Transcript Document

Transelectrica - The Romanian TSO:
Chalenges and Perspectives
Bogdan Popescu-Vifor
Director Strategy, Planning, Marketing & Sales
Transelectrica SA
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Power Market Structure
Market opening
degree
Transelectrica
TSO
OPCOM
E1
E2
E3
1.07.2005: ~83%
Power Exchange
...
E8
8 distribution & supply companies
Hidroelectrica
T1
T2
...
T7
...
Thermal generators
Co-generation companies and IPP’s
Nuclearelectrica
…
Traders and suppliers
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Transelectrica’s roles and responsibilities
Transelectrica’s
functions:
Transmission and
System Operator for
the Romanian Power
System;
Balancing Market
Operator;
Commercial operator
of the electricity
market, through
OPCOM;
Metering Operator in
the wholesale market.
Mission and responsibility: to ensure the Romanian Power
System’s reliable and stable operations, at high quality standards,
while providing a national electricity market infrastructure and
securing regulated access to the Romanian electricity transmission
network under transparent, non-discriminatory and fair conditions to
all market participants.
Main activities of Transelectrica are:
» Technical and operational management of the Power System, to ensure its safety and
stability
» Operation, maintenance and development of its assets
» Planning of the National Power System and transmission network development
» Market administration through its legally independent subsidiary OPCOM
» Management of interconnections and electricity transits with neighbouring countries
» Transelectrica does not trade electricity, except to cover its own transmission losses
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Transelectrica
8,800 km of
Over Head Lines
(OHL) :
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
The Romanian Transmission Grid
154.4 km of 750 kV
4,474.2 km of 400 kV
Ukraine
4,134 km of 220 kV
40 km of 110 kV
79
transforming
substations
1 of 750 kV
32 of 400 kV
46 of 220 kV
Ukraine
The total
transmission capacity
is 22,000 MW
Black Sea
Serbia &
Montenegro
Bulgaria
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Transelectrica – the TSO
Transelectrica is member of
UCTE
ETSO
SETSO TF
Continuous involvement in
Athens Forum process
ECSEE Development
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Tariff determination methodology
Tariffs structure
Three categories of tariffs:
Tariffs: determined by
ANRE, based on the
Regulated Assets Base
mechanism
Tariff for market
administration - set
under a pass-through
logic
Transmission tariff: covers
total network costs, including
maintenance and
development
System services tariff: covers
the costs of the national
power system dispatching,
including the cost of
purchasing ancillary services
Market administration tariff:
covers the costs of OPCOM
Determination / adjustment of the transmission
tariff
Methodology for setting
transmission tariff: starting with
2005 - Revenue – Cap Model
Input data used: regulated asset
base, changes in WC, forecast
calculation of operational costs,
interest expenses and CAPEX
submitted by Transelectrica
Tariff reviewed annually in the first
regulatory period (2005-2007) and
on 5-year periods afterwards. ANRE
can make interim adjustments
according to the EURO/RON rate.
Tariff adjustments - also triggered
by cost deviations over +/- 5% of
the assumed level.
6.5% - WACC used by ANRE for
the 2006 transmission tariff.
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
The most important clients in 2006
2.7%
3.0%
3.0%
3.1%
9.4%
12.5%
3.3%
3.3%
3.6%
7.7%
3.9%
4.6%
6.7%
5.9%
6.4%
5.9%
6.0%
6.2%
Altii
Hidroelectrica
Electrica Muntenia Sud
Electrica Moldova
Electrica Oltenia
Electrica Muntenia Nord
Electrica Transilvania Sud
Electrica Transilvania Nord
Energy Holding
Electrica Banat
CE Turceni
Electrica Dobrogea
ALRO
CE Rovinari
CE Craiova
Nuclearelectrica
Mittal Steel
Electrocentrale Bucuresti
Electrocentrale Deva
RAAN
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
The Power Market and the System Operation
The Wholesale Market Commercial Code
approved by ANRE in 2004 provides for TSO

to running the balancing market

to purchasing ancillary services on market-based
procedures

to allocating interconnection capacities on marketbased procedures

To awarding green certificates to green energy
producers
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Power Market in Romania (2005)
OTC
Bilateral Contracts
Producers
Suppliers
Bids
(Quantities
Prices)
OPCOM Power Exchange
(Physical day-ahead market
Financial derivatives
Financial settlement)
Bids
(Quantities
Prices)
SPOT PRICE
Physical
Notifications
Transelectrica
Physical
Notifications
Scheduling
Bids
(Quantities
Prices)
Balancing market
Bids
(Quantities
Prices)
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Balancing Market
The Balancing Market represents a tool for the TSO to
handle:
the unpredictable imbalances between production and
consumption as a result of the deviations from the operational
program established based on the physical notifications from the
market participants, as scheduled according to the other electricity
markets (spot market, OTC contracts etc.), forecast imprecision,
forced outages, etc.
the system constraints resulted from both the ex-ante
trading, on the basis of physical notifications, and in real time.
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
The Power Market And System Balancing
Spot market
(Day-ahead
Market)
Balancing
Market
MW
Bids
Schedules
Bids
D -1
D
11.00
15.00
17.00
D+1
h-1
OTC Contracts
Trades on the spot
Trades on the Balancing Market
h
time
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Bids on the Balancing Market
Downward regulation
Bids per generating unit,
for each hour, up to 10
pairs {Qty/Price}
Same bid used for
secondary, fast and slow
tertiary regulation
Upward regulation
Price
[lei/MWh
Secondary regulation
energy settled at marginal
price
Fast and slow tertiary
regulation energy settled
“pay-as-bid”
Secondary, fast tertiary
and slow tertiary reserves
contracted and settled
separately
0
Set Point
according to
the Physical
Notification
Qmax
Qty [MWh/h]
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Commercial arrangements on the
balancing market
Generating
Companies and
Dispatchable
Consumers
Distribution &
Supply
Companies
TRANSELECTRICA
Transmission &
System Operator
Balancing Market
Operator
Generating
Companies and
Dispatchable
Consumers
LEGEND:
Upwards Regulating Power Contracts
Downwards Regulating Power Contracts
Deficit Imbalance Power Contracts
Excess Imbalance Power Contracts
Balancing
Responsible Parties
Electricity
Suppliers &
Traders
Eligible
Consumers
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Romanian Experience until now
Complex software needed for
Running the balancing market
Settlement of the balancing market
Settlement of imbalances
Complex metering system needed for
Metered data on the balancing responsible
parties’ boundaries
Metered data for the balancing market
participants
Defining balancing responsible parties is crucial
Adequate training for all the market participants is
highly required
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
The Power Market and the System Operation
The Wholesale Market Commercial Code
approved by ANRE in 2004 provides for TSO

to running the balancing market

to purchasing ancillary services on market-based
procedures

to allocating interconnection capacities on
market-based procedures

To awarding green certificates to green energy
producers
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Cross – Border Transmission
 The transmission, system
and market administration
services for the
imported/exported energy
is provided on contractual
basis.
 The tariffs applied are
regulated by ANRE and are
the same as on the
domestic market.
 The only restriction on
imported/exported power
is the net transfer capacity
of the interconnection
lines.
 Transelectrica aims to
participate in the inter-TSO
compensation mechanism
within the SEE region,
facilitating the cross
border trades.
Power exchanges on interconnection lines
2005 (in MWh)
1449
34
281830
MOLDAVIA
201470
0
0
194474
30482
2000
2002
2004
2001
2003
2005
0
4517
112784
3,2903,046
2938
2,077
0
17471601 1,469
774 767436962
0
0
Import
[GWh]
21860
Export
[GWh]
0
0
762926
0
2010809
226246
SERBIA
and
MONTENEGRO
0
(*)
1183
0
Dobrudja
22102
708000
0
physical flows on
interconnection
lines for 2005
[MWh]
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Rationals for capacity allocation
Directive 2003/54 on Internal Energy
Market
EC Regulation 1228/2003 on Congestion
management and Cross-border trading
Congestion management should be performed
with market-based solutions
Explicit and implicit auctions are the only
market-based ways to allocate the capacity
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Agreements with the Neighbouring TSOs
Memoranda concluded with MAVIR Rt, NEK
EAD si EMS for:
NTC, ATC evaluation and convening
50:50 sharing of allocation responsibility on each
direction
Explicit auction on each border on the
Romanian side
Exceptions:
Ukraine: Agreement still to be negotiated with Ukrenergo
Moldova: Power imports and exports possible only in
pasive islands and radial operation
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Explicit Auctions Procedure
ATC Allocation Procedure aproved by ANRE and published
on the web site www.ope.ro
Registration of auction participants: Any market
participant intending to take part in Cross-Border
Auctions have to fulfil the following preconditions:
Hold a valid license from ANRE (for all applying
parties from Romania)
Provide ETSO Identification Code (EIC)
Be assigned to a Balance Responsible Party
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
ATC Auction: Standard Bid
Bids per crossborder interface
and direction,
same for each
hour of the auction
period, up to 10
pairs {Qty/Price}
Price
[lei/MWh
0
Qty [MW]
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
ATC Auction: Standard Merit Order (1)
Price
[lei/MWh
Auction
Price
0
Qty [MW]
ATC Value
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
ATC Auction: Standard Merit Order (2)
Price
[lei/MWh
Auction
Price
0
ATC Value
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Romanian Experience until now
There is a need for all TSOs involved to use a
common agreed procedure to calculate the NTC
values
Auctioning process unification on each border
might be more adequate
Requires bilateral agreements between TSOs
Requires regulatory agreement and aproval on the both
sides
Flow-based coordinated explicit auction at
regional level could be a better solution.
Day-ahead implicit auctions on the spot market
could enhance the usage degree of the crossborder lines
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Transelectrica
Conferinta Energiei in regiunea Marii Negre, Bucuresti, 4.04.2006
Conclusions
Romania achieved steps forward in terms
of:
Transmission network development
Market mechanisms implementation with
Internal and
Regional perspective
Romania is ready to share its expertise