1. IG Meeting Transmission Development activities in the CEE Region in the scope of Coordinated Transmission System Development WG and UCTE Central East Forum Svatopluk Vnoucek, CEPS Vienna, May 9th.2008

2.  Challenges and problems facing TSOs  CTSD WG/CE RF activities  Creation of Transmission Plan (TP)  TP – methodology and main outcomes  Other issues - plan for 2008 Presentation Outline

3. EU Objectives “…The promotion of the internal electricity market as well as the preservation and promotion of security of supply and the establishment of an ecologically sustainable energy supply, are part of the major objectives of the European Community…”

4. Future of Power Industry - Trend “…The electricity supply industry is undergoing a profound transformation worldwide. Market forces, scarcer natural sources, and an ever-increasing demand for electricity are some of drivers responsible for such an unprecedented change…”

5. Increase in Power Trading with fast varying load patterns is contributing to an increasing congestion and bottlenecks (Insufficient Transport Capacity). Increase in Power Trading with fast varying load patterns is contributing to an increasing congestion and bottlenecks (Insufficient Transport Capacity). The demand for a high reliability of power supply and high power quality. The demand for a high reliability of power supply and high power quality. The dramatic global climate developments have increased the demand of Clean Energy (RES). The dramatic global climate developments have increased the demand of Clean Energy (RES). Clogging of the available Transmission Capacity caused by Unexpected and Unwanted Circulating Power Flows. Clogging of the available Transmission Capacity caused by Unexpected and Unwanted Circulating Power Flows. …Therefore the challenges to TSOs:

6. Transmission Developments of many TSOs are being thwarted by a variety of well-founded, environmental, land-use, aesthetic considerations and regulatory pressures that prevent the licensing and construction of New Transmission Lines Transmission Developments of many TSOs are being thwarted by a variety of well-founded, environmental, land-use, aesthetic considerations and regulatory pressures that prevent the licensing and construction of New Transmission Lines Integration of European Market Integration of European Market  Contradictory requirements - maximizing security and minimizing the total cost  A lot of uncertainties on the locations, on the amounts of future generation units and on the associated transmission needs …Problems: Against the later mentioned rapid evolution … Goals remain unchanged : Sustainability of power supply must be provided Sustainability of power supply must be provided The Electricity Network Developments of the future must be Secure, Cost-effective and environmentally compatible The Electricity Network Developments of the future must be Secure, Cost-effective and environmentally compatible

7. Coordinated Transmission System Development Working Group  Established on its April high level meeting of 8 TSO, in 2006  CEPS, E-ON, ELES, MAVIR, PSE-Operator, SEPS, VATTENFALL, APG Verbund  The mission of group was defined (according to minutes from meeting) : … compile a list of already planned grid enforcements and extensions in the region … … compile a list of already planned grid enforcements and extensions in the region … … build a platform for regular meetings of grid planning experts… … build a platform for regular meetings of grid planning experts…

8. Background Benefits and advantages of cooperation of TSOs could be clearer if the following points are considered: TS in CEE region are influencing substantially each other as is given by existing meshed network and/or intensive international market with energy. TS in CEE region are influencing substantially each other as is given by existing meshed network and/or intensive international market with energy. Current transmission system weak points are very often border profiles between TSOs. Current transmission system weak points are very often border profiles between TSOs. New transmission system installations have effect not just for particular TSO but also for adjacent ones. New transmission system installations have effect not just for particular TSO but also for adjacent ones. Mutual exchange of information gives possibility to optimize development plans. Mutual exchange of information gives possibility to optimize development plans. Transmission development activities (planning and preparing investments) have long-term nature. Transmission development activities (planning and preparing investments) have long-term nature.

9. Expectations: Through exchange of information within the group the members will be informed of plans and progress of other TSOs. Through exchange of information within the group the members will be informed of plans and progress of other TSOs. They will have an opportunity to extract, adapt and learn those practices, methodology, structures, procedures and approaches that are being used and have proved to bring good results. They will have an opportunity to extract, adapt and learn those practices, methodology, structures, procedures and approaches that are being used and have proved to bring good results. Whenever possible a compilation of technical issues for planning purposes from TSO members in the group. Whenever possible a compilation of technical issues for planning purposes from TSO members in the group. Compilation of list of projects in CEE region Compilation of list of projects in CEE region

10. Activities: Creation of Terms of Reference. Creation of Terms of Reference. Creation of Internal Guidelines. Creation of Internal Guidelines. Review of common technical aspects related to development planning, e.g. N-1 Criterion. Review of common technical aspects related to development planning, e.g. N-1 Criterion. Presentation of experiences in the area of Development Planning from each TSO in the group. Presentation of experiences in the area of Development Planning from each TSO in the group. Additional role: Central East Regional Forum Additional role: Central East Regional Forum In the frame of UCTE Working Group Coordinated Planning the WG CTSD acts and performs all activities subjected to Central-East regional forum. In this context WG CTSD prepared a CEE Transmission Development plan. Final version of this CEE Transmission Development Plan is available. WG held 7 meetings since its establishment. WG held 7 meetings since its establishment. Creation of CEE Transmission Development Plan. Creation of CEE Transmission Development Plan.

11. On Regional Level – 5 Regional Fora: Central West, South West, Central South, Central East and South East.. On Regional Level – 5 Regional Fora: Central West, South West, Central South, Central East and South East.. Central East Regional Forum: 7 countries and 8 TSOs were involved. Central East Regional Forum: 7 countries and 8 TSOs were involved. On UCTE Level – contribution from UCTE member states. 23 countries are involved. On UCTE Level – contribution from UCTE member states. 23 countries are involved. Transmission Development Plan (TP)

12. Organization - Map

13. In September 2007 WG started creation of CEE Transmission plan. In September 2007 WG started creation of CEE Transmission plan. Basic input was detailed list of projects in CEE region compiled in the first half of year 2007. Basic input was detailed list of projects in CEE region compiled in the first half of year 2007. TP was created, discussed, commented, amended, corrected by members during meetings and via e-mail. TP was created, discussed, commented, amended, corrected by members during meetings and via e-mail. CEE TP is completed and available CEE TP is completed and available At present UCTE Transmission plan is being set up from contributions of UCTE TSO members At present UCTE Transmission plan is being set up from contributions of UCTE TSO members Creation of CEE Transmission Plan

14. Creation of Transmission Plan

15. Transmission plan - methodology Methodology based on forecast depending on scenarios Methodology based on forecast depending on scenarios Consumption growth Consumption growth Generation projects Generation projects Power exchanges Power exchanges The adequacy of the TS dimensioning is verified in normal and contingencies conditions The adequacy of the TS dimensioning is verified in normal and contingencies conditions Strategies to reinforce the network are set up in order to minimize: Strategies to reinforce the network are set up in order to minimize: Costs of generation Costs of generation Redispatching Redispatching Unsupplied energy Unsupplied energy Losses Losses

16. Transmission plan - structure Introduction Introduction Purpose Purpose Context of the Transmission plan Context of the Transmission plan Organization & Participants Organization & Participants Methodology & Data representativeness Methodology & Data representativeness Description of CEE system Description of CEE system Present situation – consumption, generation, energy, power balance Present situation – consumption, generation, energy, power balance Scenarios for each TSO – consumption/generation Scenarios for each TSO – consumption/generation Synthesis of consumption/generation Synthesis of consumption/generation

17. Transmission plan - structure International interconnections International interconnections Present situation - interconnection lines, NTC, historical exchanges, auction an market coupling Present situation - interconnection lines, NTC, historical exchanges, auction an market coupling National comments to market development and exchanges National comments to market development and exchanges Development of interconnections Development of interconnections Transmission network development Transmission network development Individual TSO network development Individual TSO network development Appendices – list of all projects in CEE region Appendices – list of all projects in CEE region Map of all projects in region Map of all projects in region Individual TSO’s development maps Individual TSO’s development maps

18. Transmission plan - examples

28. Transmission plan – main outcomes CEE TP CEE TP TP for 8 TSO over the next 13 years TP for 8 TSO over the next 13 years 55 projects with effect on CEE TS 55 projects with effect on CEE TS Prepared in accordance with each individual TSO TP in the CEE Prepared in accordance with each individual TSO TP in the CEE TP complies with the requirements imposed to TSOs in accordance with Statutory Instrument 445 (2000), EC (Internal Market in Electricity) Regulations, 2000. TP complies with the requirements imposed to TSOs in accordance with Statutory Instrument 445 (2000), EC (Internal Market in Electricity) Regulations, 2000. Integration of European Market Integration of European Market Contradictory requirements - maximizing security and minimizing the total cost Contradictory requirements - maximizing security and minimizing the total cost A lot of uncertainties on the locations, on the amounts of future generation units and on the associated transmission needs A lot of uncertainties on the locations, on the amounts of future generation units and on the associated transmission needs

29. Transmission plan – main outcomes CEE transmission development CEE transmission development Prolongation of time required to commission new grid equipments Prolongation of time required to commission new grid equipments Difficult assessment of the future congestions Difficult assessment of the future congestions Volatility of inputs – applications for connection, energy exchanges, legislation framework … Volatility of inputs – applications for connection, energy exchanges, legislation framework … Resulted in greater uncertainties of future TD and considerably increasing number of scenarios Resulted in greater uncertainties of future TD and considerably increasing number of scenarios TP & future TP & future First document that of the TD in the CE region First document that of the TD in the CE region Based on the individual TP and TSOs bilateral studies Based on the individual TP and TSOs bilateral studies Proposal – update every two years, future extension by regional study and analysis? Proposal – update every two years, future extension by regional study and analysis?

30. Other issues - plan for 2008 Acting as UCTE coordinated development regional forum Acting as UCTE coordinated development regional forum  Coordination of building the first planning database  Following and commenting materials working out in UCTE WG – authorization procedures, priority projects selection, planning policy in UCTE Important projects and trends in region Important projects and trends in region  Information exchange, discussion and analysis  Determination of side effects on the other TSOs  Coordination of developments plan in CEE region Experience sharing in the field of TD Experience sharing in the field of TD  Market development and its influence on TS  Grid planning procedures, planning approaches  Legislation, coming changes of TS devel. due to EU

31. Thanks for your attention.