Transelectrica - The Romanian TSO Chalenges and Perspectives Bogdan Popescu-Vifor Director Strategy, Planning, Marketing & Sale Transelectrica SA Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Dec 14, 2015
Transelectrica - The Romanian TSO: Chalenges and Perspectives
Bogdan Popescu-ViforDirector Strategy, Planning, Marketing & Sales Transelectrica SAConferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
2
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Power Market Structure
Co-generation companies and IPP’s
TSO
Power Exchange
Thermal generators
8 distribution & supply companies
Traders and suppliers
Nuclearelectrica
Hidroelectrica
Transelectrica
OPCOM
T7T2T1
E1 E2 E3 E8
...
…
...
...
Market opening degree
1.07.2005: ~83%
3
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Mission and responsibility: to ensure the Romanian Power
System’s reliable and stable operations, at high quality standards,
while providing a national electricity market infrastructure and
securing regulated access to the Romanian electricity transmission
network under transparent, non-discriminatory and fair conditions to
all market participants.
Main activities of Transelectrica are:
» Technical and operational management of the Power System, to ensure its safety and stability
» Operation, maintenance and development of its assets
» Planning of the National Power System and transmission network development
» Market administration through its legally independent subsidiary OPCOM
» Management of interconnections and electricity transits with neighbouring countries
» Transelectrica does not trade electricity, except to cover its own transmission losses
Transelectrica’s functions:
Transmission and System Operator for the Romanian Power System;
Balancing Market Operator;
Commercial operator of the electricity market, through OPCOM;
Metering Operator in the wholesale market.
Transelectrica’s roles and responsibilities
4
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
The Romanian Transmission Grid8,800 km of Over Head Lines (OHL) :
154.4 km of 750 kV
4,474.2 km of 400 kV
4,134 km of 220 kV
40 km of 110 kV
79 transforming substations
1 of 750 kV
32 of 400 kV
46 of 220 kV
The total transmission capacity is 22,000 MW
UkraineH
unga
ry
Serbia & Montenegro
Ukraine
Moldova
Bulgaria
Black Sea
5
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Transelectrica – the TSO
Transelectrica is member of
UCTE
ETSO
SETSO TF
Continuous involvement in
Athens Forum process
ECSEE Development
6
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Tariffs structure
Three categories of tariffs:
Transmission tariff: covers total network costs, including maintenance and development
System services tariff: covers the costs of the national power system dispatching, including the cost of purchasing ancillary services
Market administration tariff: covers the costs of OPCOM
Determination / adjustment of the transmission tariff
Methodology for setting transmission tariff: starting with 2005 - Revenue – Cap Model
Input data used: regulated asset base, changes in WC, forecast calculation of operational costs, interest expenses and CAPEX submitted by Transelectrica
Tariff reviewed annually in the first regulatory period (2005-2007) and on 5-year periods afterwards. ANRE can make interim adjustments according to the EURO/RON rate.
Tariff adjustments - also triggered by cost deviations over +/- 5% of the assumed level.
6.5% - WACC used by ANRE for the
2006 transmission tariff.
Tariffs: determined by ANRE, based on the Regulated Assets Base mechanism
Tariff for market administration - set under a pass-through logic
Tariff determination methodology
7
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
9.4%
12.5%
7.7%
6.7%
6.4%
6.2%6.0%5.9%
5.9%
4.6%
3.9%
3.6%
3.3%
3.3%
3.1%
3.0%3.0%
2.7% Altii
Hidroelectrica
Electrica Muntenia Sud
Electrica Moldova
Electrica Oltenia
Electrica Muntenia Nord
Electrica Transilvania Sud
Electrica Transilvania Nord
Energy Holding
Electrica Banat
CE Turceni
Electrica Dobrogea
ALRO
CE Rovinari
CE Craiova
Nuclearelectrica
Mittal Steel
Electrocentrale Bucuresti
Electrocentrale Deva
RAAN
The most important clients in 2006
8
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
The Power Market and the System Operation
The Wholesale Market Commercial Code approved by ANRE in 2004 provides for TSO
to running the balancing market to purchasing ancillary services on market-based
procedures
to allocating interconnection capacities on market-based procedures
To awarding green certificates to green energy producers
9
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Power Market in Romania (2005)
Producers
OPCOM Power Exchange(Physical day-ahead market
Financial derivatives Financial settlement)
Transelectrica
Suppliers
Scheduling
Balancing market
Bids(QuantitiesPrices)
Bids(QuantitiesPrices)
OTCBilateral Contracts
Physical Notifications
Physical Notifications
Bids(QuantitiesPrices)
Bids(QuantitiesPrices)
SPOT PRICE
10
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Balancing Market
The Balancing Market represents a tool for the TSO to handle:
the unpredictable imbalances between production and consumption as a result of the deviations from the operational program established based on the physical notifications from the market participants, as scheduled according to the other electricity markets (spot market, OTC contracts etc.), forecast imprecision, forced outages, etc.
the system constraints resulted from both the ex-ante trading, on the basis of physical notifications, and in real time.
11
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
OTC Contracts
Trades on the spot
Spot market (Day-ahead
Market)
Balancing Market
Trades on the Balancing Market
hh-111.00 15.00 17.00
DD -1
Bids
Schedules
Bids
time
MW
D+1
The Power Market And System Balancing
12
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Bids on the Balancing Market
Bids per generating unit, for each hour, up to 10 pairs {Qty/Price}
Same bid used for secondary, fast and slow tertiary regulation
Secondary regulation energy settled at marginal price
Fast and slow tertiary regulation energy settled “pay-as-bid”
Secondary, fast tertiary and slow tertiary reserves contracted and settled separately
Price [lei/MWh
Qty [MWh/h]Qmax0
Set Point according to the Physical Notification
Upward regulationDownward regulation
13
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Generating Companies and
Dispatchable Consumers
Balancing Responsible Parties
Eligible Consumers
TRANSELECTRICA Transmission & System OperatorBalancing Market
OperatorElectricity
Suppliers & Traders
LEGEND:
Downwards Regulating Power Contracts
Upwards Regulating Power Contracts
Deficit Imbalance Power Contracts
Excess Imbalance Power Contracts
Distribution & Supply
Companies
Generating Companies and
Dispatchable Consumers
Commercial arrangements on the balancing market
14
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Romanian Experience until now
Complex software needed for
Running the balancing market
Settlement of the balancing market
Settlement of imbalances
Complex metering system needed for
Metered data on the balancing responsible parties’ boundaries
Metered data for the balancing market participants
Defining balancing responsible parties is crucial
Adequate training for all the market participants is highly required
15
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
The Power Market and the System Operation
The Wholesale Market Commercial Code approved by ANRE in 2004 provides for TSO
to running the balancing market
to purchasing ancillary services on market-based procedures
to allocating interconnection capacities on market-based procedures
To awarding green certificates to green energy producers
16
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Power exchanges on interconnection lines2005 (in MWh)
The transmission, system and market administration services for the imported/exported energy is provided on contractual basis.
The tariffs applied are regulated by ANRE and are the same as on the domestic market.
The only restriction on imported/exported power is the net transfer capacity of the interconnection lines.
Transelectrica aims to participate in the inter-TSO compensation mechanism within the SEE region, facilitating the cross border trades.
[GWh] [GWh]
34
201470
0
0
0
112784
762926
22102
0
0
226246
708000
0
0
0
1183
21860
0
0
194474
1449
281830
30482
(*)
physical flows on interconnection lines for 2005 [MWh]
2010809
Dobrudja
0
0
MOLDAVIA
SERBIA and
MONTENEGRO
774 767436962
17471601 1,469
2,077
3,2903,0462938
4517
Import Export
2000 20012002 20032004 2005
Cross – Border Transmission
17
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Rationals for capacity allocation
Directive 2003/54 on Internal Energy Market
EC Regulation 1228/2003 on Congestion management and Cross-border trading
Congestion management should be performed with market-based solutions
Explicit and implicit auctions are the only market-based ways to allocate the capacity
18
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Agreements with the Neighbouring TSOs
Memoranda concluded with MAVIR Rt, NEK EAD si EMS for:
NTC, ATC evaluation and convening
50:50 sharing of allocation responsibility on each direction
Explicit auction on each border on the Romanian side
Exceptions:
Ukraine: Agreement still to be negotiated with Ukrenergo
Moldova: Power imports and exports possible only in pasive islands and radial operation
19
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Explicit Auctions Procedure
Registration of auction participants: Any market participant intending to take part in Cross-Border Auctions have to fulfil the following preconditions:
Hold a valid license from ANRE (for all applying parties from Romania)
Provide ETSO Identification Code (EIC)
Be assigned to a Balance Responsible Party
ATC Allocation Procedure aproved by ANRE and published on the web site www.ope.ro
20
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
ATC Auction: Standard Bid
Bids per cross-border interface and direction, same for each hour of the auction period, up to 10 pairs {Qty/Price}
Price [lei/MWh
Qty [MW]0
21
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
ATC Auction: Standard Merit Order (1)
Price [lei/MWh
Qty [MW]0
ATC Value
Auction Price
22
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
ATC Auction: Standard Merit Order (2)
Price [lei/MWh
0ATC Value
Auction Price
24
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Romanian Experience until now
There is a need for all TSOs involved to use a common agreed procedure to calculate the NTC values
Auctioning process unification on each border might be more adequate
Requires bilateral agreements between TSOs
Requires regulatory agreement and aproval on the both sides
Flow-based coordinated explicit auction at regional level could be a better solution.
Day-ahead implicit auctions on the spot market could enhance the usage degree of the cross-border lines
25
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006Transelectrica
Conclusions
Romania achieved steps forward in terms of:
Transmission network development
Market mechanisms implementation with
Internal and
Regional perspective
Romania is ready to share its expertise