Cooperation between 50Hertz and ČEPS A stable basis for European Infrastructure

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1 Cooperation between 50Hertz and ČEPS A stable basis for European Infrastructure Michael Kranhold Head of Corporate Strategy/Cooperation 50Hertz Transmission

2 Agenda 1. 50Hertz the Company 2. Cooperation with ČEPS and other neighboring TSOs 3. Outlook 2

3 Agenda 1. 50Hertz the Company 2. Cooperation with ČEPS and other neighboring TSOs 3. Outlook 3

4 50Hertz as Part of the Electricity Systems in Europe Headquarter in Berlin Hertz 2. TenneT TSO 3. Amprion ( RWE ) 4. EnBW Transportnetze ( EnBW ) 4

5 50Hertz at a Glance Value (Share of DE) Control Area Electric circuit length Electricity consumption Installed capacity: - as of RES - as of Wind km² (31%) km (28%) 96 TWh (20%) ca MW (35%) MW (29%) MW (41%) Employees ca. 650 Turnover - as of Grid Key facts (end of 2010) 5,6 Mrd. 0,6 Mrd. Shareholder Structure: 60% Elia, 40% IFM - Covering 7 German Federal States ( Länder ) 5

6 Goals of German Federal Government - Faster nuclear phase out - Stronger RES development, especially offshore wind - Advancement of network expansion - Modern conventional power stations as a new bridge technology - Promotion of new energy storage - Save energy, promote energy efficiency - Introduction of electric cars Key role of the TSO 6

7 Changes in Energy Industrie Act (EnWG) and German Renewable Energy Act (EEG) TSO as Guarantors of System Stability - Contribution of all stakeholders to the maintaining of the system security - Mandatory provision of redispatch - RES: technical requirements for new and inventory systems - Improving data sharing and responsibility for power balance in the network - Access to the reserve power plant by EEG-Business: Liquidity buffer in the EEG apportionment/ Promotion of renewable energy market integration 7

8 Nuclear Phase out: Situation in Germany Moratorium was decided by German government and started on March 16th Nuclear Power Plants tackled by the decision: Kernkraftwerke in Deutschland Affected Power plants with immediate shut down Biblis A Neckarwestheim MW 645 MW Philippsburg MW Unterweser 1345 MW Isar MW Biblis B 1240 MW 1) Brunsbüttel 771 MW 2) Krümmel 1345 MW 2) Total 8281 MW 1) Maintenance since ) Out of operation 8

9 Grid Extension to integrate Renewable Energies urgently required Demand Generation 2019 Generation surplus Demand Generation 2014 Demand Generation 2009 Demand surplus [MW] convent. power plants (install.) storage and RES (install.) high load (estimate) export capacity (estimate) Centers of demand Renewable generation New construction projects Required Grid Extension is slower than the Increase in Renewables 9

10 Investment Programme Major Onshore Projects 1 North Line (TEN-E-Project) - Mecklenburg-Western Pomerania: built - Schleswig-Holstein: Planning approval in progress 93 Mio. 1 2 Uckermark Line (TEN-E-Project) - Planning approval in progress 129 Mio North Ring Berlin 115 Mio. - Preparation of planning approval process 4 Southwest Coupling Line (TEN-E-Project) 248 Mio. - Bad Lauchstädt-Vieselbach: in operation - Vieselbach-Altenfeld: Planning approval in progress - Altenfeld-Redwitz: Regional Planning Procedure approved 5 3rd Interconnector to Poland 43 Mio. Total Investment program of 1.8 bn. until

11 Agenda 1. 50Hertz the Company 2. Cooperation with ČEPS and other neighboring TSOs 3. Outlook 11

12 Cooperation and Coordination of TSO in Change The old TSO-World until liberalization: Coordination with conventional generators and costumers Bilateral cooperation with neighbor TSO Cooperation within Associations (UCTE etc., now ENTSO-E) Recent developments: Cooperation with renewable generators and associations Cooperation with PX Cooperation with Regulators Cooperation with European Commission Cooperation with State authorities, producers (Studies) Cooperation within Regulatory Region (CEE, CWE, ) Stakeholder meetings in Regions (EU Coordinators, Grid enforcement) Cooperation with NGO The former National TSO becomes Transparent & European 12

13 International Cooperation Bilateral Cooperation Multilateral Cooperation Cooperation NGOs Regional Initiatives TSO Security Cooperation Initiative 13

14 Cooperation with ČEPS and other neighboring TSOs Interconnectors to Poland and the Czech Republic ensure a reliable electricity system in Europe Interconnections Length (km) In operation from Zwönitz Hradec (CZ)* 50 ca.1960 Röhrsdorf Hradec (CZ) 82, Vierraden Krajnik (PL) 26, Hagenwerder Mikulowa (PL) 15, Eisenhüttenstadt Baczyna/ Plewiska (PL) ca. After 2015 (forecast) * Demolished in

15 Bilateral Cooperation Strong Cooperation with ČEPS Milestones: - Cooperation on system planning and system operation issues - Intensified with signing of a System Operation Agreement and an MoU for the Central Eastern European Electricity Forum - Joint Interconnection Study has been concluded - Joint trainings for system operators are established - A common Trainee Programme has been established - Contract on Cross Border Redispatch has been signed (Jan. 2011) - 50Hertz appreciates support from the German Embassy in Prag 50HzT is glad to have CEPS as a reliable partner in order to jointly face present and future challenges related e.g. to RES integration (Wind in 50HzT, PV in CEPS) 15

16 Bilateral Cooperation International Trainee Programme 50Hertz & ČEPS mutual aim: International oriented trainee programme for technical or economy field graduates Pilot Exchange Programme Start: 2010 Duration: 8 weeks Major programme scope: Dispatch Control & Operation Mutual Gains: - provide young potentials for expert positions in a European working environment; - promote cross-border sympathy, communication, cooperation, mobility and networking within TSOs; - support internationalization process in a TSO working environment; - increase Trainee experience and skills by sharing and integrating international TSO expert knowledge; - increase attractiveness of TSOs as employers. 16

17 Multilateral Cooperation Grid Control Cooperation (GCC): International expansion is still in discussion with affected TSOs. Regional Initiatives CEE Regional Initiative / CAO: - ČEPS and 50HzT, together with ELES, MAVIR, PSEO, SEPS, TPS and Verbund-APG are main drivers - Project aims at implementing a flow-based mechanism for congestion management in CEE. - The Central Allocation Office has been introduced as a joint venture of the TSOs Pentalateral Forum CEEE: supports the goals of other initiatives in CEE (CAO, ERGEG ERI, TSC) aiming at the creation of an integrated CEE Electricity Market, as well as fostering cross-regional coordination. TSO Security Cooperation - ČEPS and 50HzT are both partners in the TSC. - Common goal is the enhancement of operational security and SoS in the region. - In 2009 the Real Time Awareness and Alarm System has been launched. - Start of day ahead common planning process in January

18 Agenda 1. 50Hertz the Company 2. Cooperation with ČEPS and other neighboring TSOs 3. Outlook 18

19 Outlook Further steps of Cross Border Cooperation - Common lobbying for a stable political framework and a fair regulatory treatment - Enforcement of the TSO Security Cooperation on different layers - Stem the 3 Billion investment program for infrastructure of the future, forced by RES - Increasing the public acceptance and awareness for new infrastructure - Further development of market concepts in and between the regulatory regions (CEE, CWE, NE) - Common efforts to develop and train the TSO-teams for today and tomorrow 19

20 Vielen Dank für Ihre Aufmerksamkeit. THANK YOU VERY MUCH FOR YOUR ATTENTION!! 20

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