EuroAsia Interconnector Project Submarine power cable Feasibility study status Executive summary Presented by: Yakov (Yasha) Hain, Senior Executive VP Israel Electric Corporation Ltd. Doing business with Israel summit
EuroAsia Interconnector Project Submarine power cable Feasibility study status Executive summary Presented by: Yakov (Yasha) Hain, Senior Executive VP Israel Electric Corporation Ltd. Doing business with Israel summit
Project description Euro Asia Interconnector is a project intended to link the electrical systems of Israel, Cyprus and Greece (via Crete) through sub marine DC cables and HVDC onshore stations in each country Total capacity 2000 MW Participants: DEH Quantum Energy Electricity Authority of Cyprus TSO Cyprus Israel Electric Corporation Doing business with Israel summit 3
Project activities MOU March 04, 2012. Tel Aviv. Israel endorsed its commitment to implementing the EuroAsia Interconnector energy bridge project connecting Greece, Cyprus and Israel signing an agreement with DEH Quantum Energy LLC. March 23, 2012. Nicosia. The Electricity Authority of Cyprus formalized its participation in the three nation operation to lay the EuroAsia Interconnector submarine electricity cable signing a cooperation agreement with PPC Quantum Energy LLC Doing business with Israel summit 4
Project activities working groups April 23, 2012. Nicosia. The first Steering Committee Meeting. The Committee took decision on Feasibility study and schedule for its implementation June 13, 2012. Tel Aviv. Finalization of the Steering Committee and the Working Groups. Chairman of ΔΕΗ Quantum Mr. Athanasios Ktorides informed the Steering Committee that the Cyprus Government had applied to EU for consideration and approval of the EuroAsia Interconnector as a cross border project of common interest. Doing business with Israel summit 5
Project activities working groups Network analysis Group coordinator: Dr. David Elmakias, IEC Group coordinator: Mr. Stavros Stavrinos, TSO Cyprus Dr. Elias Kyriakides, ΔΕΗ-QUANTUM Mr. Pavel Kulbekov, IEC Dr. Yair Malakhi, IEC Mrs. Sanda Harel, IEC Mr. Evaggelos Anastasiades, EAC Mr. Ioannis Papageorgiou, EAC Market analysis and regulation Group coordinator: Ms. Dimitra Croba, ΔΕΗ-QUANTUM Dr. Vladimir Podshivalov, IEC Ms. Tali Shitrit, IEC Mr. Sylvian Locar, IEC Mr. Andreas Poullikas, EAC Mr. Constantinos Rouvas, EAC Cable routing and environmental Group coordinator: Mr. Athanasios Stivaros, ΔΕΗ-QUANTUM Dr. Hanoch Ben-Haim, IEC Dr. Tal Katz, IEC Mr. Tasos Gregoriou, EAC Technology issues: cable and converter station Group coordinator: Dr. Hanoch Ben-Haim, IEC Dr. Elias Kyriakides, ΔΕΗ-QUANTUM Mr. Ilan Akons, IEC Mr. Ziv Nir, IEC Mr. Dinos Charalambides, EAC Generation Mrs. Sanda Harel, IEC Mr. Pavel Kulbekov, IEC Dr. Yair Malakhi, IEC Mr. Andreas Poullikas, EAC Mr. Constantinos Rouvas, EAC Doing business with Israel summit 6
Description of electricity systems Greece Capacity 12,890 MW Production 51.9 TWh* Cyprus Capacity 1,400 MW Production 5.2 TWh * incl. export/import Israel Capacity 13,131 MW Production 57.3 TWh Doing business with Israel summit 7
Preliminary cable route Greece Crete Cyprus Israel The route consists of three sectors: Israel Cyprus section between Hadera site in Israel and Vasilikos site in Cyprus. Cyprus Crete section between Vasilikos site in Cyprus and Korakia site in Crete. Crete Continental Greece section between Korakia site in Crete and Attica region in Continental Greece. Doing business with Israel summit 8
Preliminary cable route Section Israel Cyprus Length, km 330 Maximal depth, m 2300 Cyprus Crete Crete Continental Greece 880 310 2700 1400 Doing business with Israel summit 9
Preliminary cable route The major challenge of this project sea depth Doing business with Israel summit 10
Technology issues Request for Information has been prepared and distributed to the main manufacturers of HVDC equipment Four manufacturers answered the RFI: Alstom as a HVDC converter manufacturer ABB as a HVDC converter and submarine cables manufacturer Siemens as a HVDC converter manufacturer Prysmian as a sub marine cables manufacturer Siemens and Prysmian participated in RFI as a consortium. Doing business with Israel summit 11
Technology issues cable Mass Impregnated (MI) Cable The technology is available for voltages up to 600 kv and a transmission capacity of up to 2200 MW XPLE Cable The technology is available for voltages up to 320 kv and a transmission capacity of up to 1000 MW in one cable Preliminary conclusion: The project is technologically feasible based on MI 500kV 500 MW cables. Project schedule is determined by the submarine cable availability including R&D stage and manufacturing/installation duration Doing business with Israel summit 12
Technology issues converter Line commutated LCC LCC is the most widely adopted technology with many years of service experience but has limitation for bidirectional energy flow. Preliminary conclusion: feasible Self commutated VSC VSC technology allows bi-directional energy flow and true multi-terminal control. VSC converters have already implemented in a few projects, and planned for on-going projects at +/- 300kV and 350kV. Theoretically there is no limitation to voltage level and +/- 500kV VSC converter is feasible. Doing business with Israel summit 13
Technology issues configuration There are three main HVDC basic systems: Monopolar HVDC systems Bipolar HVDC systems Multi terminal HVDC systems Preliminary conclusion: At this level of information the best alternative is a bipolar configuration with monopolar bypass and sea electrodes. The final choice of the configuration will be optimized according to energy flow and reliability needs. Doing business with Israel summit 14
Network analysis. Study Objectives DC link impact study on existing transmission system. HVDC connection to the transmission system Steady State analysis of existing system with DC cable connection from the thermal limits and voltage constraints perspective Transmission expansion plan to make possible the connection of up to 1000 and 2000MW Power flow calculation of DC link power losses and voltage changes Contingency Analysis Doing business with Israel summit 15
Network analysis. Israel Dynamic Analysis In order to maintain stability after a fault, imported power should not exceed 30% of the local load. An HVDC Interconnection with a 1000 MW capacity is not expected to present a problem at any point in time. An outage of the HVDC Interconnection with a capacity of 2000 MW during export could: Risk the integrity of the Israeli power system during 3.7% of the time in the year 2022. Cause severe disruptions in energy supply during 5.5% of the time in the year 2022. The risk posed by an outage of a 2000 MW HVDC Interconnection could be reduced by lowering the capacity factor or by redesign of system protections. Doing business with Israel summit 16
Network analysis. Cyprus Importing power into the Cyprus system, maximum power loss of 225 MW may be tolerated. It will result in disconnection of 11% of the consumer loads for at least 15 20 minutes. The disconnected consumers will be restored within 15 20 minutes by starting the five peaking open cycle gas turbine units, provided that they are available. For a sudden loss of power import higher than 225 MW, the resulting shed consumer loads will require a substantially higher restoration time, ranging from 4 to 6 hours, depending on the system conditions, as large steam generating units will have to be committed. Doing business with Israel summit 17
Network analysis. Cyprus The maximum power that can be imported is between 850 900 MW, but if one of the two DC cables is tripped during such an operation, at least 27% of the system load will be shed and the corresponding restoration time will be of the order of several hours, which is unacceptable. Higher import is not feasible, due to the constraint imposed by the minimum stable loading levels of the generating units. Doing business with Israel summit 18
Market analysis. Greece Greece is an electrical peninsula. Greek Wholesale Market has a weak correlation with the major European markets and exhibits higher level of wholesale prices All the northern neighbors of Greece have lower prices and are net importers to the Greek market Italy another electrical peninsula is the only stable net importer from Greece. Note: we do not examine here the feasibility of Crete-Greece interconnection, which is clearly proved already Doing business with Israel summit 19
Market analysis. Greece Electricity production costs in Israel in the medium perspective are going to be lower than the Greek ones This situation dictates the Greek market as a primary target for EuroAsia Interconnector project The Italian market is considered as a secondary target, (+) characterized by high level of prices and (+) much larger trading activity, but ( ) access to the market is limited due to the lack of transmission capacity Dominant power flow through EuroAsia Interconnector South (Cyprus, Israel) to North (Greece) Doing business with Israel summit 20
Market analysis Main scenarios Development plans of Cyprus, Greece and Israel based mainly on gas fired CCGT units and use of renewable energy sources We are expecting a stable gap of 7 8 $/MMBTU between Greek and Israeli NG prices in favor of Israel. It s equivalent to 35 40 /MWh difference in marginal costs (operational variable costs) for modern units The price of Cypriot natural gas is less certain. We consider three scenarios which are dictated by three Cypriot gas prices possibilities Doing business with Israel summit 21
Market analysis. Scenario A No change Fuel prices in Cyprus are similar to the current level The marginal costs are the highest in Cyprus Cypriot export to other countries in such conditions is uneconomical, so Cyprus is going to be electricity net importer from the cable. Both Greek and Israeli electricity is competitive for Cypriot market, but Israeli electricity, due to their lower costs, has a priority Greek export to Cyprus is hardly possible as a stable business pattern Relatively small Cypriot market can't fully use the Cable capacity The remaining part of electricity is sold at the Greek market Doing business with Israel summit 22
Market analysis. Scenario B Gas parity scenario Fuel prices in Cyprus are similar to those in Israel. The marginal costs (operational variable costs) is highest in Greece. Greek export to other countries in such conditions is uneconomical, Greece is energy net importer from the cable. Both Cypriot and Israeli electricity is competitive for Greek market, nobody has a priority. Israeli export to Cyprus or Cypriot to Israel is hardly possible as a stable business pattern. Doing business with Israel summit 23
Market analysis. Scenario C Cypriot energy hub scenario Fuel prices in Cyprus are much lower than in Israel. The marginal costs (operational variable costs) will be lowest in Cyprus Cypriot export to both other countries Greece and Israel is economical, so Cyprus will be energy net exporter to the cable. Both Greek and Israeli electricity are going to consume Cypriot electricity This scenario dictates a need for construction of CCGT plants in Cyprus which will produce electricity mainly for export. Doing business with Israel summit 24
Summary Finalising of Feasibility Study report 02/2013 Project implementation: 2018, first stage Israel Cyprus and Greece Crete; 2020, second stage Cyprus Crete. Doing business with Israel summit 25
Thank you Doing business with Israel summit