1. Transelectrica SA Transelectrica’s Strategy
Two-tier-management company
Transelectrica’s Strategy
in line with European goals
Romanian HydroPower Market Outlook and expected developments for 2014
Bucharest, Feb 2014

2. Romania at crossroads i ii iii
Between RGCE (ENTSO-E Continental Europe Regional Group) areas and non (or not yet) ENTSO-E areas (Moldova, Ukraine, Turkey) i
Between different congestion management regions within ENTSO-E:
- Central East Europe
- South East Europe ii
Between EU, and non-EU countries within ENTSO-E South-East Europe Regional Group (3rd EU legislative package not mandatory for all the members in the Regional Group)
iii

3. Main challlenges faced by Transelectrica
Transelectrica’s challenges facing alignment requirements with 2030 policy framework for climate and energy
Integrate renewable generation ( mainly wind) and new generation capacities
Development of interconnection capacity to avoid internal/regional congestion
Improving adequacy of the transmission grid (full compliance with ENTSO-E standards)
High investment requirements

4. capex program ≈1,115 Investment needs 2014-2023 (Eur mill) ≈500
Fossil Fuel PP
Wind PP
OHL 400kV
OHL 220kV
OHL 400 kV operated at 220 kV
First stage
Second stage
New lines (> 1000 km)
Upgrade/ uprate
Power Flows
High penetration of wind plants
NPP Cernavoda
Interconn. capacity increase
Investment needs (Eur mill)
≈1,115
Cross border
≈500
RES & Relief of associated congestions
≈265
Replacement and upgrade of aged network assets
≈350
new lines to strengthen the transmission capacity and interconnection capacity
new facilities and technology change/updates
facilitates the power exchanges in S-E Europe
~400 km, 800 MW, 500 kV
consolidate the grid for all generation facilities in the area (renewables and nuclear)

5. Capex program Flagship projects (2014-2023) Cross-border ≈Eur 500 mill
Undersea Cable
RO-TR
Cross-border ≈Eur 500 mill
New interconnector RO-RS (+1000 MW export) Eur 30 mill
Reinforcement of internal south-western route* to enhance cross-border interconnectivity (HU and RS) Eur 115 mill
New interconnectors RO-MD Eur 105 mill
New interconnector (undersea cable) RO-TR Eur 260 mill
*route linking Portile de Fier (RO-RS interconnection point) with Arad (RO-HU interconnection point)
RES integration and congestion relief
≈Eur 265 mill
Connection OHL Isaccea-Varna and OHL Isaccea-Dobrudja in 400 kV Medgidia Sud subtation Eur 28 mill
OHL 400kV d.c. Cernavodă-Stâlpu and connection in Gura Ialomiţei Sbt Eur 50 mill
OHL 400 kV d.c. Gutinas-Smardan Eur 60 mill
OHL 400 kV s.c. Suceava-Gadalin Eur 95 mill
Upgrade to 400 kV of OHL 220 kV Brazi Vest- Teleajen-Stalpu Eur 5 mill
OHL 400 kV d.c. Medgidia Sud- Constanta Nord Eur 26 mill
Replacement & upgrade of existing aged network assets ≈Eur 350 mill

6. Cross-border interconnectivity
Moldova (MD)
Cross-border interconnectors (Moldova):
OHL 400 kV Suceava (RO) – Balti (MD)
EUR 65 mill: OHL total funding
EUR 30 mill: OHL Romanian share
EUR 40 mill: additional amount for back-to-back in Blati substation
OHL 400 kV Straseni (MD) – Ungheni (MD) – Iasi (RO)
EUR 100 mill: OHL total funding
EUR 15 mill: OHL Romanian share
EUR 40 mill: additional amount for back-to-back in Ungheni substation
EUR 60 mill: additional amount for reinforcement of the Romania’s internal grid in the area
OHL 400 kV Vulcanesti (MD) – Isaccea (RO)
EUR 40 mill for back-to-back in Vulcanesti substation MD
Suceava
Balti
Isaccea
Vulcanesti
Straseni
Iasi
Ungheni

7. Cross-border interconnectivity
Serbia (RS)
Cross-border interconnector (Serbia):
OHL 400 kV interconnector between Romania and Serbia
Resita (RO) – Pancevo (SE)
EUR 30 mill: Romanian share in total funding requirement RS
Restita
Pancevo
Arad
Reinforcement of internal south-western route* to enhance cross-border interconnectivity (HU and RS) Eur 115 mill
*route linking Portile de Fier (RO-RS interconnection point) with Arad (RO-HU interconnection point)
Portile de Fier

8. Cross-border interconnectivity
Turkey (TR)
Cross-border interconnector (Turkey):
HVDC 500 kV link between Romania and Turkey
EUR 520 mill: total project funding requirement
EUR 260: Romanian share TR
Undersea Cable
RO-TR
Cost breakdown (EUR mill)
Romania new 400 kV AC bay 2
Romania Conv Stn+link to Constanta Nord S/S 89
Romania DC Cable+OTHL+Cable Termination Stn 14
Sea HVDC cable
261
Tukey DC Cable+OTHL+Cable Termination Stn 20
Turkey Conv Stn+link to Alibeykoy S/S 81
Turkey new 400 kV AC bay
Telecomunication, incl. cable
Client Project Management 5
Contigencies (5%) 25

9. Backup slides

10. General EU Framework
Romania’s priorities – in line with EU’s energy&climate goals
The communication from the Commission entitled “Energy infrastructure priorities for 2020 and beyond — A Blueprint for an integrated European energy network”, followed by the Council conclusions of 28 February 2011 and the European Parliament resolution, called for a new energy infrastructure policy to optimize network development at European level for the period up to 2020 and beyond, in order to allow the Union to meet its core energy policy objectives of competitiveness, sustainability and security of supply.
Regulation (EU) No 347/2013 of The European Parliament and Council of April 17, 2013, on guidelines for trans-European energy infrastructure defines, up to and beyond, about 12 trans-European corridors and thematic areas of priority covering the electricity and gas grids and the transmission infrastructure of oil and CO2 as well: corridors : electricity – 4 + gas – 4 + oil – 1 and 3 thematic areas :Smart grids deployment, Electricity Highways, Cross-border CO2 network

11. Electricity, gas, and oil routes
European energy infrastructure priorities
Electricity, gas, and oil routes

12. ENTSO-E’s TYNDP
Romanian projects included in EU’s 10-year Grid Masterplan

13. Projected power flow patterns
Romania’s electricity transmission projects
bring a positive contribution towards the enhancement of transmission capabilities of the European electricity backbone

14. contact C.N.T.E.E. TRANSELECTRICA S.A. Fiscal Code: 13328043
Registry of Commerce: J40/8060/2000
Address: ROMANIA, BUCURESTI, 2- 4 Olteni Street, District 3
Web site:
Phone:
Fax:
President of the Executive Board (CEO): Stefan-Doru BUCATARU