1. 1 An Intelligent Pan-European Network: The Supergrid 1 FEPS, Budapest 10 December 2013 Ana Aguado, CEO, Friends of the Supergrid

2. The Friends of the Supergrid 2

3. EU objectives related to Supergrid 3 Offshore wind Solar Hydro Carbon neutral Europe by 2050 Single European electricity market Secure and sustainable supply Transformed energy system Innovative technology to use and export Skilled employment opportunities

4. What is the Supergrid? 4 Offshore wind Solar Hydro Supergrid is the fundamental architecture of European electricity generation and supply. Without it we have a collection of sub-optimised national markets

5. Definition of Supergrid? 5 Offshore wind Solar Hydro The Supergrid is a pan-European transmission network facilitating the integration of large-scale renewable energy and the balancing and transportation of electricity, with the aim of improving the European market

6. OBJECTIVES OF ALL ENERGY PACKAGES Create competition for the industry and the consumers Production where most efficient/existing and consumption from anywhere A unique open market integrated and competitive

7. The Reality after 18 years National approaches Expensive energy: variable RES plus switchable fossil power Greater external dependency Increased CO2 emissions Capacity contracts 28 energy markets 7

8. Example of Supergrid Phase 1 8 Phase 0 – 2015-2020 Phase 1 – 2020+

9. Financing 1st Face of Supergrid connecting 4 Member States Merchant: paid by the direct users of the system: 1,55-4,67 cents/kWh Socialized: paid by all consumers 0,23 cents/kWh increase in tariff over a period of 40 years 9

10. OffshoreGrid Study: Connecting MSs would save 14 billion. Further additions would bring benefits of 16-21bn

11. Investments foreseen Distribution: ~ 400 bn Transmission: ~ 200 bn Total investment needs in the electricity and gas sector between 2010-20: over 1 trillion Power generation: ~ 500 bnTransmission and distribution: ~ 600 bn RES: ~ 310 – 370 bn Electricity: ~ 140 bn Gas: ~ 70 bn NB: approximative figures, mainly from DG ENER calculations based on data from PRIMES, ENTSOs, KEMA etc.

12. Supergrid Requires Strong political support in order to: Plan the network at EU level and not only national Adjust returns to attract investors Optimise generation at EU level Secure the supply at EU level and not 28 times 12

13. Le contexte européen Mêmes défis pour tous les pays: Une production renouvelable décentralisée Une production intermittente Une pression sur la rentabilité des unités thermiques Une responsabilité diluée en matière de sécurité dapprovisionnement Même constat dans tous les pays: Le marché ny arrive pas seul

14. Le contexte européen Mais pas de vision européenne: Chaque pays cherche sa recette propre, déterminent ses priorités dans le triangle Tous fixent la sécurité dapprovisionnement comme pré-requise Par contre, les choix environnementaux (sortie ou pas du nucléaire, choix technologiques) et de partage des coûts entre les types de consommateurs varient

15. Meshed HVDC Grid system Here breakers are needed to isolate faults on the DC side from the remaining healthy parts 15 In a future power network with a high density of DC converter station it is logical to connect them also on the DC side to have a combined AC and DC transmission grid

16. Recent Key Developments Technical landmarks during 2012 DC current interruption enable planning of the HVDC Supergrid now. Building blocks Hybrid HVDC Breaker and Half bridges Full bridge with fast switches Capacity increase in cable factories, ships, production and engineering facilities are announced Gearing up for anticipated larger future volumes The number of interconnection and embedded HVDC links in construction increases rapidly with higher power ratings E.g. South-West link SE, EWIP IR-UK, INELFE FR-ES, Western link UK FOSG technology members spend every year around 4% of their turnover on R&D: large part on transmission 16

17. What should be easier???? Further European integration via a common project of total cost 600- 800bn in 30 years Negotiating nationaly driven long-term contracts with third countries for gas and oil of 400bn every year 17

18. No Transition without Transmission www.friendsofthesupergrid.eu www.friendsofthesupergrid.eu Ana Aguado Cornago