• In Moldova, two feasibility-studies have been finalised recently and it was decided that themost appropriate solution for Moldova in the short-term would be to develop anasynchronous interconnection

• The investment necessary is estimated at around €250M to be financed through loans fromEBRD, EIB and the World Bank and a grant from the EU (€40M)

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PCI 10.3: SINCRO.GRID (Slovenia, Croatia)

An innovative integration of synergetic, mature technology-based solutions in order toincrease the security of operations of the Slovenian and Croatian electricity systemssimultaneously. It aims at resolving network voltage, frequency control and congestion issues,enabling further deployment of renewables and displacement of conventional energygeneration.

Project Promoters: ELES, HOPS

Funding: €40,5 million CEF grant for works

State of play

• Purchase of equipment; upgrading of existing infrastructure (2018)

• Completed Procurement procedures for all activities

• Physical implementation expected to take place from 2019 onwards

• Expected commissioning in November 2021

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CESEC priority projects

• The above overview is based oninformation available to the Commission

• Any comments / updates on the state ofplay?

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Thank you for your attention!

Documents

Electricity Plenary 24 October 2018 - European Commission · 10/24/2018 · Internal line in Serbia between Obrenovac and Bajina Basta (section 3) Line between Serbia (Bajina Basta)