REGIONAL TRANSMISSION NETWORK REGIONAL TRANSMISSION NETWORK DEVELOPMENT: DEVELOPMENT: IMPLICATIONS FOR TRADE AND IMPLICATIONS FOR TRADE AND INVESTMENT INVESTMENT Turkey – Romania Undersea Cable (Feasibility Turkey – Romania Undersea Cable (Feasibility Study Support) Study Support) Razvan Purdila, Director Razvan Purdila, Director Corporate Strategy, Capital Market, Corporate Strategy, Capital Market, Communication Communication and International Relationships, Transelectrica and International Relationships, Transelectrica
Transcript
REGIONAL TRANSMISSION REGIONAL TRANSMISSION NETWORK DEVELOPMENT NETWORK DEVELOPMENT IMPLICATIONS FOR TRADE IMPLICATIONS FOR TRADE
AND INVESTMENTAND INVESTMENT
Turkey ndash Romania Undersea Cable (Feasibility Study Turkey ndash Romania Undersea Cable (Feasibility Study Support)Support)
Razvan Purdila DirectorRazvan Purdila DirectorCorporate Strategy Capital Market CommunicationCorporate Strategy Capital Market Communication
and International Relationships Transelectricaand International Relationships TranselectricaNovember 11-12 2009November 11-12 2009
USAID USEA WORKSHOPREGIONAL TRANSMISSION NETWORK DEVELOPMENT IMPLICATIONS FOR TRADE AND INVESTMENT Istanbul November 2009
Romania ndash Turkey 400 kV HVDC link
undersea cable project
Razvan Purdila Transelectrica
Why HVDC systems
HVDC is an ldquointelligent linkrdquo The power flow can be controlled and changed very quickly practically independently from frequency at the terminal busses voltage or power angle at the terminal busses like in HVAC transmission
Due to the inherent properties of the electronic equipment which forms the converter bridges the direction of the transmitted power may be also changed very quickly
The HVDC transmission has the major advantage of flexibility inpower exchange in comparison with HVAC Moreover in case oftransmission of bulk electrical energy over long distances (more than 50 km) by submarine cable the only applicable technology is theHVDC transmission
Advantages for HVDC transmission
In a HVDC system the electricity is
- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC network
HVDC transmission ndash principles and characteristics
Controllable ndash power injected where neededsupplemental control frequency control- Bypass congested circuits ndash no inadvertent flow- Higher power fewer linesno intermediate SS needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW no EMF constraints- No limit to underground or submarinecable length
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
USAID USEA WORKSHOPREGIONAL TRANSMISSION NETWORK DEVELOPMENT IMPLICATIONS FOR TRADE AND INVESTMENT Istanbul November 2009
Romania ndash Turkey 400 kV HVDC link
undersea cable project
Razvan Purdila Transelectrica
Why HVDC systems
HVDC is an ldquointelligent linkrdquo The power flow can be controlled and changed very quickly practically independently from frequency at the terminal busses voltage or power angle at the terminal busses like in HVAC transmission
Due to the inherent properties of the electronic equipment which forms the converter bridges the direction of the transmitted power may be also changed very quickly
The HVDC transmission has the major advantage of flexibility inpower exchange in comparison with HVAC Moreover in case oftransmission of bulk electrical energy over long distances (more than 50 km) by submarine cable the only applicable technology is theHVDC transmission
Advantages for HVDC transmission
In a HVDC system the electricity is
- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC network
HVDC transmission ndash principles and characteristics
Controllable ndash power injected where neededsupplemental control frequency control- Bypass congested circuits ndash no inadvertent flow- Higher power fewer linesno intermediate SS needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW no EMF constraints- No limit to underground or submarinecable length
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Why HVDC systems
HVDC is an ldquointelligent linkrdquo The power flow can be controlled and changed very quickly practically independently from frequency at the terminal busses voltage or power angle at the terminal busses like in HVAC transmission
Due to the inherent properties of the electronic equipment which forms the converter bridges the direction of the transmitted power may be also changed very quickly
The HVDC transmission has the major advantage of flexibility inpower exchange in comparison with HVAC Moreover in case oftransmission of bulk electrical energy over long distances (more than 50 km) by submarine cable the only applicable technology is theHVDC transmission
Advantages for HVDC transmission
In a HVDC system the electricity is
- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC network
HVDC transmission ndash principles and characteristics
Controllable ndash power injected where neededsupplemental control frequency control- Bypass congested circuits ndash no inadvertent flow- Higher power fewer linesno intermediate SS needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW no EMF constraints- No limit to underground or submarinecable length
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
HVDC is an ldquointelligent linkrdquo The power flow can be controlled and changed very quickly practically independently from frequency at the terminal busses voltage or power angle at the terminal busses like in HVAC transmission
Due to the inherent properties of the electronic equipment which forms the converter bridges the direction of the transmitted power may be also changed very quickly
The HVDC transmission has the major advantage of flexibility inpower exchange in comparison with HVAC Moreover in case oftransmission of bulk electrical energy over long distances (more than 50 km) by submarine cable the only applicable technology is theHVDC transmission
Advantages for HVDC transmission
In a HVDC system the electricity is
- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC network
HVDC transmission ndash principles and characteristics
Controllable ndash power injected where neededsupplemental control frequency control- Bypass congested circuits ndash no inadvertent flow- Higher power fewer linesno intermediate SS needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW no EMF constraints- No limit to underground or submarinecable length
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
In a HVDC system the electricity is
- Taken from a 3-phase AC network- Converted to DC in a converter station- Transmitted by DC OHL or cable (underground or sub sea)- Converted back to AC in another converter station- Injected into AC network
HVDC transmission ndash principles and characteristics
Controllable ndash power injected where neededsupplemental control frequency control- Bypass congested circuits ndash no inadvertent flow- Higher power fewer linesno intermediate SS needed- Lower losses- Facilitates integration of remotediverse resources with less impacton existing grid- Low expensive transmission line- Reactive power demand limited toterminals independent of distances- Narrower ROW no EMF constraints- No limit to underground or submarinecable length
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Cable laying
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
The scope of this project is to install a submarine cable between the Romanian and Turkish TSOrsquos Transelectrica and TEIAS respectively
Business concept commercial interconnector separately regulated
The Project is in line with the policies of both Romanian and Turkish Governments and fits well into the EU Green Paper on Energy and EU strategy of Priority Network Projects The project also brings a significant contribution and stability to the regional electricity market in South-East Europe
The Project is ldquoon goingrdquo in the Feasibility Study phase
Project scope
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Short history of the project
bull 2004 ndash April ndash energy cooperation protocol between Romania and Turkey at ministries level
ndash The first mentioning of the cable project
bull 2005 - June ndash MOU between Transelectrica and TEIAS for the HVDC link project
ndash Main scope to prepare the oportunity study by a joint project team
bull 2006 ndash November - JPP ( joint position paper ) between Transelectrica and TEIAS
ndash Approval of the opportunity study
ndash Decision to continue the study at feasibility study level
bull 2007 ndash first attempt to launch the feasibility study with minority financing of private investors ( 50 Swedish grant available )
ndash No success replacement of the private investor with Nuclearelectrica
bull 2008 ndash first tender for the FS in new financing conditions
ndash Incompatibility of the grant with open tender requirements
bull 2009 ndash secont tender contract signature in June
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
ELEMENT 01
TELConstanţa
NordSubstation
ELEMENT 02TEL
Converter station and
link to Constanţa
Nord substation
ELEMENT03
TELUnderground cable between
converter station and HVDC cable connection
ELEMENT04
HVDC
cable
ELEMENT05
TEIASUnderground cable between
converter station and HVDC cable connection
ELEMENT 06
TEIASConverter
station and link to
Alibeykoumly substation
ROMANIA
BLACK SEA
ELEMENT 07
TEIASAlibeykoumly Substation
TURKEY
Romania ndash Turkey HVDC interconector overview
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Part 3The feasibility study
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
bull Connection point with Romanian Power System 400kV SS Constanţa Nordbull Connection point with Turkish Power System 400kV SS Alybeikoumly in AsiabullThe cables voltage level 400 kVbullThe capacity 600MWbullThe length about 400 kmbull Losses on the cable-
bull in 600MW transfer ~ 12MWbull in 500MW transfer ~ 9MW
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Deliverables
The nominated Designer will submit the following documents
Inception Report Terms of Reference ndash Objectives for procuring the services and
works required for the seabed survey and Geological Study EIA ndash Environmental Impact Assessment Study including
environmental approval Feasibility Study (draft) including the necessary documentation for
approvals and advices Feasibility Study (final) including the approvals and advices Documentation for urbanism certificates in Romania and Turkey Technical Specifications Progress Reports Final Report
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Client ConsultantFICHTNER ENGINEERING
Romania
ClientTRANSELECTRICA amp NUCLEARELECTRICA
Romania
Client DesignerVATTENFALL
Sweden
Technical ConsultantTEIAŞ Turkey
Project team members and their responsibilities
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Electricity market team
Technical team
Economical institutional and legal
commercial and financial team
- Environment expert- See bead expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Permits and
approvals expert
- Contract legislation expert
- Price electricity forecasting expert
- Electricity market expert
- Macroeconomic modeling expert
- Financial analyze expert
- Investment analyze expert
- Contract legislation expert
- Romanian amp international legislation expert
Environmental team
Procurement team
- Commercial expert- Overhead
transmission line expert
- Electrical substation expert
- Converter expert- HVDC submarine
cable expert- Environment expert
- Environment expert- Romanian amp
international legislation expert
- Permits and approvals expert
EXPERT TEAMS
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
The Feasibility Study will
Establish the design parameters capacity and cost estimation for the HVDC link including the most suitable routing based on previous studies and existing data which include geological morphological and seabed structure analyze and initial sea depth survey as well as on its own investigations
Assess the legal and environmental impediments and propose the most appropriate and viable way forward for the Project from an operational and legal framework point of view including also the EIA Study with the afferent approvals in accordance with legalstipulations from both countries and from EU (Transelectrica Nuclearelectrica and TEIAŞ will in this respect support the Designer in this process)
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
bullContain the necessary documentation for obtaining permits and approvals in accordance with existing legislation in Romania and in Turkey as applicable at the date of project elaboration and corresponding to this phase of the engineeringbullContain the necessary documentation to obtain the urbanism certificatebullAnalyse the financial and economical feasibility of the interconnection project considering private benefits and costs and external effects such as public benefits and costsbullAssess suitable possibilities to finance the ProjectbullPropose a time schedule for project implementation and operationbullHighlight the commercial environmental and technical conditions of direct interconnection of the national grids of Turkey and Romania through a submarine cable across the Black Sea through system studies performed in both countries
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Technical Specifications for procurement and execution will include at least a minimalcontent as follows- Scope- Definitions- Standard and recommendations- Functional and technical requirements- Testing and inspections- Execution- Provision of information1048707 Terms of Reference for procuring the services and work required for the seabed survey and geological study will be established based on our experience in similar projects For the feasibility study we will perform a study based on existing materialsdocumentation related to Black Sea seabed survey and geological studies1048707
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
1 Inception report (within 6 weeks of commencement of the project)2 Terms of Reference for the Seabed survey and Geological Study (The draftissue to be submitted within 6 weeks of commencement of the assignment)3 Plans and Terms of Reference for the Environmental Impact assessment (Tobe submitted as an annex to the first Progress report)4 Environmental Impact Assessment (EIA) incl environmental approvals (The draftissue within 8 months and the final issue within 10 months after the commencementof the assignment)5 Feasibility Study ndash draft incl the necessary documents for approvals and advices(8 months after commencement of the assignment)6 Feasibility Study ndash final incl approvals and advices (10 months aftercommencement of the assignment)7 Documentation for urbanism certificates in Romania and Turkey (10 months aftercommencement of the assignment)8 Technical Specifications (Within 14 months after the commencement of theproject)9 Progress Reports (To be reported quarterly no later than the 10th working day afterthe reporting period)10 Final Report (The final report shall be submitted upon finalisation of the assignement
DELIVERABLES
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
- Costs for Submarine cables - material and installation- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Romania ndash material and installations- Costs for HVDC land cables andor HVDC OHTLs andor HVAC ndash type overhead electriclines as applicable in Turkey ndash material and installations- Costs for converter station including the AC connection in Romania- Costs for converter station including the AC connection in Turkey- Telecommunication equipment based on optical fibers- Site costs in Romania- Site costs in Turkey- Engineering project management project control and commissioning- Other investments if any- Interest rates during construction calculated separately for each of the above mentionedparts of the HVDC link- Total investment costs for the HVDC link- Payment for provisional and final expropriations
Investment needs - Investments in the HVDC Link
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
Slide 2
Slide 4
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 11
Slide 12
Slide 13
Slide 14
Slide 15
Slide 16
Slide 17
Slide 18
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
Investments in the Romanian AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates calculated separately for each part- Total investments due to the HVDC link in the Romanian AC grid
Investments in the Turkish AC Grid- AC grid investments exclusive the breaker bay for the HVDC link- Telecommunication and remote control equipment- Interest rates during construction calculated separately for each part- Total investments due to the HVDC link in the Turkish AC grid
Investment needs - Investments in the Romanian and Turkish AC grids
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
Regional Transmission Network Development Implications for Trade and Investment
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Slide 11
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Slide 20
Slide 21
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Slide 24
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Slide 28
Slide 29
Slide 30
Slide 31
Activities to be done in parallel with the feasibilty study
Slide 34
Slide 35
ldquoThe price forecast has to be calculated from different perspectivesbull Long term off-take contract 60 and 80 bull Market price for the remaining 40 and 20 bull Sufficient Average Price Level (SAPL)
COMMERCIAL and FINANCIAL ANALYSIS
ldquoBased on the recommended investment and operational plan the Designer shall establish a financial model and analyse the investment over a time horizon of both 20 years operation and 30 years operation The output of the model shall be presented in nominal terms
Tranzit scenarios 1000 MW from Romania to Turkey
Tranzit scenarios 1000 MW from UCTE (PolandampSlovakia) to
Turkey
Tranzit scenarios 1000 MW from Russia (IPSUPS) to Turkey
budget
Tranzit scenarios 1000 MW from Turkey to Romania
Tranzit scenarios1000 MW from Turkey to UCTE (Serbia and
Austria)
Activities to be done in parallel with the feasibilty study
bull Preliminary business model
ndash List of main commercial regulatory and financial hypothesys
ndash Documentation on the business experience of existing commercial interconnectors in EU
ndash Discussions and clarifications with the regulatory authorities
ndash Legal due diligence for the preliminary business model
ndash TOR for the complete business study
bull Exploration and identification of potential private partners
ndash Letters of intent
ndash Develop procedure for the selection of the private investors
bull Full clarifications on TEIAS participation in the project including Turkish applicable legislation
bull Preliminary legal preparations for the project company ( SPV )
Opportunity StudyJoint Position Paper
Feasibility Study( 75 TEL- 25 NE ) Business Study
Joint Position Paper - Final
International Agreement between
Romania and Turkey
Project implementationFinancing contracting supply and instalation
MOU -1MOU -1
MOU -2 MOU -2
Selection of private investors SPV ndash the project company
