BEMIP implementation WG. Interconnectors Market development

Transcription

1 BEMIP implementation WG Interconnectors Market development

2 Estlink 2 The EstLink 2 project is supported by the EU: 100 M EUR Conditions set by Fingrid for construction of Estlink 2, autumn 2009: Estonia: the opening of 35% of the Estonian electrical energy wholesale market Nord Pool Spot: the creation of an Estlink price area Both these conditions to be met during the first quarter of 2010 at the latest Criteria for investment decisions by Fingrid, 19 of May 2010 Positive development in the open electricity market in Estonia Development of the Estlink price area : Reliability and transparency of the price area Energy quantities traded flexibly on the power exchange Estlink 1 capacity allocated in the right amounts on Nord Pool Spot Expansion of the Estlink price area to the Latvian and Lithuanian energy markets

3 Land part in Finland -DC overheadline about 14 km -about 70 % route between existing two 110 kv powerlines -Converter station and extension of AC substation in Anttila -Arrangements of 4 x existing AC overheadlines total 2 km Sea part between Finland and Estonia -length about 145 km -seacable Land part in Estonia -underground DC cable about 11,5 km -Converter station and extension of AC substation in Püssi -Reinforcement of 2 x AC overheadlines total 126 km

4 EstLink 2 preliminary project time schedule Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Market criteria 1 Decision in principle, ER/FG Framework agreement Sea bed survey Environmental study in FIN Investment decision EIA of land part in EST Environmental study of sea part in EST Market criteria 2 Fishing study Cross border permit Water permit application in EST Water permit in FIN Commissioning Land access in EST Land access in FIN Supply contracts Cable laying Ask for tenders Cable and converter deliveries Burn-in time

5 Development of Latvia transmission network towards integrated Baltic electricity market Arnis Staltmanis Head of Inetrnational Project Department AS Augstsprieguma tīkls 4 June 2010

6 INTRODUCTION The main steps towards Latvia/Baltic Western part security of supply and market integration Reinforcement of transmission grid of Western part of Latvia : 1st stage - 330kV AC cable Riga CHP1 Imanta ( ) 2nd stage - 330kV OHL Grobina Liepaja Ventspils ( ) 3rd stage - 330kV s/st. Liepaja, Ventspils, Dundaga ( ) 4th stage - 330kV OHL Ventspils Dundaga Tume Riga ( ) Total costs estimated of 200MEUR and 43MEUR are granted by EU Development of Latvia transmission network towards integrated Baltic electricity market 2

7 PROJECT Nr.1, 1st. Stage - 330kV cable Riga CHP1 - Imanta closing the loop around Riga (2012) Main objective: Provision of reliable power supply in Riga region and connection for Kurzeme loop Key drives: : Riga CHP2 new unit 442MW decision to start construction of 14km 330kV AC cable \ Planned the next unit 442MW (2016) Possible increase of power demand in the Riga area Development of Latvia transmission network towards integrated Baltic electricity market 3

8 Project Nr Development of Latvia transmission network towards integrated Baltic electricity market 4

9 Project Nr.1, 1st. Stage - 330kV cable Riga CHP1 Imanta Key points: Financing approved in accordance with investment plan, payback time 40years Land reservation and agreement for substations` expansion and cable route 2009 January design tendering completed construction Development of Latvia transmission network towards integrated Baltic electricity market 5

10 Project Nr.1 2nd and 3rd. Stages 330kV OHL Grobina - Liepaja Ventspils (2015) Main objective: To improve security of supply of Western region of Latvia To provide connection of new coal-biomass TPP and wind power in Western region Key drives: New Liepaja TPP the unit 400MW, planned Development of wind power, expected approx. 1000MW Background for 4th. Stage 330kV OHL Ventspils Riga (Imanta) and project Nr.2 and Development of Latvia transmission network towards integrated Baltic electricity market 6

11 Projects Development of Latvia transmission network towards integrated Baltic electricity market 7

12 Project Nr.1.2 and stage 330kV OHL Grobina - Liepaja Ventspils (2015) Key points 2009 June Western region development study completed, - Land reservation for the new 330kV substations (Liepāja, Ventspils), decision on the OHL route alternatives, starting of EIA Land compensation, transformation, design, planned mainly along the existing 110kV OHL construction Development of Latvia transmission network towards integrated Baltic electricity market 8

13 BEMIP Baltic Energy Market Interconnection Plan 1

14 Strategic projects Lithuanian TSO Lithuanian Polish interconnection project LitPol Link Lithuanian Swedish interconnection project NordBalt Interconnection of Baltic power systems for synchronous operation with the ECN 2

15 Lithuanian Polish interconnection LitPol Link project 3

16 Progress Project progress Preparation of territorial planning documents for 400 kv transmission line Preparation of environmental impact assessment in Lithuania and Poland Technical feasibility study for back-to-back station, 400kV substation, extension of 330kV substation Investment realization and operation model of the interconnection Further work Environmental impact assessment in Lithuania and Poland Preparation of territorial planning documents for 400 kv transmission line Land ownership issues Preparation of the technical project for the line, substation, back-to-back station Permits and licensing issues Construction of interconnection 4

17 Lithuanian Swedish interconnection project NordBalt 5

18 Project progress Progress Preparation of territorial planning documents for interconnection on land Lithuanian and Swedish TSOs signed an agreement on implementation of investment EC granted financial EU assistance to the project EUR 131 million from EEPR program Baltic seabed survey works completed Selected VSC (Voltage Source Converter) technology for interconnection Preparation of the technical specifications for cable and converter stations Further work Preparation of territorial planning documents on land in Lithuania and Sweden Land ownership issues Tender for supply of cable and converter stations Preparation of technical project for interconnection Permits and licensing issues Construction of interconnection 6

19 BEMIP (Step 2. Q1 2010) Regulated tariffs have been removed for eligible customers Subsidized renewable energy can enter the market without losing subsidies Separation of TSO activities/roles Basic transparency rules (Nord Pool Spot rules) Congestion management method between Estonia-Latvia-Lithuania and a common position towards Russian and Belarus TSO s Common ITC treatment of the perimeter countries for Estonia, Latvia, Lithuania and Finland Removal of cross-border restrictions, such as license and tariff in three Baltic States Introduction by Nord Pool Spot of price area Estlink.

20 BEMIP (Step ) Baltic common day ahead market (based on Nord Pool Spot trading platform) Stepwise introduction of Intra-day market Market based congestion management, implicit auction between Baltic countries managed by NPS Estonia, Latvia, Lithuania and Finland have a common position and trading principles towards non EEA third countries Transparency according to the ERGEG's North European Electricity Regional Initiative Common reserves and balancing power market Harmonized imbalance settlement and imbalance pricing Common market monitoring and surveillance rules Development of financial markets (OTC)

21 THANK YOU!