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Cooperation roadmap RF-EU (Electric Power sector) Moscow, 23-24.05.2011

This document provides an overview of the Cooperation Roadmap for the RF-EU Electric Power Sector, focusing on the interaction, benefits, barriers, and concrete proposals for collaboration. The document also includes information on the Russian electric industry priorities and the milestones of the recent history of the synchronous zone.

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Cooperation roadmap RF-EU (Electric Power sector) Moscow, 23-24.05.2011

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  1. Cooperation roadmap RF-EU (Electric Power sector)Moscow, 23-24.05.2011 1. UPS of Russia (some figures) 2. Russian electric industry priorities 3. Interaction (collaboration) benefits 4. Collaboration barriers 5. Target situation 6. Concrete proposals

  2. Global view IPS/UPS Nordic ENTSO-E 2

  3. IPS/UPS structure Kaliningrad 1800/2500 1000 680 +/-1150 Norway Lithuania Latvia Estonia 1300/1750 1400 Poland North-West Finland Belarus 400 1200/1000 1600/1900 900 Slovakia Ukraine Middle Volga Siberia Center Urals 800/300 Hungary 327 1600/2100 2200/1800 2700/2800 1200 400 Kazakhstan South Romania 1700 Roman 1200/1500 Mongolia 1000 Moldova 2100 300 400 2000/2200 Kyrgyz Turkmenistan Uzbekistan Georgia Azer Roman 900/1250 Iran Armenia Turkey Iran Tajikistan 150 IPS/UES Structure IPS/UES Structure • Milestones of the recent history of the synchronous zone: • In 1962 “MIR” power systems Interconnection was established with the total installed capacity more than 400 MW. It united power systems from Berlin to Chita • 1991 – the power grid of Armenia stopped parallel operation with IPS/UPS • 1993 – breakdown of the power Interconnection “MIR”; • 2000 – restoration of parallel operation of the UPS of Kazakhstan and IPS of Ukraine with UPS of Russia • 2002 – transfer of Burshtyn island (Ukraine) to parallel operation with UCTE; • 2003 – transfer of the power system of Turkmenistan to parallel operation with the power system of Iran. IPS of the East (Р inst~ 9 GW) functions separately with IPS/UPS. IPS/UES Structure IPS/UES Structure 3

  4. UPS of Russia installed capacity – 215 GW NPP CC, GT Industrial TPP+HPP HPP CHP TPP

  5. UPS of Russia Peak load and consumption GW TWh Peak load Peak load Consumption

  6. Insignificant Russian Export/Import Limited Volumes of exchanges Countries 2010 , billion kWh Baltic countries 2010, billion kWh Export Import Export Import Azerbaijan 0.018 0.203 0 0 Estonia 0 0.007 0.029 0 Belarus Latvia 6 Ukraine 0.032 0.081 5.106 0.003 Lithuania Finland 11.058 0 5.113 0.003 Total for the Baltiсs 0.21 0 Norway • Integral indicators for Russia in 2010: • Export –19.362 billion kWh, • Import – 2.923 billion kWh. Georgia 0.212 1.117 Kazakhstan 1.376 1.498 China 0.983 0 Mongolia The shown data demonstrate insignificant for the Russian power sector volume of foreign trade – export comprises less than 2% of the total output of power plants of the country, and import – basis points of the total consumption of electricity in Russia. 0.214 0.021 S.Ossetia 0.118 0 14.249 2.92 Total 6

  7. EE LV RU LT RU (I) BY (II) PL (III) UA CZ SK (IV-IX) (X) HU RO HR (XI) BIH YU BG IPS/UPS – West Europe interconnectors Blue – 750 kV Red – 400 kV Green – 220 kV

  8. RUSSIA – FINLAND ELECTRIC BORDER Vyborg Converter Complex – 4x355MW Vostochnaya Kumy 330 kV 400 kV FINLAND RUSSIA Severnaya Kamenogorskaya Yllikkãlã ~ 3 x 150 ~ Blue – NORDEL frequency Red – UPS frequency ~ N-W TPP (CC) Plus some hydro-units islanded to NORDEL by 110; 154 kV lines.

  9. Evolution of the system of agreements Electric ring BRELL 9

  10. 2. Russian electric industry priorities • Innovation policy, energy efficiency & energy saving trough the whole chain; • Developing the renewable sources; • Increasing the share of NPP in the energy mix (in the western part – Leningrad NPP-2, 1-st unit 1200 MW in 2014; Baltic NPP in Kaliningrad region, 2x1200 MW in 2016, 2018); • Modernization of existing capacities, implementation of new technologies on the base organic fuels aiming the increase of efficiency and the share of coal; • Aggravation of ecological requirements (though in comparison with EU no well-defined quantitative references); • Attraction (involvement) of foreign investment (even in NPP, e.g. Baltic NPP); • Reinforcement of the main grid 500-750-1150 kV, especially intersystem links between European and Asian parts of UPS, including DC links; • Increasing the controllability of UPS - flexible capacities, energy storage devices (PSPP) technologies, “intelligent” control systems.

  11. 3. EU-RF interaction (collaboration) benefits Joint operation of Power systems could give big benefits in terms of reliability and optimization taking into account the extensive border between EU and Russia (especially between the two biggest synchronous zones) and the existing huge interface transmission infrastructure: • Optimization of generation park; • Minimization of generating capacity reserves; • Mutual assistance in emergency conditions, extreme whether (esp. for bordering power systems); • That mains automatically the integration of EU PS (Baltic IPS); • Reduction of needs of internal grid reinforcement etc. • Power systemsjoint operation gives incentives in further collaboration incl. implementation of new technologies and finally decreases the electric sector pressure on the environment.

  12. 4. Collaboration barriers • Uncertainty with authorities at national and Union’s institutions in decision making process; with the full unbundling of the sector often the distribution of roles is not clear at national level; • unilateral firm (unchangeable) decisions (without consultations) affecting the another side (input fee, 3-d energy packet); • incompatible (different) approaches to power systems extension: ENTSO-E’s presupposes step by step connection of parts of IPS/UPS with their separation from the synchronous zone (its dismemberment) on the base of ENTSO-E rules; Russian approach – connection of two synchronous zones with further gradual increase of exchanges on the base of agreed rules; • limited confidence and transparency (reciprocally).

  13. 5. Target situation • Full integration of power systems and electricity markets with corresponding coordinating/control institutions. • Electricity as universal energy resource in many branches of economy incl. transport will in the considered future more and more replace primary sources (gas, coal, oil) therefore: it should affordable, permanently available (uninterrupted), generated using high efficiency technologies (incl. mix of electricity, heat, cold production), ecologically clean. So it is an international challenge.

  14. 6. Concrete proposals-1 1. Ensuring adequate collaboration between SO UPS of Russia (FGC UES) and ENTSO-E and other adjacent TSOs in order: - not to endanger the security of current synchronous function of EU and RF power systems (Baltic IPS and BRELL ring) – elaboration/coordination of common rules regarding calculation of transport capacity, load/frequency control, planning, special protection schemes etc. - in future to mutually exchange information and coordinated taking into account the prospective development of each other, realization of joint projects; special attention merits the Baltic ring where a lot of NPPs is planned including Baltic NPP in Kaliningrad region (2x1150 MW, 2016, 2018), Leningrad NPP-2 (1-st unit 1150 MW in 2014), Lithuanian NPP (up to 3 GW by 2020), Belarus NPP (2x1150 MW by 2018-2020), Polish nuclear program (2020) and new transmission lines Baltics – Kaliningrad – Poland – Germany, reinforcement of Russia – Northern Europe are needed. We appreciate the support of such project on the EU level as crucially necessary.

  15. 6. Concrete proposals-2 2. Western-Eastern power systems interconnection. “The completion of the Feasibility Study has opened a new era in the cooperation between Western and Eastern TSOs/companies responsible for a reliable operation of the transmission systems in the interest of the electricity industry and citizens in EU and CIS” (citation from Key conclusions of the “Feasibility Study: Synchronous Interconnection of the Power Systems of IPS/UPS with UCTE”). We should give a decision for coming generations. Otherwise we have neither synchronous nor non-synchronous links between the two biggest European power systems. The IPS/UPS dismemberment is not acceptable because it weaknesses the security of remaining part, incl. power evacuation from NPP (e.g. Kursk near the Ukrainian border). (If such separation becomes unavoidable mutually agreed measures/timing should be undertaken.) Now ENTSO-E is promoting «Study roadmap towards Modular Development Plan on pan-European Electricity Highways System (MoDPEHS). Way to 2050 pan-European power system». It is in parallel discussion with the Energy roadmap 2050 and may be worth to consider it as a potential platform to solve this problem.

  16. 6. Concrete proposals-3 3. It is important to mutually exchange views when preparing regulatory decisions in order to possibly improve them and to prevent negative consequences for another side. Also conferences, round-tables etc on new technologies, regulatory economic/market mechanisms are considered helpful (no shortages in that field).

  17. Thank you for attention!

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