MINISTRY of ECONOMY and FINANCE - WordPress.comOPCOM T1 T2 T3 T6 E1 E2 E3 E7 E8 Transmission and...
Transcript of MINISTRY of ECONOMY and FINANCE - WordPress.comOPCOM T1 T2 T3 T6 E1 E2 E3 E7 E8 Transmission and...
MINISTRY of ECONOMY MINISTRY of ECONOMY andand FINANCEFINANCE
Energy Policy DepartmentEnergyEnergy PolicyPolicy DepartmentDepartment
Alexandru SandulescuAlexandru SandulescuDirector GeneralDirector General
Romanian energy sector Romanian energy sector short presentationshort presentation
Romanian electricity sector
• Companies structure
Nuclearelectrica
Hidroelectrica
Transelectrica
OPCOM
T1 T2 T3 T6
E1 E2 E3 E7 E8
Transmission and system operator
Commercial operator
8 distribution companies (DISCOs)
Producer with hydro power plants
Producers with thermal power plants
Almost 20 municipal cogen producers
Producer with nuclear power plant
More than 120 independent suppliers
Romanian electricity sector
•• Electricity generation structureElectricity generation structure
NUCLEAR
13%SOLID
40%
LICHID
2%
GAZOS
17%
HIDRO
28%
HIDRO NUCLEAR SOLID LICHID GAZOS
Romanian electricity sector
ElectricityElectricity GenerationGeneration
Romanian electricity sector
• Electricity distribution structure
TransilvaniaTransilvaniaNordNord
TransilvaniaTransilvaniaSudSud
EoNEoNMoldovMoldovaa
CEZ CEZ OlteniaOltenia
ENEL ENEL BanatBanat
ENEL ENEL MSMS
ElectricaElectrica36%
E.ONE.ON
18%
EnelEnel
33%
CEZCEZ13%
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.
• Balancing Market operated by the TSO, Transelectrica
Electricity Market
Wholesale vs. Retail electricity market
indep. supplier 1
indep. supplier 2
producer producerproducerproducer
eligible customer
Customer at reg. tariffs
eligible customer
Customer at reg. tariffs
eligible customer
Centralized markets OPCOM
Wholesale Wholesale marketmarket
Retail marketRetail market
indep. supplier 3
Electricity Market
• Wholesale electricity market
Physical Notifications
BILATERAL CONTRACTS DAY AHEAD ON THE DAY SETTLEMENT
TSO
Balancing Market
MP
P
Q
G G
S S
Q
Day Ahead Market
Simple Bids
Simple Bids
Firm Volumes by Company
Simple bids by unit
Metered Volumes
Meter data
Imbalance volumes by
BRP
Adjustments to Day Ahead schedule
BM Volumes
Market Operator
TSO-market operator
G G -- generatorsgenerators
S S -- supplierssuppliers Balancing Responsible Parties
Electricity Market
• Traded volumes on centralized markets as % of total consumption
Electricity Market
Day Ahead spot prices – March 2008
Electricity Market OpeningElectricity Market Opening
• Real market opening vs. legal market opening: January 2004 – March 2008
Romanian gas sector
• Companies structure
Romgaz
Transgaz
EoN Gaz DistrigazSud
PETROM
Transmission and system operator
2 distribution companies
State owned gas producer
Private gas producer (OMV)
Gas importers
Other small gas producers, importers or suppliers
Romanian gas sector
• Gas sources 2007
import 29%
intern71%
import intern
Romanian gas sector
• Gas importers 2007
Romanian gas sector
• Domestic gas producers 2007
Romanian gas sector
• Gas consumption in 2007 in thousand cubic meters
• Total annual consumption: 16 366 105 000 cubic meters
Romanian gas sector
• Real market opening of the retail gas market
Romanian gas sector
• Imported gas price - 2007
EURO/1000cm
Romanian energy sector Romanian energy sector future investmentsfuture investments
Attracting investments in electricity generation
•• HidroHidro unitsunits
– privatization of small hydro power plants from Hidroelectrica;
– possible privatization of some medium sized hydro power plants;
– finishing of 22 hydro power plants by establishing joint ventures between Hidroelectrica and private investors;
– Pump storage power plant Tarnita-Lapustesti of 1000 MW to be built also by Hidroelectrica with private participation;
– Green field projects.
Attracting investments in electricity generation•• Fossil fuel unitsFossil fuel units
– Privatization of Craiova Energy Complex (lignite mines and two power plants);
– Joint ventures under negotiation for new units in:
• Braila (memorandum signed with EoN and ENEL);
• Galati;
• Doicesti;
• Borzesti;
• Bucuresti Sud;
• Bucuresti Grozavesti;
• Constanta;
– Green field projects.
Attracting investments in electricity generation
•• Nuclear unitsNuclear units
– Unit 3 and Unit 4 in Cernavoda Nuclear Power Plant – consortium:
• Nuclearelectrica – to have 51 % participation;
• ENEL;
• EoN;
• Electrabel;
• CEZ;
• Iberdrola;
• RWE;
– New Nuclear Power Plant to be built after 2015 –Study for location to be started in 2008.
Attracting investments in electricity generation
• Promotion of renewable energy sources - Green certificates market
Gre
en c
ertif
icat
e m
arke
tG
reen
cer
tific
ate
mar
ket
Ele
ctri
city
mar
ket
Electricity
Coal
Electricitymicro hidro
Green certificatesmicro hidro
Electricity
Nuclear
Producer on hydro
Producer using fossil fuels
Producer with nuclearunits
Competition
Competition
SupplierProducers
Label
Attracting investments in electricity generation
• Promotion of renewable energy sources - Green certificates market
mandatory quotas for suppliers:2005 - 0,7% 2006 - 1,4% 2007 - 3,74% 2008 - 5,26% 2009 - 6,78% 2010 - 8.3% 2011 - 8.3%2012 - 8.3%
minimum and maximum price levels established by the regulator:minimum value 24 Euro / MWhmaximum value 42 Euro / MWh
Romanian energy sector facing the Romanian energy sector facing the new challengesnew challenges
Challenges facing the energy Challenges facing the energy sectorsector
• The environmental impact of using primary energy sources and of energy conversion technologies, especially the CO2 emissions;
• The finite world reserves of fossil fuels;
• The increase dependency on imports of primary energy sources;
• The increases in energy demand.
Romanian energy sources potentialRomanian energy sources potential
The national fossil fuel
reserves
Geological reserves
Concessioned areas
New areas
Mil. ton1)
Mil. tep Mil. ton1)
Mil. tep Mil. tep Mil. ton 1) years years years
1 2 3 4 5 6 7 8 9 = 2 / 8 10 = 4 / 8 11 = 6 / 8Coal hard coal 755 422 105 38,8 3,3 229 32 lignite 1490 276 445 82,4 1045 133 32 47 14 33Oil 74 72 5,2 14Natural gas 185 159 12,5 15
Uranium2)
1) excluding natural gas expressed in mld. Mc2) data not public
Sour
ce Geological reserves
Concessioned areas
Estimated annual
production
Forecasted depletionReserves
New areas
Romanian energy sources Romanian energy sources potentialpotential• The national renewable
energy sources potential
Source Annual potential
To be used
for:
Solar 60 PJ/an1,2 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
Romanian energy strategy 2007 Romanian energy strategy 2007 –– 2020 2020
Answers to challengesAnswers to challenges
• Reducing CO2 emissions by:
• promoting renewable energy sources
– energy target of 11 % in total energy mix of 2010
– 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 2014 - 2015
Romanian energy strategy 2007 Romanian energy strategy 2007 –– 2020 2020
Answers to challengesAnswers 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 (from 2017 imports of uranium might be needed).
Romanian energy strategy 2007 Romanian energy strategy 2007 –– 2020 2020
Answers to challengesAnswers to challengesDiversifying energy supply sources and routes by:
• promoting the Nabucco Project on natural gas;
• promoting the PEOP Project on oil;
• studying the fesability of a LNG / LPG terminal in Constantza harbour;
• increasing the interconnection capacity on natural gas with Hungary and Bulgaria;
• increasing the interconnection capacity on electricity with Turkey (submarine cable), Moldova, Serbia and Hungary.
Romanian energy strategy 2007 Romanian energy strategy 2007 –– 2020 2020
Answers to challengesAnswers 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).
Romanian energy strategy 2007 Romanian energy strategy 2007 –– 2020 2020
Answers to challengesAnswers 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 expect a 3 % yearly energy consumption increase.
Conclusions Conclusions -- Answers to challengesAnswers to challenges
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 both the sources and routes of primary energy sources supply;
• Increase interconnection capacity (electricity, gas) and storage capacity (gas, oil);
• increase energy efficiency.
Thank you for your attention !Thank you for your attention !
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