COUNCIL OF THE EUROPEAN UNION. Brussels, 26 January /10 ENER 22

Transcription

1 COUNCIL OF THE EUROPEAN UNION Brussels, 26 January /10 ER 22 COVER NOTE from: Mr Andris PIEBALGS, Member of the European Commission date of receipt: 20 January 2010 to: Mr Pierre de BOISSIEU, Secretary-General of the Council of the European Union Subject: Annual activity report September September Project of European interest = Poland-Lithuania link and Germany-Poland power lines Delegations will find attached a report by Professor W. Mielczarski, European Coordinator, regarding the above. Encl.: 5750/10 JPD/sb 1

2 ANNUAL ACTIVITY REPORT SEPTEMBER SEPTEMBER 2009 European Coordinator PROF. WLADYSLAW MIELCZARSKI PROJECT OF EUROPEAN INTEREST POLAND LITHUANIA LINK and GERMANY POLAND POWER LINES Brussels, 30 September 2009 This report only represents the opinion of the European Coordinator and does not prejudge the official position of the Commission. The content of this report is accurate as of 30 September /10 JPD/sb 2

3 ANNUAL REPORT 2009 EXECUTIVE SUMMARY The period between September 2008 and September 2009 can be seen as very successful for the European infrastructure projects within the delegation of Prof. W. Mielczarski as the European Coordinator for power links between Germany-Poland and Poland-Lithuania. The project development company, LitPol Link, established by the Polish and the Lithuanian transmission operators: PSE-Operator and Lietuvos Energija, following the initiative of Prof. W. Mielczarski, is in full operation from May 2008 aiming at the preparation of the investment plans relating to the power line construction between Poland and Lithuania. The project, which has been discussed with little effect for over 15 years, now is moving ahead. The organizational structure of LitPol Link and its relations with shareholders, as well as the financing developed, as a system of the products delivered to transmission system operators, can be a pattern for any company dealing with cross border power interconnections. Common activities relating to the power interconnection have allowed for gaining confidence and better mutual understanding by both transmission system operators. The European Coordinator supports the activities of LitPol Link and both transmission operators. His initiative has also led to the series of events targeting the local authorities and environmental organizations. The meeting with local authorities in Ełk and the environmental conference in Jaczno organized in May 2009 have demonstrated that it is possible to establish good cooperation with local authorities and environmental organizations by providing adequate information on power projects and their importance for both countries and the entire European community. Subsequent meetings and conferences will be held in October 2009 in Lithuania and November 2009 in Poland and be continued in The significant progress has been achieved in the development of power interconnections between Germany and Poland. The proposal of Prof. W. Mielczarski to start the preparation of investment plans for the third power interconnection between Germany and Poland has gained the acceptance of the German (Vattenfall Europe Transmission the VET) and the Polish (PSE-Operator) transmission system operators and support of both governments as well as energy regulatory authorities. A series of meetings initiated by Prof. W. Mielczarski has led to the signature of Letter of Intent between the VET and PSE-Operator on the 23 rd of September The network operators will take the best endeavours to enter the formal agreement resulting in the establishment of the project development company dedicated to the preparation of investment plans for the power connection between Germany and Poland. The company should be in operation at the beginning of The active involvement of the European Coordinator has demonstrated that the European priority projects do not need to exist only on paper, but they can be implemented in real life providing benefits to the countries interconnected and the entire European community. 5750/10 JPD/sb 3

4 While promoting cross border interconnections the European Coordinator has to work actively with all parties involved, starting from European Commission and High Level Group, Member States governments, the energy regulatory bodies as well as the Transmission System Operators. The decisions and supports gained on the higher levels are transferred by the European Coordinator to the transmission system operators and project development companies such as: LitPol Link and GerPol Link, which aim at the practical implementation of the decisions taken. Fig. 1 presents the position of European Coordinator and the liaisons necessary to fulfill the mandate in a successful way. European Union European Commission High Level Group Government A Government B European Energy Coordinator Regulatory A Regulatory B TSO_A PDC LitPol Link or GerPol Link TSO_B System A Power line System B Fig. 1 Position of European Coordinator and his relations with other parties when fulfilling his mandate. 5750/10 JPD/sb 4

5 1. INTERNATIONAL POWER CONNECTIONS Priority projects There are three projects of the European Interest in the area supervised by Prof. W. Mielczarski as the European Coordinator 1. They include: 1 New connection between Poland and Lithuania (a line between Elk and Alytus), including the upgrading of the Polish and Lithuanian electricity networks 2 Enhancement of the existing lines between Vierraden (DE) - Krajnik (PL) 3 New power interconnection between Germany and Poland. The main problems identified by the European Commission in relation to a new power connection between Poland and Lithuania include 2 : Coordination and commitment of both Poland and Lithuania Uncertainty due to different synchronized areas Stability of Polish grid Natural protected area crossed Expropriations require law amendments in PL. The main issues related to the existing interconnection between Germany and Poland, and indicated by the Commission 3 are as follows: Feasibility study on strengthening the Polish grid Studies and results of PL - DE bilateral working groups Additional PL internal grid upgrading necessary Legal frame on DE side : prevents relevant expropriations for the interconnection with PL Local opposition: route, fear of Electro-Magnetic Fields, deterioration of landscape view Time consuming public consultations The challenges to develop a new connection between Germany and Poland are listed below: Increased loop flow between DE-PL-CZ, which will cause follow-up investments and require additional studies Additional PL internal grid upgrading necessary Agreement PL - DE required. Memorandum of understanding of eight Baltic States 4 Eight Baltic Sea Member States signed (17 June 2009) a Memorandum of Understanding on the Baltic Energy Market Interconnection Plan with European Commission President, José Manuel Barroso. The Baltic Energy Market Interconnection Plan (BEMIP) is the fruit of nine months work at the initiative of the Commission to look at concrete measures to connect Lithuania, Latvia and Estonia better to wider EU energy networks. 1 T-E guidelines 1364/2006, Annex III 2.28; 2.29; 2.32 and 3.62 to Interconnection Plan, COM (2006) 846 final 3 As above 4 From European Commission press release IP/09/ /10 JPD/sb 5

6 The electricity market design has been agreed, based on the Nordic electricity market model. A specific "Roadmap" that describes practical steps on how to reach the new market model and aims at removing the barriers to a regional electricity market in the Baltic States in conformity with the EU internal electricity market rules has been proposed, covering, for example: removal of regulated tariffs, separation of TSO activities and roles, removal of cross-border restrictions, establishment of market based congestion management, as well as common reserves and balancing power market, full opening of the retail market and establishment of common power exchange for physical trade in Nordic and Baltic area. Progressing on these market design aspects represents a crucial element for the integration of the electricity systems of the three Baltic States into the Nordic electricity market model. The Joint declaration of the three Baltic States' Prime Ministers signed in Vilnius on the 27 th of April 2009 confirmed their political commitment to pursue real market opening and integration in the electricity sector. The infrastructure projects allowing the integration of the Baltic Sea Region electricity markets are identified and have been assessed based on a simplified methodology. There are three sets of projects: The Nordic Master Plan that covers the projects between the Nordic countries, such as: Fenno - Skan II linking Finland and Sweden, Great Belt in Denmark, Nea - Järpströmmen between Sweden and Norway, South Link in Sweden and Skagerrak IV between Denmark and Norway and others. Regarding the projects linking the Baltic area with the Nordic countries, as well as Poland, all identified interconnections NordBalt or the previously called SwedLit linking Sweden to Lithuania, Estlink II between Estonia and Finland and LitPol between Poland and Lithuania - are commercially viable. Strengthening the electricity grid between these three Baltic States belongs to this set of projects. The interconnections between Poland and Germany form the third set of projects. The main driver behind these as opposed to market integration which is the case for the previous ones - is the loop flows caused by wind generation in the North. Initiatives launched by the European Coordinators Mr Adamowitsch with the so called 'heptalateral' Central Eastern Forum and Prof. Mielczarski cover these projects 1. GERAL REMARKS Implementation of cross border power interconnections The practical implementation of the European priority network projects and the projects of common European interests requires the involvement of at least two transmission system operators located on both sides of the border and, in some cases, involvement and/or coordination with other transmission system operators which are affected by power flow resulting from the construction of a cross border line. The acceptance of the energy regulatory bodies is also critical, as a significant part of infrastructure costs has to be covered by transmission fees approved by energy regulators. Last but not least is the political support of state governments by approving the plans for infrastructure development and encouraging transmission system operators to undertake cross border investments. 1 As stated in the European Commission press release. 5750/10 JPD/sb 6

7 Impact of network operator unbundling Unbundling of network operators is an important element of the electricity market introduction. In some cases, as in Poland, the transmission system operator (PSE-Operator) is entirely unbundled in organizational, legal and ownership aspects. Despite the facts that unbundling provides not only the transparency to the electricity market and should ensure, at least in assumptions, non-discriminatory treatment of all entities connected to the operator network, but also it breaks the traditional links, existing in vertically consolidated entities between network planning and the location of new generation capacities. The system of authorization, while accepting the development of generation assets, results in freedom of the commercial entities to make investment in places which seem to be the most attractive to such investments. However, it does not take into account the power flow in transmission networks and may cause problems with the accommodation of the electricity generated. In the case of some generation technologies, such as wind farms or hydro power stations, localization of generation assets is determined by the climate and/or geographical formations, so it seems to be logical that the development of the transmission network should proceed or be carried out in parallel to the construction of generating assets. However, there are technologies which are more flexible to the localization, such as coal or gas power stations. The crucial question, which remains unanswered, is: how to coordinate the investment in generation with the development of network transmission capacities. One of the ways to address the coordination problems is to ask the international associations of network operators such as TSO-E 1 to coordinate the network development. It can be achieved to some degree among network operators association, regardless how such processes are effective and time consuming. The problem which should be still discussed is the practical implementation of cooperation between network operators and investors in power generating assets. Some incentives can be introduced by transmission nodal charges; however, such charges in most cases discriminate customers located far from the transmission network centers, rarely creating real incentives for investors to change localization of generation assets. Unification of network codes and investment rules Despite many years of cooperation of network operators using various platforms the unsolved problems include the unification of network codes and investment rules. Activities of associations of operators and energy regulator bodies can result in some progress; however, the unification of network operation and investment rules can be also achieved when constructing cross border interconnections. 1 European Network of Transmission System Operators for Electricity 5750/10 JPD/sb 7

8 It is a reason why the European Coordinator encourages network operators to establish a joint venture entity for the preparation of the investment in cross border lines. Such an entity can operate as a bridge between operators, which are in the same time its shareholders, indicating problems to overcome and bringing to the common table experts responsible for network operation and investment rules from both sides of the border. Support of government and regulatory bodies The most important, in particular at the first stage, is the political support from both governments and visible support of European Commission. The support of Ministries dealing with energy allows for bringing parties, which will invest in the cross border connection, to the common table and encourage them to start activities leading to the construction of tie lines. The decisive role in the infrastructure development is the position of energy regulatory authorities. Assuming that the regulatory policy is a part of the national energy policy, which should be in conformity with the European energy policy, the regulatory bodies can also support the development of the infrastructure by transferring costs of such investment into transmission charges. It is also important that regulatory bodies should determine a reasonable rate of return from the network investment. If it does not happen, network operators will restrain from investment, not having guarantees that their expenses will be covered by income from transmission charges. When a rate of return is unknown, financial institutions have reservation to provide loans for network investment due to a large regulatory risk. Technical aspects Technical problems are relatively easy to overcome when constructing network infrastructure. New methods to arrange wires in overhead lines result in a low level of electromagnetic radiation. Decreasing costs of power cables indicate that in some areas overhead power lines can be replaced by cables. The power connections between Germany and Poland do not require specific equipment, because both power systems operate synchronously as a part of the UCTE 1 system. On the other hand, the interconnection between Poland and Lithuania should be equipped with a special electronic device called a back-to-back station, which is able to change alternating current (ac) into direct current (dc) and again dc into ac. Such equipment allows for the connection of two power systems which do not operate synchronously. It is planned that the line between Ełk and Alytus will be constructed as a double circuit three phase ac line. In Alytus, alternating currents having the frequency of the UCTE system, will be transferred into direct currents and again to alternating currents with the frequency of the Baltic state power systems. However, the back-to-back station increases the cost of network construction. 1 Union for the Coordination of the Transmission of Electricity 5750/10 JPD/sb 8

9 POWER LINE BETWE LITHUANIA AND POLAND Establishment of LiPol Link The initiatives of the European Coordinator have led to the establishment of the Project Development Company in order to prepare the investment plan for the interconnection between the power systems of Lithuania and Poland. The agreement between Transmission System Operators was signed in February 2008 and, after fulfilling legal requirements, the company called LitPol Link was formally registered in May This entity is a joint venture of PSE-Operator and Lietuvos Energija with 50/50 shares. LitPol Link is a highly specialized company employing seven persons. It has his business headquarters in Warsaw, while operating in Poland and Lithuania. The working language is English. The organization of LitPol Link, its relations with shareholders and rules of the operation can be a pattern of any project development company, which aims at the preparation of the investment in international power connections. Activities to September 2009 The main activities on the interconnection between Poland and Lithuania from the establishment of LitPol Link to the date cover: Overall assessment of the feasibility of constructing the interconnection and technologies that might be used to build a back-to-back station and analysis what new types of overhead power lines of 400 kv can be constructed in Lithuania Determination of the legal status of Local Spatial Development Plans in the relevant municipalities and provinces in Poland Determination of the legal status of power lines as set forth in the General Plan of the Republic of Lithuania, the General Plan of Alytus County, the General Plan of Alytus Municipality and the General Plan of Lazdijai Municipality Preliminary inquiries involving local authorities, local communities and NGOs in Lithuania and Poland, including an information meeting with local communities Coordination of consistent approach to managing the works in the various stages and their sequences in the Initial Phase of the Project to be executed by PSE Operator and Lietuvos Energija within the framework of detailed specifications of the respective scopes of work to be performed by the Lithuanian and Polish partners and of the work to be conducted jointly Development of an appropriate methodology for implementation of the Project, taking into account the environmental impact thereof in Lithuania and Poland Development of a joint position of the Lithuanian Ministry of the Environment and the State Directorate for Environmental Protection in Poland concerning the assessed trans-border environmental impact of the Project Analysis of the work performance in light of the agreed settlement rules in respect of work to be performed by LitPol Link in the Initial Phase of the Project, 5750/10 JPD/sb 9

10 Preparation of the tender proceedings including (a) localization study for 400 kv power line Ełk border of the Republic of Poland [Polish side]; (b) preparation of territorial planning and environmental impact assessment for the 400 kv overhead power transmission line between Alytus substation border of the Republic of Poland [Lithuanian side]; (c) preparation of feasibility study, technical documentation and territorial planning for reconstruction and extension of the Alytus substation with a back-to-back converter station [Lithuanian side]. Its scope embraces: (1) five variants of the route for the line; (2) territorial and environmental description for all variants. The draft of the power line route between Elk (Poland) and Alytus (Lithuania) is shown in Figure 3 in Appendix. Fig. 2 shows the cross border interconnection with the line in Poland required of enhancement. Planned actions for 2009 and 2010 By the end of this year it is expected to finish off the localization study at the Polish side. This document will be a basis for next products as EIA 1 (specifies impacted areas) and it will determine the scope of necessary territorial planning and a list of required documents maps, permissions etc. The planned actions from the beginning of next year comprise: starting of the formal procedures of territorial planning in both countries (preparation of maps for districts), screening, EIA report and the preparation of extended Information Card of Investment to obtain Scope of Environmental Report. At the Lithuanian side there are two ongoing tenders (according to the EBRD rules 2 ) where the selection and the approval of contractors is planned by the end of October Till the end of 2009 and in the next year a very important task is to coordinate the awarded contractors whose works should result in the development of the final technical plans of the power line. The products for common Polish Lithuanian area include technical requirements for several fields of expertise (power grid, primary and secondary circuits, protection and telecommunication systems, etc). These activities will be also continued in Basing on some results of feasibility studies, the LitPol Link is preparing the financial and operational models (indicating costs, timeline, risk assessment) of communication strategy (pointing out potential conflicts, PR requirements). All these tasks will be launched in 2009 with the continuation in the next year. Social communication aspects cover the framework of communication strategies and its adjustment according to the specified recommendations. In 2009, it is also planned to organize the environmental conference and meetings with local authorities similar to the event held in May 2009, in Jaczno, at the Lithuanian side. Such a conference provides an opportunity to establish the liaisons with the local communities and to gain their support for the project. 1 Environmental Impact Assessment 2 European Bank of Reconstruction and Development is involved in financing of two projects. 5750/10 JPD/sb 10

11 Pattern for other entities dealing with international power connections The organization of LitPol Link, its operation and the financing rules can be a pattern for other project development companies which aim at the preparation of investments in international power connections. LitPol Link signed with shareholders the Product Development Agreement which defines the scope of its activities as products for shareholders. All products are split into three categories, taking into account two countries where the products are prepared for a particular Transmission System Operator (shareholders) and a common area where products are developed for both shareholders. The financing depends on the products, which scope and quality are evaluated by particular shareholders. Such a system of relations with shareholders and financing via products ensures efficient operation of a project development company, LitPol Link, operating as a joint venture of both transmission system operators. Fig. 4 and Fig. 5 illustrate the relations between LitPol Link and shareholders and division of network assets. Scope of products for PSE-Operator on the Polish side includes: Introduction of the track of the line into Voivodship spatial development plans Implementation of the line route into Local Study of Conditions and Directions of Spatial Development of Councils Preparation and coordination of Construction and Implementation Design Obtaining decisions of Regional Director for Environmental Protection on environmental conditions for an investment Introduction of the track of the line into Local Plans of Spatial Development of Councils (MPZP) Acquiring the right of way (the cost of acquiring the right of way will be evaluated after the preparation of line location study) Acquiring of construction permit. Scope of Products of Lietuvos Energija on the Lithuanian side embraces: Special and detailed plans for the line and Alytus station Environmental Impact Assessment Feasibility study for reconstruction of Alytus station, including the back-to-back station Coordination of Construction and Implementation Design Acquiring the right of way Acquiring of construction permit for line construction Acquiring of construction permit for station construction (including back-to-back station) Common products for both transmission network operators can be listed as: Technical documentation for the line Financial and operational analysis related to Polish Lithuanian connection Coordination of Transboundary Environmental Impact Assessment Implementation of communication strategy Coordination of activities for general contractor procurement Other necessary analysis and consulting services. 5750/10 JPD/sb 11

12 Working with local authorities and environmental organizations The support of local authorities and environmental organisations are crucial elements of any power line project. Better understanding of the nature of power transmission, as well as the importance of the European infrastructure projects to the economies of the countries connected and all European communities, lead to the acceptance of the power line and changing the reservations frequently expressed as not in my backyard into the active cooperation and support. Following the European Coordinator proposals, LitPol Link organized in May 2009 a meeting in Ełk, the place where the interstate line begins, with local authorities at which all aspects of the line construction were discussed and gained the support. Next day, the environmental conference was held in Jaczno, a place on the route of the proposed power line. Prof. W. Mielczarski actively attended these meetings explaining the importance of the European dimension projects and supporting activities of LitPol Link. Subsequent meetings with local authorities and conferences will be organized at the end of October 2009 in Lithuania (Alytus) and in November in Poland. In 2010 such meetings and conferences will also be held, allowing for the continuing the liaisons established and gaining acceptance and support for the projected power line. The important element of each environmental conference is a meeting with local and central media from Poland and Lithuania in which the management of LitPol Link with the support of the European Coordinator explains various aspects of the line construction and its impact on environment as well as the European dimension of this project. The important part of the project is collaboration with the forest authorities as the interconnection between Poland and Lithuania will cross several forest areas. There are two possible solutions: first, the corridor between trees with the use of land under a power line for plantations of Christmas trees and second, very high supporting towers (pylons), covered by green masking colours over the forest leaving the trees untouched. GERMANY-POLAND POWER LINES Achieving the common point of view Following the first meeting in Berlin in May 2008 of both transmission system operators; Vattenfall Europe Transmission (the VET) and PSE-Operator, the second meeting with the European Energy Coordinators was held in Warsaw in October The discussion concentrated on two main issues, such as: Wind generation in Germany and limited network capability to absorb the wind energy Impact of the flow of wind energy via the existing power connections from Germany to Poland and further south to the Czech and Austrian power systems. 5750/10 JPD/sb 12

13 It was clear that the existing lines have limited capacities and the configuration of power systems on both Polish and German sides does not allow for significant exchange of electrical energy between these two countries. Prof. W. Mielczarski indicated a need for the construction of the third power line which could connect power systems in areas of Berlin and Poznań. Such a power line will have significant impact on capability of power exchange and absorption of wind energy from Northern Germany. The next operators meeting was held in Warsaw on the 3 rd of March 2009, where professor W. Mielczarski proposed the establishment of a project development company as a joint venture of two operators. Such an entity would be aiming at the preparation of investment plans for the third power connection between Germany and Poland. Support of both governments Although the representatives of both governments attended the operators meetings in 2008, the most significant for the progress was a meeting on the 23 rd of March 2009, in Berlin between Prof. W. Mielczarski and Dr Dorothee Mühl, the Deputy Director of the Energy Department in the German Ministry of Economy and Technology. As the result of their talks, the subsequent meeting was arranged on the 3 rd of June 2009 in Berlin chaired by Dr Dorothee Mühl and Dr Henryk Majchrzak, Director of Energy Department of the Polish Ministry of Economy. It was the decisive meeting which main points can be summarized as follows: Development of the third power interconnection between Germany and Poland will lead to the improvement of supply security, better utilization of the renewable energy resources and the broadening of the European electricity market. This development should be coordinated with the enhancement of the existing interconnections and the improvement of the control over the power flow between both countries. The best way for the development of cross border interconnections is a Project Development Company (PDC), which will be established by both transmission system operators as a joint venture. The PDC should be organized as a small professional venture, allowing for the efficient fulfillment of the targets with the reasonable cost burden on both operators. Both transmission system operators, Vattenfall Europe Transmission and Polskie Sieci Elektroenergetyczne-Operator, will sign the Letter of Intent expressing their will to establish the PDC as a joint venture and determining the scope of Articles of Association. The initial assumptions for the PDC are as follows: (a) the PDC should be based on the Polish law as most on the line rout will be on the Polish territory; (b) it should be established as a liability limited company with the proportional shares of both transmission operators. The PDC name proposed is GerPol Link; however, the final decision will be taken by both operators. The transmission system operators: Vattenfall Europe Transmission and Polskie Sieci Elektroenergetyczne Operator will sign the Articles of Association establishing the joint venture company. Both operators will undertake the best endeavours aiming at the full operation of the PDC at the beginning of year /10 JPD/sb 13

14 Both, German and Polish energy regulatory authorities support the action of the transmission system operators in order to improve the power transmission links between Germany and Poland and will take into account the proposed interconnections in the transmission operators plans and the regulation of the transmission charges. Both European Coordinators, in the field of energy, support the activity of the transmission system operators aiming at the development of a new interconnection and enhancement of the existing lines between Germany and Poland declaring the attempts in seeking for the financial support of the European Union for the investment planned. Letter of Intent On the 23 rd of September 2009, in Brussels, in the presence of the European Coordinator Prof. W. Mielczarski, Ms Małgorzata Klawe TSO-E Vice-Chairperson of the Board and Jean-Arnold Vinois Head of unit C1 in DG TR, both transmission system operators: Mr. Wolfgang Nelder, Vattenfall Europe Transmission; Member of the Managing Board and Mr J. Adruszkiewicz, PSE- Operator; Deputy CEO signed the Letter of Intent. This letter expresses a will of both operators to act together in order to establish a joint venture company aiming at the preparation of the investment in the third power interconnection between Germany and Poland. The project could be carried out in two main stages covering the preparatory and implementation phases. The Letter of Intent will be approved by relevant corporate bodies what opens a way to the preparation and signature of the Draft of Association as a basis for the establishment of the project development company. The approval of Articles of Association by the relevant corporate bodies could be achieved about November/December 2009, allowing for the full operation of the joint venture company at the beginning of It is intended that the PDC could be founded in the Republic of Poland, with its official seat in Poznań, having the legal status of a limited liability company (sp. z o.o.) under the laws of the Republic of Poland. It will be financed jointly by both shareholders, each of which will initially hold 50% shares in this company. PSE-Operator has declared to be responsible for fulfilling all necessary procedures required by the Polish law to establish such a legal entity. Activities that could be directly carried out by this PDC will embrace: (a) acquisition of EU funds for a whole project; (b) communication with the stakeholders including the relevant German and Polish stakeholders; (c) necessary PR and marketing activities. The actions that could be coordinated by the PDC include: (a) technical specification for the interconnection considering the grid specific project requirements; (b) preparation and realization of required permission procedures (including required studies, as e.g. concept for ecological crossing of the river Oder (Odra) as border river according to public and private laws; (c) preparation of investment plan and tender. 5750/10 JPD/sb 14

15 5 ROLE OF THE COORDINATOR & FURTHER ACTIVITIES The results achieved to date indicate that the coordinator can move ahead infrastructure projects which have been sticking for many years. This requires a very active approach on various levels. At the first stage the coordinator plays a role of a negotiator convincing government bodies and power companies that they should start collaborating on the development of network infrastructure and cross border connections. He should also indicate that such power connections can be beneficial to all parties. The important role of the coordinator is to identify difficulties, obstacles and countermeasures, so the involvement of the coordinator in ongoing processes is a key to the progress. Also professional expertise in system operation and power flow simulation, allows for effective support of cross border line projects. In the next year of the mandate, the European Coordinator will be working on: Promotion of the European dimension of the projects and the cross-border dialogue between the project promoters and the persons concerned; Contribution to the coordination of the national procedures for consulting the persons concerned; Reporting to the European Commission on the progress of the projects for which he has been designated as the European Coordinator and on any difficulties and obstacles which are likely to result in a significant delay of such projects. The future activities of the European Coordinator will also be embracing: Future progress in the preparation of the investment in the power interconnections between Lithuania and Poland by facilitating all necessary processes and support of both transmission operators and LitPol Link in particular in gaining the acceptance and support of local authorities and environmental organizations Support for the VET and PSE-Operator in establishing the joint venture in order to prepare the investment plans for the third power connection between Germany and Poland including the transfer of the best experience from the preparation of the investment for the interconnection between Poland and Lithuania gained by LitPol Link Facilitation of the development of the internal power systems necessary for allowing the full operations of the cross border interconnections between Poland-Lithuania and Germany- Poland. 5750/10 JPD/sb 15

16 Appendix Figure 2. Power line between Poland (Ełk) and Lithuania (Alytus) with the enhancement of the Polish power system. Source: PSE-Operator. Stage I allowing for import of 600MW will embrace the following investments: (a) construction of 400 kv switchgear at 220/110 kv Elk substation with 400/220 kv and 400/110 kv transformers; (b) construction of 400 kv switchgear at 220/110 kv Ostrołęka substation with 400/220 kv and 400/110 kv transformers; (c) construction of 400 kv substation Rutki; (d) construction of double circuit 400 kv line Elk - Rutki (length ~95 km); (e) construction of single circuit 400 kv line Narew Rutki Ostroleka (length ~119 km). The stage II should lead to the capacity of import/export 1000MW, requires the following investments: (a) construction of double circuit 400 kv line Ostroleka Olsztyn Matki (length ~140 km) with single circuit operating at 220 kv; (b) construction of 400 kv substation Stanislawow connecting 400 kv lines: Milosna Narew and Milosna Siedlce; (c) construction of double circuit 400 kv line Stanislawow Ostroleka (length ~106 km) after dismantling 220 kv line Milosna Ostroleka; (d) upgrade of double circuit 400 kv line Milosna Stanislawow; (e) upgrade of single circuit 400 kv line Stanislawow Narew; (f) upgrade of single circuit 220 kv line Ostroleka Elk; (g) construction of single circuit 400 kv line Ostroleka Elk (length ~92 km) after dismantling 220 kv line Ostroleka Elk and 220 kv switchgear at Elk substation; (h) installation of second 400/110kV transformer at Elk substation. 5750/10 JPD/sb 16

17 Figure 3. The draft variants of the power line route between Elk and Alytus. Source: LitPol Link. Poland teritory ELK Responsibilities in PL-LT interconnection project Strengthening of Polish grid Ownership of assets in grid PSE-Operator S.A. responsibility Lithuania teritory ALYTUS border Strengthening of Lithuanian grid Polish- Lithuanian interconnection project PSE-Operator S.A. responsibility Lietuvos energija AB responsibility LitPol Link Sp.z.o.o. responsibility (Project management) PSE-Operator S.A. Lietuvos energija AB responsibility Lietuvos energija AB Figure 4. Relations of LitPol Link with the transmission systems operators 5750/10 JPD/sb 17

18 Figure 5. Assets of the power line and a back-to-back station. 5750/10 JPD/sb 18