ELECTRICITY GENERATION IN ROMANIA Sistemul energetic al Romaniei la rascruce 7 Noiembrie, 2012 ADRIAN BOROTEA Director Afaceri Corporatiste CEZ ROMANIA
Dec 16, 2015
ELECTRICITY GENERATION IN ROMANIA
Sistemul energetic al Romaniei la rascruce7 Noiembrie, 2012
ADRIAN BOROTEADirector Afaceri Corporatiste
CEZ ROMANIA
CURRENT SITUATION OF GENERATION IN ROMANIABALANCED PORTFOLIO WITH RENEWABLES EARNING THEIR RESPECTED PLACE LATELY
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WITHOUT NEW INVESTMENTS, ROMANIA TURNS FROM NET EXPORTER OF ELECTRICITY INTO NET IMPORTER, ENDANGERING ITS SECURITY OF SUPPLY AND EXPOSING TO HIGHER PRICES
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Additional income from support scheme
Producers’ revenues
Bonus payment Electricity sales Heat sales
Regulated Power market price
Electricity regulated price
Heat regulated price
High Efficiency Cogeneration - support mechanism
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EXCEPTIONAL POTENTIALS FOR RENEWABLES IN ROMANIA
WIND
SOLAR
BIOMASS
Zone Recorded solar energy potential
0 Over 1250 kWh/m2-year
I 1250 kWh/m2-year – 1150 kWh/m2-year
II 1150 kWh/m2-year – 1050 kWh/m2-year
III 1050 kWh/m2-year – 950 kWh/m2-year
IV Under 950 kWh/m2-year
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ANALYSTS SAY THAT ELECTRICITY CONSUMPTION WILL STEADILY INCREASE OVER NEXT YEARS, SO NEEDED INSTALLED CAPACITY
EXISTING CLASIC POWER PLANTS HAVE LOT OF ISSUESREGULATED END-USER TARIFFS SHOULD INCREASE TO MAKE ROOM FOR URGENTLY NEEDED NEW INVESTMENTSCOMPETITIVE MARKET WORKS FINE
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Where to invest?•Distributed generation•Efficient cogeneration•Renewables•High efficiency•Rehabilitation •Nuclear•Hydro•Pump storage Revenues
•Market prices for electricity•Regulated prices for electricity •Revenues from ancillary services•Revenues from network losses T&D•Supporting scheme for renewables•Bonus for efficient cogeneration•Export
Reality - new investmentsWindPhotovoltaicCCGTBiomass
Reality - hydro•Lack of investments•Clogged lakes•Dry years lately•Insolvency
Reality – nuclear•Approaching 20-25 years (lifetime)•Decommissioning costs•New units very expensive
FinancingTougher conditions – more equity, higher interest, PPA
Law makersStabilityPredictability
ANREFair in-time regulations
Reality - Thermal power plants •Depreciated technologies (‘60s)•Oversized inefficient cogeneration units•Expired lifetime•High operational costs•Expensive maintenance•Low availability•Low efficiency•Environmental allowances/costs•High prices for offered electricity
Construction
Operation
DistributorsNetwork congestionsConnections to networksLosses InvestmentsFrozen distribution tariffs/high postponed revenues
ConsumersLow end user prices – not much room for new investmentsQuality of services required
Regulated suppliersSqueezed between regulated end user fixed prices and continuously increased costs (generation,aso)
TransmissionNetwork congestionsConnections to networksLosses Investment
EU directives20-20-20
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Stability
Predictability
Gov strategy -Sound,Stable
Investment recovery
Remuneration
of investment
International crisis
More prudent investors
Consumption drop
Directives
RegionalCompetition
For
new investments
Poverty
CSR
……
Old, not efficient capacities
Regional markets Constraints
More demanding
consumers
Fossil fuels
scarcity
Tariff liberalization
Interconnectors
R&D
Free market
Cash-flow
Competition
Bureaucracy
11Source: CEZ
CEZ GROUP IS BENEFITING FROM LOW COST GENERATION FLEET
CEZ Group installed capacity and generation (2011)
CEZ has a long-term competitive advantage of low and relatively
stable generation costs
2,472
3,97028.3
5,81329.8
2,8677.7
3.4
Installedcapacity
Generation,gross
Hydro and others
Lignite / Brown coal (baseload and midmerit)
Nuclear (baseload)
15,122 MW 69.2 TWh
Share on generation
41%
5%
43%
Black coal (baseload and midmerit)
11% Coal power plants are using mostly
lignite from CEZ’s own mine(60% of lignite needs sourced internally, remaining volume through medium-term supply contracts)
Nuclear plants have very low operational costs
CEZ GROUP ALREADY INVESTED OVER 2 BILLION EUROS IN ROMANIA
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CEZ Distributie continues to invest every year about 50 mil.euro into distribution networks for its 1,4 million customers
CEZ wind parks at Fantanele & Cogealac-biggest on-shore from Europe, with its 600 MW installed, with an investment of over 1,1 billion Euro;
About 590 MW are already up and running;
Remaining capacity up to 600 MW to be commissioned by end 2012
At end 2010, CEZ bought 4 small micro-hydropower plants close to Resita, with an installed power of 18 MW, spending 20 mil.Euro; during 2012-2013, units are to be fully rehabilitated
CEZ Vanzare supplies electricity for 1,4 million customers, not only in our region, but all over Romania
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Total projected size: 240 WTGs of GE 2.5 MW – installed capacity of 600MW in three wind farms
Total investment: 1.1 billion EURO
Expected end of construction for entire projects by the end of 2012
Estimated wind speed was confirmed during almost 2 years in operation;
First turbine was connected to Transelectrica in June 2010;
1st GC was received starting August 2010 production - Fantanele;
2nd GC was received starting November 2011 production - Fantanele;
Supporting scheme, consisting of 2 GC until 2017 and 1 GC starting 2018 for a total period of 15 years
WIND FARMS IN FANTANELE, COGEALAC AND GRADINA
Basic information about CEZ Wind Farms
82,5 MW
Construction has started in October 2008
Connected to the transmission grid in June 2010
Total production in 2011 - 138 GWh
Fully accredited for 15 years supporting scheme
Fantanele Est Cogealac
255 MW, 245 MW in operation/testing
Construction works restarted in February 2011
1 GC received for testing period;
As new project over 125 MW, it has to be notified to EC within 3 months after accreditation
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262,5 MW
Construction has started in October 2008
Connected to the transmission grid in June 2010
Total production in 2011 - 480 GWh
Temporary accredited to receive 2 GC for 2 years; meanwhile it was notified to EC and based on its individual endorsement, we estimate that full scheme will be confirmed, in terms of number of GC and 15 years period;
Fantanele Vest
WIND IS THE CHEAPEST GREEN ENERGY FORROMANIAN ELECTRICITY CONSUMERS
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2010 2013 2016 2019 2022 2025
Wind
Hydro
Biomass
Biomass using efficient cogeneration
Solar
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CONNECTION TO NETWORKS OF RENEWABLES (MW)