Presentation on theme: "Regional Transmission Network Development:"— Presentation transcript:
1 Regional Transmission Network Development: Regional Transmission Network Development: Implications for Trade and Investment Turkey – Romania Undersea Cable (Feasibility Study Support)Razvan Purdila, DirectorCorporate Strategy, Capital Market, Communication and International Relationships, TranselectricaNovember 11-12, 2009
2 Romania – Turkey 400 kV HVDC link, undersea cable project USAID USEA WORKSHOPREGIONAL TRANSMISSION NETWORK DEVELOPMENT: IMPLICATIONS FOR TRADE AND INVESTMENTIstanbul, November 2009Romania – Turkey 400 kV HVDC link,undersea cable projectRazvan Purdila, Transelectrica
3 PART 1Why HVDC ? – an introduction with technical considerations
5 Advantages for HVDC transmission The HVDC transmission has the major advantage of flexibility inpower exchange in comparison with HVAC. Moreover, in case oftransmission of bulk electrical energy over long distances (more than 50 km) by submarine cable, the only applicable technology is theHVDC transmission.HVDC is an “intelligent link”. The power flow can be controlled and changed very quickly practically independently from frequency at the terminal busses, voltage or power angle at the terminal busses like in HVAC transmission.Due to the inherent properties of the electronic equipment which forms the converter bridges, the direction of the transmitted power may be also changed very quickly.
6 HVDC transmission – principles and characteristics In a HVDC system, the electricity is:- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC networkControllable – power injected where needed,supplemental control, frequency control- Bypass congested circuits – no inadvertent flow- Higher power, fewer lines,no intermediate S/S needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW, no EMF constraints- No limit to underground or submarinecable length
10 PART 2Project scope and premises, short history
11 Project scopeThe scope of this project is to install a submarine cable between the Romanian and Turkish TSO’s, Transelectrica and TEIAS respectively.Business concept : commercial interconnector, separately regulatedThe Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects. The project also brings a significant contribution and stability to the regional electricity market in South-East Europe.The Project is “on going”, in the Feasibility Study phase
12 Short history of the project 2004 – April – energy cooperation protocol between Romania and Turkey at ministries levelThe first mentioning of the cable projectJune – MOU between Transelectrica and TEIAS for the HVDC link projectMain scope : to prepare the oportunity study by a joint project team2006 – November - JPP ( joint position paper ) between Transelectrica and TEIASApproval of the opportunity study;Decision to continue the study at feasibility study level2007 – first attempt to launch the feasibility study with minority financing of private investors ( 50 % Swedish grant available )No success; replacement of the private investor with Nuclearelectrica2008 – first tender for the FS in new financing conditions;Incompatibility of the grant with open tender requirements2009 – secont tender; contract signature in June
13 ROMANIA TURKEY BLACK SEA Romania – Turkey HVDC interconector overviewROMANIATURKEYBLACK SEAELEMENT 01TELConstanţa NordSubstationELEMENT 02TELConverter station and link to Constanţa Nord substationELEMENT03TELUnderground cable between converter station and HVDC cable connectionELEMENT04HVDCcableELEMENT05TEIASUnderground cable between converter station and HVDC cable connectionELEMENT 06TEIASConverter station and link to Alibeyköy substationELEMENT 07TEIASAlibeyköy Substation
15 Connection point with Romanian Power System: 400kV S/S Constanţa Nord; Connection point with Turkish Power System: 400kV S/S Alybeiköy, in Asia;The cables voltage level: 400 kV;The capacity: 600MW;The length: about 400 km;Losses on the cable:-in 600MW transfer: ~ 12MW;in 500MW transfer: ~ 9MW
16 Feasibility Study (final), including the approvals and advices DeliverablesThe nominated Designer will submit the following documents:Inception ReportTerms of Reference – Objectives for procuring the services and works required for the seabed survey and Geological StudyEIA – Environmental Impact Assessment Study, including environmental approvalFeasibility Study (draft), including the necessary documentation for approvals and advicesFeasibility Study (final), including the approvals and advicesDocumentation for urbanism certificates in Romania and TurkeyTechnical SpecificationsProgress ReportsFinal Report
17 NUCLEARELECTRICA VATTENFALL Project team members and their responsibilitiesClientTRANSELECTRICA &NUCLEARELECTRICARomaniaClient DesignerVATTENFALLSwedenClient ConsultantFICHTNER ENGINEERINGRomaniaTechnical ConsultantTEIAŞTurkey
18 EXPERT TEAMS Economical, institutional and legal, commercial and financial teamElectricity market teamTechnical teamEnvironmental teamProcurement teamContract legislation expertPrice electricity forecasting expertElectricity market expertEnvironment expertSee bead expertOverhead transmission line expertElectrical substation expertConverter expertHVDC submarine cable expertPermits and approvals expert- Macroeconomic modeling expert- Financial analyze expert- Investment analyze expert- Contract legislation expert- Romanian & international legislation expertEnvironment expertRomanian & international legislation expertPermits and approvals expertCommercial expertOverhead transmission line expertElectrical substation expertConverter expertHVDC submarine cable expertEnvironment expert
19 The Feasibility Study will: Establish the design parameters, capacity and cost estimation for the HVDC link including the most suitable routing, based on previous studies and existing data which include geological, morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations;Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view, including also the EIA Study with the afferent approvals, in accordance with legalstipulations from both countries and from EU; (Transelectrica, Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process);
20 Contain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey, as applicable at the date of project elaboration and corresponding to this phase of the engineering;Contain the necessary documentation to obtain the urbanism certificate;Analyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costs;Assess suitable possibilities to finance the Project;Propose a time schedule for project implementation and operation;Highlight the commercial, environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea, through system studies performed in both countries.
21 Technical Specifications for procurement and execution will include, at least, a minimal content as follows:- Scope;- Definitions;- Standard and recommendations;- Functional and technical requirements- Testing and inspections- Execution- Provision of information Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects. For the feasibility study we will perform a study based on existing materials/documentation related to Black Sea seabed survey and geological studies.
22 DELIVERABLES1. Inception report (within 6 weeks of commencement of the project).2. Terms of Reference for the Seabed survey and Geological Study. (The draftissue to be submitted within 6 weeks of commencement of the assignment).3. Plans and Terms of Reference for the Environmental Impact assessment. (Tobe submitted as an annex to the first Progress report).4. Environmental Impact Assessment (EIA), incl. environmental approvals. (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment.)5. Feasibility Study – draft, incl. the necessary documents for approvals and advices.(8 months after commencement of the assignment).6. Feasibility Study – final, incl. approvals and advices. (10 months aftercommencement of the assignment).7. Documentation for urbanism certificates, in Romania and Turkey (10 months aftercommencement of the assignment.)8. Technical Specifications. (Within 14 months after the commencement of theproject.)9. Progress Reports. (To be reported quarterly, no later than the 10th working day afterthe reporting period.)10. Final Report. (The final report shall be submitted upon finalisation of the assignement
23 Investment needs - Investments in the HVDC Link - Costs for Submarine cables - material and installation;- Costs for HVDC land cables and/or HVDC OHTLs and/or HVAC – type overhead electriclines, as applicable in Romania – material and installations;lines, as applicable in Turkey – material and installations;- Costs for converter station, including the A.C. connection in Romania;- Costs for converter station, including the A.C. connection in Turkey;- Telecommunication equipment based on optical fibers- Site costs in Romania;- Site costs in Turkey;- Engineering, project management, project control and commissioning;- Other investments, if any;- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link;- Total investment costs for the HVDC link.- Payment for provisional and final expropriations.
24 Investment needs - Investments in the Romanian and Turkish AC grids Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link;- Telecommunication and remote control equipment;- Interest rates calculated separately for each part;- Total investments due to the HVDC link in the Romanian A.C. gridInvestments in the Turkish AC Grid- Interest rates during construction calculated separately for each part;- Total investments due to the HVDC link in the Turkish A.C. grid
25 COMMERCIAL and FINANCIAL ANALYSIS “The price forecast has to be calculated from different perspectives• Long term off-take contract 60 % and 80 %;• Market price for the remaining 40 % and 20 %;• Sufficient Average Price Level (SAPL).“Based on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation. The output of the model shall be presented in nominal terms
26 PART 4Business and regulatory model.Trade and investment roadmap
27 1000 MW from Romania to Turkey Tranzit scenarios1000 MW from Romania to Turkey
28 1000 MW from UCTE (Poland&Slovakia) to Turkey Tranzit scenarios
29 1000 MW from Russia (IPS/UPS) to Turkey Tranzit scenarios
30 1000 MW from Turkey to Romania Tranzit scenarios1000 MW from Turkey to Romaniabudget
31 1000 MW from Turkey to UCTE (Serbia and Austria) Tranzit scenarios
32 1000 MW from Turkey to UCTE (Poland and Slovakia) Tranzit scenarios
33 Activities to be done in parallel with the feasibilty study Preliminary business modelList of main commercial, regulatory and financial hypothesysDocumentation on the business experience of existing commercial interconnectors in EUDiscussions and clarifications with the regulatory authoritiesLegal due diligence for the preliminary business modelTOR for the complete business studyExploration and identification of potential private partnersLetters of intentDevelop procedure for the selection of the private investorsFull clarifications on TEIAS participation in the project, including Turkish applicable legislationPreliminary legal preparations for the project company ( SPV )
34 Selection of private investors SPV – the project company First tentative road mapOpportunity StudyJoint Position PaperMOU -12005MOU -2Feasibility Study( 75 % TEL- 25% NE )Business StudyJoint Position Paper - Final2009International AgreementbetweenRomania and TurkeySelection of private investorsSPV – the project company2010Project implementationFinancing, contracting, supply and instalation
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