POWER MARKET IN ROMANIA. Ortisei, May 2003

Transcription

1 POWER MARKET IN ROMANIA Ortisei, May

2 [GWh] Transelectrica Energy Balance [GWh] Hydro GWh 29% Gross domestic consumption Thermal GWh 61% Nuclear 5513 GWh 10% Balance = (export import) Gross power generation Peak power in 2002: 8410 MW Romania has become exporter of electricity to Greece, Albania and former Yugoslavia, as a result of excess capacity within the system 2

3 Ca. 8,800 km of Over Head Lines (OHL) currently exist: 154. Km of 750 kv 4,474.2 km of 400 kv 4,134 km of 220 kv Transelectrica operates 76 transforming and/or interconnection substations in Romania 1 of 750 kv 26 of 400 kv 49 of 220 Kv Transmission Network LEGEND Substations 750kV 400kV New su bsta t ion s 220kV 400kV (220)kV Rehabilitations Sandorfalva Arad Sacalaz Timisoara Djerdap Oradea Cluj Est Iaz Resita Tihau Alba Iulia Mukacevo Moldavia Retezat Paroseni Tg.Jiu N Rosiori Sugag Pestis Iernut Tantareni Ungheni Sibiu Raureni Kozlodui Gheorghieni Dumbrava Suceava Iasi Lines kV Cluj Floresti Bacau 400kV 220kV 400(220)kV Uk r a in e Portile de Fier C.Turzii Urechesti Baia Mare Hungar y Stejaru Roman Gutinas Munteni Brasov Smardan Darste Barbosi Teleajen Filesti Lacu Stalpu Sarat Isaccea Bradu Brazi Vest Gura Ialomitei Pitesti Sud Fundeni Domnesti Draganesti Olt Buc. Sud Pelicanu Slatina Mostistea Cernavoda Gradiste Ghizdaru Tr.Magurele Varna Ucraina Sud Vulkanesti Tulcea Ju goslavia Uk r a in e Gadalin Lotru Stuparei Bla ck Sea Craiova Constanta Medgidia Sud Bu lga r ia Dobrudja

4 Transelectrica coordinates the production, technological system services, transmission and distribution/ 110 kv Transelectrica includes a National Dispatch Centre and five Regional Dispatch Centres. System control through dispatch centres Transelectrica S.A. - System Operator RDC Bacău NDC NDC National Dispatch Center RDC Regional Dispatch Center DDC Distribution Dispatch Center LDDC Local Distribution Dispatch Center HDC Hydro Dispatch Center PLDC Power Plant Local Dispatch Center CLDC Consumer Local Dispatch Center RDC Bucureşti RDC Craiova RDC Timişoara RDC Cluj Transelectrica controls 342 units PLDC DLC >1000 MW HDC DHE HDC DHE DDCD DED PLDC DLC LDDC DEDL CLDC DELC 4

5 Historical Overview July The government reorganized the Romanian power sector and transformed the integrated Renel into Conel, a state-owned company controlling three subsidiaries: Termoelectrica (thermal generation), Hidroelectrica (hydro generation), and Electrica (distribution and supply). The nuclear power plant Nuclearelectrica was already a separate generating company. September ANRE (National Electricity and Heat Regulatory Authority) was founded July Conel was split up into four separate joint stock companies: Termoelectrica, Hidroelectrica, Electrica, and Transelectrica (TSO); the Market Operator was founded, as a subsidiary of Transelectrica. April Termoelectrica was split up into four separate generating companies. The Ministry of Industry and Resources is 100% owner of all the companies split from Conel. Privatisation of generation and distribution companies is expected. Transelectrica will remain wholly state-owned at least through the medium term. 5

6 Market Participants Romania has implemented a modern regulatory framework to facilitate the transition to a competitive market in the national power system The Ministry of Industry and Resources 100% ANRE The Regulatory Authority GENERATING COMPANIES SELF PRODUCERS TRANSMISSION & SYSTEM OPERATOR DISTRIBUTION AND/OR SUPPLY COMPANIES NUCLEARELECTRICA TRANSELECTRICA ELECTRICA (distribution &supply 8 subsidiaries) CAPTIVE CONSUMERS (67%) HIDROELECTRICA TERMOELECTRICA TERMOELECTRICA TERMOELECTRICA THERMAL POWER PRODUCERS MARKET OPERATOR OPCOM Other Electricity Suppliers (51) 49 ELIGIBLE CONSUMERS (33%) 6

7 Development of Competition in the Electricity Sector Privatisation in distribution and generation will encourage investment, efficiency and payment discipline The Romanian electricity market will evolve to a regional, open market, integrated with the electricity market of the European Union Regional co-operation will be in agreement with European Union accession requirements Generation sector is restructuring Cogeneration heating plants were transferred to the local municipalities. Preparation of generation companies for privatisation is under way. Privatisation in the distribution sector The main state-owned distributor Electrica - has been divided into 8 subsidiaries. These subsidiaries should be privatised in the near future. Transmission sector will continue to be regulated Access to the transmission network is regulated (Grid Code). ANRE regulates the transmission tariff based on justified costs. The tariff is dependent on the place of delivery of the generating unit. 7

8 Market Structure Regulated Market All prices are regulated by ANRE Transelectrica calculates the quantities for portfolio contracts for the next year by means of a computer simulation model, approved by the ANRE. Optimal global generation cost Portfolio contracts - between the main producers and the distribution/supplier company Electrica PPA contract - between Nuclearelectrica and Electrica Contracts for transmission & system operation (TSO) and distribution (DO) - between producers and TSO/DO Contracts for providing supporting services - between producers and TSO Eligible customers - annual consumption over 40 MWh Theoretical opening: 33%. Real opening : 14% of total electricity consumption traded on the competitive market, due to: - limited quantity at lower prices than on the regulated market; Competitive Market Contracts are regulated by ANRE (framework contracts) Prices are negotiated Bilateral contracts between suppliers and eligible customers Bilateral contracts between producers, self producers, independent suppliers and Electrica Spot market (spot market prices are determined by OPCOM) Import/export of electricity - limited experience of eligible customers 8

9 Spot Market The merit order without network restrictions OPCOM sets the system spot market price and determines the merit order. The system spot market price is the price offered for the last unit placed in the merit order at the level where the balance between generation and consumption is reached OPCOM operates completely independently of Transelectrica in order to maintain transparency and market discipline It is expected OPCOM will develop into a power exchange The merit order and the system spot market price are set by the Market Operator for each hourly interval of the following transaction day, based on the following procedure: The units with production restrictions are placed first in the merit order. Restrictions are: complex usage of water total offer of Cernavoda NPP total power produced through cogeneration burning a yearly quantity of lignite producers PPA contracts bilateral contracts between producers and eligible consumers export contracts. For each producer who signed the portfolio contract, the units are placed further on, in the order of the offered prices, until the quantities provided in the respective contracts are covered The remaining units are finally placed in the order of the prices and based upon the availabilities declared by the producers merit order without restrictions 9

10 Spot Market The merit order with network restrictions Congestion management has no influence on the spot market price Transelectrica (NDC) performs security analyses on the merit order without network restrictions, taking into consideration the outages and the (n-1) security criterion. If network congestion is detected, Transelectrica (NDC) submits a request to the Market Operator (OPCOM), to give priority in the merit order to particular units and/or to move others at the end of the list. OPCOM is then responsible for establishing a new merit order, which complies with Transelectrica s request. The new merit order is checked by Transelectrica (NDC) and this iterative process continues until no more congestions are detected. merit order with restrictions OPCOM communicates the merit order with network restrictions to all participants and it becomes part of the operation program for the next day. 10

11 Daily Generation Scheduling Procedure Consumers and suppliers Consumption forecast Producers OFFERS -Quantities -Prices Merit order with restrictions OPCOM (Wholesale Power Market Operator) SPOT price To be published Stage I Intermediary stage Final stage Solutions to remove the restrictions from the power system Operational Unit NDC Merit order and consumption forecast 11

12 Market for Technological System Services Technological systems services (Ancillary Services) Transelectrica concludes yearly contracts for technological system services at regulated prices, with precise quantities The power reserves are scheduled in the dayahead programming process, at the same time with the generation scheduling Transelectrica may ask the suppliers, during the day-ahead programming stage or in real time operation, to provide uncontracted services, and the producers are obliged to comply. The technological system services defined by ANRE are: Active Power reserves: primary reserve - mandatory; secondary frequency-power control reserve regulated price; rapid tertiary reserve regulated price; spinning reserve regulated price; slow tertiary reserve regulated price; Reactive power reserve mandatory / regulated price for secondary band; Autostart capability of units for system restoration after black-out mandatory; Arrangements with consumers to curtail/interrupt their consumption automatically or on order mandatory. Transelectrica certifies the suppliers of technological system services from the technical point of view. 12

13 Perspectives Important efforts are dedicated to the technical and regulatory framework development for the electricity market in Romania. Technical Infrastructure Modern metering system operated by the Metering Operator for the electricity wholesale market EMS SCADA system development for the Transmission System Operator and for the Market Operator Optical fiber network Connection to the European Electronic Highway Regulatory Framework Balancing market mechanisms Capacity market Competitive technological system services market ETSO procedures regarding data exchange, congestion forecast and NTC calculation 13