CBT mechanism in South-Eastern Europe for 2005

Transcription

1 4 August 2004 CBT mechanism in South-Eastern Europe for 2005 Introduction Based on the agreements reached at past Athens Forum meetings and, in particular, during the last one on October 2004, the South-eastern Europe (SEE) TSOs have implemented, under the coordination of ETSO, the Inter-TSO Compensation (ITC) mechanism described below in order to compensate the use of national transmission systems by cross-border trade in SEE region in The SEE ITC mechanism follows the basic principles of the ITC mechanism applied by ETSO this year in most of the European Union as well as in Norway and Switzerland. The principles of SEE CBT mechanism of 2005 For defining the SEE CBT mechanism, the next steps have been followed: a) Delimitation of the SEE CBT area The SEE CBT parties, signatories of the SEE CBT Agreement for 2005 are the following TSOs:. Korporata Elektroenergjetike Shqiptare KESH sh.a. from Albania, hereinafter referred to as KESH, 2. Zajednicki Elektroenergetski Koordinacijski Centar, pu, (ZEKC) Sarajevo from Bosnia- Herzegovina (B&H), hereinafter referred to as ZEKC, 3. Natsionalna Elektricheska Kompania from Bulgaria, hereinafter referred to as NEK, 4. Elektrostopanstvo na Makedonija from FYR of Macedonia, hereinafter referred to as ESM, which has transferred the rights and obligations to the recent established TSO: Makedonski Elektro Prenosen Sistem Operator, hereinafter referred to as MEPSO, 5. Elektroprivreda Crne Gore from Montenegro, hereinafter referred to as EPCG, 6. Compania Nationala de Transport al Energiei Electrice Transelectrica SA from Romania, hereinafter referred to as TEL, 7. Javno Preduzece Elektroprivreda Srbije from Serbia, hereinafter referred to as EPS.

2 Consequently, the corresponding SEE CBT area comprises the following countries in South-East Europe: Albania, Bosnia and Herzegovina, Bulgaria, FYR of Macedonia, Montenegro, Romania and Serbia. The CBT area in South-East Europe is presented in the next figure: ETSO ITC mechanism in 2005 A H UA Mol CIS system I SLO HR RO BiH CG S BG SEE ITC mechanism in 2005 MK AL GR TR b) Definition of the Horizontal Network (HN) The HN is defined by applying a technical auditable approach. The methodology is used in ETSO CBT 2005 mechanism: Allocation of Transit Flow (ATF)-approach, i.e. defines for each network element if it is allocated to the HN or not. To ensure coherency within SEE Europe, transits taken into account in the determination of horizontal networks were standardized in terms of magnitude and in terms of pattern (by pattern, we mean the way a transit of a given magnitude enters and exits through the different tie-lines of the country/tso). Therefore, a standardized transit magnitude of 00 MW was used. Then standardised transit patterns must reflect the diversity of possible transits, with various influences on the transmission grid. This is why all possible one-to-one transit patterns are considered, i.e. transit patterns with an entering flow in one tie-line (00 MW) and an exiting flow in another tie-line (00 MW), and zero flows in all other tie-lines. For a country/tso with N tie-lines, there are N(N-) such one-to-one transit patterns. It can easily be shown that any real transit can be decomposed as the superposition of several one-to-one transits. Therefore, using one-to-one transits will yield very relevant horizontal networks.

3 ENTIRE NETWORK OF A COUNTRY ELEMENTARY TRANSIT kVlines 220kV lines 380kV/220kV lines influenced by the elementary transit 380kV/220kV lines not influenced by the elementary transit ELEMENTARY TRANSIT 2 ELEMENTARY TRANSIT kV/220kV lines influenced by the elementary transit 380kV/220kV lines not influenced by the elementary transit 380kV/220kV lines influenced by the elementary transit 380kV/220kV lines not influenced by the elementary transit HORIZONTAL NETWORK OF THE COUNTRY

4 In order to decide whether a given grid element must be included in the horizontal network of a country/tso or not, the method identifies which elements bear a flow - caused by applying the standard transit applied between two tie-lines that is greater or equal to MW. Elements with transit flows that are lower than the threshold value are removed. The calculations are undertaken country by country, TSO by TSO and CBT party by CBT party respectively. The ATF method was applied based on DC Load Flow Approximation on an empty network. The network simulation models include the transmission network elements of 400 and 220 kv in parallel mode of operation. Inclusion of 0 50 kv networks in the ATF network simulation models was accepted only for FYR of Macedonia, by observing the ETSO criteria for inclusion of lines with lower voltages than 220 kv. All transmission lines, which are usually operated, are put in operation in order to represent the transmission system in normal operation conditions. c) The share of transits or cost claim of each SEE CBT party: transit key The share of transits in the HN is defined by using the transit key, i.e. the same way as in the present ETSO CBT 2005 mechanism. This solution gives a result that is a share of the overall amount of the infrastructure costs identified by the ATF-approach. It can be combined with the harmonized definition of HN thus applying an established method on a HN defined with more transparency. The transit is defined as the minimum of import and export flows measured hour by hour at the interconnection lines between countries. The transit key is then calculated by dividing the transit by the sum of transit and the consumption of the country (see formula). It is not related to peak capacity but to the average use of the network. KEYep ( k, = m M m M Tep( k, Tep( k, + m M L( k, where k means country, M means first months of 2005 and Tep (k, is transit in GWh and L (k, is the monthly load in GWh. Hourly import and export flows from all the interconnection lines were collected, verified and confirmed by the parties, for the period d) The costs of the HN The costs of the HN are defined using the standard costs of the elements of HN. Aiming at defining the HN costs for each Country, the SEE TSOs, in cooperation with their respective regulatory authorities, estimated the annual costs (based on replacement costs) for each element of their respective HN. The comparison of the costs arisen from this estimation revealed considerable differences among the involvedcountries. Therefore, CEER Working Group of South-eastern Europe Energy

5 Regulators (SEEER) proposed to the SEE TSOs to provisionally adopt a set of average construction standard costs, defined for each element (proposed in June 2003). The SEE TSOs considered the above-defined standard costs as properly compensating the network usage for CBT and approved their utilisation during the implementation of the SEE ITC mechanism starting from January st The compensation for losses induced by transits is also included within the cost claim for the SEE ITC mechanism. A model of average loss estimation has been used in SEE ITC, similarly to what done by ETSO in 2004 and e) Calculation of cost claim and total SEE CBT fund The amount of the SEE CBT compensation fund is the result of technical, justifiable and transparent criteria. On the basis of all the above points and taking into account the participation of 7 countries, the fund is around 9 M. f) Financing of the SEE CBT compensation fund The TSOs contributions to the SEE CBT fund are estimated ex-ante (data set of the period from to ) and consist of two different parts as in ETSO 2005 CBT mechanism. A first part that takes into account the contribution from the perimeter countries. This is raised from an explicit injection fee of /MWh on the declared exports from exporters/traders of these countries to the area of the signatories of the SEE CBT mechanism. The perimeter countries are: Moldavia Republic, Ukraine, Hungary, Croatia, Greece and Turkey. A second (main) part called net flow part of the fund: "Net Flow is defined as the country hourly net flow in export or import directions. The charge for net flow is the same irrespectively of whether it is in the export or import direction. It is raised from the contribution resulting from the national tariffs included in the L and/or the G component; the decision is left to subsidiarity and therefore to the decision of the individual TSOs and Regulating Authorities. The concept of edge countries, defined within ITC mechanism operated in EU, was also adopted in the SEE ITC mechanism. The edge countries are those countries that border with at least one SEE CBT country and at least one perimeter country. The reasons for the application of this method are, as in 2004: - For an edge country, with net import both from a perimeter country and a SEE CBT country, the import from the perimeter country does not cause any transit in the SEE CBT country; - The same applies for an edge country with net export both to a perimeter country and a SEE CBT country. Taking into account what above, it was therefore considered questionable that perimeter country flows should be included in the calculation of the net-flow contribution to the SEE CBT fund for the edge country. For the application of this

6 concept, a reduction of the perimeter country contribution to the net-flow calculation has been agreed so that: - First, a preliminary net flow with SEE CBT countries only is calculated. In this way only the flows that affect the SEE CBT area are kept. - Second, the preliminary net flow calculated is reduced by an amount equal to the maximum possible transit from a perimeter country to a SEE CBT country through the edge country. g) Clearing Process and Settlement of differences Settlement is required because each part of the contribution is estimated ex-ante, based on the historical data, while the actual contributions paid to the fund are based on the real data from As the effective income at the end of 2005 may be different from the expected SEE CBT fund, the settlement of differences shall be executed. It is expected that the ITC mechanism in SEE region shall merge with the ETSO ITC mechanism in next future.