Romanian Energy Sector and the National Energy Strategy

Transcription

1 Romanian Energy Sector and the National Energy Strategy November 2010 Alexandru Sandulescu General Director Energy, Oil and Gas Department Romanian Ministry of Economy, Commerce and Business Development 6 th Emerging Europe Energy Summit, 4-5 November 2010

2 Romanian Electricity Sector

3 Romanian electricity sector Overhead transmission lines: 8800 km Transmission substations: 76 Distribution lines: km Distribution substations: 1296 Consumers: 8,500,000 National consumption: 54.6 TWh (2008), 49.9 TWh (2009)

4 Romanian electricity sector Electricity sector structure Transelectrica OPCOM E1 E2 E3 E7 E8 Hidroelectrica Transmission and system operator Commercial operator 8 distribution companies (DISCOs) Producer with hydro power plants T1 T2 T3 T6 Producers with thermal power plants Almost 20 municipal cogen producers Nuclearelectrica Producer with nuclear power plant More than 120 independent suppliers

5 Romanian electricity sector Electricity generation structure 2009

6 Romanian electricity sector Electricity generation variability

7 Import Export Romanian electricity sector Electricity export / import balance

8 Romanian Electricity Market

9 Romanian electricity market Fully liberalized from July 2007; No administrative barriers for imports and exports of energy or energy resources; Advanced electricity market compared with other countries in the region; Market operator Opcom operating: Day Ahead Market Forward market; Green Certificates Market CO 2 Allowances market Market settlement. Balancing Market operated by the TSO, Transelectrica

10 Romanian electricity market Wholesale vs. retail electricity market producer producer producer producer centralized markets OPCOM wholesale market retail market indep. supplier 1 indep. supplier 2 Supplier eligible customer eligible customer eligible customer Customer at reg. tariffs Customer at reg. tariffs

11 Romanian electricity market Wholesale electricity market BILATERAL CONTRACTS DAY AHEAD ON THE DAY SETTLEMENT Market Operator S S Simple Bids Day Ahead Market P Firm Volumes by Company TSO-market operator Imbalance volumes by BRP G G - generators S - suppliers G Simple Bids Balancing Responsible Parties MP Q Q Simple bids by unit Physical Notifications Balancing Market TSO Adjustments to Day Ahead schedule BM Volumes Meter data Metered Volumes

12 Romanian electricity market Wholesale electricity market monthly traded volumes Balancing market Day ahead market Forward market Negotiated contracts Regulated contracts

13 Romanian electricity market Retail market opening Legal market opening Real market opening

14 Romanian electricity market USD/MWh Day ahead market volumes and prices Day ahead traded volumes Day ahead prices

15 Romanian electricity market Day ahead market comparing to other markets

16 Romanian electricity market Future developments Adjusting market Intra-day markets Both are in testing phase Market coupling discussions with neighboring countries

17 Romanian Energy Strategy

18 Romanian energy strategy Issued in November 2007 through GD 1069/2007 Consultation and agreement of all parliamentary parties In line with EU Policy document in energy (January 2007) Based on a Least Cost Development Study Currently under revision

19 Source Romanian energy sources potential The national fossil fuel reserves Reserves Forecasted depletion Geological reserves Concessioned areas New areas Estimated annual production Geological reserves Concessioned areas New areas Mil. ton Mil. tep Mil. ton Mil. tep Mil. tep Mil. ton 1) years years years 1) 1) = 2 / 8 10 = 4 / 8 11 = 6 / 8 Coal hard coal , lignite , Oil ,2 14 Natural gas ,5 15 Uranium 2) 1) excluding natural gas expressed in mld. Mc 2) data not public

20 Romanian energy sources potential The national renewable energy sources potential Solar Source Annual potential To be used for: 60 PJ/an 1,2 TWh Heat Electricity Wind 23 TWh Electricity Hydro of which under 10 MW 36 TWh 3,6 TWh Electricity Biomass and biogas 318 PJ Heat Electricity Geothermal 7 PJ Heat NOTE : these are theoretical potentials, real usable potentials are much lower due to technological, economical and environmental limitations or restrictions.

21 Challenges facing the energy sector The environmental impact of using primary energy sources and of energy conversion technologies, especially the CO 2 emissions; The finite world reserves of fossil fuels; The increase dependency on imports of primary energy sources; The increase in energy demand.

22 Romanian energy strategy Answers to challenges Reducing CO 2 emissions by: promoting renewable energy sources electricity targets of 33 % in total gross electricity consumption of 2010, 35 % in 2015 and 38 % in 2020 promoting nuclear energy unit 2 Cernavoda of 600 MW commissioned in 2007 unit 3 and 4 to be completed by a consortium New NPP to be build

23 Romanian energy strategy Answers to challenges Reducing energy dependency on imported fossil fuels by using a balanced energy mix and by: promoting renewable energy sources; promoting the use of indigenous coal, but using clean coal technologies, preferable with carbon capture and storage facilities; promoting nuclear energy (Romania still have natural uranium resources).

24 Romanian energy strategy Answers to challenges Diversifying energy supply sources and routes by: promoting the Nabucco Project on natural gas; promoting the AGRI project; promoting the PEOP Project on oil; studying the feasibility of a LNG / LPG terminal in Constantza harbor; increasing the interconnection capacity on natural gas with Hungary and Bulgaria; increasing the interconnection capacity on electricity with Moldova, Serbia, Hungary and Turkey (submarine cable).

25 Romanian energy strategy Answers to challenges Increasing energy sources storage capacity by: increasing the gas storage capacity from 2550 mil. CM in 2007 to 3935 mil. CM in 2012; increasing the oil storage capacity to fulfill 67.5 days of consumption in 2011; construction of a 1000 MW pump storage hydropower plant (mainly for daily, short term security of supply).

26 Romanian energy strategy Answers to challenges Limiting energy consumption increase by energy efficiency measures: energy audits are mandatory for big industrial consumers; National Plan for Energy Efficiency was drafted in 2007; National programme for building insulation; Structural Funds to be used for energy efficiency projects. On an estimated 6 % yearly GDP increase, we expected a 3 % yearly energy consumption increase.

27 Promoting renewable energy sources

28 Promoting renewable energy sources Targets share of renewables Directive 2001/77/EC (amended by 2006/108/EC) : 33 % of gross electricity consumption in 2010 Romanian energy strategy : 33 % of gross electricity consumption in % of gross electricity consumption in % of gross electricity consumption in 2020 Directive 2009/28/EC 24 % of gross energy consumption in 2020 (+6.2 % from 2005)

29 Promoting renewable energy sources Distribution of the renewable energy sources potential I. Donau Delta (solar); II. Dobrogea (solar and wind); III. Moldova (microhydro, wind and biomass); IV. Carpaţi Moutain (IV1 Carpaţii de Est; IV2 Carpaţii de Sud; IV3 Carpaţii de Vest ( biomass, microhydro); V. Transilvania (microhydro); VI. Câmpia de Vest (geothermal); VII. Subcarpaţii(VII1 Subcarpaţii Getici; VII2 Subcarpaţii de Curbură; VII3 Subcarpaţii Moldovei: biomass, microhydro); VIII. Câmpia de Sud (biomass, geothermal and solar).

30 National use of renewables Operational: hydro 6440 MW wind 14.9 MW biomass/biogas 8.1 MW solar MW Under construction: Promoting renewable energy sources hydro MW wind 1000 MW (ANRE permits) biomass/biogas 27 MW

31 Promoting renewable energy sources Forecast of capacity to be installed in Romania by 2013 WIND FARMS MW to be installed per YEAR Company Location Existing Various 14.1 Hollrom Baia 5 Blue Planet Baia 10 Global Wind Not disclosed 40 EDPR Renovatio Pestera 90 Cernavoda 128 Monson Silistea 5 Galbiori 5 CEZ Fantanele Bogaris Cogealac 300 Harsova 72 Facaieni 52 Victoria 40 IMA Partners Casimcea, Topoog, Daieni Land Power Topolog 168 IMA Partners/Verbund 7 villages in Vaslui and Iasi Martifer Babadag Casimcea 40 ENEL (Blue Line) Valea Nucarilor EP Energy Chirnogeni-Independenta 80 Iberdrola 1600 Karomex Saraiu 40 TOTAL Grand TOTAL AREE Association

32 Promoting renewable energy sources November 3 rd 2008-Law 220 for promoting energy from renewable energy sources was published in the Official Gazette November 25 th Governmental Decision 1479/2009 for establishing the promotional mechanism was adopted November 20 th Start of the pre-notification procedure by correspondence with DG Competition February 24 th 2010-Vote in the Senate of the amendments to the law 220. June 9 th 2010-Vote in the Deputy Chamber of the amendments to the law 220. July 6 th 2010 Promulgation by President Traian Basescu. July 7 th 2010 Publication as Law 139/2010. August 2010 Law 220 (139/2010) is amended by Ordinance in order to fully transpose Directive 28/2009. August 2010 Revised notification to DG Competition.

33 Electricity market Green certificate market Promoting renewable energy sources Green certificate market Promotion of renewable energy sources - Green certificates market Producers Supplier Competition Producer on hydro Green certificates micro hidro Electricity micro hidro Producer using fossil fuels Electricity Coal Label Producer with nuclear units Electricity Nuclear Competition

34 Promoting renewable energy sources Green certificate market Promotion of renewable energy sources - Green certificates market mandatory quotas for suppliers (year / %): minimum and maximum price levels established by Law: minimum value 27 Euro / Certificate maximum value 55 Euro / Certificate

35 Promoting renewable energy sources Green certificate market Promotion of renewable energy sources - Green certificates market Number of certificates per MWh: hydro under 10 MW: 3 certificates (2 for old but refurbished hydro units); wind: 2 certificates till 2017, one starting with 2018; biomass / biogas: 3 certificates + 1 for efficient cogeneration; solar: 6 certificates. Green certificates are issued for: 15 years for new units; 7 years for second hand units if used in isolated systems; 10 years for refurbished hydro units; 3 years for old, un-refurbished hydro units.

36 Promoting renewable energy sources Green certificate market Promotion of renewable energy sources - Green certificates market Investments must be done before 2016! Penalties for non compliance of suppliers: 110 Euro per non acquired certificate Revenues from penalties to be used by Environmental Fund ANRE can adjust quotas if it is a high imbalance on the green certificate market

37 Promoting renewable energy sources Green certificate market Organized by Energy Market Operator - OPCOM

38 Promoting renewable energy sources Structural funds 263 mil Euro as structural funds for First two calls: Call: Number of projects received Funds available (mil. Euro) Requested funds (mil. Euro) Number of contracted projects 1 (2008) (2010) (190) 2000 Analyzing

39 Conclusions

40 Conclusions Romania has an advanced energy market and an attractive environment for investments in energy sector in line with EU legislation; Romania has natural energy resources, including unused renewable potential in wind, hydro, solar, biomass and geothermal; Romanian energy strategy basic answers to the new challenges are: Promotion of renewable energy sources; Promotion of nuclear energy; Promotion of indigenous coal with clean technologies; Diversifying the sources and routes of primary energy sources supply; Increase interconnection capacity (electricity, gas) and storage capacity (gas, oil); increase energy efficiency.

41 Thank you for your attention!