2.4. Study on perspectives of main grid network interconnection between countries and with potential wind parks

1. Perspectives of Offshore Wind Energy development in marine areas of Lithuania, Poland and Russia 2.4. Study on perspectives of main grid network interconnection between countries and with potential wind parks www.eksponente.lt

2. The problem • Lack of reliable knowledge concerning perspectives of off-shore wind power parks interconnection between countries and with potential wind parks are limiting forecasting and planning of investments into this kind of perspective renewable energy. www.eksponente.lt

3. Main tasks • To overview the state and problems of interconnection of Polish, Lithuanian and Kaliningrad district (Russia) electricity power grids. • To analyse EU and national institutional frame work of power grids development. • To define and analyse different scenarios of interconnection of potential off-shore wind parks. www.eksponente.lt

4. Preface • In May 2004 the EU integrated eight countries from Central and Eastern Europe, as well as Malta and Cyprus, into what is about to become a truly pan-European Union. • But whereas the political EU enlargement is proceeding smoothly, electricity enlargement turns out to be a more complex undertaking, which is far from being achieved at present. • Since the mid-1990’s, the accession countries had worked hard to bring their energy sectors in conformity with the EU acquis communautaire. www.eksponente.lt

5. The objective of EU electricity enlargement is to move towards a single, sustainableEuropean electricity market: • A singlemarket refers to the expectation of a competitive market and the efficient allocation of generation and transmission resources, at least at a regional level, if not at the level of the new EU 25 at large. • Sustainable refers to the ability of the electricity system to meet the environmental objectives of the EU, in particular with regard to the share of renewable in electricity production and the greenhouse gas targets, while assuring reliable electricity supply at reasonable costs. • Establishing open competitive markets while at the same time pursuing environmental objectives is not necessarily a contradiction. • A benchmarking approach of comparing different reform objectives can make cross-country comparisons possible. www.eksponente.lt

6. When considering the electricity map of the region, one clearly distinguishes three sub-regions: • The Central European Countries (CEC) are the former CENTREL-countries (Poland, Czech and Slovak Republics, Hungary) which are emerging as the core-zone in Eastern Europe; it’s considering Slovenia and Croatia also as being part of this region. These countries present by far the biggest market and assemble the strongest players of the region; • South Eastern Europe (SEE) consists of the EU candidates Romania and Bulgaria as well as the other Balkan states (except Albania); • The Baltic countries (Lithuania, Latvia, Estonia) are still part of the North-West Russian electricity system. The electricity sector in the Baltic countries is infinitesimally small, but it is politically highly sensitive (nuclear power in Ignalina/Lithuania, geopolitical issues with Russia, Kaliningrad, etc.). www.eksponente.lt

7. European power market • enlargement of European Union and integration into European and World economic structures requires significantly increase electricity market integration, which results in less than 10% of Europe’s electricity being traded across borders now www.eksponente.lt

8. Trans-European networks priority projects for electricity www.eksponente.lt

9. Priorities of EU Power Links Concerning Infrastructure the Priority Interconnection Plan sets out five priorities: • Identifying the most significant missing infrastructure up to 2013 and ensuring an-European political support to fill the gaps. • Appointing four European co-coordinators to pursue the four of the most important priority projects: • the Power-Link between Germany, Poland and Lithuania; • connections to offshore wind power in Northern Europe; • electricity interconnections between France and Spain; • and the Nabucco pipeline, bringing gas from the Caspian to central Europe. • Agreeing a maximum of 5 years within which planning and approval procedures must be completed for projects that are defined as being "of European interest" under Trans-European Energy Guidelines. • Examining the need to increase funding for the Energy Trans-European networks, particularly to facilitate the integration of renewable electricity into the grid. • Establishing a new Community mechanism and structure for Transmission System Operators (TSOs), responsible for co-coordinated network planning. www.eksponente.lt

10. Baltic power grid on cross-road • European Union: • Invited Baltic States to become EU Members • Forgot integrate power nets Reconnection strategies: • Status quo • “Go West” • Integration www.eksponente.lt

11. Bottlenecks 2005% of time 17 % 180 h 2 % 552 h NO2 FI FI 13 % 1 % 2403 h 8 % 0 h SE SE 5 % 2 % 1252 h NO1 657 h 18 % 50 % 716 h 3 % 3563 h 2 % 3888 h 45 % 440 h DK1 0 % 30 h 16 % 111 h DK2 Timo Toivonen

12. Huutokoski 750 kV 400 kV 330 kV Vihtavuori Toivila Kangasala 2000 MW 1400 MW Yllikkälä Koria Kamenogorskaja Hikiä Forssa Kymi Hyvinkää Anttila Vyborg Loviisa Nurmijärvi Tammisto Länsisalmi Espoo NWPP/ Severnaja Inkoo HELSINKI Vostotsnaja ST. PETERSBURG Sosnovyi Bor 400 kV Transmission Capacity RUS - FIN

13. Transmission Connection Timo Toivonen

14. Finland - Sweden • 500MW 500 kV cable • 270 km • 300 M€ • 2010 • Market >40% www.eksponente.lt

15. NORDEL NORDEL Sweden Zviedrija Finland Somija ESTLINK 350 MW 11.2006 Norway Norvēģija Integrated Baltic Lithuania - Sweden 1000 MW and CIS energy system Igaunija Estonia Krievija Russia Latvia Latvija Lithuania Lietuva Dānmarkja Dānija Belorus Baltkrievija UCTI/ UCTE/ Polija Poland CENTRAL Europe CENTRAL Lithuania – Poland 1000 MW Ukraine Ukraina Vācija Germany Czech Čehija Baltic power grid reconnection strategies“Status quo” www.eksponente.lt

16. Connectivity of power markets • Baltic Sates are technically strongly connected to Russian power market • Baltic States have strong cross boarder interconnections • Estonian network allows to import all power needed • Baltic States have no connections to other EU countries www.eksponente.lt

17. Estlink, 2006 • Realised in end of 2006.: • Estlink: • Estonia – Finland (350MW). • 99 (70 and 9+20) km. • 110M€. www.eksponente.lt

18. Feasibility study: Alytus - Elk • •> 75 % from EU founds • • 154 km HV (400 kV) duble-circuit transferring grid from Alytus to Elk. • • project could be finalized in 2012-2015 year. • • Costs - 237 mln. Euro: – 71 mln. euro in Poland and 166 mln. euro – on Lithuanian territory. • • Additional investments for enforcement of grids: 371 mln. Euro in Poland and 95 mln. Euro in Lithuania. Investors – both sides. • Total - 607 mln. Euro • • Should be finalised Baltic ring: by joining energy systems of Lithuania, Latvia, Estonia, Finland, Sweden, Norway, Denmark and Poland. www.eksponente.lt

19. Feasibility study: Klaipeda - Hemsjo • 350 km, 700-1000 MW submarine HVDC 1000 kV cable. • ~EUR 550 million. • The study is to be completed by end of January, 2008. www.eksponente.lt

20. Hiiumaa off-shore wind park(4energy) www.eksponente.lt

21. Baltic power grid reconnection strategies“Go West” • Separate links to Sweden from: • Poland • Lithuania, • Latvia, • Estonia • Finland www.eksponente.lt

22. Baltic power grid reconnection strategies“Integration” Investigate, model and design the most appropriate offshore grid - Bosegrid® - Baltic Offshore electricity grid www.eksponente.lt

23. European Strategic Energy Technology Plan EC has two key objectives for energy technology: • to lower the cost of clean energy and • to put EU industry at the forefront of the rapidly growing low carbon technology sector. • To meet these objectives, the Commission intends to put forward a first European Strategic Energy Technology Plan for endorsement by the 2008 Spring Council. www.eksponente.lt

24. EC long-term vision • By 2020, technologies will have to make the 20% renewable target a reality by permitting a sharp increase in the share of lower cost renewables (including the roll-out of off-shore wind ….. www.eksponente.lt

25. Pan European Super grid • Capacity factor of OWP: • Stand alone 40% • Supergrid  70% • Power market integration: • Now - 10% • With Supergrid  100% www.eksponente.lt

26. Plot characteristics www.eksponente.lt

27. Interconnection scenarios www.eksponente.lt

28. No interconnection www.eksponente.lt

29. Line connection Onshore: Poland –Lithuania: 607 mln.euro. Offshore: Poland- Lithuania: 550 mln.Euro. www.eksponente.lt

30. Combined connections www.eksponente.lt

31. Conclusion 1 • After accession of East European countries in EU still not formed efficient interconnection of power grids and electricity trade market. • Only at end of 2006 construction of Estlink enabled to connect Baltic power grids to Scandinavian power market. • Polish and Lithuanian inland interconnection of power grids provided to implement till 2015 year. • Lithuanian and Swedish submarine interconnection possibilities are under investigation now and could be realised till 2015 year. www.eksponente.lt

32. Conclusion 2 • European Energy technological plan the first from four of the most important priority projects named the Power-Link between Germany, Poland and Lithuania. • By 2020, technologies will have to make the 20% renewable target a reality by permitting a sharp increase in the share of lower cost renewables, including the roll-out of off-shore wind. • Priorities of such a targeted initiative could include getting large scale offshore wind competitive within the short term and paving the way towards a competitive European offshore Supergrid. www.eksponente.lt

33. Conclusion 3 • Trans European Supergrid discovers abilities to become as revolutionary efficient looking from point of stability of power supply as able to reach capacity factor till 70% and significant reduce power reservation needs. • This technical decision could open and connect energy markets of member States. www.eksponente.lt

34. Conclusion 4 • Comparing different scenarios of wind power parks interconnection, the most acceptable for Poland, Russia (Kaliningrad) and Lithuania is Line connection variant as Eastern Baltic arm of trans European Supergid. • No interconnection and combined interconnection scenarios require too much legislative changes and indirect investments related to enforcement inland grids and capacity reservation. • It’s also important that construction of Supergrid could avoid construction of inland connection between Lithuania and Poland, same as submarine interconnection Lithuania – Sweden. www.eksponente.lt

35. Conclusion 5 Tools: • Policy – EU strategic and financial support • Organization – BOSEC establishing • Environment – scientific support www.eksponente.lt

36. Thank you for your attention! www.eksponente.lt