1. union for the co-ordination of transmission of electricity UCTE, 15 Boulevard Saint-Michel, 1040 Brussels, Belgium, info@ucte.org UCTE: Finalisation of re-connection process Athens Forum, 26 th October 2004 Damjan Međimorec (Croatia), Secretary of UCTE ET Marcel Bial, UCTE Secretary General

2. Page 2 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) UCTE Developments 1991-1997 A PL CZ SK H SISI FRY FYROM AL GR BG RO E F P I B NL DK CH D L B&H MATNDZ In synchronous operation with 1st zone 2nd UCTE synchronous zone In synchronous operation with 2nd zone 1st UCTE synchronous zone HRHR

3. Page 3 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) War destruction of 400 kV and 220 kV transmission facilities in Croatia and Bosnia-Herzegovina (particularly Ernestinovo and Mostar substations) led to separation of UCPTE synchronous area Soon afterwards re-connection declared as UCPTE priority, but without own financial means UCPTE/UCTE has focused on keeping technical cooperation between two separated zones and leading supporting and explanatory activities with aim of their reconnection Origins and the beginning of re-connection process

4. Page 4 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Preparation of UCTE re-connection Intesifing of UCTE activities with signing of MoU in May 2001 among UCTE and its members from Croatia (HEP), Bosnia-Herzegovina (JPCC) and FR Yugoslavia (EPS) in order to facilitate re-connection In 2002 financing secured for key infrastructure : –in Bosnia-Hercegovina with international Power III Project for electricity infrastructure reconstruction –in Croatia with domestic funds for investment in transmission (re)construction program

5. Page 5 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Realized main infrastructure improvements HEP (Croatia) reconstructed Ernestinovo substation with adjoing 400 kV lines and new Žerjavinec substation ZEKC (Bosnia-Herzegovina) reconstructed 400 kV lines Mostar-Gacko, Mostar-Sarajevo Substantial investments in secondary equipment on main lines across interface and involved control blocks

6. Page 6 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Final steps before re-synchronization Multilateral Re-synchronization Program (MRP) signed by ET members and aprooved by UCTE SC ( in Sep.2004) as a summary of ET work and a basis for the realisation of re-synchronization starting from 9.10 hours (CEST) on October 10th (Sunday) coordinated by ET co-convenors as main coordinators of re-synchronization process from HEP in Zagreb, in direct communication with nominated participants from all involved control centers Implementation went succesfuly according to the program

7. Page 7 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Re-synchronization interface with main lines 1.Sandorfalva-Arad 2.Subotica-Sandorfalva 3.Trebinje-Podgorica 4.Mukacevo-Rosiori 5.Ernestinovo-Mladost

8. Page 8 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Switching sequence of main links across interface 1. Sandorfalva-Arad 2. Sandorfalva-Subotica 3. Trebinje-Podgorica 4. Mukacevo-Rosiori 5. Ernestinovo-Mladost (6.-8. 220 and 110 kV lines between B-H and JIEL)

9. Page 9 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Re-synchronization at 9:34 Sandorfalva line in Arad substation

10. Page 10 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) From two UCTE frequencies to one single 30 minutes 0,01 Hz Recording from Wide-Area Protection System Guard on morning of October 10th, 2004 (Phasor Measurement Units in Mettlen-CH and Agi Stefanos-GR)

11. Page 11 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Full web representation of metering after all links were switched

12. Page 12 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) After re-synchronization Operational test phase of reconnected system is envisaged until end of October with the purpose of monitoring and analysis of operation During that period commercial exchanges across former interface between two synchronous zones will not be scheduled If the evaluation of test phase will be positive UCTE will issue a statement by November 1 st, 2004 specifying the exact date for the start of respective exchanges and how such exchanges may gradually be increased up to the full NTC values

13. Page 13 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Recommendation to markets (1) Bearing in mind the responsibility of each single TSO towards its customers, but aiming at monitoring the global system response to the new flow patterns, UCTE recommends to TSOs along the former interface the following capacities:

14. Page 14 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Recommendation to markets (2) From 1 Nov to 30 Nov: 30% of the NTC values (according to UCTE calculations and as published on the ETSO website http://www.etso-net.org) in the direction from the former 2nd zone to the 1st zonehttp://www.etso-net.org From 1 Dec to 31 Dec: 60% of the NTC values (according to UCTE calculations and as published on the ETSO website http://www.etso-net.org) in the direction from the former 2nd zone to the 1st zonehttp://www.etso-net.org From 1st Jan 2005 on: Return to usual NTC definition / publication procedures including necessary re-assessment of NTC values.

15. Page 15 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) Integration of Albania and Turkey UCTE set up a TC to provide KESH (OST) with a more robust status as well as specific responsibilities within the UCTE community that might lead after a consolidation period to UCTE membership Will launch with EU funding support a feasibility study about the requested synchronous interconnection of Turkey (TEIAS system) with UCTE

16. Page 16 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) OH and MLA (1) OH and MLA = contractual dimension to TSO co- operation enforceable first among TSOs and at a later stage to all grid users via a close co-operation between UCTE and CEER/ERGEG; OH and MLA procedures may put to light non- compliance cases of single TSOs all over Europe. However, no specific compliance problem expected for the TSOs of the SEE region (compared to other UCTE regions);

17. Page 17 Athens Forum – 26th October 2004 UCTE Executive Team for N-S Re-Synchronization) OH and MLA (2) Since non-compliance cases may be not due to the respective TSO action, but to their political and/or regulatory environment close co-operation of governments and where existing regulatory authorities of SEE with the ERGEG/CEER structures working together with UCTE; OH and MLA will be completed by a new preventive process Compliance Monitoring and Enforcement Process (CMEP).