ENTSO-E
Electricity Networks
Dimitrios ChaniotisSenior Advisor System Development
ENTSO-E
64th session of the Economic Commission for Europe
Geneva 30 March 2011
• 41 TSOs from 34 countries• Fully operational since July 2009
• A trans-European network
• 525 million citizens served• 828 GW generation• 305,000 Km of transmission lines• 3,400 TWh/year demand• 400 TWh/year exchanges
• Replaces former TSO organisations: ATSOI, BALTSO, RTSO, NORDEL, UCTE, UKTSOA
TSO international cooperation = ENTSO-E
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 2 of 12
•Article 4: ENTSO-E
• Completion of IEM
•Article 6: Establishment of network codes
• Legally binding through Comitology
•Article 7: Issues addressed by network codes
• Cross border network issues and market integration issues without
prejudice to the Member States’ right to establish national network codes
•Article 8: Tasks of ENTSO-E
• Ten-Year Network Development Plan, incl. a European generation adequacy outlook
• Work programme, annual report, summer/winter outlooks, monitoring
• Research and Development Plan
Network Codes 12 topic areas
Network connection rules
Balancing rules including network-related reserve power rules
Network security and reliability
Operational procedures in an emergency
Third-party access rules
Data exchange and setlement rules
Interoperability rules
Capacity-allocation and congestion management
Rules for trading
Transparency rules
Rules regarding harmonized transmission tariff structures including locational signals and inter-transmission system operator compensation rules
Energy efficiency regarding electricity networks
ENTSO-E in Regulation (EC) 714/2009
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 3 of 12
What is the Ten-Year Network Development Plan
Sustainability
Competitiveness
Security of Supply
TYNDPPolicy Action
Assessment
Monitoring
Inform
Assist
Coordinate
Evaluate
“ENTSO-E shall adopt a non-binding Community-wide ten-year network development plan”• Transparency• Decision making process• Networks/scenarios/Generation outlook/resilience
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 4 of 12
44%mid term
56%long term
78%
22%
AC > 300 kV 29600 km 83%
17%
Total projects 42100 km
DC 9600 km
AC < 300 kV 2900 km
upgrade
new
Results of the Pilot TYNDP 2010
The TYNDP projects represent~14% of existing lines
€ 23 to 28 billion
for the first five years !
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 5 of 12
The debate has now started
• “The first 10-year network development plan (TYNDP) forms a solid basis to
identify priorities in the electricity infrastructure sector”
• “Future infrastructure and non-binding TYNDPs should be consistent“.
• “Now, the TYNDP - elaborated by ENTSO-E - is an important first tool [for a
clear vision for the development of integrated EU energy grids], which might
need to be complemented by other instruments”.
EC CommunicationEnergy infrastructure priorities for 2020 and beyond28 February 2011
Council conclusions onEnergy 2020: A Strategy for competitive, sustainable and secure energy28 February 2011
working documenton Energy infrastructure priorities for 2020 and beyondCommittee on Industry, Research and EnergyRapporteur: Francisco Sosa Wagner
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 6 of 12
And « taboos » are dropping in view of the Energy Infrastructure Package
• “It is important to streamline and improve authorisation procedures, while respecting national competences and procedures, for the building of new infrastructure; the European Council looks forward to the forthcoming proposal from the Commission in that respect.”
• “The bulk of the important financing costs for infrastructure investments will have to be delivered by the market, with costs recovered through tariffs. It is vital to promote a regulatory framework attractive to investment”.
Conclusions of the European Council4 February 2011
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 7 of 12
Time to table proposals
• Permitting/public acceptance– Avoid undue burden on TSOs: 3 - 5 year limit for final decision
– One-stop shops
– Compensation for municipalities?
– Communication : debate “Champions”
– Improvements and streamlining for ALL projects
• Investments– Business case for expansion investment often not stable and attractive enough
– International cost allocation !
– Innovative financing aids, partly to overcome regulatory blockages
TSO
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 8 of 12
Working towards a longer term
• Transmission Grid infrastructures peculiarities:– Long life cycle: Decision today - Commissioning 2020 - Economic value 2020 – 2050 +
Changing the structure of the grid is a slow process Longer term approach (20 to 30 years) also needed
• Target Year 2050 : – define policy targets, underlying scenarios, – identify candidate technologies, grid structures, R&D efforts
• Intermediate Target Year (2030…) – ensure a viable path between present and long term,– avoid short term decisions leading to stranded investment
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 9 of 12
Offshore Wind Output
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1 501 1001 1501 2001 2501 3001 3501 4001 4501 5001 5501 6001 6501 7001 7501 8001 8501
Time (hours)
Capa
city
North S
ea
Denmark4 GW
Norway Shore Line
Den
mark Shore Line
(3.5 GW)
Germ
any Shore Line
(20 GW
)
Belgium Shore Line (3.5 GW)
Netherlands Shore Line(10 GW)
Scotland
Sho
re Line
(5 GW)
England Shore Line
(24 GW)
BritNed
NemoNorNed
NorNed
2 CORB
A
SK4
NordLink
Dogger Bank13 GW
Hornsea4 GW
Norfolk 7 GW
Norway1 GW
Belgium4 GW
Scotland9 GW
England Rounds1 & 2 (5.5GW)
(7 GW Interface Capacity)
Germany (24 GW)
Netherlands(12 GW)
HVDC Transmission
AC Transmission
‘In Flight’ or current
Efficient use of Transmission Capability
SK1‐3
Reduced connection capacity (10%)
+7GW
+6GW
+11GW
Optimised integrated offshore grid development
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 10 of 12
Technological issues
Economical/financialissues
Political/sociopoliticalissues
Towards 2050 pan European System : the ENTSO-E study roadmap
• In context of SET plan, the realization of study package will be done by a large consortium (TSOs, DSOs, universities, institutes, manufacturers, …).
• First comprehensive concept on Electricity Highways System(also showing important corridors) is intended to be available by end 2014.
• An ENTSO-E Study Roadmap will be available by July 2011 (after consultation process)• Describe a comprehensive study package covering all relevant Electricity highways issues:
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 11 of 12
Conclusions
• SoS and RES development taken by EU policy call for massive development of transmission grids, both between and within countries
• ENTSO-E’s first Ten-Year Network Development Plan has been a timely initiative that has enabled the policy debate
• Seamless integration of Electricity Highways into the 400kV grids demands that TSOs operate and have strong ownership stakes
• Permitting and public acceptance is the key issue ; without radical changes policy objectives will not be met
• A huge financial effort requires new financing tools and regulatory stability
Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 12 of 12