ENTSO-E

Electricity Networks

Dimitrios ChaniotisSenior Advisor System Development

ENTSO-E

64th session of the Economic Commission for Europe

Geneva 30 March 2011

• 41 TSOs from 34 countries• Fully operational since July 2009

• A trans-European network

• 525 million citizens served• 828 GW generation• 305,000 Km of transmission lines• 3,400 TWh/year demand• 400 TWh/year exchanges

• Replaces former TSO organisations: ATSOI, BALTSO, RTSO, NORDEL, UCTE, UKTSOA

TSO international cooperation = ENTSO-E

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 2 of 12

•Article 4: ENTSO-E

• Completion of IEM

•Article 6: Establishment of network codes

• Legally binding through Comitology

•Article 7: Issues addressed by network codes

• Cross border network issues and market integration issues without

prejudice to the Member States’ right to establish national network codes

•Article 8: Tasks of ENTSO-E

• Ten-Year Network Development Plan, incl. a European generation adequacy outlook

• Work programme, annual report, summer/winter outlooks, monitoring

• Research and Development Plan

Network Codes 12 topic areas

Network connection rules

Balancing rules including network-related reserve power rules

Network security and reliability

Operational procedures in an emergency

Third-party access rules

Data exchange and setlement rules

Interoperability rules

Capacity-allocation and congestion management

Rules for trading

Transparency rules

Rules regarding harmonized transmission tariff structures including locational signals and inter-transmission system operator compensation rules

Energy efficiency regarding electricity networks

ENTSO-E in Regulation (EC) 714/2009

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 3 of 12

What is the Ten-Year Network Development Plan

Sustainability

Competitiveness

Security of Supply

TYNDPPolicy Action

Assessment

Monitoring

Inform

Assist

Coordinate

Evaluate

“ENTSO-E shall adopt a non-binding Community-wide ten-year network development plan”• Transparency• Decision making process• Networks/scenarios/Generation outlook/resilience

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 4 of 12

44%mid term

56%long term

78%

22%

AC > 300 kV     29600 km 83%

17%

Total projects 42100 km

DC 9600 km

AC < 300 kV      2900 km

upgrade

new

Results of the Pilot TYNDP 2010

The TYNDP projects represent~14% of existing lines

€ 23 to 28 billion

for the first five years !

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 5 of 12

The debate has now started

• “The first 10-year network development plan (TYNDP) forms a solid basis to

identify priorities in the electricity infrastructure sector”

• “Future infrastructure and non-binding TYNDPs should be consistent“.

• “Now, the TYNDP - elaborated by ENTSO-E - is an important first tool [for a

clear vision for the development of integrated EU energy grids], which might

need to be complemented by other instruments”.

EC CommunicationEnergy infrastructure priorities for 2020 and beyond28 February 2011

Council conclusions onEnergy 2020: A Strategy for competitive, sustainable and secure energy28 February 2011

working documenton Energy infrastructure priorities for 2020 and beyondCommittee on Industry, Research and EnergyRapporteur: Francisco Sosa Wagner

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 6 of 12

And « taboos » are dropping in view of the Energy Infrastructure Package

• “It is important to streamline and improve authorisation procedures, while respecting national competences and procedures, for the building of new infrastructure; the European Council looks forward to the forthcoming proposal from the Commission in that respect.”

• “The bulk of the important financing costs for infrastructure investments will have to be delivered by the market, with costs recovered through tariffs. It is vital to promote a regulatory framework attractive to investment”.

Conclusions of the European Council4 February 2011

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 7 of 12

Time to table proposals

• Permitting/public acceptance– Avoid undue burden on TSOs: 3 - 5 year limit for final decision

– One-stop shops

– Compensation for municipalities?

– Communication : debate “Champions”

– Improvements and streamlining for ALL projects

• Investments– Business case for expansion investment often not stable and attractive enough

– International cost allocation !

– Innovative financing aids, partly to overcome regulatory blockages

TSO

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 8 of 12

Working towards a longer term

• Transmission Grid infrastructures peculiarities:– Long life cycle: Decision today - Commissioning 2020 - Economic value 2020 – 2050 +

Changing the structure of the grid is a slow process Longer term approach (20 to 30 years) also needed

• Target Year 2050 : – define policy targets, underlying scenarios, – identify candidate technologies, grid structures, R&D efforts

• Intermediate Target Year (2030…) – ensure a viable path between present and long term,– avoid short term decisions leading to stranded investment

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 9 of 12

Offshore Wind Output

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1 501 1001 1501 2001 2501 3001 3501 4001 4501 5001 5501 6001 6501 7001 7501 8001 8501

Time (hours)

Capa

city

North S

ea

Denmark4 GW

Norway Shore Line

Den

mark Shore Line

(3.5 GW)

Germ

any Shore Line

(20 GW

)

Belgium Shore Line (3.5 GW)

Netherlands Shore Line(10 GW)

Scotland

 Sho

re Line

(5 GW)

England Shore Line

(24 GW)

BritNed

NemoNorNed

NorNed

 2 CORB

A

SK4

NordLink

Dogger Bank13 GW

Hornsea4 GW

Norfolk 7 GW

Norway1 GW

Belgium4 GW

Scotland9 GW

England Rounds1 & 2  (5.5GW)

(7 GW Interface Capacity)

Germany (24 GW)

Netherlands(12 GW)

HVDC Transmission

AC Transmission

‘In Flight’ or current

Efficient use of Transmission Capability

SK1‐3

Reduced connection capacity (10%)

+7GW

+6GW

+11GW

Optimised integrated offshore grid development

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 10 of 12

Technological issues

Economical/financialissues

Political/sociopoliticalissues

Towards 2050 pan European System : the ENTSO-E study roadmap

• In context of SET plan, the realization of study package will be done by a large consortium (TSOs, DSOs, universities, institutes, manufacturers, …).

• First comprehensive concept on Electricity Highways System(also showing important corridors) is intended to be available by end 2014.

• An ENTSO-E Study Roadmap will be available by July 2011 (after consultation process)• Describe a comprehensive study package covering all relevant Electricity highways issues:

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 11 of 12

Conclusions

• SoS and RES development taken by EU policy call for massive development of transmission grids, both between and within countries

• ENTSO-E’s first Ten-Year Network Development Plan has been a timely initiative that has enabled the policy debate

• Seamless integration of Electricity Highways into the 400kV grids demands that TSOs operate and have strong ownership stakes

• Permitting and public acceptance is the key issue ; without radical changes policy objectives will not be met

• A huge financial effort requires new financing tools and regulatory stability

Electricity Networks | Dimitrios Chaniotis | 30 March 2011 | Page 12 of 12