<PSI Scenarios & Arrangements in NEA Countries> 30 th AUG KERI (J. YOON )

<PSI Scenarios & Arrangements in NEA Countries> 30 th AUG. 2017 KERI (J. YOON jyyoon@keri.re.kr )

<Background> Background NEA power system have many complementary characteristics and difficulties, which need PSI alternatives Very poor or rich in natural resources High increasing rate of load caused by economic growth High cost for power system planning and operation Environmental protection : NIMBY phenomena Military and political tension PSI b/t Countries can be Alternatives to overcome this problem 1

<Expected Benefits of PSI & Market Integration> 2

<PSI & Technical/Economic Relation Factors> Deregulation Free Market Economic viewpoint Regulation and Incentive (ex : Green power) Competition, Market Enhancement interconnection 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 3

<World Trends on PSI Cooperation> 4

<SUPERGRID Promotion in NEA Countries> Final Goal : Unified Power System Operation in NEA RU-(MO)-CH-(NK)-SK-JP Combined Overhead & Submarine Cable Interconnection b/t ROK and PRC From East China Nuclear to West KOREA Thermal 500kV HVDC, 350km, 2~3GW or more 5

<Present status of NEA PSI> No inter-ties on NEA with the exception of Weak 220kV ties b/t Siberia and RFE Weak 220kV ties b/t Siberia and Central Mongolia Weak 110/220/500kV and HVDC ties b/t RFE and Northeast China Weak ties b/t North and Northeast China Potentials interconnecting power system in NEA region RF CH RF JP RF DPRK ROK ROK CH with submarine cable ROK JP with submarine cable 6

<Present status> Weak Tie Line(110/220/500kV) CH Under discussion Under discussion DPRK Undersea cable(dc) Existing Tie Line Future planning Tie Line Undersea cable(dc) 7

<Major Existing CBT in NEA> Only weak tie lines exist at now, but in near future Strong PSI will be commercially will commissioning b/t RU and CH Long-term stable & reliable contract base power trade rule is needed *) ELECTRIC POWER GRID INTERCONNECTIONS IN NORTHEAST ASIA, APERC, 2015 8

<NEA-Supergrids Scenarios> Many Studies performed on NEA-CBT since 2000 (Multilateral PSI) NEAREST (KERI, ESI 2003) Asian Super Grid (JREF 2011) GOBITEC (ECS 2014) Northeast Asia Supergrid (KEPCO, KEEI with Skoltech, 2014) GRENATEC (HRENATEC 2010) Asia Pacific Power Grid (Japan Policy Council 2011) And so on Bilateral PSI Scenarios KO-CH, KO-JP, KO-RU in terms of KOREA CH-RU, RU-JP, RU-MO, CH-MO 9

<Ex) GOBITEC Promotion, ECS 2014> (Concept Design) NEA Supergrid is composed of 4 parts 1 Solar/Wind Farms for NRE Generation 2 Collecting system from each Generation Sites to Supergrid 3 Cross-border transmission system (Supergrid) 4 Connecting system from ASG to Each Countries 10

<NEAREST Project, KERI+ESI, 2002> 11

<NEA Region interconnection Scenarios> NEA Region (ROK, DPRK, RF, China, Japan, Mongolia) Mainland New Circle East Sea New Circle Large New Circle : (Mainland + East Sea) New Circle 12

<Bilateral Interconnection Scenarios> KOREA : Energy Hub of NEA Region KOREA CHINA 250~350km Submarine, 2~5GW KOREA JAPAN 300km Submarine, 2~5GW KOREA (NK) RUSSIA 1000km Overhead, 3~6GW CHINA RUSSIA 3-Step, a few tens GW HVDC RUSSIA JAPAN Submarine Cable 13

<Ex) ROK-RF Scenario Study> This is only Previous Interconnection Study Results in terms of Technical, Economic and Marketability Study in the early of 2000. These Results are based on Previous Data and Not Exact at this point This Study should be reviewed and amended for Specific Target and Changed Data. It s only reference at this time. Using HVDC System with Voltage Ratings ±500~800kV or Higher Among this Study Results, Technical Contents are as follows Static System Study (Power Flow & Fault Study ) Dynamic Study (Stability and Contingency Plan ) Reliability Study such as LOLE(Loss of Load Expectation) Estimations for Maximum Exchangeable Power 14

<Ex) ROK-RF interconnection Scenario> (EX) Scenario-1 : It s only Scenario still now ROK-RF 3-Terminal HVDC interconnection Converter stations will be located in Vladivostok, some point near Seoul and Pyoung Yang HVDC system configuration VSC-HVDC, DC ±500kV T/L : 1,260km (1,010km+250km) DC ±500kV 1,010km RFE Vladivostok DPRK Pyoung Yang DC ±500kV 250km ROK Seoul 15

<Evaluation of minimum exchange power> Economic constraint Compare with total costs and benefits of interconnected line during life cycle span of 30 years Total costs of interconnected line : life cycle cost Construction cost of transmission line and converter station Maintenance cost Benefits of interconnection Electricity tariff difference between interconnected countries We assume that Average utility factor of interconnection line is 60% Annual decreasing rate of electricity tariff difference is 5% by 2030. 16

<Evaluation of maximum exchange power> System constraints Load flow analysis Find maximum exchange power without violations of overload and bus voltage profile Consider steady state and N-1contingency Dynamic analysis Evaluate the impact of interconnected line trip on ROK power system, especially for frequency variation Interconnected line constraints Geographical constraint of Korean peninsular Current rating constraint of conductor 17

<Ex) Reliability study of interconnection> Program & Scenarios : NEAREL with same scenarios Study I : ROK-DPRK-RFE interconnection Scenario I: ROK DPRK - RFE Scenario II: ROK RFE direct interconnection Scenario III: ROK RFE ( by Cable under East sea ) Scenario IV: ROK DPRK RFE (by using DPRK grid) Study II : NEAREST region interconnection Scenario V: ROK, DPRK, RFE, JPN Scenario VI: ROK, DPRK, RFE, NEC and MNG Scenario VII: ROK, DPRK, RFE, JPN, NEC and MNG 18

<Reliability study of interconnection> Study Configuration of interconnection types in North East Asia MGA FER NEC 1. ROK: Republic of Korea 2. DPRK : Democratic People s Republic Korean 3. FER: Far East Russia 4. NJP: North Japan 5. NEC: North East China 6. MGA: Mongolia ROK KPDR NJP 19

<Ex) Study Results : Only Scenarios> Summary of ROK-(DPRK)-RF interconnection scenarios Item Scenario-1 Scenario-2 Scenario-3 Scenario-4 Interconnection Type 3 Terminal 2 Terminal 2 Terminal BTB Route ROK-DPRK-RF ROK-RF via DPRK ROK-RF via East Sea DPRK internal power system Min Power Max Power Cost? GW? GW? GW? GW? GW? GW? GW? GW Medium Medium Large Small HVDC Type VSC VSC or CSC VSC or CSC VSC Energy security Normal Bad Good Bad Reliability Normal Good Good Bad Priority 1 2 3 4 20

<To be Determined> 1 ST Stage Cooperation Activity Exchange of MOU and Data Exchange of Power System and Industry Concept Design of PSI through Submarine Cable Basic Technical Assessment on PSI : Load Flow, Contingency Study 2 nd Stage Basic Economic Assessment on PSI : Modeling and Analysis Discussions on PSI Study results in cooperation Promotion and Suggestion for the Realization of PSI

<Issues & Opinions for PSI> Category Power exchange model Overseas benchmarking model Financing Politics and energy security Obstacles and solutions Opinions Simple power exchange model Develop guidelines for power exchange. Review NORDEL, SAPP, and England France power exchanges. Introduction of a new trade market due to market restructuring. Organize a derivative product market in preparation of unstable pricing. 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. Energy Security Problem in terms of Politics and Operations such as DPRK passing through No issue is raised in legal aspect, but DPRK laws should be examined if power system interconnection passes through DPRK. Establish a NEA Energy Charter Treaty as a long term perspective. 22

<Conclusions> In this presentation we all discuss about 1 Meaning & Concept Design of PSI-SUPERGID in NEA 2 Scenarios, Examples of Technical/Economic Study Everybody in here want to know 2 1 Future Possible Scenarios of PSI Free volume of Electricity Trade Market b/t KOR-PRC 3 How can we realize this Great Project Of course, we have some barriers, But, we truly believe it is need to cooperate for the realization of PSI.. 23