© VERBUND AG, Investing to integrate Europe & ensure security of supply Teodor-Ovidiu Pop...

© VERBUND AG, www.verbund.com© VERBUND AG, www.verbund.com

Investing to integrate Europe & ensure security of supply

Teodor-Ovidiu Pop President of IRE,Director Verbund – Bucharest Office Bruxelles 19.11.2014

Vertraulich

© VERBUND AG, www.verbund.com

Romanian transmission network

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Net Generating capacity1 October 2014

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Energy Source [MW]

COAL 4891HYDROCARBONS 4099

NUCLEAR 1300HYDRO 6292WIND 2908

BIOMASS AND BIOGAS 94PHOTOVOLTAIC 1143

TOTAL 20727

NET GENERATING CAPACITY1 of October 2014

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© VERBUND AG, www.verbund.com Seite 4Gesellschaft/OE/Verfasser/Vertraulich

Investment plan in transmission network

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South-West Oltenia Development Region

Romanian demo project “Getica CCS”Project LocationProject Location

under going retrofitting process – deadline 2013

FGD system – deadline 2012

ash and slag “dense slurry” system – deadline 2012

Main technical features after retrofitting

Steam Turbine + Electric generator

Rated gross power 330MW

Maximum long term available gross power

310MW

Annual average gross power 280MW

Steam Boiler

Steam flow 1035t/h

Steam parameters (pressure / temperature)

192 / 540 bar / 0C

Efficiency 88%

Flue gas emission 2,1 mil. Nm3/h


Why CCS in Romania?

Because

To reach 2020 EU targets of making CCS commercial we need to promote both onshore and offshore projects

Romania has preliminary identified around 23 Gt onshore CO2 storage geocapacities (17Gt in saline aquifers and 4Gt in depleted oil&gas reservoirs)

Romania has more than 150 years of history in the oil and gas industry, and currently operating natural gas reservoirs

Maintaining operational the PPs running on fossil fuels (41% indigene coal and 12% hydrocarbons) and the mining sites exploitations has a positive economic & social impact for Romania

It will contribute by the power of example to the CCS deployment in the South-East European region


CANDU 6 is a safe technology with a successful track-record over the last decades.

CANDU 6 is an evolutionary design having safety features consistent with Generation III features.

Cernavoda site designed for 5 units – licensed by Romanian Regulatory Body Take advantage of the advanced status of site civil works: 52% Unit 3 and

30% Unit 4 started on CANDU 6 technology No CO2 emissions Additional generated power will not have significant influence of the

surrounding environment : water and biodiversity, air, etc. Improved technology to lower emissions (tritium). Safe dry storage of the spent fuel Existing infrastructure in design, engineering, nuclear fuel, heavy water

equipment and materials Excellent expertise in operation and maintenance at Cernavoda Units 1&2 Availability of skilled staff

Why Cernavoda 3 and 4 Units 2x700 MW?

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4M Market Coupling

19th of November – first transaction day


Market Coupling in Practice

Theoretically Proved Optimal Day-Ahead Trading Form

Several Implementation Project on voluntary basis

Elaboration of harmonized EU legal background

Flow-Based MC defined as day-ahead Target Model

Implementation of European Price Coupling as soon as possible and involving at least all EU Member States


CEPS SEPS MAVIR TEL

mTMF

OTE

OKTE

EPEX EPEX

OPCOMHUPX

EPEX

TSO Cloud

TSO Joint System (mTMF+TSO Cloud)

4M MC PCR Cloud

4M MC topology


Project goalsMain goals:•Extension of CZ-SK-HU MC to Romania•4M countries wish to introduce benefits of market integration to market participants as soon as possible•Get prepared for joining European Price Coupling – implement MC based on PCR solutionContext:

Stepwise market integration is the only way forward due to a blocked situation and slow progress in the CEE region

•Flow-based capacity calculation methodology•Overlapping regions and other integration activities

CEE regional solution is not agreed yet•The extension does not hinder the regional development as it is an intermediate step towards European Price Coupling


ObjectiveThe objective of the FB allocation method is to maximize economic welfare in the whole region where it applies (to optimize the market outcome by augmenting the volume of allocation for the capacity rights)

General principlesIt is based on a simplified grid model, the FB method identifies the physical flows that would result from any commercial exchange in the region and determines the maximum amount of physical flows that can be accepted on each border;

It determines and allocates the commercial capacity rights on the basis of the market participants’ bids. (this differs from the NTC-based allocation method, where commercial capacity offered to market participants is determined upfront by the TSOs after assessing the commercial capacity rights that could be requested by the market)

The commercial capacity is not determined border-by-border by the TSOs ahead of allocation but that it is instead the outcome, at regional level, of the allocation process itself, taking due account of the physical characteristics and constraints of the grid;

The allocation mechanism considers the physical flows induced by each bid and evaluates on this basis the impact they will have on congestion across the entire region;

AdvantagesImprovement of cross-border allocation, especially in highly meshed networks where the physical interdependence between borders is high;More efficient allocation of capacity rights (allocation method should optimize capacity allocation in the whole region where it applies);An incentive for regional cooperation between TSOs (the method requires grid calculations at regional level).

New RO electricity market target – Flow based

19.11.2014

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