1 LITHUANIAN POWER SECTOR Dalius Šulga Director of Energy Development Department Lietuvos Energija...

1

LITHUANIAN POWER SECTOR

Dalius ŠulgaDirector of Energy Development Department

Lietuvos Energija AB

Vilnius, 2007

2LITHUANIA

• Population – 3.44 million;• Area – 65.3 thousand square km;• In the Middle Ages - the largest kingdom in Eastern

Europe (area – 930000 square km); • Lithuania lost the independence in the end of the

eighteen century;• Lithuania restored the independence in 1918;• The USSR occupied Lithuania in 1940;• Lithuania once again restored the Independence in

1990;• Lithuania became the member of the EU in 2004.

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XIV c.

4

SOME DATES OF REFORMS

March, 1995. The Law on Energy adopted by the Parliament.

December, 1995. Lietuvos Energija AB was established.

1997. The first step of reorganization of Lietuvos Energija AB. The district heating and CHP were separated from Lietuvos Energija AB and transferred to municipalities.

2000. The beginning of the second step of reorganization of Lietuvos energija AB

December, 2001. Independent power companies were established. Restructuring of power sector was completed.

5

THE STRUCTURE OF ELECTRIC POWER SECTOR IN LITHUANIA

PRODUCTION3 production companies3 CHPs owned by district heating companies Few private mini HPP Few industrial power plantsWind park

DISTRIBUTIONTwo distribution companies (one private)

TRANSMISSON One Transmission System Operator company – Lietuvos Energija

AB

6

3,4% 96,6%

State-owned shares

Other shareholders

Assets 2 698 million LTLAuthorized capital 690 million LTLNumber of employees 1142

THE MAIN GOAL - TO ENSURE A RELIABLE OPERATION OF THE POWER SYSTEM AND TO INTEGRATE LITHUANIAN ELECTRICITY MARKET INTO THE MARKETS OF WEST EUROPE AND NORDIC COUNTRIES

STRUCTURE OF SHARE CAPITAL

LIETUVOS ENERGIJA AB

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THE MAIN FUNCTIONS OF LIETUVOS ENERGIJA AB

MAINTENANCE AND DEVELOPMENT OF TRANSMISSION GRID • Charge of high voltage (330-110 kV) transmission lines and substations• Ensures a reliable and efficient electricity transmission from Lithuanian power plants to electric utilities and large customers.

DISPATCH CONTROL• Coordinates the operation of Lithuanian power plants and neighbouring energy systems.• Creates non-discriminatory conditions for all users of transmission grid. • Ensures balance of electricity generation and consumption and reliability of electricity system.

ORGANIZES ELECTRICITY TRADE• Coordinates electricity export and import • Settles payments among Lithuanian and foreign electricity generators and suppliers.

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K la ip ė d a D iv ision

Š ia u lia i D iv ision

U te n a D iv ision

V iln iu s D iv is io n

K a u n a sD iv is io n

TRANSMISSION GRID 110/330 kV power lines 330 kV transformer substations and switchgears 110 kV voltage switchgear

TECHNICAL CHARACTERISTICS OF TRANSMISSION GRID

110 kV 330 kV Length of overhead lines, km 4970 1670 Length of cable lines, km 21 Transformer 6 21Switch - gears 213 12Transformer substations 11Capacity of transformer substations, MVA 93 3450

LITHUANIAN TRANSMISSION GRID

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BALANCES OF ELECTRICITY PRODUCTION IN LITHUANIA, TWh

3,493,223,041,571,241,85Commerce and other

0,160,150,160,230,522,7Agriculture

0,020,020,020,070,070,21Transport

2,392,182,151,771,491,76Residential

3,133,243,083,273,476,22Industry

9,198,818,456,916,812,74

Final consumption:

1,151,291,341,352,451,55Losses and Auxiliary Servicy of the networks

10,3410,109,798,269,2514,29

Domestic consumption

0,432,967,321,482,8912,39

Export

0,590,540,750,450,54-Energy for loading Kruonis PSP

11,3613,617,7310,0412,4626,27

Electricity output

1,091,171,541,371,422,11Auxiliary servicy of Power Plants

0,851,231,320,730,780,53Rest Power Plants

1,962,132,111,550,733,01CHP

0,991,070,740,710,557,81Lithuania PP

8,6510,3415,18,4211,8217,03

Ignalina NPP

12,4514,7719,2711,4113,8828,38

Gross electricity production:

2006 20052004 20001995 1990

10

ELECTRICITY PRODUCTION IN LITHUANIA

334

949

2859

15101

2004

181

992

2804

15484

2003

13

744

2630

14142

2002

802823Hydro

409

3202

10338

2005 2006

8651Nuclear

2597Thermal

402Other

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BALTIC ENERGY STRATEGY

• Prepared Baltic energy strategy is published for public opinion;

• Main targets:– integration of power systems and gas systems into EU

energy systems and markets;– diversification of primary energy sources and supplies;– increase the energy efficiency at the demand side and in

the energy transformation sector;– develop the transit routes for energy products, including

electricity;– strengthen education, research and development in the

energy sector;– elaboration and implementation of common policy on

energy imports from non-EU countries;– integration of the Baltic power systems into markets of

Central Europe and Nordic countries;– to apply a request to UCTE President for conditions and

terms of synchronous interconnection of the Baltic States power systems with UCTE;

– renew the large power production capacities;– to use possibilities and benefits from development of

distributed electricity generation;– increase the share of renewable energy sources in the

electricity mix

12

LITHUANIAN ENERGY STRATEGY

• Lithuanian national energy strategy approved by Parliament (Seimas) in 2007-01-27;

• Integration of power system and gas system into EU systems and markets;

• Diversity of primary resources, increase use of local resources, to limit use of gas for electricity production up to 30% of yearly fuel balance;

• Ensure the continuity and development of safe nuclear energy; to put into the operation of a new regional nuclear power plant not later than by 2015;

• Renovate power plants, power and natural gas transmission and distribution systems as well as we district heating systems increasing their efficiency and reliability;

• Not later than by 2012, to connect Lithuania’s high voltage electricity networks with the networks of Scandinavian countries and Poland;

• Further develop regional cooperation;• Construct a natural gas storage facility in Lithuania, develop a

common regional natural gas storage facility, construct, a common liquefied gas import terminal in the Baltic region;

• Increase the share of renewable energy resources in the national balance of primary energy at least up to 20% by 2025;

13

INSTALLED GENERATING CAPACITIES AND FORECAST IN LITHUANIA

275023701880Daily demand

103010090030

103010090030

102010090020

Hydro:Kaunas HPPKruonis PSPPSmall scale HPP totally

250024003640Total without hydro and wind

Gas, HFO, orimulsionGas, HFOGas, HFO

HFO

nuclear

Fuel

2100

4690

403010

23301500

380180160110

1300

2006

MW

20152010

--Nuclear: Ignalina

24601500

370170160260

23801500

370170160180

Thermal:Elektrėnai (condensing)

Vilnius CHPKaunas CHPMažeikiai CHPOthers

34030040

22020020

Other renewables:WindOthers

38303630Total generation

29002450Peak demand

14THE CLOSURE OF THE IGNALINA NPP

• Unit I was shut down in December 2004 • The closure of Unit II is scheduled in 2009

• The Ignalina NPP can be substituted by the Lithuanian PP, but this power plant has to be upgraded to meet environment requirements

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• On 26th January 2006, during an energy conference in Vilnius, government officials from three Baltic countries agreed to commission a feasibility study for a new nuclear power plant in the region.

• On 27th February 2006, the Prime Ministers of Lithuania, Latvia and Estonia issued a communiqué expressing their approval of construction of a new nuclear plant in the region and inviting the national energy companies to invest in the Project.

• The memorandum of understanding about conducting the feasibility study on the building of a new nuclear plant was signed by the heads of Lietuvos Energija, Latvenergo and Eesti Energia on 8th March 2006.

NEW NUCLEAR PP

16ELECTRICITY GENERATION COSTS, WITH EMISSION TRADING

14,9

5,19,3 10,2 12,0

35,58,0

4,0

7,5 7,08,5

10,0

3,035,9 17,6

30,8

7,0

51,2

45,5

18,8

19,116,2

35,3

27,730,5

42,5

25,9

55,050,652,0

0

10

20

30

40

50

60

Elspot2003

Elspot2004

Elspot2005

Forward2008

Nuclear Gas Coal Peat Wood Wind

€/M

Wh

Emission trade20 €/t CO2Fuel costs

O&M costs

Capital costs

Wood and wind without subsidies

Operating hours 2200 hours/year

R.Tarjanne 17.06.2006

Operating hours 8000 hours/yearReal interest rate 5,0%

May 2006 prices

17GENERATION ADEQUACY OF LITHUANIAN

POWER SYSTEM 2007-2025

-1500

-1000

-500

0

500

1000

1500

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

MW

ARM RC A RC B RC C

BALTIC REGIONAL ENERGY FORUMJune 11 - 13, 2007

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BALTICS HIGHEST PRIORITY PROJECTS

•Lithuania – Poland interconnection (LITPOL LINK)

•Estonia – Finland interconnection (ESTLINK 2)

•Baltic's – Sweden (Sweden – Lithuania SWEDLIT or Latvia – Sweden)

•Estonia – Latvia interconnection (Sindi – Riga)

MAIN OBJECTIVES AND BENEFITS• Integration of the Baltic power systems into the EU IEM• Ensuring security of supply in the Baltic region• Market development

• Efficient use of power resources

to Sweden

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The main conclusion of the Feasibility Study – It would be feasible to develop a new nuclear power plant to replace Ignalina NPP

• Lietuvos energija, Latvenergo and Eesti Energia undertaking jointly to build a new nuclear power plant appears feasible from a technical, electrical system, financial and legal perspective

• Likely cost advantage of nuclear reactor over alternative sources of new generation

• On the basis of geological investigations (GI), space at the Ignalina NPP site is available to accommodate at the new nuclear reactor units to 1600 MW

• Availability of suitable reactors designs

• The nuclear fuel market is effectively a global market

• The current electrical system is capable of accommodating up 3000 MW of nuclear capacity.

FEASIBILITY STUDY

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PLANNED DEVELOPMENT OF BALTIC POWER SYSTEMS

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PLANNED 2007-2025 CAPACITY BLANCES IN MINIMUM LOAD INCREASE SCENARIO

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

1200

1400

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Metai

MW

Likutinė galia "A" scenarijuje

Likutinė galia "B" scenarijuje

Likutinė galia "C" scenarijuje

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PLANNED 2007-2025 CAPACITY BLANCES IN MOST PROBABLE LOAD INCREASE SCENARIO

-1400

-1200

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

1200

1400

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Metai

MW




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PLANNED 2007-2025 CAPACITY BLANCES IN FAST LOAD INCREASE SCENARIO

-2000

-1800

-1600

-1400

-1200

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

1200

1400

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Metai

MW




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BALANCE OF CAPACITY IN BALTIC STATES

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MW

Load Reliably available capacity

2500 MW

4170 MW

430 MW

25

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025year

MW

Load Reliably available capacity (11=6-(7+8+9+10))

BALTIC POWER SYSTEM BALANCE IN SUMMER (ETSO)

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LITHUANIAN ENERGY STRATEGY (2)

• Increase the share of the electricity generated by combined heat and power plants during the heating period in the national balance of electricity generation up to 35% in 2025;

• Improve the efficiency of consumption of all types of energy ;• Ensure the practical independence of the National Control

Commission for Prices and Energy and its responsibility for the decisions taken;

• Ensure that the management scheme and operators of new energy infrastructure facilities comply with EU competition criteria and that these operators act as neutral market participants; to seek their free and unhindered access to EU energy networks;

• Application of the Baltic States to the Western European Union for the Co-ordination of Transmission of Electricity (UCTE) for the issuance of technical specifications for synchronous interconnection of the Baltic power system with UCTE zone and creation of required technical, legal and organisational preconditions, while maintaining physical interconnections for energy exchanges with the Russian power system;

• Agreement of regulation of the Baltic States electricity market with regulation of the Scandinavian electricity market.

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LATVIA

BELARUS

RUSSIA

POLAND

Šiauliai Panevėžys

Kaunas

Vilnius Lietuvos E

Alytus

Klaipėda Utena

Ignalinos AE

Jonava Jurbarkas

Sovietskas„Neris”

Telšiai

Grobinia Viskali Plavinu HPP

Daugavpils

Molodečnas

Gardinas

Ełk

Polockas

Smorgonys

Belorusskaja

Kruonio HAE

330 kV substations

Existing power plants

Existing 750 kV transmission lines

Existing 330 kV transmission lines

Planned 330 kV substations

400 kV

330 kV

Mūša

B2B

Planned 330 kV transmission lines

DEVELOPMENT OF LITHUANIAN POWER SYSTEM

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NEW INTERCONNECTIONS

EXPECTED FUTURE INTERCONNECTIONSEstonia – FinlandSweden – LithuaniaPoland – Lithuania

MAIN OBJECTIVES AND BENEFITSIntegration of the Baltic power systems into the EU IEMEnsuring security of supply in the Baltic region

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EXPECTED INTERCONNECTIONS OFBALTIC TRANSMISSION GRID

Krievija

Ukraina

Baltkrievija

Polija

Čehija

Vācija

Lietuva

Latvija

Igaunija

Somija

Norvēģija

Dānija

Zviedrija

NORDEL

UCTI/CENTRAL

Russia

Ukraine

Belorus

Poland

Czech

Germany

Lithuania

Latvia

Estonia

Finland

Norway

Dānija

Sweden

Integrated Balticand CIS energy

system

NORDEL

UCTE/CENTRAL Europe

Švedija – Lietuva

SWEDLIT700 MW

Lietuva – LenkijaLITPOL LINK

1000 MW

ESTLINK 350 MWESTLINK 2 – 600

MW

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LITHUANIA – POLAND INTERCONNECTION

Planned 330 kV and 400 kV lines

BELARUS

POLAND

LITHUANIA Kaunas

Lietuvos E

ALYTUS

Gardinas EŁK

Kruonis HPSPP

Existing 330 or 400 kV substationExisting power plant Existing 330 or 400 kV line

NAREW

MĄTKI

RUSSIA

MILOSNA

PŁOCK

GRUDZIĄDZ

GDAŃSK BLONIA B2B

Olsztyn

OSTROLĘKA

Existing 220 kV line

105,6 km

48 km

53 km

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PRESENT STATUS OF LITHUANIA – POLAND INTERCONNECTION

• Capacity – 1000 MW;

• Investments – 257,4 mln. €;

• Completion of the interconnection is planned in 2012-2015;

• Interconnection is planned via Back-to-Back converter station (2x500 MW);

• Lithuanian side and Polish side plan to start the implementation of the Project by establishing a project implementation company;

• Shareholders agreement is being prepared.

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LITHUANIA – SWEDEN INTERCONNECTION

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INTERCONNECTION LITHUANIA – SWEDEN

• Completed Pre-feasibility Study;

• Capacity ~700 MW;• Investments – about 400 million €;

• LE and Svenska Kraftnat perform Feasibility study;

• Consulting company – SWECO International

• Feasibility study will provide detailed technical and economic analysis of the Interconnection;

• Feasibility study is scheduled to be completed in November, 2007.

34

PRODUCTION OF ELECTRICITY FROM

RENEWABLES, MLN. KWH

8.19%4.36%From renewables

122109790Consumption

1000426.5Total:

1304.3Biomass PP

3801.2Wind PP

12562Small HE

365359Kauno HE

2010 m.2004 m.

35MAXIMUM INSTALLED CAPACITY OF

WIND POWER PLANTS

Maximum of installed capacity of wind power plants in Lithuania in 2010 (according to produced energy):

P = 380 GWh/1900h = ~200 MW

Maximum of installed capacity of wind power plants in Lithuania in 2010 (according to system demand): P = 622 x 1,3 x 0,2 = ~160 MW

where: 622 – 2004 m. minimum load, MW

1,3 – demand increase up to 2010 m.

0.2 – part of capacity, not which not require additional costs for regulation

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DEVELOPMENT OF WIND PP BY ZONES

Transmission network20 6

110 kV overhead line Klaipėda–Rietavas

355

110 kV overhead line Šventoji–Židikai

30 4

110 kV overhead line Klaipėda–Palanga–Šventoji

453

110 kV overhead line Klaipėda–Pagėgiai, Juknaičių substation

402

Distribution network30 1

Location of zoneTotal capacity in

zone (MW)Zone

37

LOCATION OF ZONES

Zone 4 – 30 MW

Zone 3 – 45 MW

Zone 5 – 35 MW

Zone 2 – 40 MW

Wind connection zones:

Zone 1 – 30 MW any place in 10-35 kV network

Zone 2 – 40 MW

Zone 3 – 45 MW

Zone 4 – 30 MW

Zone 5 – 35 MW

Zone 6 – 20 MW, any place in 110 kV, except 110 kV lines in Zones 2-5

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PLANNED PRODUCTION FROM WIND POWER PLANTS

2009

2008

2007

2006

2005

2004

3040505030MWInstalled capacity of planned to construct new wind power plant

17313282310,850,85MWForeseen capacity of wind PP in the beginning of the year

320,4

259,6

18296,227,41,4GWhProduction of electricity

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IMPACT OF WIND PP TO ELECTRICITY PRICE

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

50 100 150 200 250 300 350 400

Vėjo elektrinių įrengta galia

ct/k

Wh

Tmax=1500 val, supirkimo kaina 22 ct/kWh Tmax=2000 val, supirkimo kaina 22 ct/kWh

40

ETSO VIEW TO INTEGRATION OF WIND PP

• Necessary to speed-up construction of network infrastructure;

• Participation of wind PP in ensuring stability of power system, voltage control during short circuits and etc.;

• Ensuring balance and frequency control of the power system;

• Support of studies for integration of renewables into power system;

• Promote secure planning by limiting total capacity of renewables;

• Evaluate impact to international power flows.

41

PROBLEMS

• Big impact to power system balance control;• Additional costs for power system control, balancing;• Limitation of total installed capacity of wind PP;• Difficulties with land ownership, rent, preparation of

detail plan, environment impact assessment, unfriendly view of neighbours (not in my backyard);

• Impact to electricity price;• Renewables reduce part of market, limits competition;• Big pressure from companies which wants to construct

wind power plants.

42

FUTURE DEVELOPMENT OF WIND PP

• Take into account policy of EU on development of renewables;

• In 2010 – 200 MW of installed capacity of wind PP;• Most probable future development of wind power

plants after 2010. How much? 50-100-200-400MW?• Off-shore wind power plant 200-300 MW;• Study for development of off-shore wind PP up to 1000

-1500 MW.• Future development of wind PP limit not stable

production from this type of production, network possibilities, necessity to have power transfer reserve in transmission grid, impact to power system balance;

• Development of other renewables (biomass PP, etc.).

43

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2007

.06.

2820

07.0

6.28

02:3

2:00

2007

.06.

28 0

5:04:

00

2007

.06.

28 0

7:36:

00

2007

.06.

28 1

0:08:

00

2007

.06.

28 1

2:40:

0020

07.0

6.28

15:1

2:00

2007

.06.

28 1

7:44:

00

2007

.06.

28 2

0:16:

00

2007

.06.

28 2

2:48:

0020

07.0

6.29

01:2

0:00

2007

.06.

29 0

3:52:

00

2007

.06.

29 0

6:24:

00

2007

.06.

29 0

8:56:

00

2007

.06.

29 1

1:28:

0020

07.0

6.29

14:0

0:00

2007

.06.

29 1

6:32:

00

2007

.06.

29 1

9:04:

00

2007

.06.

29 2

1:36:

0020

07.0

6.30

00:0

8:00

2007

.06.

30 0

2:40:

00

2007

.06.

30 0

5:12:

00

2007

.06.

30 0

7:44:

00

2007

.06.

30 1

0:16:

0020

07.0

6.30

12:4

8:00

2007

.06.

30 1

5:20:

00

2007

.06.

30 1

7:52:

00

2007

.06.

30 2

0:24:

0020

07.0

6.30

22:5

6:00

2007

.07.

01 0

1:28:

00

2007

.07.

01 0

4:00:

00

2007

.07.

01 0

6:32:

00

2007

.07.

01 0

9:04:

0020

07.0

7.01

11:3

6:00

2007

.07.

01 1

4:08:

00

2007

.07.

01 1

6:40:

00

2007

.07.

01 1

9:12:

0020

07.0

7.01

21:4

4:00

Vėjas-I

Benaičiai

ACTUAL GENERATION FROM WIND PP

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Dr. Dalius ŠulgaDirector of Energy Development Department

Lietuvos Energija ABZveju str. 14, LT -09310, Vilnius

Lithuania

web [email protected]

1 LITHUANIAN POWER SECTOR Dalius Šulga Director of Energy Development Department Lietuvos Energija...

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