Update on the Gulf Cooperation Council (GCC) Electricity Grid System Interconnection

Transcription

1 GULF COOPERATION COUNCIL INTERCONNECTION AUTHORITY Update on the Gulf Cooperation Council (GCC) Electricity Grid System Interconnection by: Adnan Al-Mohaisen, GM, GCCIA S. Sud, V.P., SNC-Lavalin Power Engineering Society, Panel Session Montreal, June 2006

2 Update on the GCC Electricity Grid System Interconnection Project background Evolution of power sectors in the GCC countries Characteristics of transmission in the GCC countries Demand growth The Interconnection Project Benefits of interconnection Components of the Interconnection Project Capital cost of the project (Phase I) Sharing of the costs and financing Implementation strategy and project schedule Conclusions 2

3 Project Background Gulf Cooperation Council (GCC) between Kuwait, Saudi Arabia, Bahrain, Qatar, United Arab Emirates and Oman formed in 1981 Recognized benefits of interconnection of electricity grids of the countries Initial study in mid-eighties Preliminary project definition study in 1990 confirmed technical, economic and financial feasibility, recommended formation of GCC Interconnection Authority GCCIA established in 1999 Project technical, economic and financial feasibility updated in 2003/04 Countries decided to self-finance project in 2004 Project tendered and awarded in

4 Evolution of the Power Sector in the GCC Countries Country Vertically Integrated Structure Independent Regulator Degree of Unbundling IPPs Allowed Single Buyer Model Reform Efforts Kuwait Unbundling not planned reforms planned Saudi Arabia Partial separation Partial unbundling Private sector investment in Generation Bahrain Independent Regulator is planned Unbundling under consideration Plans to privatize electricity Qatar Partial separation Separate generation co. (QEWC) Kahramaa responsible for T and D * Under Consideration Privatization of Kahramaa under study. Single Buyer Model planned * T and D means Transmission & Distribution 4

5 Evolution of the Power Sector in the GCC Countries (cont d) Country Vertically Integrated Structure Independent Regulator Degree of Unbundling IPPs Allowed Single Buyer Model Reform Efforts UAE ADWEA Separate G, T & D * Reform in Abu Dhabi DEWA unbundling reforms planned SEWA unbundling reforms planned FEWA unbundling reforms planned UWEC unbundling reforms planned OMAN Separate G, T & D Under study Laws in place to facilitate reform. Plans to privatize T & D * G, T and D means Generation,, Transmission and Distribution 5

6 Characteristics of Transmission in the GCC Countries Kuwait Saudi Arabia Bahrain Qatar UAE Oman Frequency 50 Hz 60 Hz 50 Hz 50 Hz 50 Hz 50 Hz Principal Transmission Voltages 275 kv 230 kv, 380 kv 220 kv 220 kv 220 kv, 400 kv 220 kv 6

7 Demand Growth (MW) Year Kuwait Saudi Arabia* Bahrain Qatar UAE Oman Total * Saudi Arabia demand supplied by SEC - ERB 7

8 Approximate Route and Layout of the GCC Interconnection 8

9 Benefits of the Interconnection Project Result in the requirement for a lower installed capacity in each of the systems (due to reserve sharing) while still supplying the load with the same (or better) level of reliability Permits larger and more efficient generating units to be installed on the individual systems Enables systems to share operating (spinning) reserves so that each system can carry less spinning reserve Enables interchange of energy between systems resulting in a lowering of total operating costs Permits assistance from neighboring systems to cope with unforeseen construction delays and unexpected load growth Permits emergency assistance between systems to mitigate the effects of unforeseen contingencies such as catastrophic multiple outages 9

10 Phase I Development Plans Kuwait Saudi Arabia-ERB Bahrain Qatar Year of Interconnection 2008 Phase II Development Plans UAE Formation of Emirates National Grid Oman Formation of Oman rthern Grid Phase III Development Plans UAE Oman Year of Interconnection

11 Phase I of the Interconnection Project A double circuit 400 kv, 50 Hz line from Al Zour (Kuwait) to Al Fadhili (Saudi Arabia) and associated substations A back-to-back HVDC interconnection to the Saudi Arabia 380 kv, 60 Hz system at Fadhili A double circuit 400 kv, 50 Hz line from Fadhili to Ghunan (Saudi Arabia) and associated substations A double circuit 400 kv link, from Ghunan, comprising overhead lines and submarine and land cable link to Al Jasra (Bahrain) and associated substations A double circuit 400 kv, line from Ghunan to Salwa (Saudi Arabia) and associated substations A double circuit 400 kv, line from Salwa to Doha (Qatar) and associated substations A Control Centre located at Ghunan 11

12 Phase III of the Interconnection Project A double circuit 400 kv, line from Salwa (Saudi Arabia) to Shuwaihat (UAE) and associated substations A double circuit 220 kv, line from Al Ouhah (UAE) to Al Wasset (Oman) and associated substations A single circuit 220 kv, line from Al Ouhah to Al Wasset and associated substations 12

13 Conceptual Diagram of the Interconnection System SAUDI ARABIA SEC-ERB HVDC BACK-TO-BACK 1200 MW 1200MW KUWAIT AL ZOUR 400kV 292km AL FADHILI 400kV 114km 90km BAHRAIN GHUNAN 400 kv 288km 600MW JASRA 400kV 97km QATAR SALWA 400kV 200km 750MW DOHA SOUTH SUPER 400kV SHUWAIHAT 400kV 900 MW EMIRATES NATIONAL GRID AL OUHAH U.A.E. 220kV 52km 400MW OMAN OMAN NORTHERN GRID AL WASSET 220 kv 13

14 Simplified Single-Line Diagram of the interconnection AL-ZOUR POWER STATION (KUWAIT) 2500 MW G1 G2 Al-Zour Substation 275 kv G8 Kuwaiti 275 kv network (6 Circuits) 3 x 650 MVA 400 kv 2 x 125 MVAR LEGEND Power Transformer with OLTC Shunt Reactor HVDC Converter Overhead Line Underground Cable Submarine Cable te: All Substations are GIS, 1-1/2 Breaker Scheme Back-to-Back Converter Facility AL-FADHILI SUBSTATION (KSA) 292 km Al-Fadhili Substation 400 kv, 50 Hz 3 x 600 MW 2 x 125 MVAR 2 x 125 MVAR 380 kv, 60 Hz 4 x 750 MVA 114 km SEC-ERB 380 kv Network (7 Circuits) SEC-ERB 220 kv Network GCCIA Control Centre Ghunan Substation 288 km 4 x 125 MVAR 400 kv 40 km Ras Al-Qurayyah Substation Al Jasra Substation 42.5 km (Submarine Cable) Umm An Na-San Island 3 x 325 MVA 400 kv 2 x 125 MVAR + 2 x 300 MVAR Bahraini 220 kv Network (2 circuits) Al Jasra (Bahrain) 220 kv 2 x 150 MVA Bahraini 66 kv Network Salwa Substation 400 kv 4 x 125 MVAR Projected Phase III (Shuwaihat UAE) Doha South Substation 97 km Qatari 220 kv Network (4 circuits) Doha south 1 x 125 MVAR (Qatar) 400 kv 3 x 400 MVA Qatari 132 kv Network 2 x 150 MVA 220 kv 14

15 Principal Components of Phase I Six GIS substations 830 km of 400 kv transmission line Two - 50 km of 400 kv submarine and land cables 3 x 600 MW HVDC back-to-back converter facility Control, protection & SCADA and telecommunication system 15

16 Capital Cost of the Project (Phase I) M$US GIS Substations 400 kv Overhead Transmission Lines HVDC Back-to-Back Converter Submarine and Land Cables Control, Protection & SCADA and Telecommunication System Total

17 Cost Sharing Options Considered Peak load Installed capacity Interconnection capacity Capital investments on service territoy Reserve capacity savings Reserve investment savings O&M savings Investment and O&M savings Present value of reserve capacity savings 17

18 Sharing of the Costs of the Interconnection Project Phase I (%) Phases I &III (%) Kuwait Saudi Arabia (ERB) Bahrain Qatar UAE 15.4 Oman 5.6 Total

19 Financing Options Considered Finance Options Ownership Government Private Sector Sources of Finance Capital Private Loans Government Sector 1 100% - 100% % - 35% - 65% 3-100% - 35% 65% 4 50% 50% 17.5% 17.5% 65% 5 50% 50% 25% 25% 50% 19

20 Implementation Strategy GCCIA Owner s Engineer Contract Administration Contract Supervision & Coordination Contract Package 1 Contract Package 2 Contract Package..n Functional Relationships 20

21 Contract Packages Six 400 kv Substations One HVDC Converter Station Package Four Overhead Transmission Line Packages One Submarine / Land Cable Package Control Centre Package GCC Control Centre Telecommunications, Control & Protection 21

22 Project Schedule Update Technical and Economic Feasibility Approval of Project Financing Issue of Tender Documents Tenders Received Tenders Evaluated and Recommendation for Award Contracts Awarded Project Operation 2003 / 2004 May 2004 February 2005 June 2005 September 2005 vember 2005 Early

23 Conclusions Project under-study since mid-eighties Agreement and participation required by six GCC countries Principal Issues that had to be resolved Demonstration of feasibility Agreement between countries Creation of the GCC Interconnection Authority Agreement on cost sharing and financing Project is now under implementation 23