The European Long Term vision

… and the Elia Group challenges

AmCham Belgium

EU briefing on energy

7/07/2014

By Sophie De Baets – The Elia Group

• 41 TSOs from 34 countries

• A trans-European network

• 534 million citizens served

• 910 GW generation

• 305,000 Km of transmission lines

• € 104 bil ten year investment plan

• 3,400 TWh/year demand

• 400 TWh/year exchanges

• A legal mandate

• Regulation (EC)714/2009

About the European Network of TSO for

Electricity (Entso-E)

Introduction

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• Among the five largest transmission system

operators in Europe

• Frontrunner in grid integration of renewables

• Listed on Stock Exchange since 2005

• 1,950 employees

• 380 kV and 220kV (down to 30kV in Be)

• 870 substations

• Fully unbundled

• World experience in RES integration

The TSO missions :

Operation of the electricity system

Operation of the infrastructure

Market facilitation

About the Elia Group Introduction

07/07/2014 AmCham Belgium - EU briefing on energy - By Sophie De Baets (The Elia Group) •3

European Objectives

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EU objectives Challenges for TSO’s

The challenges for the TSOs

Given that :

A single energy market is being built

RES increased very rapidly

Security of Supply in Europe is to be

re-inforced

The challenges for TSOs are:

Build the right market platforms for

the single energy market

manage huge flows

operate the grid evolving from a

centralized production system to a

decentralized

Urgent need for transmission grid

development: +17% till 2020

Support the public authorities in

monitoring national security of

supply, taking the European grid

into account

Thousands of small units

Flexible gas fired power plant being less profitable

Huge flows all over Europe

Possible EU scenario for 2020

07/07/2014 AmCham Belgium - EU briefing on energy - By Sophie De Baets (The Elia Group)

5

High variability and unpredictability

of RES

E.g. Belgium

Winter in 2020

How can we meet those challenges ? Market platforms to facilitate the single energy market – Target model 2014

Last development : the Day Ahead North West Europe region coupling :

This regional market coupling is facilitating the optimal utilization of interconnectors between the NWE

power markets as well as Poland*

Source : Epex Spot 06/2014 1.8%4.1%

2.2%

7.5%11.5%

14.3%18.3%

17.1%

16.7%

16.9%

15.7%

12.6%13.3%

7.5%

7.7%4.9%

4.5%

13.0%9.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Before After

Overall price spread(118 days before vs 118 days after NWE go-live)

≥ 50

< 50

< 45

< 40

< 35

< 30

< 25

< 20

< 15

< 10

< 5

* the coupling has been extended to SWE (Spain and Portugal) in may 2014 (results not yot on chart)

NWE

07/07/2014 AmCham Belgium - EU briefing on energy - By Sophie De Baets (The Elia Group)

How can we meet those challenges ? Flexibility

- More flexibility is needed due to

- Massive increase of renewable production

higher volatility

less predictability

- Decrease of gas fired power plants availability

- Flexibility should come from:

- the demand side (industries, aggregators etc.)

- flexible production plants (including wind and

solar)

- Storage: need to find innovative solutions

- from “smarter grids” : incl. direct current cables

combined with phase shifters

Example of a Flexibility Demand Side Service

Higher volatility, less predictability

Flexible gas fired power plant being less profitable

CO2 price

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E.g. Belgium

Winter in 2020

European Coal Price

How can we meet those challenges ? Operational coordination

- More operational coordination

accross Europe is needed to anticipate

and mitigate the operational risks

- It requires day and night actions and

cooperation, not only plans, rules or

agreements

- Regional cooperation is a must.

Example: in specific situations, the loss

of a double line in France causes

overload in Switzerland that can be

solved by grid topology actions in Italy

and an increase of export by Slovenia

to Italy!

- Security of Supply requires more and

more close to real time cooperation

between TSOs.

-

April 3rd , 2013 - Due to unexpected misty weather conditions: 9000 MW shortage on German Solar infeed !

4th Nov 2006 :

near blackout :

10 seconds to react !

07/07/2014 AmCham Belgium - EU briefing on energy - By Sophie De Baets (The Elia Group)

How can we meet those challenges ? Infrastrucutres : interconnections – aeging infrastructure – RES connections

- A common European plan for developing grid

infrastructures:

Ten-Year Network Development Plan

developed by Entso-E

(European Network of Transmission System

Operators for Electricity), including a scenario

outlook and adequacy forecast

- Financing these infrastructures

(~€104 bn investments, to be compared with

≈ 2% of the bulk power prices and less than

1% increase of end-users’ E-bills)

- Getting the public acceptance:

on the average, it takes 12 years to build a

new transmission line…

100 main bottlenecks in Europe in 2020

Market integration – between price zones

Market integration – within price zones

Generation integration

Security of supply

Main power flow trends

Source: ENTSO-E TYNDP 2012

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How can we meet those challenges ? The need for harmonized rules

Enabling renewables

Creating clear connection rules

Providing harmonisation to

benefit manufactureres

Creating markets to reduce risks

Ensuring security of

supply

A coordinated approach to

system operations

Greater optimisation to

enhance efficiency

More flexible markets (e.g.

balancing)

Enhancing competition

A single market design across Europe (in all timescales)

Promoting cross border trade &

enhancing liquidity

Reducing risk for all market

players

Grid Connection

Related Codes

Requirements for Generators

Demand Connection

Code

HVDC Connection

Code

System Operation

Related Codes

Operational Security Network

Operational Planning & Scheduling

Load Frequency Control & Reserves

Market Related Codes

Capacity Allocation & Congestion

Management

Forward Capacity

Allocation

Balancing Network Code

The Network Codes

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