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BALTREL Conference Towards a common Electricity
Market in the Baltic Sea Region Helsinki,
September 2002
Transmission Grid Issues BALTREL WG2
Electricity Systems Integration Results of the
works
Frank Berger, WG2 Chairman, Vattenfall Europe
Transmission GmbH Robert Paprocki, WG2 Vice
Chairman, PSE S.A.
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WG2 Presentation Agenda
I. Scope of the WG2 Work II. The BALTREL
Reference Grid Code III. Future Development of
the Grid within BSR IV. Financing of New
Transmission Infrastructure IV. Summarising
Aspects V. Further Steps of Work
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BALTREL Study Projects
Study Project 1 - Common Rules for Electricity
Trade Study Project 2 - Joint Implementation and
other appropriate environmental matters Study
Project 3 - Gas and Electricity
Integration Study Project 4 - Network
development aspectsof a Common Electricity
Market Study Project 5 - Operational network
aspects of a Common Electricity Market.
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Network Development Aspects
Initial scope of work

• Collection, analysis and comparison of already
  existing grid codes in Baltic Sea Region
• Elaboration of a list of planned interconnection
  links and links under construction
• Creation of a BALTREL Grid Code for development
  aspects
• Elaboration of a digital grid map of the BALTREL
  grid regarding the existing maps of the three
  involved interconnected systems

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Operational Network Aspects
Initial scope of work

• Transfer of the knowledge between the countries
  to get a mutual understanding of the present
  similarities and differences in operational rules
  within Baltic Sea Region
• Identification of those operational rules, which
  are indispensable for creating a Common
  Electricity Market in Baltic Sea Region
• Agreement on common operational rules necessary
  for efficient processing of transmission service
  requests and reliable operation of systems in
  order to support the development of a Common
  Electricity Market conditions.

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The Organisation of WG2 work
BALTREL COMMITTEE
Working Group 1 Common Market and Supply
Working Group 2 Electricity Systems Integration
Data Analysis Team
TF 1.1 Common rules for trade
TF 1.2 Joint Implementation
TF 1.3 Gas and electricity integration
TF 2.2 Operational network aspects
TF 2.1 Development network aspects
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The Objective of WG2 Work

• The increasing complexity of interconnected power
• systems and the increasing volume of power
  exchange
• make the need for common planning standards,
• operating rules and trading rules more and more
  urgent.
• Since the liberalization in power sector there
  are
• no longer long term contracts in place.
• The load flow is much more volatile than in the
  past.
• The objective of WG2 is harmonization and
  development
• of a minimum set of common Baltrel Grid rules in
  order
• to enhance transmission system reliability while
  supporting
• introduction of a common electricity market in
  the BSR,
• where three different synchronous areas exist.

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Three Synchronous Areas in the BSR
Capacity 90 GW Peak load 60 GW Consumption 400
TWh Population 20 mln
NORDEL
Capacity 85 GW Peak load 60 GW Consumption 400
TWh Population 65 mln
Capacity 310 GW Peak load 180
GW Consumption 1200TWh Population 280 mln
UPS/IPS
ATSOI
UKTSOA
Capacity 510 GW Peak load 340 GW Consumption
2150 TWh Population 400 mln
UCTE
HVDC cables HVDC B2B stations HVAC
radial/island operation HVAC interconnectors
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BALTREL Reference Grid Code

• Three parts
• Operating Rules (TF 2.2)
• Planning Rules (TF 2.1)
• Glossary of Terms (TF 2.1 TF 2.2)

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BALTREL Reference Grid Code

• Main development steps
• collection of existing grid codes,
• identification of items relevant to the
  international
• co-operation,
• discussion of the terms (need for Glossary of
  Terms),
• comparison of technical rules,
• selection of justified items to be covered in
  RGC,
• elaboration of technical regulation,
• feedback from the industry,
• implementation non binding status, reference
  
  document.

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BALTREL RGC Operating Rules

• Issues covered
• balance control,
• transmission,
• cross border exchange,
• system co-ordination,
• emergency operations,
• operation planning,
• telecommunications,
• metering,
• operator personnel and training.

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BALTREL RGC Operating Rules

• Document structure
• Part one explanatory memorandum
• - background information describing document
  objectives basic assumptions and
  explaining / commenting proposed rules,
• Part two operating rules
• - containing specific rules in the form similar
  to NERC Operating Manual (basic principles,
  requirements, guides),
• - nine chapters corresponding with mentioned
  categories.

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BALTREL RGC Planning Rules

• Document structure
• main part
• - detailed comparison of different solutions
  applied in grid codes of involved synchronous
  areas (NORDEL, UCTE, Baltic, UPS) as well as
• NERC, UK and DVG,
• - recommendations for BALTREL countries,
• annexes
• - further detailed description of some issues,
• - list of major transmission projects planned and
  discussed within Baltic Sea Region,
• - digital map of transmission network within BSR.

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BALTREL RGC Planning Rules

• Issues covered
• demand forecasting and scenario setting,
• congestion management (planning perspective,
  long time),
• network security,
• voltage and reactive power control,
• requirements for power plants (ancillary
  services),
• further development of Baltic Ring Network,
• exchange of information between TSOs in BSR.
• Cross border tariffication and operational (short
  time) congestion management not covered in RGC as
  they have rather organisational and economical
  character (being worked out by ETSO).

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BALTREL RGC Glossary of Terms

• alphabetical list of terms and their definitions
• - all terms relevant to power system operation
  and planning,
• content based on
• - European glossaries (UCTE, ETSO, NGC, EU),
• - American glossaries (NERC, ERCOT, FERC, WEPEX,
  NARUC, IMO, CALPX),
• - Australian glossaries (NEC).

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BALTREL RGC Document Status

• due to existing differences between solutions in
  the three synchronous areas and individual
  countries direct implementation impossible at
  this stage,
• non binding reference document,
• framework of reference technical rules,
• aimed at facilitating the operation and
  development of transmission infrastructure needed
  for the market,
• important step towards development of BSR common
  electricity market.

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The Future Development of BSR grid

• Limited capacity between the
• three AC systems
• Congestion occurs also within
• synchronous areas/countries
• Short term solution
• congestion management (WG1)
• Long term solution
• increasing NTCs (investments)
• During the work on RGC the
• list of 15 major transmission
• projects within BALTREL
• area was compiled
• (planned and discussed,
• status end of May 2002)

1200
NORDEL
110
UPS/IPS
2550
80
0
3000
UCTE
HVDC cables HVDC B2B stations HVAC island
operation
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List of Planned and Discussed Projects
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13
1. PL-RU 400 kV AC B2B 600 MW 2. PL-LT
400 kV AC B2B 600 MW 3. PL-BY 400 kV AC
radial operation 4. PL-SK 400 kV AC 5. PL-D
PST 6. PL-D 400 kV AC 7. DK-DK
HVDC 600 MW 8. D-N HVDC 600 MW 9.
DK-DK 400 kV AC 10. S-N 400 kV AC 350
MW 11. S-N 300 kV AC 120 MW 12. RU-N
330/132 kV AC B2B 250 MW 13. RU-FIN 330/400 kV
AC B2B 500 MW 14. RU-FIN 330/400 kV AC 400 MW
15. FIN-EST HVDCLight 315 MW expected
commissioning in the end of 2002
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14
15
10
9
8
7
2
1
6
3
5
4
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Projects on UCTE UPS/IPS Interface
Kruonis
TBD
Kaliningrad
53 km
600 MW
Alytus
100 km
600 MW
154 km
152 km
TBD EBRD feasibility study 2002
Elblag
Elk
115 km
Matki
Narew
Berezowska power plant
(up to 800 MW)
240 km
Beloozerska
120 km
150 km
TBD option B2B in Ross (up to 1000 MW) ?
Podlaska
Siedlce/ Milosna
115 km
400 kV AC line 330 kV AC line HVDC B2B
station power plant in radial operation
Lublin
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Projects within UCTE
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Projects on UCTE NORDEL Interface
400 kV AC line 400 kV HVDC submarine cable
Sirdal
commissioning 2004
Aalborg
580 km Viking Cable 600 MW
117 km
Aarhus
Fraugde
Herslev
TBD
60 km Great Belt Cable 600 MW
postponed
Brunsbuttel
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Projects within NORDEL
commissioning 2002
Jarpstrommen
Nea
70 km
(thermal upgrade 120 MW)
Borgvik
400 kV AC line 300 kV AC line
Hasle
100 km
(thermal upgrade 350 MW)
commissioned 2001
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Projects on NORDEL UPS/IPS Interface
TBD
Kirkenes
200 km
Kola
250 MW
175 km
TBD
400 kV AC line 330 kV AC line 132 kV line HVDC
Light submarine cable HVDC B2B station power
plant in radial operation
500 MW
Pirttikoski
115 km
commissioning 2002
122 km
Vyborg
Kymi
130 km
?
North West TPP (400 MW)
100 km 315 MW
Veskimets
TBD
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The Need for Financing Mechanism
The mechanism facilitating the financing of
construction of new links should be worked out
- free trade may lead to new patterns of physical
flows thus calling for new transmission
lines - stable incomes as a basis for
financing cannot be guaranteed under market
conditions (e.g. no more long term contracts)
- in the deregulated environment transmission
infrastructure serves all market players
(highways of power) - funds collected by
TSOs in the process of congestion management
could be a potential source of finances
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Possible Solutions
In principle three ways for financing the
necessary investments in transmission
infrastructure can be identified 1. By the TSOs
acting as representatives for the whole
electricity market - normal way with highest
priority. 2. By investors who are interested in
using the connection - this is in conflict
with the basic principles of open markets. 3. By
public funding - for exceptional cases with high
social-economic but lowly economic benefits.
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Recommended Solution
TSOs acting as representatives of all electricity
market players should be responsible for new
investments under the following conditions -
the investments should reflect market needs
(e.g. relieving congestions, improving
reliability) - the electricity market must
send clear signals - TSOs should be allowed
to recover costs from network users
(congestion management, tariffs) - all
beneficiaries of new links should bear the costs
- it is proposed that the EU should minimise
the risk of economically difficult
interconnected projects (with low
forecasted returns)
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Summarising Aspects of WG2 Work

• The Baltrel RGC is a comparison of some grid
  codes
• existing around the world (NERC, UK and DVG).
• The compared grid codes are mainly dealing with
  co-operation
• of different electricity system within
  synchronous areas.
• In the future the Baltrel RGC could be the basis
  for developing
• a List of binding Requirements for joint
  operation of power
• systems in the BSR (asynchronous maybe
  synchronous).
• A close co-operation between TSOs and their
  co-operating
• organisations is advantageous and therefore
  recommended.

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Further Steps of Work
A general political dialog and support between
the countries involved is necessary for
developing a common electricity market and
infrastructure.
There is a continuing need for economic
support, e.g. European wide funds.

• There is a need for profound analysis regarding
• Development of the three synchronous areas
• Well-functioning congestion management
• Cross-border tariffs and transmission costs
• Financing of new transmission infrastructure
• Harmonizing of rules and equipment.