presentation zagreb mielczarski

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Coordinated developmentCoordinated developmentof the power systemsof the power systems

8th International Conference on the8th International Conference on theEuropean Energy MarketEuropean Energy Market

W adys aw MielczarskiW adys aw MielczarskiTechnical University of Lodz, PolandTechnical University of Lodz, Poland



D ecision of the European UnionD ecision of the European Union

The crucial step into the development of theThe crucial step into the development of theEuropean energy infrastructure wasEuropean energy infrastructure was DecisionDecision

No 1364/2006/EC [1] published in September No 1364/2006/EC [1] published in September

2006. This decision includes: (a) guidelines for 2006. This decision includes: (a) guidelines for transtrans--European energy networks; (b)European energy networks; (b)identification of projects of common interestidentification of projects of common interestand priority projects, including those of and priority projects, including those of European interest; (c) creation of a moreEuropean interest; (c) creation of a morefavourable context for development of thosefavourable context for development of thosenetworks.networks.



N omination of the CoordinatorsN omination of the Coordinators

TheThe EuropeanEuropean CommissionCommission inin September September 20072007appointedappointed four four EuropeanEuropean CoordinatorsCoordinators toto facilitatefacilitate thethefollowingfollowing projects projects::(a) Power link between Germany, Poland and(a) Power link between Germany, Poland andLithuaniaLithuania -- Prof. W. Mielczarski; (b) Connection of Prof. W. Mielczarski; (b) Connection of offshore wind power in Northern Europe (Denmark,offshore wind power in Northern Europe (Denmark,Germany and Poland)Germany and Poland) - - Mr G Adamovitch; (c)Mr G Adamovitch; (c)Connection between France and Spain, especiallyConnection between France and Spain, especiallySentmenat (ES)Sentmenat (ES) ± ± Bescanó (ES)Bescanó (ES) ± ± Baixas (FR) lineBaixas (FR) line - -Prof. Monti and (d) for the NABUCCO pipelineProf. Monti and (d) for the NABUCCO pipeline - - Mr Mr Van ArtsenVan Artsen



Projects Projects of of commoncommon interest interest relaterelate toto thethe electricityelectricity andand gasgasnetworksnetworks referredreferred toto inin thethe DecisionDecision meetingmeeting thethe objectivesobjectives andand

priorities priorities laidlaid downdown inin itit.. TheyThey mustmust displaydisplay potential potential economiceconomic

viabilityviability. . TheThe economiceconomic viabilityviability of of aa project project isis assessedassessed by by meansmeansof of aa costcost--benefit benefit analysisanalysis inin termsterms of of thethe environment,environment, thethe securitysecurity of of supplysupply andand territorialterritorial cohesioncohesion.. ProjectsProjects of of commoncommon interestinterest arearelistedlisted inin AnnexesAnnexes IIII andand IIIIII toto thethe DecisionDecision..3ULRULW\3ULRULW\ SURMHFWVSURMHFWV DUHDUH VHOHFWHGVHOHFWHG IURPIURP DPRQJDPRQJ WKHWKH SURMHFWVSURMHFWV

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DecisionDecision 1364/2006/EC1364/2006/EC lists projects eligible for Communitylists projects eligible for Communityassistance under Regulation (EC) Noassistance under Regulation (EC) No 2236/952236/95 and ranks themand ranks them

in three categories.in three categories.



P ower grid in Central EuropeP ower grid in Central Europe



P riority projects inP riority projects in N orthern EuropeN orthern Europe



R elations of CoordinatorsR elations of Coordinators

European Union

EuropeanCommission

High LevelGroups

European EnergyCoordinator

G overnm ent A G overnmen t B

Regulatory A Regulatory B

PDCLitPol Link or GerPol LinkTSO_A TSO_B

Pow er line SystemB

System A



P olandP oland--Lithuania connectionLithuania connection

E kE k

NewStation

NewStation

AlytusAlytus

OlsztynM tkiOlsztynM tki

P ockP ock

KozieniceKozienice

Stanis awów

Ostro ka

Narew

O tarzew

Stanis awówStanis awów

Ostro kaOstro ka

NarewNarew

O tarzewO tarzew

SiedlceSiedlce



G ermanyG ermany- -P oland connectionsP oland connections



Coordination of power stationsCoordination of power stations

and network developmentand network development

Electric Power System

Power producers

Networkoperators

ChineseWall

InvestmentPlan

InvestementPlan

Power stations Power Networks



P ower market ?P ower market ?

TSO

Nodal Power Minimum

Contractsfor power

Contracts

for power

Transmission system

Power Producers

Power Users

DSOs

NodalPower

Minimum

Distribution System

Contractsfor

Power

Contractsfor

Power

Power Users

Power Producers

Local System Operators



Next step toward the EuropeanNext step toward the Europeanelectricelectrici ity networkty network

Communication from the Commission to theCommunication from the Commission to theEuropean Parliament, the Council, theEuropean Parliament, the Council, theEuropean Economic and Social CommitteeEuropean Economic and Social Committeeand the Committee of the Regionsand the Committee of the Regions - - EnergyEnergyinfrastructure priorities for 2020 and beyondinfrastructure priorities for 2020 and beyond - -A Blueprint for an integrated European energyA Blueprint for an integrated European energy

network, 17 November 2010, Brussels.network, 17 November 2010, Brussels.Consultation in 2011.Consultation in 2011.



F inancing the network developmentF inancing the network development

$URXQG$URXQG RQHRQH WULOOLRQWULOOLRQ HXURVHXURV PXVWPXVW EHEH LQYHVWHGLQYHVWHGLQLQ RXURXU HQHUJ\HQHUJ\ V\VWHPV\VWHP EHWZHHQEHWZHHQ WRGD\WRGD\ DQGDQG LQLQ RUGHURUGHU WRWR PHHWPHHW HQHUJ\HQHUJ\ SROLF\SROLF\ REMHFWLYHVREMHFWLYHVDQGDQG FOLPDWHFOLPDWH JRDOVJRDOV $ERXW$ERXW KDOIKDOI RIRI LWLW ZLOOZLOO EHEHUHTXLUHGUHTXLUHG IRUIRU QHWZRUNVQHWZRUNV LQFOXGLQJLQFOXGLQJHOHFWULFLW\HOHFWULFLW\ DQGDQG JDVJDV GLVWULEXWLRQGLVWULEXWLRQ DQGDQGWUDQVPLVVLRQWUDQVPLVVLRQ VWRUDJHVWRUDJH DQGDQG VPDUWVPDUW JULGVJULGV

Out of these investments about 200 bnOut of these investments about 200 bn ¼ ¼ are neededare neededfor energy transmission networks alone. However,for energy transmission networks alone. However,only about 50% of the required investments for only about 50% of the required investments for transmission networks will be taken up by the markettransmission networks will be taken up by the market

by 2020. This leaves a gap of about 100 bn by 2020. This leaves a gap of about 100 bn ¼ ¼..



Involving commercial investorsInvolving commercial investors

TSO s

Investor

Energyusers

Power prodiucers

Finance Return frominvestment

Transmissionfees

T r a n s m

i s s

i o n

l i n e

Lineconstruction



Encouragement and supervisionsEncouragement and supervisions

Currently, the European EnergyCurrently, the European EnergyCoordinators are facilitating theCoordinators are facilitating thedevelopment of the energy infrastructuredevelopment of the energy infrastructureENTSOENTSO ± ± 10 year development plan10 year development plan

ACER ACER ± ± coordination and unification of coordination and unification of grid code and market rulegrid code and market ruleMonitoring ?Monitoring ?



European regional energy marketsEuropean regional energy markets

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