Power Interconnection and Energy Security · Natural resources, Power mix ratio, Electricity tariff...

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Power System Interconnection and Energy Security Dec. 17. 2015. KERI (J. YOON [email protected])

Transcript of Power Interconnection and Energy Security · Natural resources, Power mix ratio, Electricity tariff...

Page 1: Power Interconnection and Energy Security · Natural resources, Power mix ratio, Electricity tariff … Need to build more power plants & Resource Development PSI(Power System Interconnection)

Power System Interconnectionand Energy Security

Dec. 17. 2015.

KERI(J. YOON [email protected])

Page 2: Power Interconnection and Energy Security · Natural resources, Power mix ratio, Electricity tariff … Need to build more power plants & Resource Development PSI(Power System Interconnection)

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<Keyword & Notice>

♦ Energy Security & Sustainability & To be determined Topics

♦ What should do we for Sustainable Energy Network ?

♦ Energy Security Issues & Requirements on NEAREST-PSI

♦ Suggestion for Sustainable Energy Network in NEA Region

♦ Need to Feasibility Assessment on NEAREST-PSI

♦ Meaning of PSI in NEA Regions : Roadmap for Sustainable Peace

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<Backgrounds>

Most of NEA Countries

have mutual complementary characteristics

Natural resources, Power mix ratio, Electricity tariff …

Need to build more power plants & Resource Development

PSI(Power System Interconnection) can be alternatives to ...

Overcome these difficulties in NEA power sector

Utilize the complementary characteristics between them

But, PSI in NEA Region couldn’t realize until now because of

Differences of Technical, Business and Regulatory Regime

Business Discredit and Political Points among NEA Countries

DPRK Variants and Refusal caused by Past History Problems …

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<Meaning of PSI & CBT in NEA Region>

“Power System Interconnection & Cross-Border Trade between …”

Enhancement the sustainable Regional Peace parade

Economic Win-Win game & Technical Reserve Supporting System, But Positive & Negative Points in Energy Security (?)

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<Promotions on PSI & CBT in NEA Region>

Beyond NEA, Toward Worldwide …

Trans Northeast Asian Network : “RU-MO-CH-NK-SK-JP”

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<Benefits of Electricity Market Integration>

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■ Trade of GHG Diffusion

■ Positive for environment

Deregulation

■ Regulation and Incentive (ex : Green power)

■ Free Market■ Economic viewpoint

■ Enhancement interconnection

GHG/Environ

Interconnection

Reliability/PQ Economics

■ Cheap Fuel cost■ Refuse NRE, DSM,IRP ■ Negative for Environ

■ Enhancement interconnection ■ Positive for NRE

■ Competition, Market■ Enhancement deregulation■ Transmission Right

<PSI/CBT & Relation Factors>

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<Purpose of Deregulation & Interconnection>

To promote competition and economic efficiency To regulate monopolies (both intra and inter-country) To organize efficient markets without distortions To ensure the security of supply and the existence of infrastructures To incentive the quality of service To ensure the accomplishment of the public service obligations To promote consumer interests To contribute to a better environment To contribute to the efficient and sustainable use of energy To enhance the peaceful cooperation between interconnected count

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<Common Issues for PSI & Deregulation>

[Technical/Economic] Transmission planning & pricing Planning : Capacity, Voltage, AC/DC, System design Pricing : Fixed or Negotiated pricing Institutional considerations

[Economic/Environmental] Generation tracking and electricity market Creation of international electricity market Electricity and CO2 trading (Green market)

[Only Technical Issue] Reliability standards Analysis the interconnected system security (short-term) Evaluation the generation/load adequacy (short and long-term)

[Marketable Issue] Market power & International negotiation [TE/EC/MA/PO] Energy Security & Political & Financial considerations

Intra political & financial factor (Deregulation) Inter political & financial factor (Interconnection) & Energy Security

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<Characteristics of Power Networks>

Life-line for national sustainable development

Should consider the 3E (Economy, Environment, Energy Supply)

Economic efficiency & Environment (GHG) & Supply reliability Countermeasure for discrepancy TRILEMMA Key solution : Deregulation & Interconnection

Economic efficiency

Energy Supply reliability

Environment (GHG)

Sustainabledevelopment

DeregulationInterconnection

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<Energy Security Problems in NEA Region>

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Simultaneous Demand & Supply

have a risk of Power cut & Blackouts … Have no (Mass) Energy Savings P & Q = f(Frequency, Voltage)

Meaning of Energy Security

[Technical Points] Data Exchange : Power Quality & System Operation Power System Stability & Reliability & Security

[Political Points] Sudden Power Cut and Blackouts caused by political reasons Obstacles caused by Business Issues, for instance electricity tariffs Intentional Disturbances by Power System Operation

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<Inherent Characteristics of Power Networks>

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DPRK Variants

Need to Political Agreement & Multilevel Guarantee Pay for the passage toll by Currency or Electricity

Regime Differences in Social, Economic Regulatory Structures

Business Rule Regulatory Structures

Technical Standard Differences

PQ Standard Differences Power System Reliability Criteria Differences

Dispute Resolution

How can we solve this problem

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<Economic & Market & Political Issues>

Category Opinions

Power Exchange CBT Model

★ At First, Establish the Simple power exchange model ★ Contract or Market Base CBT Model★ Develop guidelines for power exchange.★ Review NORDEL, SAPP, and England‐France power exchanges.★ New trade market due to market restructuring.★ Stabilization of unstable pricing, No Fluctuation

Financing

★ directly related to economic feasibility, political and diplomatic relationship, law/regulation and policies support. DPRK uncertainty requires participants’ government guarantee and international financial institutions’ participation.

★ Consider long term contract, project collateral, and risk management for sound finance enhancement.

Politics and energy security

★ DPRK nuclear is the main issue. Necessity to forecast DPRK’s political change by phase.

★ Organize the Profit Distribution Model

Solutions &Suggestions

★ Need to Common Regulatory Rules to govern the PSI-CBT(ex NEA Energy Charter Treaty as a long term perspective)

★ Guarantee by the (Political & Economic Base) Multilevel Credit

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<To be determined topics for Energy Security>

Economic & Market Viewpoints Locations for Cross-Border power interconnection Voltage grade(kV) and interconnection capacity(MW) ? Annual Traded Free volume of electricity in future ? Power exchange tariffs including transmission pricing ? Financing & Cost Recovery Methodology Overall legal and management framework ?

Energy Security Issues

Information Exchange & Dispute Resolution & Regulatory Frame

[Technical terms] System Security Guarantee, System Stability

[Business terms] Non-variability of Energy Price & Sales

[Political terms] Threat for Power-cut & Sabotage Disturbances

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<General Barriers to NEAREST>

Political, Policy and People barriers

Public fears of being disadvantaged

Political support & common policies

Technical & Economic barriers

Lack of an overall plan : Transmission expansion master plan

Incompatible technical standards :

ex) frequency/voltage/reserve operating criteria Incompatible transmission pricing system including congestion

ex) different national tariff structure Incompatible electricity trading system

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<Barriers to NEAREST>

Structural and regulatory barriers

Political and administrative styles of regulationconsidering natural monopoly characteristics of transmission

Treaty and Legal barriers

Economy-wide investment conditions

Legal framework for investors including financing

Mismatch of Interests between Players (Power Utilities …)

Worry about lose of business territory …

Mutual Disagreements for Profit Distributions among Intereted Parties

Other Disputes could be happened …

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<So many Projects Studied, But only Plans …>

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<CBT Scenarios : Korea’s Perspectives>

KOREA : Geographical Center of Northeast Asia Region Private Sector Discussion with neighboring countries since 2000 …

RU – NK – SK with Overhead line SK – CH with submarine cable

SK – JP with submarine cable GOBITEC includes all of NEA …

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<CBT Scenarios : Korea’s Perspectives>

Energy Security & Financing Problem

Politically, DPRK Variants due to Trans NK CBT Line … Technical Deterioration of Power Supply Reliability … Operation & Data Exchange & /Maintenance … Investment Recovery …

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<What we do for PSI in NEA Regions>

Sincere participation of DPRK on PSI Projects ?

Power industry and system data offering

DPRK, is it possible to join this peaceful meeting ?

Continuous discussion for realization of CBT through PSI

Joint Research for feasibility assesment of NEAREST

Presentations of Power trade experiences by UCTE, ASEAN …

Energy Security problem should be solved ….

How can we guarantee this important issue in terms of technical, business and political points …

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<What should do we for PSI in NEA>

Step by Step Cooperation, from Private to Governmental Level Firstly, Suggestion for Organizing PSI Forum, both private and

governmental level … Cooperation Joint Study for Energy Network sponsored by each

government … For the Enhancement of Energy Security

Joint research and Exchange of data for NEAREST Participation of experts on Technical, Economic and Energy Security

Problems …

Hold the Annual International Meeting in turn For the Realization and on PSI Official Meeting & Agreements …

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<Conclusions & Suggestions>

It should be promoted …

① Future Peaceful Energy Network in NEA Region

② Free volume of NEA Power Interconnection and Trade Market

However, we have barriers on Energy Security …

So, I would like to suggest strongly to organize the Joint

governmental meeting to solve this Energy Security Problem