ACCESS TO THE GRID Vaida Tamašauskaitė Power System Planning Division Power System Development Department Lietuvos energija AB Ryga, 3 July, 2006

2 THE STRUCTURE OF POWER SECTOR IN LITHUANIA PRODUCTION 3 production companies 3 CHP of district heating companies Few private mini HPP Few industrial power plants DISTRIBUTION Two distribution companies (one private) TRANSMISSON One Transmission System Operator company – Lietuvos Energija AB

3 LEGISLATION Law on electricity Law on energy Law on construction Law on public procurement Law on territory planning Rules for connection of new users Rules for supply and use of electricity Rules of exploitation of power plants and electricity networks Security rules on using electricity equipment Rules for installation of electricity equipment Order on promotion electricity energy production using renewable resources …….

4 CONTRACTS OF NEW CONNECTIONS TO THE NETWORK Transmission Distribution New User User Generation New Conventional Generation New Renewable Generation

5 PROCEDURES OF NEW CONNECTIONS TO THE NETWORK No permit for construction Operator New User Required permit for construction Municipality Operator 7 days 20 days Contract

6 Admission fee = real expenses for the new connections and the increasing power demand Distribution expenses between the market players TYPE OF CONNECTION (EXISTING) Transmission Distribution New User New Conventional Generation 100%0% 60% 40% 100% 0% New Renewable Generation 40% 60% 0%?0%? 0%?0%?

7 TYPE OF CONNECTION (PLANNED NEW) Renewable generation (no changes); New customer to the transmission (100% customer, 0% TSO); New big customer to the distribution (40% customer, 60% DSO&TSO of all costs); New small customer to the distribution (no changes); New generation (no changes); New distribution substation (no changes for the natural grow); Reconstruction, cabling of overhead lines (no changes).

8 RULES, PRINCIPLES AND ADMISSION FEES FOR THE DISTRIBUTION NETWORK CONNECTION TO THE TRANSMISSION GRID At the moment: NO detail Rules, NO principles, NO admission fees for the Distribution Network connection to the Transmission grid. Have to be !

9 PROBLEMS No detail rules and lack of secondary legislation about TSO and DSO interrelations; DSO don’t want to invest (forward investments to the TSO); Payment for connection to the grid based on the estimates of the technical design project (risk of loss or win); Private DSO. Different view, different values, different point of view to the customers; Not legally constructed generators (no requirements from TSO, don’t want to pay for reserve).

10 Lietuvos Energija AB Zveju str. 14, LT , Vilnius Lithuania web