Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Report on the implementation of CBT mechanism in SEE region Alexandru Ionescu – CN Transelectrica SA (Romania) Silvio Brkic – HEP (Croatia) subgroup.

Similar presentations


Presentation on theme: "1 Report on the implementation of CBT mechanism in SEE region Alexandru Ionescu – CN Transelectrica SA (Romania) Silvio Brkic – HEP (Croatia) subgroup."— Presentation transcript:

1 1 Report on the implementation of CBT mechanism in SEE region Alexandru Ionescu – CN Transelectrica SA (Romania) Silvio Brkic – HEP (Croatia) subgroup ERCBT co-convenors SETSO Task Force 4 th Athens Forum, 4 th June, 2004

2 2 1. Present situation 2. Report on the SEE CBT virtual phase 3. SEE CBT project design for real implementation 4. Conclusions and next steps ETSO Report, Athens, 4 th June, 2004 Summary

3 3 a dry-run CBT mechanism on a virtual basis is being operated since January 2004, involving most of the countries of 2 nd synchronous zone, in accordance with ETSO CBT 2003 principles. classical transit contracts are still in force following few preferred commercial routes. GR H B&H HR I A SLO RO TR BG MK AL SCG/S SCG/ CG UA Mol ETSO CBT 2004 mechanism CIS system Virtual SEE CBT 2004 mechanism Non-participating CBT area Turkey system ETSO Report, Athens, 4 th June, 2004 Present situation in SEE region

4 4 A CBT mechanism in the SEE region: an option or a necessity? All SEE TSOs networks are used for technical and commercial cross border exchanges Only few TSOs receive revenues for transit services, even the flows pass other neighboring networks without being remunerated for the additional costs incurred by transit In 2002, SETSO TF was mandated to define and implement an inter-TSO compensation mechanism for cross border trade in SEE region The operational proposal for dry-run SEE CBT mechanism operation, during the first half of 2004 was adopted during the 3 rd Athens Forum in view of its real implementation ETSO Report, Athens, 4 th June, 2004 Present situation in SEE region

5 5 SETSO ERCBT ESG elaborated the operational proposal for real implementation in the second half of 2004, based on ETSO CBT 2004 principles Following the good results of the virtual SEE CBT phase, a feasible operational proposal for a CBT schema implementation is now on the table of Energy Community of SEE 7 SEE TSOs are invited to adopt this operational proposal for real implementation from 1 st July 2004 ETSO Report, Athens, 4 th June, 2004 Present situation in SEE region

6 6 ETSO Report, Athens, 4 th June, 2004 Summary 1. Present situation 2. Report on the SEE CBT virtual phase 3. SEE CBT project design for real implementation 4. Conclusions and next steps

7 7 Report on the SEE CBT virtual phase Lessons learned from the virtual SEE CBT process The application of SEE CBT 2004 virtual mechanism, following ETSO 2003 one, implied a large contribution from Declared Exports part of the fund Shortcomings and discrepancies of the SEE CBT Agreement are identified in order to improve the real contract Pancaking effects on the southern interface with Greece and on the western interface within B&H network were identified and solved Financial issues were detected and analysed Solutions were identified in order to eliminate the negative impact after the UCTE zones reconnection ETSO Report, Athens, 4 th June, 2004

8 8 Good results of the virtual CBT phase proper functioning of data collection procedure and CBT settlement procedure extended co-operation of SEE TSOs with ETSO ERCBT TF increased expertise of the CBT specialists from SEE TSOs, following ETSO experience Shortcomings of the virtual phase principles of real SEE CBT mechanism are different than the virtual one, alternative settlements for the same period are under the preparation according to the new CBT mechanism design certain TSOs are concerned on the results of virtual monthly inter- TSOs payments in comparison with the existing revenues from traders ETSO Report, Athens, 4 th June, 2004 Report on the SEE CBT virtual phase

9 9 ETSO Report, Athens, 4 th June, 2004 Summary 1. Present situation 2. Report on the SEE CBT virtual phase 3. SEE CBT project design for real implementation 4. Conclusions and next steps

10 10 The present operational proposal evaluates the participation of 7 SEE countries according to 3 scenarios depending on B&H network participation due to the current operation in two synchronous zones : 1 st scenario: only eastern part of B&H network is included in the SEE CBT area like in the current dry-run phase 2 nd scenario: entire B&H network is included in the SEE CBT area 3 rd scenario: without B&H network in the SEE CBT area Croatia was not considered to take part in the expected real SEE CBT mechanism during the second half of 2004 ETSO Report, Athens, 4 th June, 2004 SEE CBT project design

11 11 GR H B&H HR I A SLO RO TR BG MK AL SCG/S SCG/ CG UA Mol ETSO CBT 2004 mechanism CIS system SEE CBT 2004 mechanism Non-participating CBT area Turkey system Results of calculations for 2 nd scenario (all B&H network) are shown in the following ETSO Report, Athens, 4 th June, 2004 SEE CBT project design

12 12 Geographical parameters of SEE CBT area: SEE CBT project design ETSO Report, Athens, 4 th June, 2004 SEE CBT country Neighboring countriesNeighboring perimeter countries within ETSO CBT area out of ETSO CBT area ALSCG/CG, SCG/S, MKGR- B&HSCG/CG, SCG/S-HR BGMK, RO, SCG/SGRTR MKBG, SCG/S, ALGR- SCG/CGAL, B&H, SCG/S-- ROBG, SCG/SHUUA, MD SCG/SAL, B&H, BG, MK, RO, SCG/CGHUHR

13 13 Adoption of the ETSO CBT 2004 mechanism principles a)Identification of the horizontal network using ATF methodology b)Estimation of transits share and cost claim using transit keys c)Edge country concept is considered d)Estimation of SEE CBT Fund is based on the second half of 2003 year data set e)Contributions for the financing of SEE CBT Fund: - Imports from perimeter countries: 1 EURO/MWh - Net flows for exporting and importing directions: equal fees SEE CBT project design ETSO Report, Athens, 4 th June, 2004

14 14 Differences between ETSO and SETSO CBT 2004 mechanisms a)Consideration of 110 – 150 kV networks in HN, partially in line with ETSO criteria b)Consideration of HN costs using the standard assets c)Network losses are not included in the expected cost claim d)Tie-lines operating in island mode are considered (both for imports from perimeter countries and for exchanges within SEE CBT area) SEE CBT project design ETSO Report, Athens, 4 th June, 2004

15 15 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Identification of the HN in SEE CBT area –Each party defined the model of its network based on a reference model in normal operation, excluding maintenance works –For the tie-lines operating in island mode, the islands were virtually connected with the synchronous system –The models were converted to UCTE format and forwarded to NEK (acting as Simulation Administrator) for the identification of HN –The same software package implementing the ATF approach was used, as in ETSO –It was considered all the possible one to one transit patterns with entering and exiting flows of 100 MW

16 16 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Country (Company) Circuits 400 kVCircuits 220 kVCircuits 110-150 kV Overall Network Horizontal Network Overall Network Horizontal Network Overall Network Horizontal Network km % % % Albania (KESH)124 1001147 100131256242.8 Bosnia and Herzegovina (ZEKC) 76676199.31507136890.83596311786.7 Bulgaria (NEK)2263223998.92693242089.99678564058.3 FYR of Macedonia (ESM) 395 100170 1001670154192.3 Montenegro (EPCG)263 100410 100575 100 Romania (TEL)4397433398.55291454185.818054573631.8 Serbia (EPS)1673165498.92320211591.24987431486.5 Horizontal network identification (circuits)

17 17 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Horizontal network identification (transformers) Transformers 400/220 kVTransformers 400/110 kVTransformers 220/110 kV and 150/110 kV Country (Company) Overall Networ k Horizontal NetworkOverall Network Horizontal NetworkOverall Network Horizontal Network MVA % % % Albania (KESH) 1*120 1*100 600 2*300100150 1*15010015907303*9045.9 3*60 2*30 Bosnia and Herzegovina (ZEKC) 2800 7*4001002100 7*3001002250 15*150100 3*800 1*399 29*200 Bulgaria (NEK)4474 1*6301004399414915*25094.3832061602*18084 2*722 FYR of Macedonia (ESM) 2100 7*300100450 3*150100 2*50100 Montenegro (EPCG) 800 2*400100600 2*300100700 2*125100 3*150 Romania (TEL) 39*200 8800800020*40090.95250250010*25047.61532579251*12551.7 2*100 4000 10*400100315028509*30090.5610045502*20074.6 Serbia (EPS) 1*150 27*150 1*100

18 18 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Horizontal network costs (general) On CEER/SEEER WG meeting in Athens (25.02.2004) it was proposed to use the dry-run standard costs for the real implementation, already used for the virtual phase: Average replacement standard costs as computed by CEER Standard costs for lines, defined per voltage level and per km Standard costs for transformers, defined per installed capacity (MVA) according to the typologies presently operated in SEE Polynomial dependency of transformers price with the installed capacity, for deducting construction costs for machines of different size (basic size: 400/220 KV, 400 MVA, 3 Mil. ) HN annual costs to be determined by applying an annuity factor = 9% The SEE TSOs agreed to adopt the standard costs proposed by SEEER as appropriate for remuneration of HN usage

19 19 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Horizontal network costs (standard costs) Lines Cost Euro/km 400 kV205,000 220 kV125,000 150 kV80,000 110 kV70,000 Transformer type Installed capacity CostsCost/MVA MVAEuro x 1.000.000 EURO / MVA 400/220 kV 8005.046,300 7224.676,500 6304.226,700 4003.007,500 3002.438,100 400/110 kV 4003.007,500 3002.438,100 2502.108,400 1501.449,600 220/110 kV 2001.788,900 1801.659,200 1501.449,600 1251.2510,000 1001.0610,600 150/110 kV 500.6312,600 400.5313,300

20 20 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Total Overall and Horizontal Network annual costs Type of grid element Country Overall NetworkHorizontal Network Annual costsAnnual Cost Total costsTSOEuro (1)(2)(3)(4)(5) Total costs of overall network and horizontal network (Circuits + Transformers) KESHAlbania 25,618,194 20,041,470 ZEKCBosnia & Herzegovina 59,106,150 54,432,450 NEKBulgaria 144,786,832 114,694,990 EMSFYR of Macedonia 21,917,475 21,104,775 EPCGMontenegro 14,678,550 TELRomania 276,585,300 180,817,200 EPSSerbia 98,695,350 90,195,750 Total ON and HN annual costs641,387,851495,965,185

21 21 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Transit and transit keys calculation Transit formula: Transit key formula: Calculation of the transit for a CBT party: Period: second half of 2003 year Real Flows: all tie-lines with the neighbouring CBT parties and the perimeter countries participating in the identification and calculations of HN (parallel and island) Load: national electrical consumption, according to the UCTE definition

22 22 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 Transit key and expected cost claim for SEE CBT parties CountryTSO/Company Consumption in the 2 nd half of 2003 Transit in the 2 nd half of 2003 "transit key" Cost of the HN Expected cost claim MWh %Euro AlbaniaKESH2,730,61528,7011.0410,020,735104,231 Bosnia & HerzegovinaZEKC5,093,361810,90413.7327,216,2253,737,933 BulgariaNEK17,493,637234,0151.3257,347,495757,019 FYR of MacedoniaESM3,606,600269,1636.9410,552,388732,840 MontenegroEPCG2,157,016347,19113.867,339,2751,017,540 RomaniaTEL24,512,000587,8642.3490,408,6002,117,460 SerbiaEPS16,403,7791,998,63010,8645,097,8754,897,944 TOTAL71,997,0084,276,4685.61 247,982,593 13,364,966 SEE CBT Fund is estimated on a six-month basis, according to the ETSO CBT 2004 financing principles.

23 23 SEE CBT project design ETSO Report, Athens, 4 th June, 2004 SEE CBT Agreement and SEE Business Process Description based on the experience achieved in the dry-run phase, the documents shall be negotiated by the signatories CBT parties first proposal of BPD was drafted by EKC, which shall continue to act as Data Administrator for entire 2004 year first draft of contract is under preparation to be submitted by next week planned meeting for the negotiation of final documents in Sofia, 14- 15 June 2004

24 24 Financial & legal issues: 1. VAT and other taxes Non-harmonized national legislations in the SEE countries to exempt VAT and other taxes related to the inter-TSO CBT schema Additional costs for invoiced or invoicing parties could increase the amount of money exchanged among the SEE TSOs A proposal in the hands of ECSEE: to facilitate SEE CBT process by inviting to a removal of all VAT and taxes in implementing of a CBT mechanism Financial & legal issues: 2. netting/compensation Clarification achieved on the final position to be invoiced by the CBT parties ETSO supported SEE TSOs by providing right explanations from their financial consultants ETSO Report, Athens, 4 th June, 2004 SEE CBT project design

25 25 Financial & legal issues: 3. financial guaranties Certain TSOs asked for introducing of financial guaranties among SEE CBT parties The right understanding of above issue: oA CBT schema could be seen as a never-ending process which shall be run without interruption oA bilateral financial guaranty could cover the risk for a limited period, but can not protect the continuous functioning of the CBT process oA feasible solution is to reach the existing ETSO trust among the SEE TSOs ETSO Report, Athens, 4 th June, 2004 SEE CBT project design

26 26 Commercial issues (transit contracts between TSOs and traders) Certain TSOs were concerned on interrupting the existing transit contracts with traders due to the possibility to be charged by traders for damages One solution both for traders and TSOs is to amiable agree to cease the transit contracts after starting CBT mechanism keeping the ATC rights (for entering and exiting TSOs networks) No damages should be charged since the electricity trades are not to be affected A discriminatory treatment of the traders by the TSOs, both charging transit fees and applying a CBT schema, should be avoided ETSO Report, Athens, 4 th June, 2004 SEE CBT project design

27 27 ETSO – SETSO CBT interface issues ETSO Report, Athens, 4 th June, 2004 Current status for the second semester of 2004: ETSO shall charge imports from SETSO area with 1 Euro/MWh SETSO shall charge imports from ETSO area with 1 Euro/MWh For 2005, few solutions are under investigation by (S)ETSO: An injection fee on physical flows between ETSO and SETSO neighboring CBT parties Gradual integration of SEE TSOs into the ETSO CBT mechanism One single CBT area in a single synchronous European zone SEE CBT project design

28 28 ETSO Report, Athens, 4 th June, 2004 Summary 1. Present situation 2. Report on the SEE CBT virtual phase 3. SEE CBT project design for real implementation 4. Conclusions and next steps

29 29 Conclusions and next steps ETSO Report, Athens, 4 th June, 2004 The implementation of the inter-TSO compensation mechanism in SEE region, starting from 1 st July 2004 is a priority for the Energy Community of South East Europe. Based on the real experience we shall achieved this year, the integration of the ETSO and SEE CBT mechanisms in 2005 may be investigated.

30 30 Alexandru Ionescu CN TRANSELECTRICA SA 33, Gen. Ghe. Magheru Blvd., Bucharest - 1, RO - 010325 Planning and Marketing Division Head of Dept. for Operations on the Regulated Market Phone: +4021 303 57 32 Fax: +4021 303 56 70 E-mail: aionescu@transelectrica.ro http://portal.transelectrica.ro THANK YOU to all experts from SEE TSOs, EKC, ETSO secretariat and ETSO ERCBT TF for their support in elaboration of this operational proposal Silvio Brkic HEP – Transmission Ltd. Ulica grada Vukovara 37 10 000 Zagreb – Croatia Phone: +385 1 6322 625 Fax: +385 1 6322 277 E-mail: silvio.brkic@hep.hr www.hep.hr ETSO Report, Athens, 4 th June, 2004


Download ppt "1 Report on the implementation of CBT mechanism in SEE region Alexandru Ionescu – CN Transelectrica SA (Romania) Silvio Brkic – HEP (Croatia) subgroup."

Similar presentations


Ads by Google