Power System Interconnection and Energy Security

Transcription

1 Power System Interconnection and Energy Security Dec KERI (J. YOON

2 <Keyword & Notice> Meaning of PSI in NEA Regions : Roadmap for Sustainable Peace Need to Feasibility Assessment on NEAREST-PSI Energy Security Issues & Requirements on NEAREST-PSI Energy Security & Sustainability & To be determined Topics What should do we for Sustainable Energy Network? Suggestion for Sustainable Energy Network in NEA Region 1

3 <Backgrounds> Most of NEA Countries have mutual complementary characteristics Natural resources, Power mix ratio, Electricity tariff Need to build more power plants & Resource Development PSI(Power System Interconnection) can be alternatives to... Overcome these difficulties in NEA power sector Utilize the complementary characteristics between them But, PSI in NEA Region couldn t realize until now because of Differences of Technical, Business and Regulatory Regime Business Discredit and Political Points among NEA Countries DPRK Variants and Refusal caused by Past History Problems 2

4 <Meaning of PSI & CBT in NEA Region> Power System Interconnection & Cross-Border Trade between Enhancement the sustainable Regional Peace parade Economic Win-Win game & Technical Reserve Supporting System, But Positive & Negative Points in Energy Security (?) 3

5 <Promotions on PSI & CBT in NEA Region> Beyond NEA, Toward Worldwide Trans Northeast Asian Network : RU-MO-CH-NK-SK-JP 4

6 <Benefits of Electricity Market Integration> 5

7 <PSI/CBT & Relation Factors> Deregulation Free Market Economic viewpoint Enhancement interconnection Regulation and Incentive (ex : Green power) Competition, Market Enhancement deregulation Transmission Right Interconnection Cheap Fuel cost Refuse NRE, DSM,IRP Negative for Environ GHG/Environ Enhancement interconnection Positive for NRE Trade of GHG Diffusion Positive for environment Reliability/PQ Economics

8 <Purpose of Deregulation & Interconnection> To promote competition and economic efficiency To regulate monopolies (both intra and inter-country) To organize efficient markets without distortions To ensure the security of supply and the existence of infrastructures To incentive the quality of service To ensure the accomplishment of the public service obligations To promote consumer interests To contribute to a better environment To contribute to the efficient and sustainable use of energy To enhance the peaceful cooperation between interconnected count 7

9 <Common Issues for PSI & Deregulation> [Technical/Economic] Transmission planning & pricing Planning : Capacity, Voltage, AC/DC, System design Pricing : Fixed or Negotiated pricing Institutional considerations [Economic/Environmental] Generation tracking and electricity market Creation of international electricity market Electricity and CO2 trading (Green market) [Only Technical Issue] Reliability standards Analysis the interconnected system security (short-term) Evaluation the generation/load adequacy (short and long-term) [Marketable Issue] Market power & International negotiation [TE/EC/MA/PO] Energy Security & Political & Financial considerations Intra political & financial factor (Deregulation) Inter political & financial factor (Interconnection) & Energy Security 8

10 <Characteristics of Power Networks> Life-line for national sustainable development Should consider the 3E (Economy, Environment, Energy Supply) Economic efficiency & Environment (GHG) & Supply reliability Countermeasure for discrepancy TRILEMMA Key solution : Deregulation & Interconnection Sustainable development Economic efficiency Energy Supply reliability Deregulation Interconnection Environment (GHG) 9

11 <Energy Security Problems in NEA Region> Simultaneous Demand & Supply have a risk of Power cut & Blackouts Have no (Mass) Energy Savings P & Q = f(frequency, Voltage) Meaning of Energy Security [Technical Points] Data Exchange : Power Quality & System Operation Power System Stability & Reliability & Security [Political Points] Sudden Power Cut and Blackouts caused by political reasons Obstacles caused by Business Issues, for instance electricity tariffs Intentional Disturbances by Power System Operation 10

12 <Inherent Characteristics of Power Networks> DPRK Variants Need to Political Agreement & Multilevel Guarantee Pay for the passage toll by Currency or Electricity Regime Differences in Social, Economic Regulatory Structures Business Rule Regulatory Structures Technical Standard Differences PQ Standard Differences Power System Reliability Criteria Differences Dispute Resolution How can we solve this problem 11

13 <Economic & Market & Political Issues> Category Power Exchange CBT Model Financing Politics and energy security Solutions & Suggestions Opinions At First, Establish the Simple power exchange model Contract or Market Base CBT Model Develop guidelines for power exchange. Review NORDEL, SAPP, and England France power exchanges. New trade market due to market restructuring. Stabilization of unstable pricing, No Fluctuation directly related to economic feasibility, political and diplomatic relationship, law/regulation and policies support. DPRK uncertainty requires participants government guarantee and international financial institutions participation. Consider long term contract, project collateral, and risk management for sound finance enhancement. DPRK nuclear is the main issue. Necessity to forecast DPRK s political change by phase. Organize the Profit Distribution Model Need to Common Regulatory Rules to govern the PSI-CBT (ex NEA Energy Charter Treaty as a long term perspective) Guarantee by the (Political & Economic Base) Multilevel Credit 12

14 <To be determined topics for Energy Security> Economic & Market Viewpoints Locations for Cross-Border power interconnection Voltage grade(kv) and interconnection capacity(mw)? Annual Traded Free volume of electricity in future? Power exchange tariffs including transmission pricing? Financing & Cost Recovery Methodology Overall legal and management framework? Energy Security Issues Information Exchange & Dispute Resolution & Regulatory Frame [Technical terms] System Security Guarantee, System Stability [Business terms] Non-variability of Energy Price & Sales [Political terms] Threat for Power-cut & Sabotage Disturbances 13

15 <General Barriers to NEAREST> Political, Policy and People barriers Public fears of being disadvantaged Political support & common policies Technical & Economic barriers Lack of an overall plan : Transmission expansion master plan Incompatible technical standards : ex) frequency/voltage/reserve operating criteria Incompatible transmission pricing system including congestion ex) different national tariff structure Incompatible electricity trading system 14

16 <Barriers to NEAREST> Structural and regulatory barriers Political and administrative styles of regulation considering natural monopoly characteristics of transmission Treaty and Legal barriers Economy-wide investment conditions Legal framework for investors including financing Mismatch of Interests between Players (Power Utilities ) Worry about lose of business territory Mutual Disagreements for Profit Distributions among Intereted Parties Other Disputes could be happened 15

17 <So many Projects Studied, But only Plans > 16

18 <CBT Scenarios : Korea s Perspectives> KOREA : Geographical Center of Northeast Asia Region Private Sector Discussion with neighboring countries since 2000 RU NK SK with Overhead line SK CH with submarine cable SK JP with submarine cable GOBITEC includes all of NEA 17

19 <CBT Scenarios : Korea s Perspectives> Energy Security & Financing Problem Politically, DPRK Variants due to Trans NK CBT Line Technical Deterioration of Power Supply Reliability Operation & Data Exchange & /Maintenance Investment Recovery 18

20 <What we do for PSI in NEA Regions> Sincere participation of DPRK on PSI Projects? Power industry and system data offering DPRK, is it possible to join this peaceful meeting? Continuous discussion for realization of CBT through PSI Joint Research for feasibility assesment of NEAREST Presentations of Power trade experiences by UCTE, ASEAN Energy Security problem should be solved. How can we guarantee this important issue in terms of technical, business and political points 19

21 <What should do we for PSI in NEA> Step by Step Cooperation, from Private to Governmental Level Firstly, Suggestion for Organizing PSI Forum, both private and governmental level Cooperation Joint Study for Energy Network sponsored by each government For the Enhancement of Energy Security Joint research and Exchange of data for NEAREST Participation of experts on Technical, Economic and Energy Security Problems Hold the Annual International Meeting in turn For the Realization and on PSI Official Meeting & Agreements 20

22 <Conclusions & Suggestions> It should be promoted 2 1 Future Peaceful Energy Network in NEA Region Free volume of NEA Power Interconnection and Trade Market However, we have barriers on Energy Security So, I would like to suggest strongly to organize the Joint governmental meeting to solve this Energy Security Problem 21