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Integration into ENTSO-E. Key results over two years

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Integration into ENTSO-E. Key results over two years.

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Integration into ENTSO-E. Key results over two years

  1. 1. K E Y R E S U LT S OV E R T W O Y E A R S
  2. 2. Agreement with ENTSO-E July 7, 2017 On June 28, 2017 in Brussels Agreement on the Conditions for Future Interconnection of Power System of Ukraine with Power System of Continental Europe was signed Agreement took effect The agreement contains: 1. Catalogue of Measures; 2. List of necessary additional researches; 3. Road Map To date, the Agreement has been approved by 28 European system operators of the ENTSO-E “Continental Europe” Regional Group The deadline for the implementation of all activities of the Catalogue of Measures is 5 years. Another year is needed to work in an isolated mode (physically disconnected from the power systems of the Russian Federation, Belarus and ENTSO-E). Under the agreement, Ukrenergo undertakes to implement the technical provisions contained in the catalogue of measures, and to check the island mode of operation of the integrated power system. The implementation of all activities and operation in an island mode should be a condition for a positive decision of ENTSO-E to switch to parallel work with Ukraine and Moldova in 2023. 28 європейських ОСП
  3. 3. Sustainable Development Strategy «Ukraine 2020» (approved by the Presidential Decree on January 12, 2015) Paragraph 3. Road map and priorities of the Strategy implementation Association Agreement between the European Union and its Member States, on the one hand, and Ukraine, on the other Section V. Economic and sectoral cooperation Memorandum of Understanding on a Strategic Energy Partnership between Ukraine and the EU (signed in Brussels on 24.11.2016) Paragraph 7. Implementation and reporting Energy Strategy of Ukraine until 2035 (approved by Government Decree No.605 on August 18, 2017) Part 2. Goals and priorities of the Energy Strategy Part 3. Stages and main measures of the implementation of the Strategy Strategy «Ukraine 2020» Association Agreement Memorandum Energy Strategy Integration into ENTSO-E in Ukraine’s strategic documents Government’s Action Plan Action Plan for synchronisation of the Integrated power system of Ukraine with the association of power systems of the EU Member States (approved by Cabinet Decree No. 1097-р of 27.12.2018)
  4. 4. Decree of the Cabinet №1097-r “On approving the plan of action on synchronisation of the integrated power system of Ukraine with the association of the power systems of of the EU member states” Approved on 27 December 2018 KEY MEASURES OF THE PLAN ENVISAGE Certification of the transmission system operator MECI/ NEURC/ Ukrenergo 2018 Setting up a joint control unit for Ukraine’s IPS and the PS of Moldova MECI/ Ukrenergo 2019 Research of the established operating modes, static and dynamic stability of the IPS of Ukraine, including frequency testing and control systems of active frequency and excitation regulation MECI/NEURC/ Ukrenergo/ SE NNEGC Energoatom / PJSC Ukrhydroenergo/generating companies of thermal power plants 2019-2020 Organization of communication channels for technological management of IPS Ukraine MECI/NEURC/ Ukrenergo 2020 Upgrade of software and hardware for dispatch control and data collection MECI/NEURC/ Ukrenergo 2021 Construction of overhead lines and renewal of operation of interstate overhead lines MECI/NEURC/ Ukrenergo 2021-2022 Switch to working in island mode with power systems of countries outside of ENTSO-E MECI/ Ukrenergo 2022 Attracting international technical assistance МЗС / MECI/Ukrenergo/ Ministry of Economic Development and Trade ongoing C o n t a i n s o p e ra t i o n a l a n d t e c h n i c a l m e a s u r e s ( 1 9 m e a s u r e s ) - done - in progress - planned - not done
  5. 5. For ENTSO-E For the IPS of Ukraine Reduction of the active members' primary reserve shares due to the synergy (by± 140- 160 MW, ratably) Easier to control the energy system in peak loads (due to non-coincidence of the Ukrainian and European peak hours) Improved grid stability (by adding inertia to the ENTSO-E grid) Strengthened interconnections between the Northern and Southern parts of Continental Europe’s grid Significant increase of stability and flexibility of Ukraine’s power system Possibility to receive emergency assistance from the power systems of ENTSO-E member countries Increase in electricity trade with Europe - from today's 4-5 billion kW*h to 18-20 billion kW*h Reduced dependence on Russia Benefits of integration of the IPS of Ukraine into ENTSO-E
  6. 6. • Generation readiness to ensure reserves and automatic voltage control • Development of communication channels for dispatching operations • Additional studies on the static and dynamic stability Implementation of the Operation Handbook ENTSO-E Grid development 130 m EUR 130 m EUR 92 m EUR 5 m EUR 138 m EUR IFI funding Cost of synchronization TOTAL cost 357m EUR p r e l i m i n a r y e s t i m a t e s
  7. 7. Main components of the synchronisation process Available reserves of primary, secondary and tertiary controls of frequency and active power, sufficient for the operation of the IPS of Ukraine in synchronous mode with the European power system, and in the island mode Ensuring that Ukraine's power system is operated in accordance with the standards followed by transmission system operators within ENTSO-E (Operation Handbook, Synchronous Area Framework Agreement) Harmonisation of the Ukrainian legislation in electricity to comply with the European law; compliance with market standards and certification of the national transmission system operator Ke y re q u i re m e n t s fo r f u t u re p a ra l l e l w o r k w i t h t h e E N T S O - E C o n t i n e n t a l E u r o p e P o w e r S y s t e m |1| |2| |3|
  8. 8. Frequency control reserves|1| PRIMARYMW As part of ENTSO-E In island mode Currently possible Potential for export of reserves ПЕРВИННИЙ ±160* ±1000** ±320 ±160 SECONDARY +1000 -420 +1000 -420 +1000*** -420 - TERTIARY +1000 -420 +1000 -420 +2000 -420 +1000 * volume reviewed annually by the Forum of European TSOs and is determined on the basis of equity ** based on the results of modeling, can be reduced (possibly up to 750-900 MW) *** including connected to SCADA / AGC +600 MW and -350 MW (HPP of the Dnipro cascade) • To calculate the dynamic and static stability of the power system, it is necessary to create a mathematical model • Mathematical model of the power system is created based on the results of testing the power units • Calculations should be made by the Consortium of ENTSO-E TSOs based on the Service Contract • The ENTSO-E PG Ukraine/Moldova informed Ukrenergo that the Consortium Agreement was signed and entered into force on April 30, 2019. • Together with the ENTSO-E PG Ukraine/Moldova, the Service Contract has been drafted, incorporating the requirements of the World Bank • Stakeholders' amendments and comments made at the meetings of the ENTSO-E PG Ukraine/Moldova, have been introduced • Final version of the Service Contract with annexes from the ENTSO-E Consortium was sent to the World Bank for approval P r o v i d i n g a d d i t i o n a l s t u d i e s :
  9. 9. As part of building a mathematical model of the power system for further calculation of its dynamic stability, power units at TPPs, CHPs and HPPs were tested for automatic control of frequency and excitation. • PG Ukraine/Moldova agreed on the list of power units to be tested • Framework test programmes developed and agreed upon with Ukraine/Moldova PG • Negotiations with USAID held, funding for tests secured, and test consultant selected - USEA (United States Energy Association) • All power plants on the list have been visited in order to obtain as much data as possible to develop procedures and test programmes, the need was identified to involve the developers of equipment and use additional testing equipment • General and block testing procedures have been developed and agreed upon with PG Ukraine/Moldova; • Test schedule of power units has been developed and agreed upon with all test participants • Tests were conducted on 11 power units of 8 power plants, including 9 tests of automatic excitation control and 7 tests of frequency and active power Testing started on January 22, 2019, and was completed on April 26, 2019 NEXT STEPS: • Systematisation of test results and, after the conclusion of the Service Contract with the Consortium of ENTSO-E TSOs, transfer of data to the Consortium to be used in the calculations • Together with the PG Ukraine/Moldova, conducting analysis of the possibility of using start-up and pre-commissioning tests of power generation units' excitation systems of NPPs. Testing excitation systems of power units at NPPs, if necessary Frequency control reserves |1| testing of power units 11power units 16tests
  10. 10. Ensuring that Ukraine's IPS is operated in accordance with the standards followed by transmission system operators in ENTSO-E |2| Agreements on emergency supply with neighboring transmission system operators (Poland, Slovakia) drafted NEXT STEPS: Agreeing upon and signing of emergency supply agreements Involving Ukrenergo in planning and data exchange processes in XML format (year, month, week, day) NEXT STEPS: Adapting the system of operational planning according to ENTSO-E requirements (year, month, week (daily) in XML format Compliance with ENTSO-E requirements to carry out 24-hour forecasting calculations in automated mode (for the power system of "Burshtyn TPP Island" carried out using the updated software DAKAR) NEXT STEPS: Compliance with ENTSO-E requirements to carry out in automated mode the calculations of forecasting regimes for the IPS of Ukraine in Power Factory format Regular training of dispatchers is arranged. Amendments to the programmes of technical training for dispatchers and training programmes for newly-hired managers. Joint training with the Moldovan TSO NEXT STEPS: Setting up a training centre for dispatchers
  11. 11. during 2018 Drafting, approval and signing of the operation agreement establishing a control unit composed of power systems of Ukraine and the Republic of Moldova, and annexes thereto 2018 – 2019 In accordance with ENTSO-E requirements, conducting joint training of dispatch personnel SE NPC Ukrenergo and SE Moldelectrica in the format of joint emergency exercises and presentation of works by operational dispatch of power systems of the Republic of Moldova and Ukraine after 2019 Monitoring the implementation of the processes described in the annexes to the operation agreement Ensuring that Ukraine's IPS is operated in accordance with the standards followed by TSOs in ENTSO|2| On December 10, 2018, Moldelectrica signed an agreement to create a joint Ukraine-Moldova control unit, with annexes
  12. 12. Harmonisation of the Ukrainian electricity law to comply with the European law; compliance with market standards and certification of the national TSO|3| In the course of aligning with market standards, Ukrenergo undertakes to develop: Transmission System Code, Commercial Metering Code Market Rules Draft Connection Fee Methodology Rules for limitation management and Procedure for cross-border capacity allocation Launch of a new model of the electricity market Ukrenergo’s certification as a transmission system operator - accomplished - not accomplished
  13. 13. International support Over the course of two years, Ukrenergo has managed to form a strong international coalition to support the integration of Ukraine's IPS into the ENTSO-E power system. Constructive relations with numerous European TSOs and international partners enable the implementation of joint projects: Project for Support to the Integration of Ukraine's Power System with the Continental Europe Synchronous Area (CESA) Goal of the project: identification of the following priority investment projects aimed at promoting synchronisation with the Continental Europe Synchronous Area (CESA) and improving the transmission system efficiency. On 15 August 2018 KfW reported that the Application for Grant Funding was approved by the Council of the EU Neighborhood Investment Facility (NIF). Cooperation with the US within the framework of the US-Ukraine Strategic Energy Dialogue In the letter of 13 February 2019 to the Minister of Foreign Affairs of Ukraine Pavlo Klimkin, US Deputy Secretary of Energy Dan Brouillette supported ongoing and new cooperation, in particular, related to the enhancement of physical and cyber security and support for ENTSO-E integration. Consultations on the first visit of US experts to Ukrenergo on these initiatives are underway. Testing of power units using USAID grant funding Goal of the project: Testing of TPPs, CHPPs and HPSs on frequency and excitation control to look into the possibility of synchronous operation of power systems of Ukraine and Moldova with the power system of ENTSO-E Continental Europe. Tests on 11 power units of TPPs, CHPPs and HPPs were started on January 22, 2019 and were completed on April 26, 2019.
  14. 14. International support Project for RES Integration in Ukraine" Goal of the project: to develop new approaches to the operation of the power system, mechanisms for determining the necessary strategic reserves and ensuring the flexibility of the power system, determining its optimal configuration, etc. The decision of the Federal Ministry of Economics and Energy of Germany is to be finalised to extend a corresponding grant to the German Energy Agency (DENA) Project for Consulting Services on ENTSO-E Integration under the Second Power Transmission Project (PTP-2) Goal of the project: preparation for signing agreements between TSOs, conducting three training workshops on following the scheduling rules adopted by the ENTSO-E, and helping to develop the Terms of Reference to expand the functionality of existing software for analyzing and modeling the power system for successful synchronisation with the ENTSO -E. On 5 April 2018, Ukrenergo signed a contract for consulting service related to the integration into ENTSO-E with Elia Group, funded by the World Bank. Project for construction of energy storage capacities Goal of the project: carrying out the relevant study on the testing of balancing methods of solar and wind power plants, whose share in the IPS of Ukraine is rapidly increasing. At the end of December 2018, the Ministry of Economy and Finance of France approved the decision to provide a grant to RTE to carry out a study within the framework of the Project for the construction of energy storage capacities in the Integrated Power System of Ukraine.
  15. 15. ENTSO-E Cooperation Beyond Membership Programme On 13 February, in Brussels, an Agreement on the participation of Ukrenergo in the ENTSO-E Cooperation Beyond Membership Programme for 2019-2021 was signed during a meeting with ENTSO-E Secretary-General Laurent Schmitt Cooperation Beyond Membership Programme is a unique type of partnership between ENTSO-E and Ukrenergo (in accordance with the recommendations for cooperation under Regulation (EC) No. 714/2009 between ENTSO-E and the TSOs non-members of the network) The goal is to create the framework for receiving the expertise and the best practices on the most pressing issues for the company as regards the integration into ENTSO-E The Programme envisages: 1. Workshops suited to Ukrenergo needs 2. 10-day field trip of Ukrenergo employees to the ENTSO-E Secretariat 3. Long-tern internship of Ukrenergo employees in the ENTSO-E Secretariat First Introductory Workshop with the participation of ENTSO-E Secretary General, Mr Laurent Schmitt, on ENTSO-Е’s key policies, processes, platforms, etc., will take place on 29 May 2019 at Ukrenergo
  16. 16. Key findings As never before, Ukraine has a historic opportunity to make within a short period a strategic step to enhance its own energy security and a full-scale integration into the European energy market. Ukrenergo plays a major role in the process of integration of the IPS of Ukraine into the ENTSO-E Power System. However, ENTSO-E integration should be a common goal for all market participants and key stakeholders. Thus, achieving a common goal will require: 1. Modernisation of the power units at the scale necessary to ensure the frequency and active power control in the isolated mode of operation of Ukraine's IPS. Responsible entities are generating companies 2. Creation of a detailed plan to prepare for the power system’s operation in an isolated mode for further approval by the NSDC of Ukraine Responsible body is Ukrenergo 3. Achieve full compliance of Ukrainian electricity legislation with the European law Responsible bodies are the Verkhovna Rada, the Cabinet of Ministers of Ukraine, and NEURC 4. Introduction of a new model of the electricity market Responsible bodies are the Verkhovna Rada, the Cabinet of Ministers, NEURC, Ukrenergo, Energorynok, market participants 5. Certification of SE NPC Ukrenergo as a transmission system operator as soon as possible to allow to obtain the observer status in the ENTSO-E Responsible bodies are NEURC, the Ministry of Finance, Ukrenergo 6. Proper financing of Ukrenergo's activities related to ENTSO-E integration Responsible body is NEURC 7. Consolidation of foreign policy effortss related to ENTSO-E integration Responsible bodies are the Ministry of Foreign Affairs, the Ministry of Economic Development and Trade

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