ENTSO-E’s Network Development Plans

and Network Codes: How a strong European grid supports security of supply,

affordable electricity prices through market integration, and sustainability through integration of renewable energy

KONSTANTIN STASCHUSSecretary-General

ENTSO-E

Energy Paths in Region and Using of Renewable Sources Conference

19 October 2012, Belgrade, Serbia

Key activities set out in Regulation 714/2009 (on cross-border electricity trade, part of the 3rd IEM Package)

•Deliver network codes binding to all network users (through ‘Comitology’)

•Deliver network plans European / regional view of system needs (“TYNDP”)

•Deliver crucial aspects of market integration (“market coupling”)

•R&D Plan

Recent important work products:

• First 2 Network Codes on Requirements for Generators, Capacity Allocation and Congestion Mgt delivered for ACER Opinion – prerequisite for future system with more RES

• TYNDP 2012 incl. major improvements in methods, data

Introduction: TSOs’ and ENTSO-E’s significant role for European energy and climate change objectives

41 TSOs from 34 countries;530 million people; 910 GW gen.; 300 000 km transm.

41 TSOs from 34 countries;530 million people; 910 GW gen.; 300 000 km transm.

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 2

Current and future challenges: a fast changing energy mix

Huge flows all over Europe total

PV

wind

2000

total

PV

wind

2010

total

PV

wind

2020

From a few large plantsThousands of small units

Offshore

Onshore

Today

2020: 230 GW

2030: 400 GW

Wind share of demand: 2010 = 5,3% 2020 = 23% 2030 = 36%

TWh

40 GW

150 GW

190 GW 250 GW

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 3

More fluctuating RES, more distributed gen., more pan-European markets, planning + operational coordination

eHIGHWAY 2050 study: strong con-

sortium, 3 years

80-95% reduction in greenhouse gases; higher reduction for electricity

2012320 GW RES 538 GW peak load 3300 TWh demand

2020 – TYNDP 2012536 GW RES 567 GW peak load3600 TWh demand

2030 visions

– 2014

TYNDP

Change is at the core of transmission planning

However scale and speed of change in recent years is unprecedented

Share of total RES in net gen. capac. 1/2020, scen. EU2020

>50%

<45%

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 4

Context & framework for infrastructure investment: Target model and Network Codes

• ENTSO-E Network Codes are a fundamental tool to achieve a single European market

• Market Network Codes will translate the target model into rules for implementation

• European directives and regulations define key principles and goals of the EU Energy System

• A Target Model for the IEM has been defined and now needs implementation

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 5

Context & framework for infrastructure investment: NWE Market Coupling…

Status - Current day ahead market coupling

2013 – NWE Day-ahead market coupling

One common

matching

On-going process…

Further Market Integration will deliver a Single European Market not only for Day-Ahead but also for Intraday, Forwards and Balancing

An integrated NWE market for 2300TWh

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 6

… towards a pan-European day-ahead market

3200 TWh2300 TWh

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 7

Security of Supply:

21.900 km

Internal Energy Market:

18.200 km

Renewable Energy Sources

Integration: 44.700 km

TYNDP 2012: A stronger grid to answer major challenges, jointly planned by all TSOs within ENTSO-E

Europe-wide 52 300 km:

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 8

2020 Europe - 100 bottlenecks in the transmission system

RES is triggering 80% of assets growth

RES is triggering 80% of assets growth

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 9

2020 Europe – 17% increase in infrastructure

By end 2016 2017 and beyond

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 10

One key driver for joint transmission planning: European market studies

Color Code Exchanges < 1 TWh < 5 TWh < 10 TWh > 10 TWh

Country balancesimporterrather balancedexporter

• 5% of generating costs

saved by new

interconnection

• Direct connection for 125

GW RES

• - 170 Mt/y CO2

emissions savings

• 52.300 km additional

transmission lines

Thousands of possible situations and overall social economic welfare

assessed via market studies

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 11

Summary

Summary

Energy paths conference Belgrade 19 Oct. 2012 | Konstantin Staschus | Page 12

Thank you very much for your attention!

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