DT-PA-001 TRANSMISSION DEVELOPMENT PLAN. ver. 0.2 page 1 of 148. Office: Long-term Planning and Development

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1 ver. 0.2 page 1 of

2 ver. 0.2 page 2 of INTRODUCTION Role of the Transmission System and Market Operator Transmission network Access to Planning Content of the Plan GRID CODE TECHNICAL REQUIREMENTS Introduction Relevant data for planning requirements for the transmission system users Data Attributes Standards and criteria for transmission network planning kv, 220 kv and 110 kv Network Planning Criteria Long-term planning criteria for the revitalizing of the transmission network Planning methodology Substation configuration planning Standardization of nominal power transformers ELECTRICITY LOAD FORECAST Introduction Background history of the load, and current situation.. Error! Bookmark not defined Demand profile Long term forecasts of demand GENERATION CAPACITIES OF KOSOVO POWER SYSTEM Introduction Planning of the new generating units Renewable sources KOSOVO NETWORK DEVELOPMENT PROJECTS History of the transmission network Implemented projects Transmission network infrastructure development Introduction Ongoing development projects List of new development projects planned for the period The list of new projects in the category of transmission network reinforcement List of new projects, to support the load Projects planned for the category of revitalization of KOSTT substations Projects planned in the category of supporting transmission system operation Technical description of projects planned in transmission Transmission grid strengthening projects kv line revitalization projects Load support projects Substation Revitalization Projects Projects to enhance monitoring, control and measurement systems in the Transmission System Rationale of changes in projects of TDP compared with TDP

3 ver. 0.2 page 3 of NETWORK PERFORMANCE ANALYSIS Description of the network model Actual capacities of the transmission network Q The actual interconnection capacity with neighboring countries Analysis of the transmission network condition as per topology Q N-security criterion analysis N 1 security criteria analysis Voltage profile Power losses in transmission network Analysis of the transmission network condition by topology N-security criterion analysis N-1 security criterion analysis Voltage profile and losses Analysis of the transmission network condition, topology N security criterion analysis N-1 security criterion analysis Voltage profile and losses General conclusion Network capacity development N-1 security criterion Quality of supply and efficiency FAULT CURRENTS IN THE NETWORK Introduction Calculation of fault currents level Mathematical model, calculation methodology and applied software Features of the power circuits of the transmission network Results of the calculated fault currents Assessments of the calculated fault currents in busbars 400 kv, 220 kv and 110 kv (2013) Assessments of the calculated fault currents in busbars 35 kv and 10 kv Assessments of the calculated fault currents (2019) Assessments of the calculated fault currents (2023) ENVIRONMENTAL IMPACTS Environmental protection Environmental problems in the transmission system Environmental problems caused by the lines Environmental problems caused by the substations Caution on the other environmental impacts Activities and advancements during the period Environmental plans REFERENCES

4 ver. 0.2 page 4 of 148 Abbreviations ENTSO/E (European Network of Transmission System Operators for Electricity) ESTAP I &II - (Energy Sector Technical Assistance Project) IPA ( Instrument for Pre-Accession) KOSTT System, transmission and market operator JSC KEK Kosovo Energy Corporation J. S. C. MZHE Ministry of Economic Development KEDS Kosovo Electricity Distribution and Supply Company J.S.C. MTI Ministry of Trade and Industry OPGW Optical Ground Wire TSO Transmission system operator PSS/E- Power System Simulator/Engineering TDP Transmission Development Plan EES Power system SCADA/EMS Supervisory Control and Data Acquisition/Energy Management System SECI South East Cooperative Initiative (Regional transmission planning project) EMS Environment management system TACSR/ACS (Special conductor with high level of thermal resistance, Al-Çe) IT Information technology ERO Energy Regulatory Office

5 ver. 0.2 page 5 of INTRODUCTION Electricity sector as one of the most important industrial sectors in the economy of Kosovo should be developed and planned appropriately. Transmission network, which is operated by KOSTT, plays an important role in the energy and electricity system enabling the transmission of power from generators to large customers and distribution nodes. The vision of KOSTT is to to provide safe and reliable service to users of the transmission system, responsive to social and environmental aspects, integrated to European transmission mechanisms, while also being financially stable and profitable. KOSTT mission is to provide: - Quality services by implementing technical and technological achievements in the development of the transmission system; - Transparency and non-discrimination for transmission system users in competitive electricity market; - Advancement of the company s position on the international level through increased activities in this way. Related to the above-mentioned responsibilities on the transmission system development and legal obligations, KOSTT hereby drafts the Transmission Development Plan (TDP), which represents one of the main foundations of development planning of KOSTT. The importance of preparing and implementing such document is faced also in the legislative requirements related to the preparation and treatment of this document and as such belong to the primary and secondary level legislation. Legal Requirements: Law on Energy: - TSO and DSO prepare and publish development plans, in accordance with the requirements of the Law on Energy Regulator. These plans must be compatible with license requirements and the Energy Strategy, Strategy Implementation Plan, and Energy Balances.

6 ver. 0.2 page 6 of 148 Law on Electricity: - TSO shall be responsible for fulfilling requirements related to the ten (10) year system development plan, as per sub-paragraph 5. 6 of paragraph 5 and paragraph 6 of Article 14, Law on Energy Regulator. Law on Energy Regulator: - The Energy Regulatory Office shall examine whether the ten-year development plan submitted by the transmission system operator covers all investment needs identified in the consultation process, and may require the transmission system operator to amend the ten-year system development plan as appropriate. Licenses for the Transmission System Operator: - In accordance with Article 7 of the Law on Energy and article 12 of the Law on Electricity, and Article 14 of the Law on the Energy Regulator, the Licensee shall develop and publish a medium (3-5 years) investment development plan that shall derive from long-term transmission system development plan (10 years). Such a development plan shall be made in conformity with the applicable legislation by consulting current and potential system users. Before its, publication, the plan shall be submitted to ERO for approval Grid Code: - Each year TSO will prepare and issue a detailed plan on Transmission Development Plan (TDP) for the next 10 years. Rule on licensing energy activities in Kosovo: - Transmission System Operator license applicant, in addition to the requirements of Article 9 and 10 of this rule, shall submit to ERO the system development plan, as defined in Article 12,

7 ver. 0.2 page 7 of 148 paragraph 1 (1. 20) of the Law on Electricity, and Article 7 of the Law on Energy, including the system development s impact in the tariffs approved by ERO. ENTSO-E Requirements: According to the article of the (EC) Regulation No. 714/2009 of the 3rd package that defines the coordination of the operation and development of the transmission system "an extensive network plan for the community-wide should include modeling of integrated network, scenario development, an adequacy concept generation and an assessment of the resilience of the system. Furthermore, TDP (Transmission Development Plan) should build on national investment plans and, if appropriate under the guidelines for network development. Pursuant on the above mentioned legal obligations, KOSTT is obliged to draft and after approval from Energy Regulatory Office, to publish and implement such document, which is drafted in full compliance with Energy Strategy of Kosovo Role of the Transmission System and Market Operator KOSTT mandate is defined by the Law on Electricity, secondary legislation and licenses issued by the Energy Regulatory Office (ERO). KOSTT as an independent operator of transmission system and market is responsible for operating and developing the transmission system, including and operation of electricity market. KOSTT responsibilities related to the transmission network development are: - Organization of preliminary studies for possibilities for new constructions of transmission capacities, facilities and equipment, supported by technical, economic and financial studies in order to support the load, generation and development of renewable sources. - Compilation and publication of short and long term plans for expansion and modernization of the transmission network.

8 ver. 0.2 page 8 of The development of transmission network and interconnection lines with neighboring networks in order to guarantee the security of supply, - Provision of sufficient information on any other system operator to which the system is connected that it is a matter related to their development requirements - Coordination for the planning and development of transmission network with counterpart companies in the region and drafting of the ten-years plan at the ENTSO-E level Under the granted license, KOSTT shall prepare and publish transmission development plan. Network users can use this Plan to plan their future activities, for new connections or strengthening the existing ones Transmission network Kosovo Power System, is interconnected through cross border lines with the neighboring countries: Serbia, Macedonia, Montenegro and Albania through high carrying capacity lines 400 kv, 220 kv and 110 kv lines. Kosovo Power System is characterized by strong network interconnection voltage of 400 kv, which is strongly interconnected in the regional network. Powerful interconnection of the transmission network with the surrounding networks the ranks the Power System of Kosovo, as one of the important nodes of Power in the region and beyond. The continuous increase of electricity consumption in the country and the region, increase power flows in the internal lines and those of interconnection. This increase of power flows continuously narrows safety margins of the stability of Kosovo s Power System, and other systems interrelated with our system. Necessary reinforcements in the transmission network in the country and in the region are vital in maintaining the stability and reliability of the system in the near future. After the decision of the Government of the Republic of Kosovo (no. 10/ ) on the transfer of a part of the 220/TM kv grid and 110/ TM kv grid from the DSO to the KOSTT, the transmission system is operating at five voltage levels, 400 kv, 220 kv, 110 kv, 35 kv and 10(20) kv. The boundary of assets with generation and eligible consumers has remained the same, while the boundary with the Distribution Network has been displaced from the borns 110 kv of load transformers in connection points at busbars 35 kv and 10

9 ver. 0.2 page 9 of 148 kv at the bottom of transformer fields 35 kv and 10(20) kv. This includes the system of auxiliary supplies, together with the transformer fields for own-consumption at substations 110/35 kv, 110/35/10(20) kv and 110/10(20) kv, and the command facility and the areas around the substation. The figure 1-1 shows the technical boundaries after the Government decision. G Generation 400kV,220kV,110kV 10(20)kV 10(20)kV AC/DC NETWORK 400 kv, 220 kv dhe 110 kv 220 kv, 110 kv 35kV 10(20)kV 35kV 220 kv, 110 kv KOSTT AC/DC 10(20)kV DSO 6.3 kv,10(20)kv,35 kv Industrial Consumers Figure 1-1. Technical boundary between KOSTT and parties connected to the transmission grid The main problems identified in the assets transferred are mainly related to the transformer fields 35 kv, with AIS (air insulated) switch gear, built in the 70es and 80es. Also, we have identified equipment which are not dimensioned according to the short connection load of the substation in which they were built in. Four 110/10 kv substations have only one transformer each, the operations of which do not ensure required reliability in consumer supply, and render the maintenance process rather difficult, due to the lack of alternative supply lines.

10 ver. 0.2 page 10 of 148 In this TDP, the list of projects from the previous plan was updated in terms of temporal implementation, and detailed analysis were undertaken, based on the asset transfer from the KEK-DSO to KOSTT, and emergency and long-term consolidation requirements were identified, for the part of the grid transferred to the KOSTT management. Preliminarily, a detailed survey of transferred equipment was undertaken by the Planning and Maintenance Engineers, with a view of identifying the technical condition of load transformers, their fields, and other auxiliary equipment (protection, control) Access to Planning The process of planning and development of transmission network is a long and complex process. The process involves a number of activities, such as generation prediction, enabling the identification of necessary reinforcements and extensions needed to achieve network operating within the parameters of reliability network development in relation to forecast energy demand and environmental impact. Although TDP takes as a reference the prediction for a certain period based on the Long-Term Energy Balance , the plan must also convey the strategic development of the transmission system over the long term timeframe. The planning process has changed in some respects, compared to the previous process in the vertically integrated companies. During the planning are taken into account and: - Uncertainties coming from the market environment and input data. - Objectives of different network users (generators, traders, suppliers, customers and network operators) - Incompliance and disproportion between the technical, economic, environmental and social requirements. - Uncertainties coming from the level of integration of energy from the renewable sources In addition, the need for regional market integration requires increasing and strengthening of the interconnection capacity, which affects the planning process at national level. Network development options based on the Planning Code and on the general planning rules

11 ver. 0.2 page 11 of 148 recommended by the ENTSO/E. Determinative methodology (defining), which is based on the security criteria N-1, presents the basic methodology applied in this plan, the purpose of identifying and determining the list of projects necessary for development of the transmission network. This plan contains information on the development and reinforcement expected to occur in the transmission network in Kosovo for 10 years in the following: - Building of new transformation and transmission capacities, - Strengthening of existing transmission and transformation capacities, - Construction of the interconnection lines with the neighboring countries, - Revitalizing of the existing equipments of the high voltage (lines and substations) - Development of supporting systems of transmission system. This plan also contains information on the possibilities of connecting new generating units and new loads in the transmission system. The main objective of the ten-year plan is to identify projects which will increase capacity, reliability and efficiency of the operation of the transmission network. The consultation process and the publication of this document will enable consumers, energy market participants, energy producers, prospective investors to familiarize with the transmission development plan for the next ten years. This document presents development plan drafted in KOSTT, covering a ten year period, from 2014 until 2023, in compliance with the ENTSO/E requirements, where the year 2013 represents the reference year, or the so-called year zero. All information in the development plan, such as project details, the expected starting date of the project implementation, network transmission connection applications in in 2012, and those ongoing until end 2013, are all taken into consideration in developing this document. For the preparation of development plan appropriate calculations were made with the relevant software PSS/E 33, simulating computer models of the Kosovo EES and regional network based on data provided by KOSTT and network users, and based as well on the load prediction for the next 10 years. Load and generation forecast is based on Long-term

12 ver. 0.2 page 12 of 148 Energy Balance ( ) which also includes the period time of 10 years.. Data for interconnections expected to be built in the region, were provided by studies made in the Planning Group for Regional Transmission Network Planning - SECI, in which group KOSTT contributes as well through its representatives, and the 10 year Development Plan of ENTSO-E. For each year of development plan, studies were conducted for the power flows, simultaneously following the increase of the demand for maximum load. Calculations were also made for breakdowns in different periods. Based on results of calculations, it is possible to provide estimates on how the network will operate for the estimated next years. Bottlenecks have been identified and possible solutions were presented by analyzing their impact on improving the operating performance of the transmission network. The transmission network was analyzed also for minimal loads, thereby identifying eventual problems in overloads in 400 kv, 220 kv, 110 kv, 35 kv and 10 kv, which may appear in summer minimal load regimes. KOSTT has been carefully evaluating the accuracy of information, which does not fall under KOSTT responsibility, making clear that KOSTT is not responsible for information or incorrect data received from other parties Content of the Plan TDP is structured in 8 chapters including the introduction: Chapter 1 Introduction Chapter 2 - Technical requirements of the Grid Code - presents the process of data collection, planning criteria and standards, and configuration of substations by voltage level 400 kv, 220 kv and 110 kv. Chapter 3 - Presents the electricity demand forecast, broken down in the consumption of the past three years and forecasted consumption for the next 10 years. Chapter 4 - List of existing generators and planned ones. It is also presented the generators capacity from the renewable sources and KOSTT policies in support of this technology.

13 ver. 0.2 page 13 of 148 Chapter 5 - Describes the KOSTT network transmission, and interconnection with its neighbors. A part of this chapter describes in details the future developments of the network. Chapter 6 - Present system performance for different network conditions for certain periods of development plan. Chapter 7 Contains the results of the short circuit currents for certain periods of time, in order to assess for disconnection ability of existing circuit breakers and the dynamic stability of high voltage equipment in case of occurrence of failures in the transmission network. Chapter 8 - Includes access of environmental planning in relation to the Transmission Development Plan Chapter 9 - Contains a list of references.

14 ver. 0.2 page 14 of GRID CODE TECHNICAL REQUIREMENTS 2.1. Introduction One of the main KOSTT objectives is development of the transmission system with the purpose of safe, efficient and reliable operation in order to enable electricity operation, fulfilling the demand in compliance with the legal requirements. Transmission System Operator has planned developments of the network based on long-term electricity needs. Demand for electricity transmission depends on many factors: increased consumption, installation of new generating units, new cross-border lines, development of heavy industry, etc. The need for reinforcements in the transmission network is determined based on the study of network performance against the planned technical standards outlined in the Grid Code respectively Planning Code. The Grid Code covers the operational procedures and provisions governing the interaction between KOSTT and users of the Transmission System in Kosovo. This code also includes the processes of planning, connection, operation and balances system in normal and emergency situations. Processes include different periods based on the situations in the past, current situation and long-term domain. The Planning Code specifies technical criteria and procedures to be applied by KOSTT in planning and development of the Transmission System of Kosovo. Even users of the Transmission System during the planning and development of their systems should consider the Planning Code. This code also sets requirements for the collection of reliable information from users, so that KOSTT can make planning and development of transmission system in Kosovo. Based on Article 14 of the 'License of the Transmission System Operator' Transmission System Operator also has developed the basic planning criteria which are detailed in the document approved by the ERO, "Transmission System Security and Planning Standards. This document defines a range of criteria and methodologies that KOSTT should adopt (enforce) in the planning process of developing the transmission network in Kosovo

15 ver. 0.2 page 15 of Relevant data for planning requirements for the transmission system users In order to KOSTT to draft Transmission Network development plan, all network users are required to submit relevant data affecting the determination of the plan. This section will briefly describe the process of collecting data needed for long-term planning, since more detailed ones can be found in Grid Code - Grid Planning, which can be downloaded from the official site of KOSTT: www. kostt. com During the process of applying for new connections to the transmission network, to enable the completion of each connection offer - each user must submit to KOSTT the standard data of planning and preliminary project planning, attached to the application for connection application, and within two months from the date of the receiving the bid, the detailed planning data should be submitted. Any change from the previous data network users (party), the party is obliged to inform KOSTT in order to revise data. KOSTT is also required to present users with the system data to enable users to model their network related to the contribution for level of the fault currents Data Attributes The data, which transmission system users are obliged to send to KOSTT, are characterized depending on the type of system users. They usually fall into two main categories: - Data for the generator, and - Data for the load. Existing and new generators are required to submit data for generating units plants, which are required by KOSTT, and all data changes that occur for different reasons. Each generation in the application for connection to KOSTT for getting a new connection or modification of an existing connection, must provide the necessary information as required by Planning Code. The data must contain the information such as plant location, name and type of facility, estimated date of commission etc., and information of the technical nature such as expected monthly production of power, features of the power generator, the technical characteristics

16 ver. 0.2 page 16 of 148 of synchronous machine, turbine, adjustment equipment (speed regulator, exciter, fluctuations stabilizers), the data of step-up transformer, the connection configuration, data allocation and the type of relay protection, data for the own consumption needs of the plant, etc.. The load represent demand for electric power in all substations of distribution network, the network connected to the transmission network and, and industrial customers connected to the transmission network in 220 kv and 110 kv. Each user with the loading application for connection submitted to KOSTT for a new connection or modification of an existing connection must provide the necessary information as required by Planning Code. This information should contain information about the substation location, time of becoming operational, load forecasting for the next 10 years, etc, and technical data such as configuration of the substation, voltage level, transformers data, data on high voltage equipment, nature of the load, type of obstacles in low voltage level, etc. Detailed description about the user data at this point is made so that the reader could have a clear perception that any inconsistence in this document is subject to the user if they follow the criteria listed above Standards and criteria for transmission network planning Transmission network planning is based on the criteria set out in Planning Code, which are described in detail in the document Transmission System Security and Planning Standards. Standard method of planning or determinative methods of transmission network planning, which presents the classical method used in many countries, which also applies to KOSTT. The main principle according to which the transmission network is dimensioned, is the necessity of fulfilling all technical requirements in accordance with Grid Code, and that the N-1 elements at work facing the most difficult conditions for operation. So basically this method of planning is mainly based on critical conditions of operation of the transmission network. In principle, planning the transmission system in Kosovo is conduct is such a manner that the operation of the system meets the criteria 'N-1'. However, in some

17 ver. 0.2 page 17 of 148 situations where it is not efficient to fulfill the 'N-1' criteria there will be applied exemptions for a period of time. In relation to substations 110/35 kv and 110/10(20) kv, and those combined 110/35/10(20) kv, fulfillment of the N-1 criterion is a complex process, depending on the medium-voltage network infrastructure, which is managed by the DSO. The N-1 criterion is not met in a large number of substations, in terms of transformation, but in substations with two or more transformers installed, even despite the failure to fulfill the N-1 criterion, in coordination with the DSO, this criterion may be achieved, if the connection reserves for medium voltage grid are used. This implies the transfer of lost load from the failure of one transformer to the other transformer, or to the other substation, by connecting switches, which are mainly open and enter into operation in such cases. One of the most complex and costly cases in fulfilling the N-1 criterion is when the substation has two medium-voltage levels, 35 kv and 10(20) kv. The N-1 criterion can be accomplished at a much lower cost if in the side of the distribution system, reserve modular substations 35/10 (kv) are installed, which would serve only in cases for load transfer from 35 kv to 10 kv, or vice-versa. This can be achieved by harmonizing the two development plans of the KOSTT and DSO, thereby minimizing the investment cost kv, 220 kv and 110 kv Network Planning Criteria Kosovo's transmission system in the 400 kv and 220 kv levels has technical and economic characteristics which differ from the 110 kv systems. Investment cost and their dimensioning criteria are much higher than at 110 kv. Transmission system is interconnected with regional transmission systems through the network of 400 kv and 220 kv, so the effects of investment in network voltage 400 kv and 220 kv are not isolated but have a regional character. KOSTT has defined the strategy for developing the transmission network which is oriented in strengthening/development of the network 400 kv and 110 kv, whilst network 220 kv will not be develop further, except for specific cases where no other solution could be found. Transmission System Planning is made according to the criteria defined by the Grid Code, considering the fulfillment of the N-1 criteria, meaning that the system must be capable of

18 ver. 0.2 page 18 of 148 normal operation in case of occurrence of the fault in the network (in Kosovo or in other systems) and the loss of one of the following elements: - airline or cable lines - transformer, - compensator, and - generator (this criterion cannot be seen in the plan, but it is a requirement for the developers of generation capacity) In case of loss of one of the above elements as a result of failures or maintenance, transmission system must fulfill the following operation conditions: - transmission lines should not be loaded above their thermal limits, - reduction of the supply capacity is not allowed - level of voltage tension and speed change cannot exceed allowed limits, - transient and dynamic stability of the Power System should not be endangered, and - power transformers should not be over-loaded. The 110 kv network, which development is done in accordance with the Transmission Connection Charging Methodology of KOSTT, includes all equipment, voltage 110 kv (lines and facilities) in addition to the distribution transformers 110/10 (20) kv and 110/35 kv and relevant transformation fields, now transferred from KEK to KOSTT. In normal operating conditions the performance of the transmission system should be in accordance with operating criteria outlined in the Grid Code. Grid Code defines the allowed voltage limits in the transmission system as in Table 2. 1

19 ver. 0.2 page 19 of 148 Table 2-1 Allowed voltage limits Voltage in normal condition Voltage in extreme condition Nominal voltage U MIN U MAX U MIN(Ex) U MAX(Ex) 400 kv 380 kv 420 kv 360 kv 440 kv 220 kv 198 kv 242 kv 190 kv 245 kv 110 kv 99 kv 121 kv 88 kv 130 kv 35 kv kv 38.5 kv 28 kv 41 kv 20 kv 18 kv 22.1 kv 17 kv 23.6 kv 10 kv 9.0 kv 11.1 kv 8 kv 12 kv *Allowed limits of medium voltage are referenced in the Distribution Code Loading the transmission lines above the designed thermal limits of the conductors, will be perceived as overload of the line. Also, each load of the transformer above their nominal power will be considered as their overloading. The following table shows thermal margins for conductor of the cross sections, which standards are applied in KOSTT. Table 2-2 Standard electrical parameters for air lines and cables Conductor section U (kv) In (A) Sn (MVA) Air line ACSR 150/25 mm kv 440 A 84 MVA ACSR 240/40 mm kv 605 A 115 MVA HW TASCR 173 mm kv 730 A 139 MVA ACSR 360/57 mm kv 780 A 149 MVA ACSR 360/57 mm kv 780 A 297 MVA ACSR 490/65 mm kv 951 A 362 MVA ACSR 2x490/65 mm kv 1900 A MVA underground cables 400 mm 2 (T=65 C) 110 kv 575 A 110 MVA 630 mm 2 (T=65 C) 110 kv 740 A 141 MVA 800 mm 2 (T=65 C) 110 kv 825 A 157 MVA mm 2 (T=65 C) 110 kv 900 A 171 MVA mm 2 (T=65 C) 110 kv 1115 A 212 MVA

20 ver. 0.2 page 20 of 148 High voltage facilities operating in the transmission network should be durable and sufficiently safe in case of failures of the system. The Electrical Equipment Code defines maximal nominal currents, maximal fault currents and allowed duration of faults. Table 2-3 shows nominal currents for high and medium voltage equipment. Table 2-3 Standard electrical parameters for disconnection equipment Nominal voltage of the system (kv) Nominal Current (A) Short Circuit Current (ka) Fault Duration (s) * 40 1** ** ** *** 25 1** ** *** ** ** * In specific cases and specific conditions verified by KOSTT analysis, the 3150 A current may be adapted ** In specific cases and specific conditions verified by KOSTT analysis, the 3s time current may be adapted *** In specific cases, depending on the nominal power of the transformer 110/10 (20) kv, and in cases where parallel work required on 10 kv transformers and calculations based on the level of fault currents 2.6. Long-term planning criteria for the revitalizing of the transmission network The revitalizing plan for the electro-energetic elements as overhead lines, transformers, cables and substations, generally depends on the technical situation, their age and intensity of use of these elements in retrospect. The revitalization plan of the transmission network equipment is done as follows: - Overhead lines: their revitalization depends on two factors: their age and level of losses incurred in the line during a long term period. For phase conductor and earth wire,

21 ver. 0.2 page 21 of 148 insulator, connection bridges, the time of 50 years represents a condition for adding them into the revitalization list. Frequency of breakdowns in lines is an additional indicator to select the revitalization list. In terms of losses in the list for revitalization are included the lines of cross section of 150mm 2, which are also associated with the first factor, since the initial development phase of the transmission network ( ) 110 kv lines are built with the cross section conductor of 150 mm 2. This development concept is now being applied in all ENTSO/E transmission systems. 220 kv lines are considered to be older lines (>50-60 years), since their development took place mainly during the 60-ies and 70-ies. The European concept consists on the point that 220 kv lines are gradually re-raised to 400 kv level, mainly using only their routes. The difficulties faced in expropriation of private properties for development of new lines are distinct in all countries in Europe. - Power transformers: plan of replacing the power transformers of the transmission network is based on their expected lifetime, which is estimated at 50 years. Another important factor which affects that the transformers will be included in the list for the replacement is their factual situation, which is monitored by maintenance teams through their periodic testing. Historical statistical data of events in specific transformers (load level, number and frequency of measures in protecting transformers, gas analysis, etc.) are an important factor in selecting transformers who should be replaced with new transformer. - Substations (overhead line bay and transformers): the revitalizing plan of the substations areas, which are included in the defined boundaries of the transmission network, is also based on age of the equipment and their factual situation. Priority for revitalizing have substations with high impact on transmission systems, but also all the substations that their age has passed over 40 years. Systematic replacement of disconnection with oil equipment to gas equipment SF6 is an objective of KOSTT, provided by development and investment plans. Also replacement includes all elements related fields (transformer, lines) installing motorized switchgear who commanded through the SCADA/EMS.

22 ver. 0.2 page 22 of 148 In Figure 2-1 is presented percentage according to level of transmission lines age, while Figure 2-2 presents the age of power transformers that contain 110/TM. Figure 2-2. Number of transformers in their construction

23 ver. 0.2 page 23 of Planning methodology The approach of the transmission network planning methodology consists of the following steps: Collection of input data (creation of data base for computer modeling of the network). Definition of different scenarios taking into account factors strengthening the development of generation, load, applications for connection, balance of power system, exchanges etc. The creation of computer models of the network transmission format to PSS/E. Determine the plan for revitalizing the existing electrical equipment on the basis of their life cycle. Identification of network constraints (N-1 tests). Definition of the possibilities of strengthening the network on the basis of N-1 tests. Analysis of the voltage profiles and losses in the system. The final definition of the reinforcement plan and plan for revitalizing transmission network Figure 2-1shows the transmission network planning methodology

24 ver. 0.2 page 24 of 148 Gathering of input data and Creation of system model in PSS/E Creation of models with current and Planned conditions Data on the state and ageing of equipments Technical analysis of the performance of system ( Power flows, criteria N -1 with PSS/E Revitalization plan of transmission network Evaluation of applications for connection to TN Identification of needs for system reinforcement Connection approved Creation of different scenarios of system reinforcement Technical analysis of the performance of system (power flows, criteria N-1) with PSS/E Selection of most optimal scenarios and Creation of final list of development Projects and revitalization of the TN Figure 2-1 Transmission network process development and revitalization planning 2.8. Substation configuration planning KOSTT has prepared a document on the Transmission System Security and Planning Standards, which sets forth planning standards for substations 400/220 kv, 400/110 kv, 220/110 kv and 110/10 (20) kv, a document which is approved by ERO. All 400/110 kv substations planned will be configured with double bus bars with coupler and open system. Dimensioning of electrical equipment shall be based on the Electrical Equipment Code, always being supported by computer analysis of power that define the power flows and short circuit level to the respective substations. These criteria may exempt those substations to which power generators and consumers of such importance

25 ver. 0.2 page 25 of 148 can be connected, so as to require a higher operational security level in a link. In these cases the design of bus bars can take into account additional specifications. Figure 2-2 presents a standard configuration for substations of 400/110 kv voltage level. Double bus bars system for 400 kv voltage level shown in figure 2-2 can be advanced with the additional system of the auxiliary bus bars in substations that are connected to more than three 400 kv lines. Figure 2-2 Standard planning of the bus bars configuration of new substations in the transmission network 220/110 kv substations configuration will be similar to the 400/110 kv substations. Configuration of substations 110/10 (20) kv is designed based on two criteria regarding system bus bars of 110 kv. Determining criteria in determination the busbar system

26 ver. 0.2 page 26 of 148 configuration will be number of lines planned to be connected in the 110 kv substations. For substations that will be connected in the long term only with two lines, H type bus bar system applies, as shown in figure 2-3. Medium voltage busbar system 35 kv and 10(20) kv are also designed with the dual busbar system with a connecting field. Technical concept of the construction of 35 kv transformer fields could be Air Insulated Switch Gear (AIS), or with internal modular construction installed within the commanding facility. The latter is more preferred given the savings in space. 10(20) kv transformer fields are planned to be modular, installed within the commanding facility. In addition, own consumption field, which after displacement of the technical boundary with DSO belongs to KOSTT, should of the same type. Figure 2-3 Substations that will be connected with more than two lines, the double bus bar system with couplers applies, as shown in the figure 2-4.

27 ver. 0.2 page 27 of 148 Reserve bay Reserve bay Line 110kV Line 110kV Line 110kV Bus coupler B 1 B kv Reserve Tr. Bay T2 T1 Figure 2-4 Nominal power of the substation shall be projected based on long-term projections of the relevant substation load. 110/10(20) kv transformers with nominal power of 2x31.5 MVA and 2x40 MVA shall be standardized during the projection of 110/10(20) kv substations, whereby the space for the third transformer field shall be available to hold the transformation reserves in case of unplanned load increase. The dimensions of the phase and protective conductors for transmission lines are also standardized as follows: For 110 kv lines: conductor 1x240/40mm 2 of ASCR, earth wire C 1x50 mm 2 ; For 220 kv lines: conductor 1x360/65mm 2 of ASCR, earth wire C 2x50 mm 2 or 1x490/65 mm 2 of ASCR earth wire C 2x70 mm 2. For 400 kv lines: conductor mm 2 of ASCR 2x490/65 mm 2, earth wire Al 2x126 mm 2. There is also another technology and conductors that have been applied in KOSTT. These conductors called "Hot wire" are the work of special alloy TACSR/ACS, which has the ability to work at higher temperatures. Usually used for short length of lines and where there is no possibility of strengthening the pillars. Their transmission capacity, e. g. a conductor of TACSR/ACS of 150/25mm 2 / is the same with the transmission capacity of a conventional conductor 240/40mm 2, while the weight is almost the same as conventional 150/25mm 2 conductor. Their handicap is that such replacement of conductors does not help reduce

28 ver. 0.2 page 28 of 148 power losses, and therefore they are preferred only in short circuit lines and those cases where there is no possibility of reinforcement of the towers, which is not possible to install because of the weight of the conventional conductor of 240/40mm 2. All the new (and enforced) lines will be equipped with at least 48 OPGW fibers in protective conductor to support the planned telecommunications network SCADA/ EMS Standardization of nominal power transformers The voltage level, transformation power of existing transformers, optimization of the delivery and maintenance processes require standardization of transformer power. Transformers at the 400/220 kv level are standardized as automatic 400 MVA transformers, whereas the 400/110 kv transformers shall also be automatic 300 MVA transformers, with voltage regulators for operation under load. Transformers at the 220/110 kv level shall be standardized as automatic 150 MVA level transformers, also with voltage regulators for operation under load. The 220/X kv transformers, in which X may be 35 kv, 10(20) kv or three-fold transformers 220/35/10(2) kv, shall be standardized as 40 MVA transformers. The 110/X kv transformers, in which X may be 35 kv, 10 (20) kv, or three fold transformers 110/35/10(20) kv shall be standardized as either 40 MVA or 31.5 MVA transformers, depending on the load forecast for the respective substations. Types of transformers (twofold or threefold) shall be defined based on the technical specifics determined in the DSO's application on distribution load connection.

29 ver. 0.2 page 29 of ELECTRICITY LOAD FORECAST 3.1. Introduction One of the basic data determining future transmission capacity development is to forecast electricity load or power. The load forecast represents an integral part of network, generation and transmission and distribution system operation planning. The main source of data for development of load forecast in the next 10 years is the demand forecast model developed by KOSTT, used by the document: Long-Term Energy Balance Figure 3-1 shows a historical chart of development of maximum load for our country. The unusual nature of the load curve in years reflects the political and economic situation in Kosovo. Fig. 3-1Peak load history over years in Kosovo The figure 3-1 shows maximum loads registered for years , for winter and summer seasons. The maximum load for 2012 increased for 0. 5 % compared to the previous year Tab. 3-1 Maximum active loads, summer and winter, for the period Year Winter peak MW Summer peak MW

30 ver. 0.2 page 30 of Load profile Characteristics of the load duration curve of the Power System of Kosovo has undergone constant changes, both in terms of growth but also proportional to the change of load factor. In figure 3-2 we can see the load duration curve for the previous year in 2012 and its specific characteristics. Fig. 3-2 Load duration Curve for 2012 The electricity demand in Kosovo marks a curve which in a considerable time of the year (winter season), is not constant as a result of reduced consumption in times of peak loads. Such a curve may be seen in the figure 3-3, which provides a weekly chart in the winter season, for a typical week of January Latent consumption provides the real consumption, if there would not be any consumption reduction. Load shedding causes deformation of the consumption curves, and as such it differs them from no-shedding curves, which do not display any obvious surge. Peak loads are marked between 19:00 and 22:00 hrs, while the minimum loads between 4 and 6 hrs in the morning.

31 ver. 0.2 page 31 of 148 Fig. 3-3 Several weeks typical winter diagram for January 2012 Figure 3-4 provides a daily diagram for a characteristic day of January 2012, which corresponds to one of the reference points as per ENTSO/E. Load shedding in normal working conditions of the electro-energy system usually occurs in two consumption ranges: 9:00 12:00 and 17:00 23:00 hrs. The difference between maximum and minimum values in winter loads for 2012 is in range 30%- 40% of the daily peak value.

32 ver. 0.2 page 32 of 148 Fig. 3-4 Daily load diagram for one selected day in January 2012 Figure 3-5 provides a daily chart for a typical day in July There is no load shedding in this chart, and the difference between maximum and minimum values of daily loads is around 50%. In this time period, this difference in loads makes it very difficult to balance the system, especially after midnight, when loads are minimal, and fall under the boundaries of technical minimums of existing plants. Fig. 3-5 Daily load chart for a typical day in July Long term forecasts of demand The power and load forecast is based on the forecast provided by the document: Long- Term Electricity Balance The forecast of demand development for power in the period according to three scenarios of growth is presented by figure 3-6, while numerical data corresponding with figure 3-6 are presented in the table 3-2. The basic scenario of load development is characterized by an average annual growth of 2.57%. This load development scenario shall be the main input in assessing operational performance of the transmission network.

33 ver. 0.2 page 33 of 148 Figure 3-6. Low, basic (average) and high growth scenarios for peak loads (maximum load) Table Respective data of peak forecast, related to Figure 3-6 PEAK Load [MW] Average Peak (Base) % Peak (High) % Peak (Low) %

34 ver. 0.2 page 34 of GENERATION CAPACITIES OF KOSOVO POWER SYSTEM 4.1. Introduction Electricity in Kosovo is produced by two relatively large power plants: PP Kosovo A and Kosovo B. Both power plants use coal - lignite as fuel. Table 4-1 presents the main technical characteristics of existing thermal generation units operating in Kosovo EES. Table 4-1. Main features of Kosovo A and Kosovo B generation units Unit Capacity of TPP [MW] Generation Unit Available Fuel ton/mw Eficiency Start Instaled Net min/max TPP KOSOVA A Unit A Lignite/naphta Unit A Lignite/naphta Unit A Lignite/naphta TPP KOSOVA B Unit B Lignite/naphta Unit B Lignite/naphta Apart from Kosovo A and B power plants, managed by KEK, in operation is also a hydropower plant Ujmani (2x17.5 MW), managed by the public company Ibër-Lepenci. There are also low capacity hydro-power plants in operation. Table 4-2 presents key data for small hydro power plants that are connected to the distribution network.

35 ver. 0.2 page 35 of 148 The table 4-2 provides the key data on small HPP-s connected to the distribution network. Table 4-2. Main features of existing hydro-power plants of Kosovo Generation Unit Apparent [MVA] HPP Capacity Installed [MW] Net [MW] Start HPP UJMANI G G HPP LUMBARDHI G (2005) G (2005) HPP BURIMI G (2011) G (2011) HPP DIKANCE G (2010) G (2010) HPP RADAVC 0.00 G (2010) G (2010) 4.2. Planning of the new generating units Based on the forecast of generation by reference in the document "Long Term Energy Balance , in Table 4-3 are presented projects for new conventional generation (hydro and thermal power stations) as well as renewable resources.the new generation capacity development concept is focused on primary energy resources in Kosovo. This concept presented by the Energy Strategy , and updated in the most recent data of the MED, forecasts during the period: Development of the Kosova e Re Power Plant Development of the Zhur Hydro-Power Plant Development of renewable energy generation capacities (small HPPs, wind turbines, biomass-fueled plants, and solar panels) The Kosova e Re Power Plant project shall consist of two units at an installed capacity of 2x300MW. The first unit (300 MW) is expected to be commissioned by the early 2019, while the second unit in The development of the Kosova e Re Power Plant will be necessary

36 ver. 0.2 page 36 of 148 for the security of supply of electricity consumption increasing in Kosovo. The Power Plant is expected to abide by all environmental requirements as set and mandated by the European Union, by using advanced technology which is already proven in commercial use. These technologies should apply modern coal combustion processes, with a view of achieving a general efficiency rate of 37%-40%. The development of the Kosova e Re Power plant project is expected to be coordinated in time with the TPP Kosovo A decommissioning process, and the capital overhaul of the two TPP Kosovo B units,. With a view of securing uninterrupted supply of sufficient lignite for the new and existing plants, a new lignite mining area Sibovc South has been opened, with reserves estimated at 830 milion tonnes, which is sufficient to supply power plants for a long-term period of over 40 years. The mine is already fully operational, with full generation capacities. The base scenario forecasts the development of the known project of the accumulation HPP Zhuri, at a capacity of 305MW, and estimated annual energy generation capacity of 398 GWh, although there is still evident uncertainty in the manner and time of its implementation. Completion of this project is considered to be of high importance for the optimization of the electro-energy system, thereby influencing the stability and flexibility, and regulatory reserves for the system. Based on the generation forecasts provided in the "Long-term Electricity Balance , in Table 4-3 shown projects related to the development of new conventional energy generation capacities (hydro and thermal power plants) as well as renewable energy sources. Table 4-3. New generation capacities development

37 ver. 0.2 page 37 of 148 New Generation Renewable Sources NEW GENERATION CAPACITIES Instaled Capacity Start Live Time TPP Kosova e Re G1 P=300 MW Q >2050 G2 P=300 MW Q >2050 New TPP G3 P=400 MW Q >2050 HPP Zhuri G1+G2+G3 P=305 MW Q1 2019* >2060 HPP e vogla > 20 HPP P2020 = 240 MW Q Q >2050 Wind Turbine >4 Wind Farm P2020. = 150 MW Q Q Biomas P2020. =14 MW Q Q Solar P2020 = 10 MW Q Q Renewable sources According to the objectives of the European Strategy Renewable Energy Directive, by 2020, 20% of the total energy generated shall be by renewable sources, such as wind plants, hydro-power plants, etc. Kosovo has also set long-term indicative targets related to the development of renewable sources agreed with the Energy Community. Renewable energy source potentials in Kosovo are not as large, both in terms of water potential and wind. Nevertheless, there are certain regions endowed in such potential, and they must be exploited. The plans for development of renewable energy generation capacities are also supported and promoted by the MED, namely through the Government Program for Clean and Efficient Energy. This program sets the indicative goals for amounts of energy to be generated from renewable sources. The base scenario of development of renewable sources requires the development of a large number of small HPPs (>16), totaling a capacity of 240 MW, by 2023.

38 ver. 0.2 page 38 of 148 Based on the application of , received by the company KELKOS ENERGY, in relation to the possible connection of a hydro-power plant with 35.5 MW installed capacities to the transmission network, KOSTT and investing company have signed a connection agreement and works in the hydro-power plant have already started. The construction of HPP represents an expansion of the capacities of the existing Lumbardhi hydro power plant (8.3MW), through the creation of small hydro power plant cascades in the Deçani river. The connection will be implemented in 110 kv busbars of substation Decani, through the 35 kv line and the upstream transformer 35/110 kv 40 MVA. Significant participation in the production of energy from renewable energy sources is projected to be from wind generators, where by the end of 2023 is envisaged to be installed up to 150 MW of wind generation capacity, with an average capacity factor of Although yet there is no official map of wind potentials in the territory of the Republic of Kosovo, in certain areas measurement of wind speed were conducted already. In such areas, the Swiss NEK Umwelttechnik AG has performed wind power measurements during a one year period. The pre-feasibility study shows certain areas with promising potentials for installation of wind powered generating stations. In this aspect, two projects are already initiated: the 45 MW "Zatriqi" wind-park; and the 45 MW "Budakova" wind park. "Zatriqi" project is at an advanced phase, as the connection agreement with the transmission network is already executed, and the project is expected to become operational in From a technical viewpoint, the applications received mostly related to connections at the 110 kv voltage level. The transmission grid can integrate considerable wind-powered generation capacities, however, from the system balancing perspective, such capacities are rather variable and difficult to predict and, as such, can cause problems to the System Operator, bearing in mind the fact that our electricity system currently doesn't possess sufficient regulating reserve capacities. This fact could change in the future, if plans for the development of new generation capacities are materialized, and if they provide for the increase of regulatory reserve that would cover the unexpected variations that wind turbine generator cause. In fig 4-1 is shown connection configuartion of wind park Zatriqi in transmision network.

39 ver. 0.2 page 39 of 148 Linja 110 kvne NS Malisheva Linja 110 kv ne NS Prizreni 2 NS RAHOVECI 110/35/10 kv 110 kv Asetete e reja te kyçjes T3: 50 MVA T1: 31.5 MVA T2: 31.5 MVA 10 kv 45 MW WIND PARK ZATRIQI 35 kv Linja 35 kv 9.6 km deri ne Zatriqi WP 15x3 MW Turbina te llojit PMSG Figure 4-1. The connection configuration of wind park 45 MW Zatriqi in transmission network

40 ver. 0.2 page 40 of KOSOVO NETWORK DEVELOPMENT PROJECTS 5.1. History of the transmission network Kosovo Transmission Network during the years has been developed in several stages of expansion, reinforcement and consolidation. Between 1953 and 1958, the first line of 110 kv was built in Kosovo, Novi Pazar (Serbia) until Butel (Macedonia), by interconnecting the substations (SS): SS Vallaç, Trepca SS, SS Vucitrn, SS Kosovo A, SS Prishtina 1 and SS Prishtina 4, SS Ferizaj 1 and SS Sharri. 110 kv conductor built in the initial development of the network were 110 kv cross section conductors of 150 mm 2. In 1960 the first line of 220 kv was built in Kosovo, SS Krushevci (Serbia) to SS Kosovo A, which was at that time in the construction phase. From 1962 to 1975 it was constructed (PP) Kosovo A with its five units. In 1978 was built the first line of 400 kv in Kosovo connecting to the SS Nish (Serbia) with SS Skopje (Macedonia) through SS Kosovo B. In 1981 was built the HP Ujmani connected through 110 kv line with SS Vallaçi. The second 400 kv line of the interconnection Ribarevina (Montenegro) to SS Kosovo B was built in 1983, as well as two 400 kv lines connecting TP Kosovo B (1983) with SS Kosovo B. In the same year it was built the 220 kv lines from SS Kosova B to SS Prizren 2, through the switch gear Drenas. In the same year was also built the second 220 kv line to Drenas followed by the double line for the supply of industrial facilities of Feronikeli. The 220 kv interconnection line from SS Prizren 2 to Hydro power plant (HPP) Fierza (Albania) was build in 1988; in the same year, the 220 kv double lines from the SS Kosovo B to SS Prishtina 4 were also build. Also in the mid 70s and 80s the network of 110 kv undertook visible development, using conductors of the large section of 240 mm 2. The year 1990 represents the end of investments in transmission network for a period of 10 years until 2000, which represents a break of 10 years without investing in the development of the transmission network. This can be seen in figures 5-1 and figure 5-2.

41 ver. 0.2 page 41 of 148 km Line Investments 400 kv 220 kv 110 kv Year 2010 Fig. 5-1 Intensity of investments in lines during years Substation Investments 3 No SS/Year Vitet Fig. 5-2 Intensity of investments in substations After the war in Kosovo, the condition of the SEE in Kosovo was dire, including in generation, transmission and distribution. Emergency investments in the SEE begun at this time, supported by the Kosovo Budget and international donors. Due to great demand, the transmission network did not follow the rapid consumption growth trend after Implemented projects After the establishment of KOSTT and to this date, intensive capital investments have been done in the transmission network to develop and strengthen the transmission network. Transmission network reinforcements, modernization of supporting systems for System Operation, have resulted with a notable increase of reliability and security of supply.

42 ver. 0.2 page 42 of 148 Table 5-1 lists projects implemented thus far. The process, from planning until implementation, was rather challenging, considering the high development dynamics and implementation of such a high number of projects. The most challenging process was the implementation of projects in the same time period, taking into account the minimization of undelivered energy as a result of load shedding to carry out works during the project implementation. This challenge was successfully realized thanks to the commitment of KOSTT engineers in optimizing the project implementation process. During 2012, two projects of great significance were implemented, such as SS Prizreni 2 rehabilitation project; whereas, 2013 saw the implementation of the project of interconnection of SS Lipjani to the 110 kv L112 line. This avoids radial supply of SS Lipjani and increases the 110 kv level transmission grid capacities. Table 5-1. List of realized projects in KOSTT from 2007 until No LIST OF IMPLEMENTED PROJECTS Project title Year of commissioning 1 Conductor replacement in the 110 kv line No. 125, SS Kosova A - SS 2007 Vushtrri 1&2 2 Conductor replacement in the 110 kv line No. 164/3, SS Prizreni 1 - SS 2007 Prizreni 2 3 Replacement of 110 kv power switches in TS Prishtina 1 and Prishtina New 110 kv line - SS Prizren 2 - SS Rahoveci Conductor replacement in the 110 kv line No. L126/1, SS Deçan - SS 2009 Gjakova 1 6 AT1 in SS Kosova A, 220/110 kv Revitalization of SS Kosova A Revitalization of SS Prishtina Package project PEJA Replacement of relay protection facilities in SS Kosova B and SS 2009 Prishtina 4 11 ITSMO meters (in borders) Adaptation of the L212 line as a 110 kv line SS Kosova A - SS Ferizaj New 110 kv line SS Peja 3 - SS Klina, under the Peja 3 package project Connection of SS Skenderaj, with a dual 110 kv line, to the Vallaq Peja 3 line 15 AT3 in SS Prishtina 4, 220/110 kv Replacement of the conductor in the 110 kv line, L 126/5, SS Peja SS Peja 2

43 ver. 0.2 page 43 of Revitalization of SS Kosova B Package Project FERIZAJ SCADA/EMS Revitalization of SS Prizreni 2, 220/110 kv & AT3=150MVA IT system supporting market operation Replacement of relay protection facilities in SS Prishtina 2 and SS 2012 Prishtina kv switches for generation fields in SS Kosova B Division of busbars in two sections in SS Gjilani 1 and SS Theranda Rehabilitation of equipment for own-use in SS Kosova B General overhaul of 110 kv equipment in SS Prishtina 3 (GIS system) Rehabilitation of HV facilities in SS Ferizaji 1 and Gjilani Interconnection of SS Lipjan in the 110 kv L112 line Installation of two fields for 110 kv lines in SS Prizreni Transmission network infrastructure development Introduction This chapter presents and examines the development projects of the transmission network in the period Considering the planning process of the transmission network as an extremely complex process, with greater dependence on many factors, the ten-year domain that defines this document is divided into two periods: first five years and the second period of five years, The first period of five years is considered relevant and influential in the long term development of the network and with high probability of implementation and as such the projects that are included in this period of time are analyzed in detail. Second period of includes optional projects in a comprehensive manner that have internal or regional character for which KOSTT considers their importance and their contribution in achieving the technical standards for operation of the transmission system in order to support the electricity market. Transmission network development projects are divided into four categories: Transmission network reinforcements

44 ver. 0.2 page 44 of 148 New 110/10(20) kv nodes Rehabilitation of the transmission network Supporting projects of the transmission system (management, monitoring, measurement and control). Because of considerable complex dependence on the various factors for the implementation of the projects, the time and manner of such implementation can be considered as subject to possible changes and as such the next document will revise the data and update them. Tables contain the project identification codes (ID), a general description of the project, the expected completion time and reasons and effects of project implementation Ongoing development projects The investment intensity in the transmission system infrastructure continued throughout , pursuing objectives and aims deriving from the long-term development plan of KOSTT. Table 5-2 shows projects in implementation during 2013, or which are in the tendering process. Tab. 5-2 Projects in implementation, and projects being procured Projects in progress and development process Nr Project name Technical Description Year 1 Transformer 40 Supply with power transformer 40 MVA, 110/10(20) kv 2014 MVA,110/10(20) MVA which will be installed in SS Skenderaj 2 Transformer 40 Supply with power transformer 40 MVA, 110/10(20) kv 2014 MVA,110/10(20) MVA which will be installed in SS Burim Transformer 40 MVA,110/10(20) MVA Re-vitalization of HV in SS Prizreni 3 Alocation of line L1806 from SS Gjakova 2 to SS Gjakova 1 Re-vitalization of HV in SS Gjakova 2 Supply with power transformer 40 MVA, 110/10(20) kv 2014 which will be installed in SS Prishtina 2 Replacement of three fields of 110 kv lines, replacement of two 110 kv transformer fields and a field of 110 kv tie Replacement of protective equipment lines of three fields Construction of double line 110 kv, 4 km from the point of cutting line L1806 (Klina-Gjakova 2) to SS Gjakova Total re-vitalization of SS Gjakova1 (equipment 110 kv). Replacement of three (3) line fields 110 kv, Replacement of two (2) transformer fields 110 kv and one tie field 110 kv. 2014

45 ver. 0.2 page 45 of 148 Replacement of protective equipment lines of three fields Replacement conductor in 110 kv line, L125/2 and L125/3 (Vushtrri 1-Trepçë-Vallaq) LFC- Secondary Regulation Installation of measuring group in the new border between KOSTT and KEK/OSSH Interconective line 400 kv SS Kosova B - SS Tirana 2 Replacement of conductor from 150/25mm 2 in 240/40mm 2 in length 9.6km from SS Trepça to SS Vushtrria 1 1 and the length 11.4km from SS Trepça to SS Vallaqi Secondary LFC project includes roads and telecommunications hardware and software equipment that will enable optimal implementation of the two secondary control systems Voltage and current metering transformer in 35 kv and 10(20) kv pursuant Metering Code and associated works. 400 kv line, 2x490 mm 2, over 239 km of which 85.5 km in Kosovo territory. High voltage equipment, protective equipment, control and measuring Six projects from the list (1-5, 10) pertain to projects of enforcement of transmission capacities. The major interconnection project 400 kv SS Kosovo B SS Tirana 2 is in the re-process of selecting the bidders (Albanian part) and is expected to enter into operation by List of new development projects planned for the period The following is a list of projects planned broken down by categories, as an outcome of an optimal selection of various scenarios of network reinforcement during the planning process. These projects span through the period The projects are presented in tables categorized as per respective specifics. A large number of these projects is part of the Development Plan , as approved by the ERO, while there are some new projects, resulting from a detailed analysis of the network during the planning process. Factors considered influential in redesigning some earlier projects, in changing their implementation period, and selection of some new projects, are processes which are not dependent on KOSTT, such as: applications for new power or generation connections, funding security 1 Conducter from SS Vushtrria 1 to SS Trepça (L125/2) is replaced in 2013.

46 T&D TR3_VIT Q T&D TR2_BER Q No ID Year Office: Long-term Planning and Development ver. 0.2 page 46 of 148 aspects, property expropriations, etc. For the reasons mentioned above, the planning process and projects selected are adapted to the changes which pursued in the meantime. In addition, relevant impact in the review of priorities in planned investments is the displacement of the technical boundary from the 110 kv level to the medium voltage level. On this occasion, after analyzing and reviewing the technical situation of assets transferred from KEK-DSO in KOSTT, projects are identified which are qualified with a high priority, always calling in maintenance of the security of supply The list of new projects in the category of transmission network reinforcement The table 5-3 provides a list of projects planned for the next 10 years, which are considered to be influential in establishing network capacities, pursuant to requirements of the Grid Code. Projects are ranked according to their planned implementation period. The vast majority of investments in five next years will be made by KOSTT with soft loans offered by the German Bank for Reconstruction (KfW) (projects nr. 2, 3 and 4), and soft loans provided by the European Bank for Reconstruction and Development (BERZH) while the remaining part shall be covered by KOSTT. Table 5-3 List of projects planned for reinforcement of transmission network PROJECT CATEGORY: NETWORK REINFORCEMENT ( ) Project title Technical description Reason for implementation 1 2 Installation of the second transformer (31.5 MVA) in SS Berivojce Installation of the third transformer (20 MVA) in SS Viti a) Existing repaired 110/10 kv transformer (31.5 MVA) from SS Lipjan will be installed in SS Berivojce b) Installation of one 110 kv transformation field and one 10(20) kv transformation field a) Existing repaired 110/35 kv transformer (20 MVA) will be installed in SS Viti b) Installation of one 110 kv transformation field and one 35 kv transformation field Increase transformation capacities, and fulfillment of the N-1 safety criterion.

47 T-RIV/L118/3 Q T-RIV/L163/1 Q T-L1 RAH-THER Q T&D TR2_KLINA Q T-RIV/L126/2 Q T-L1 PEJA3-PEJA1 Q T-ATR/PEJA3 Q Office: Long-term Planning and Development ver. 0.2 page 47 of AT2-300 MVA in SS PEJA 3 and SS FERIZAJ 2 (a) Automatic transformer 400/110 kv (300 MVA); (b) Installation of high voltage equipment for transformer fields 400 kv and 110 kv Increase transformation capacities, and fulfillment of the N-1 safety criterion New 110 kv line SS Peja 3 - SS Peja 1 and revitalization of SS Peja 1 Revitalization of 110 kv line: L126/2 SS Peja 2 - SS Deçan Second transformer 40 MVA in SS Klinë New 110 kv line SS Rahoveci SS Theranda a) 28 km, Al/St 240mm2; b) Field of the line in SS Peja 3; c) Revitalization of SS Peja 1 and equipment and system in 110 kv busbars, by moving to a double busbar system and GIS system for 110 kv. (a) Replacement of the conductor from 150/25mm2 to 240/40 mm2, in 14.57km in length from SS Peja 2 to SS Deçan (b) Reinforcement of concrete pillars and replacement of existing isolators with composite isolators. a) TR2 transformer 110/10(20) kv, 40 MVA b) 1 transformation field 110 kv and 10(20) kv completed a) 15 km, Al/St 240 mm2, b) Field of the 110 kv line in SS Theranda, This project is related with the SS Malisheva project, in which a dual supply line will be connected with this line, thus providing for a 110 kv ring Rahovec Malishevë - Therandë Construction of the line enables the fulfillment of N-1 criterion. Additionally, revitalization of SS Peja 1 provides for increased safety and reliability of system operation. Increased transmission line capacities from 83 MVA to 114 MVA, with the aim of reducing power losses, improving the N-1 safety criterion compliance for the 110 kv substation ring 110 Peja3 - Peja1 - Peja2 - Deçan Gjakova1. Increased supply safety and reliability for Klina. Optimization of the maintenance process for the Substation. Provision of transformation reserves. Elimination of radial supply. N-1 criterion. 8 9 Revitalization of the 110 kv line: L163/1 Revitalization of the 110 kv line: L179/1 SS Prizreni 1 - SS Prizreni 3 (a) Replacement of the conductor from 150/25 mm2 to 240/40 mm2, 32km in length, from SS Kosova A to SS Vallaqi; (b) Enforcement of portal-type pillars and replacement of existing isolators with composite isolators. a) Replacement of the conductor from 150/25mm 2 to 240/40 mm 2, 4.69 km in length, from SS Prizreni 1 to SS Prizreni 3 Increased transmission capacities of the line from 83 MVA to 114 MVA, with the aim of reducing power losses, improving the N-1 criterion for the substation ring 110 kv Kosova A Bardhi Vaganica Vallaq. Increased transmission capacities of the line from 83 MVA to 114 MVA, with the aim of reducing power losses, and improving the N-1 safety criterion compliance.

48 T/RING_400 kv Q T-L1 PEJA3-UJMAN Q T&D TR2_GJIL5 Q T-L2 PZ1-PZ2 Q T-RIV/L155/2 Q Office: Long-term Planning and Development ver. 0.2 page 48 of Revitalization of the 110 kv line: L155/2 in coordination with the construction of SS Leposaviq 110/10 kv a)replacement of phase and protective conductors to Leposaviq (14 km) b) Enforcement of pillars and replacement of isolators. Enforcement of transmission capacities and support to load management for the northern part of Kosovo. 11 New 110 kv line SS Prizren 1 - SS Prizren 2 c) 3.5km, Al/St 240 mm2, d) Field of the 110 kv line in SS Prizren 2, e) Field of the 110 kv line in SS Prizren 1 Continuous increase of consumption in Prizren region endangers security of supply in the ring between substations Prizreni 1, Prizreni 3, and Theranda. The construction of the line enables the fulfillment of N-1 criterion. 12 Second transformer (40 MVA) in SS Gjilani 5 a) Transformer TR2 110/10(20) kv, 40 MVA b) 1 transformation field 110 kv and 10(20) kv completed Increased safety and reliability of supply in Kamenica. Optimization of the process of substation maintenance. Creation of transformation reserves. 13 New line 110 kv Peja 3 - HPP Ujmani a) 25 km, Al/St 240 mm2 b) Field of the 110 kv line in SS Peja 3 c) Field of the 110 kv line in HPP Ujmani Creation of a new 110 kv ring Peja 3 Ujman - Vallaq and fulfillment of the N-1 criterion. 14 Package project 400 kv RING GJAKOVË PRIZREN - FERIZAJ (a) Construction of the 400 kv distribution station SS Gjakova 3, which contains 3 line fields and one connecting field. (b) Construction of SS Prizreni 4, 400/110 kv, 1x300MVA, as a continuation of SS Prizreni 2, which comprises two 400 kv line fields and one 400 kv connection field, c) Construction of the 400 kv line, 31.5km in length, from SS H Gjakova 33 to SS Prizreni 4 d) Construction of the 400 kv line, 56.5km in length, from SS Prizreni 4 - SS Ferizaj 2 Configuration of the 400 kv grid in a ring shape, in order to optimize power flows, and to support new generation and load List of new projects, to support the load After the transfer of 110 kv assets from KEK-DSO to KOSTT, the approach to planning new 110 kv nods that fall under the category of load support was reviewed. Investments in 110/TM substations will be conducted based on the principle of harmonization between

49 T&D-L2/DRAGASH Q T-L2/PRISHTINA 6 Q T&D-L2/MIT2 Q No ID Year Office: Long-term Planning and Development ver. 0.2 page 49 of 148 KEDS and KOSTT development plans. Main signals that would initiate the development of a new SS 110/TM would come from KEDS, based on demand development data in the long-term domain. Also, another initiating signal could be the level of transformer loads in existing substations. Whenever security of supply is put in danger and there are no possibilities to install additional transformers, the development of a new substation will be initiated, in a concerted effort with KEDS. In such circumstances, KEDS needs to commit to the provision of investments in distribution network infrastructure which will be installed in the 110/TM substation. One change of TDP , as regards load support projects, is the project of SS Drenasi 2, which was presented by KEDS as a priority project. Table 5-4 shows load support projects envisaged for the forthcoming ten years. Table 5-4 List of projects planned for load support PROJECT CATEGORY: LOAD SUPPORT - ( ) Project title Technical description Reason for implementation SS Mitrovica 2 with 110 kv transmission lines Package Project Prishtina 6 with a dual underground 110 kv line SS Dragashi and 110 kv line SS Kukës - NS Dragash - SS Prizren 2 a) Dual 1.5km lines, 110 kv connection to Vallaq - Bardhi line, and dual 2 km line connection in Skenderaj - Vallaq. b) SS Mitrovica 2, 110/10(20)kV, 2x40 MVA c) 2 transformation fields at 110 kv and 10(20) kv, 4 line fields at 110 kv and connection fields 110 kv. d) Command center with ancillary equipment a) GIS type substation, 110/10(20) kv, 2x40 MVA b) two cable fields 110 kv b) two 110 kv lines, 1000mm2, 5.5 km in length; c)two transformation fields at 110 kv and 10(20)kV level, kv connection field. d) Command center with ancillary equipment (a) SS Dragashi, 2 transformation fields, 2 line fields and one connection field. (b)single line, 8 km in length, Al/St 240 mm2 from SS Prizreni 2 to Zhur (dual pillars). c) Dual line, 13km in length, Al/St 2x240 mm 2 from Zhur to SS Dragash d)single line, 26km in length, Al/St 240 mm 2 from Zhur to Kukës (from Zhur to the border, 9 km) Increased safety and reliability of supply in Mitrovica region. Increased safety and quality of consumption supply in Prishtina center, fulfillment of N-1 criterion, reduction of technical losses and decreased load in 110 kv substations in the capital. Optimization of operation of systems of Kosovo and Albania. Qualitative and reliable supply of Dragash region. Reduction of power flows in Prizreni 1.

50 TD/RIV_GJ1 Q Nr ID T-L2/DRENAS 2 Q T-L2/F_KOSOVA Q T-L2/MALISHEVA Q Office: Long-term Planning and Development ver. 0.2 page 50 of Package project SS Malisheva with 110 kv transmission lines Project SS Fushë Kosova Project SS Drenasi 2 a) Dual 12 km 110 kv line, Al/St 240 mm 2 from SS Malisheva to the planned point of connection between Rahovec Therandë, 15 km in length; b) Two 110/10(20) transformers (40 MVA); c) Two 110 kv and 10(20) kv transformation fields, two 110 kv field lines, one connection field 110 kv. d) Command center with ancillary equipment a) Connection with a dual 110 kv line, 1.5 km in length, in the 110 kv Kosova A - Lipjan (L112a) line b) Substation 110/10(20) kv, 2x40 MVA with two transformation fields at 110 kv and 10(20) kv, with two 110 kv field lines, with one 110 kv connection line c) Command center with ancillary equipment a) Connection with a dual 220 kv line, 4.5 km in length, in two existing 220 kv lines SS H Drenasi SS Feronikeli (solid connection) b) Substation 220/35/10(20) kv, 2x40 MVA, with two 220 kv transformation fields, one 35 kv transformation field, and two 10(20)kV transformation lines, with two 220 kv line fields, and one 220 kv connection field c) Command center with ancillary equipment Increased safety and quality of consumption supply in Malisheva region. Reduction of power flows in SS Rahoveci Increased safety and quality of consumption supply in Fushë Kosovë region, and fulfillment of N-1 criterion. Increased safety and quality of consumption supply in Drenas region, and fulfillment of N-1 criterion Projects planned for the category of revitalization of KOSTT substations The following table contains a list of projects related to the process of revitalization of substations managed by KOSTT. Tab List of projects of the category of revitalization of substations 1 PROJECTS OF CATEGORY: REVITALIZATION OF SS (KOSTT) - ( ) Title of Project Technical Description Reason for development Yea r Revitalization of equipment of TM (35 kv) in SS Gjakova 1 a)replacement of 2 transformation fields 35kV, replacement of 1 Petersen reactance, replacement of connection equipment of the neutral of both transformers andb) replacement of dy mbrojtjeve rele te transformatorëve To increase the security and reliability of substation s operations

51 TD/RIV_VIT Q TD/R_VALL Q Q TD/RIV_THER Q TD/RIVP2&LP Q TD/RIVFZ1 Q T/CB_PR4 Q TD/R_VALL Q TD/RIVGJL1 Q Office: Long-term Planning and Development ver. 0.2 page 51 of Revitalization of equipment of TM(35 kv ) in SS Gjilani 1 Ri-vitalization of equipment of HV in SS Vallaqi a)replacement of 2 transformation fields 35kV, replacement of 1 Petersen reactance, replacement of connection equipment of the neutral of both transformers and b) replacement of two transformer relay protections a)replacement of 5 line fields 110 kv, replacement of two (2) transformer fields 110 kv. b) 110 kv Bus-bar System replacement and portals and construction of tie line 110 kv. To increase the security and reliability of substation s operations Increased safety and reliability of the operation of this important substation to supply the consumption part of Mitrovica 4 Replacement of breakers in SS Prishtina 4 a)replacement of breakers of 110 kv and 220 kv power, except two ATR3 fields To increase the security and reliability of substation s operations 4 Revitalization of equipment of TM(35 kv ) in SS Ferizaj 1 a)replacement of 2 transformation fields 35kV, replacement of 1 Petersen reactance and b) replacement of connection equipment of the neutral of both transformers. To increase the security and reliability of substation s operations 5 Revitalization of equipment of TM(35 kv,10 kv ) in SS Prishtina 2 and SS Lipjani a)replacement of 2 transformation fields 10 kv, replacement of 1 transformation field 35 kv,replacement of 2 Petersen reactance and b) replacement of connection equipment of the neutral of both transformers in SS Lipjani. To increase the security and reliability of substations operations 6 Revitalization of equipment of TLin SS Theranda Revitalization of HV equipment at SS Vitia a)replacement of two line fields 110kV, replacement of two transformation fields 110 kv and one connection field 110 kv. Move to dual busbar system. b) Replacement of two transformation fields 10 kv and one 35 kv. c) Replacement of field for own consumption The project should be coordinated with the design of the new line: Rahovec-Therandë (a) Replacement of kv line fields, replacement of (2) transformer fields 110 kv. Replacement of (2) transformer fields and one for self consumption 35 kv. b) Modernization of transformer protections. To increase the security and reliability of this important substation s operations for supply for Theranda To increase the security and reliability of this important substation s operations for supply for Vitia 7 Ri-vitalization of equipment of HV in SS Klina a)replacement of one line field 110 kv, replacement of one transformer fields 110 kv. To increase the security and reliability of this important substation s operations for supply for Klina 8 Ri-vitalization of equipment of HV in SS Lipjani a) Replacement of one line field 110 kv, replacement of one transformer fields 110 kv To increase the security and reliability of this important substation s operations for supply for Lipjan

52 T/GIS-SYSTEM Q T/MAT_NJEHS ORE Q T/TELEK_OPGW Q T/SCADA_IN K Q TD_MATJE Q Nr ID Office: Long-term Planning and Development ver. 0.2 page 52 of Projects planned in the category of supporting transmission system operation The following table provides the projects planned in the category of supporting transmission system operation. This list was selected through an identification of transmission system in complying to technical requirements as per Grid Code and those recommended by ENTSO/E. Tab List of projects in the category of support to system operation PROJECTS IN CATEGORY: SUPPORT SYSTEM - ( ) Title of Project Technical Description Reason for development Yea r Accurate metering in line with the metering code after the a)metering transformer of power in 35 kv change of the technical and 10(20) kv levels in line with the boundary, namely the metering code and associated works commercial border from 110 kv to 35 kv and 10(20) kv Installation of metering groups in the new boundary between KOSTT and KEK/DSO Implementation of changes and their incorporation in SCADA/EMS OPGW installation in 400 kv interconnection lines - Installation of telecommunication ways through OPGW, in 400 kv and 220 kv interconnection lines, to the border. INTER-OST Meters - Installation of metering points at cross border lines, in compliance with the Metering Code GIS System supporting the Transmission System a) Incorporation of all changes in existing substations, and b) incorporation of new substations in SCADA/EMS in the Dispatch Center and Emergency Dispatch Center a) Existing protective conductor, 65mm2 in 400 kv lines, up to the borders with neighboring countries, will be replaced with protective conductors of same dimensions with 96 optic threads. (a) Installation of two-core metering transformers for commercial metering, same characteristics in 400, 220 and 110 kv interconnection lines (b) Replacement of existing meters with meters compliant to the Metering Code (a) Full set of remote controlled equipment: laser locator, thermal camera, digital area photo camera, GPS equipped, internal navigation system (b) Respective software for data integration and processing from equipment, and CAD and GIS data presentation Optimal use of the SCADA/EMS system Fulfillment of technical requirements deriving from the ENTSO/E manual The project allows for completion of installation of border meters, in accordance with the Metering Code. Improvement of maintenance of lines and substations. Data processing on pillars, line routes, identification of properties affected by lines, etc.

53 ver. 0.2 page 53 of Technical description of projects planned in transmission Introduction The first stage of transmission network consolidation was completed with the completion of the projects: SS Peja 3, L112 line, auto-transformer 150 MVA at SS Kosovo A. The second stage of transmission network reinforcement, which enabled the enhancement of network reliability security, in terms of N-1 criterion, was completed after the implementation of the SS Ferizaj 2, connection of SS Gjilani 5, installation of additional auto-transformer 150 MVA in SS Prishtina 4 and Prizreni 2 and connection of SS Lipjani in line 110 kv nr 112. The transmission network planning process, based on high voltage line planning criteria, is a dynamic one, and as such, it aims for fulfillment of technical criteria which in the long term secure a safe prospect of load and generation development. The following is a description of development projects from the list of projects planned for the period A series of projects planned to complete by the end of 2023 will bring the transmission network to a condition which guarantees security and high reliability in operation, in full accordance with the Grid Code. This projection of the development of the transmission network creates conditions for development of new generation capacities of conventional and renewable in the next 10 years. This period includes projects which influence directly the reinforcement of the transmission network, substation revitalization projects and load support projects, for which the parties have applied to KOSTT for connection to the transmission network Transmission grid strengthening projects The following are detailed descriptions of planned projects pertaining the category of strengthening or capacity increase of transmission grid, for the planning period

54 ver. 0.2 page 54 of 148 Project: (T&D TR_BER): Second 40 MVA Transformer, 110/10(20) kv at SS Berivojce Substation 110/10 kv in Berivojce has only one operational transformer, since its development in Operation with only transformer represents a great problem in the event of unplanned transformer outages, whereby consumption in Kamenica will be impossible until the breakage is eliminated. Serious problems are also present in realizing maintenance of the transformer and its fields, since in such events a total disconnection of supply is necessary. On the other hand, supply of consumption should be covered with a transformation reserve, which should follow the continuous load increase. For the reasons mentioned above, it is necessary to install a second transformer in SS Berivojce. The transformed planned to be installed is an existing repaired transformer (31.5 MVA, 110/10 kv). The only necessary investments are in the 110 kv and 10 kv transformer fields. Expected benefits from this project include: - Reduction of undelivered power to consumers, - Increased safety and reliability of supply to Kamenica and surroundings - Increased transformation capacities - Optimization of maintenance processes. The project is planned for completion in the fourth quarter of Project: (T&D TR_VIT): Third transformer (20 MVA, 110/35 kv) in SS Viti SS Viti operates with two 2x20 MVA transformers, which during the peak winter load function at under full load. On the other hand, consumption supply needs to be covered with transformation reserves that are appropriate for the continuous load increase. For these reasons, the installation of a third 20 MVA transformer is necessary, in order to serve as a reserve transformer after the replacement of transformers in a number 110/TM substations by DSO. The existing available 20 MVA, 110/35 transformer (tested in advance) will be transported from SS Prizreni 1 to SS Viti, whereas the main investments in this project include the basement of the third transformer and 110 kv and 35 kv transformer fields.

55 ver. 0.2 page 55 of 148 Expected benefits from this project include: - Reduction of quantities of energy undelivered to consumers, - Increased safety and reliability of supply in Viti and the region - Increased transformation capacities The project conclusion is planned to be finalized in the fourth quarter of Project (T-ATR/PEJ3&FER2) AT2-300 MVA in SS PEJA3 and SS FERIZAJ 2 - Second Auto-transformer 300 MVA at SS PEJA 3, 400/110 kv The consistent increase of the load in the Dukagjini Plain region directly influences the increased load in the single auto-transformer T 300MVA at SS Peja 3. Computer analysis have shown that during winter peak , around 5% (438 hours) of the year, the substation Peja 3 operates at risk as per security criterion N-1. The percentage of hours at risk will continue to grow for 7% for the winter peak in Figure 5-3 shows the power flows in PSS/E according to the forecasted load for the year when the second transformer enters into operation. Based on planning criteria, the need for a second transformer at SS Peja is rather pressing. Until the implementation of the project in the fourth quarter of 2016 substation will work with minimal risk. Expected benefits from the project are: - Enhancement of transformation capacities and fulfillment of the N-1 criterion of the important 400/110 kv node - Increasing the reliability and security of supply for 20% of the national consumption - Reduction of the undelivered energy to the consumers. - Optimization of the transformer maintenance process and their relevant fields. - Creation of the conditions for 400 kv and 110 kv network reconfiguration (400 kv ring and regrouping of 110 kv loads)

56 ver. 0.2 page 56 of 148 Figure 5-3. Power flows in two auto-transformers of SS Peja 3 after commissioning in the Q4 of Second Auto-transformer 300MVA at SS FERIZAJ 2, 400/110 kv A consistent increase of load in southeast Kosovo (Ferizaj, Viti, Sharr, Gjilan, Theranda) influences directly in the increased load on the single auto-transformer 300MVA at SS Ferizaj 2. The second Auto-transformer will influence the increased load flows from 400 kv to the 110 kv level at SS Ferizaj 2, thereby relieving sensibly the load on Auto-transformers SS Kosova A and SS Prishtina 4. With the installation of the second auto-transformer, the substation Ferizaj 2, will comply the N-1 criteria for a long term, thereby increasing transformation capacities of the transmission system for 300 MVA. The project envisages installation of AT2-300 MVA 400/110 kv, and two related fields of transformers (400 kv and 110 kv). Figure 5-4 shows the power flows in PSS/E according to the forecasted load, for the year when the second automatic transformer enters into operation. Expected benefits from the project are:

57 ver. 0.2 page 57 of Enhancement of transformation capacities and fulfillment of the N-1 criterion of the important 400/110 kv node - Increasing the reliability and security of supply for 22% of the national consumption - Reduction of the undelivered energy to the consumers. - Optimization of the transformer maintenance process and their relevant fields. - Creation of the conditions for 400 kv and 110 kv network reconfiguration (400 kv ring and regrouping of 110 kv loads) Figure 5-4. Power flows in two auto-transformers of SS Ferizaj 2 after commissioning in Q Project for two additional transformers SS Peja 3 and SS Ferizaj 2 is planned to be finalized in the fourth quarter of Project (T-L1 PEJA3-PEJA1): New 110 kv line SS Peja 3- SS Peja 1, and revitalization of SS Peja 1 Following completion of the L1806 line allocation project from SS Gjakova 2 to SS Gjakova 1, the Dukagjini Plain area will comply fully to the criterion N-1. Based on a long term load forecast, and based on computer simulations, the security criterion N-1 will not be complied with until after A critical outage would be the outage of 110 kv line SS Peja 3-SS Peja

58 ver. 0.2 page 58 of 148 1, in which case there would be an overload in the line SS Gjakova 1- SS Deçan and SS Peja 3 - SS Klina. For this reason, to eliminate this problem, it is necessary to build a second 110 kv supply line, 240 mm 2, at a length of 28km, from SS Peja 3 to SS Peja 1. The project should be coordinated with the SS Peja 1 revitalization project, which provides for a full rehabilitation of 110 kv equipment, and transition to the double bus bar system in the compact GIS system including 35 kv transformer fields. This project is funding from the German Bank KfW, while the commissioning of the project is expected in the fourth quarter of Due to an over-urbanized area close to the Peja 1 substation, the five pylons close to the substation must be constructed instead of existing pillars, and they must be dual. If there are problems in property expropriation, an optional solution will be to dismantle the existing line, and construction of a new doubled line, thereby avoiding a new route. The figure 5-5 shows a geographical position of the project. Expected benefits from the project are: - Transmission network capacity enhancement and fulfillment of the N-1 criterion for a long-term period for the network sections of the region of Dukagjini - Reduction of active and reactive power losses in the transmission network. - Reduction of undelivered energy to consumers - Enhancing operational security and reliability of SS Peja 1 (substation built in 1961) - Support for the integration of small hydropower plants in the energy system

59 ver. 0.2 page 59 of 148 New 110 kv line,240 mm2 SS Peja 3- SS Peja 1, 28 km Figure 5-5. Second line SS Peja 3- SS Peja 1 Project (T&D TR2_KLINA): Second 40 MVA transformer, 110/10(20) kv at SS Klina The substation 110/10 kv in Klina has had a single transformer in operation since its construction in Operating with a single transformer poses a great risk in case of unplanned failure of transformer, thereby leaving Klina without supply until repair. On the other hand, consumption supply must have a transforming reserve, which responds to continuous increase of load. For the reasons mentioned above, there is a need to install a second transformer at SS Klina. Selection of substations with a single transformer for installation of the second transformer took into account the age of transformer and technical condition as recorded by maintenance teams. The expected benefits of the project are: - Reduction of undelivered power to consumers, - Increased safety and reliability of supply to Klina and surroundings - Increased transformation capacities

60 ver. 0.2 page 60 of Optimization of maintenance processes The project is planned for completion in the second quarter of Project: (T-L RAH-THER): New Line 110 kv SS Rahovec - SS Theranda Supply of the load in a radial (island) form, which is the form used for the supply of SS Rahoveci currently, is not preferred, as it does not fulfill the N-1 security criterion. The maintenance process in a sole line causes interrupted supply throughout the performance of maintenance works in both the line and equipment on both sides. The project becomes even more important taking into consideration the planned connection in SS Rahoveci of the Wind-Powered Generation Facility Zatriqi with installed capacities of 45MW. Computer simulation performed for a number of connection options in SS Rahoveci, and the comparison of results according to two basic planning criteria (economic and technical), show that the new 110 kv line from SS Rahoveci needs to be connected to SS Theranda. The 110 kv line (240 mm 2 ) will be approximately 15km long. The process should be coordinated with the project of equipment revitalization in SS Theranda, which envisages the replacement of 110 kv voltage equipment and transfer to the system of double busbars. The project will also be synchronized with the SS Malisheva project, whereby SS Malisheva will be connected approximately midway in the SS Rahovec SS Theranda line through a 12 km long double 110kV line. This would create a new 110 kv ring, with high operational flexibility: SS Prizren 2 SS Rahovec SS Malisheva SS Theranda. This configuration ranks the abovementioned substations in the group of loads to be supplied through SS Prizreni 2. Earlier, the field of the 110 kv line was installed in SS Rahoveci, whereas in SS Theranda a new line field needs to be developed. Figure 5-6 shows the geographical extent of the new line. The project is planned to be finalized by the fourth quarter of 2018.

61 ver. 0.2 page 61 of 148 SS MALISHEVA 110/10(20) kv Wind Park Zatriqi 45 MW Double circuit Line 110 kv, 240 mm2, length 12 km, SS Malishevë Connection Point Interconnection line 35 kv Connection Point SS RAHOVECI Line 110 kv, 240 mm2, Lengthi 15 km, SS Rahovec SS Theranda SS THERANDA To SS Ferizaj 1 To SS Prizreni 3 To SS Prizreni 2 Project (T-L2 PZ1-PZ2): New line 110 kv SS Prizren 1- SS Prizren 2 The consistent growth of load in the Prizren region shall put at risk the fulfillment of N-1 criteria for that area of the transmission network. This risk will be present after exceeding the load over the 1340 MW. The second 110 kv line from SS Prizren 1 to SS Prizren 2 is necessary since according to the current network configuration, an outage of the line SS Prizren 2- SS Prizren 3 would cause an overload on the L164/3 line. The project plans for the construction of a new 110 kv line, 240 mm 2 (114 MVA/605A) 3.5 km long, as shown in the figure 5-7. In this case, there are two other options of implementation, depending on difficulty of expropriation and urban obstacles: - Transformation of the existing L164/3 line to a double line - Underground 110 kv cable

62 ver. 0.2 page 62 of 148 The project is due to be completed by This project is important for the realization of 110 kv consumption grouping concept as per main substations. The same project is also considered by the Fichner study on redesign of the configuration of the transmission network 400 kv and 110 kv. Expected benefits from the project are: - Fulfillment of the N-1 criterion - Reduction of undelivered energy to consumers - Enhancement of transmission network capacities - Optimization of power flows and enabling the grouping of 110 kv loads according to independent supply from main transmission system nodes (in this case from SS Prizren 2). New 110 kv line,prz1-prz2, 3.5 km Figure 5-7. Second 110 kv line SS Prizren 1- SS Prizren 2 Project (T&D TR2_GJIL5): Second 40 MVA transformer, 110/10(20) kv at SS Gjilani 5 Substation Gjilani 5, 110/10 (20) kv is a new substation developed in 2012, through a grant provided by the Swiss government. Due to budgetary constraints, this substation was initially built with one 31.5 MVA transformer, envisaging the installation of a second transformer in the future. The entire ancillary infrastructure for the new transformer already exists, including transformer fields at 110 kv and 10(20) kv levels. The operation with only one transformer represents a great problem in the event of its unplanned outage. In such

63 ver. 0.2 page 63 of 148 circumstances, supply in the Gjilan region will be disconnected until the breakage is eliminated. Serious difficulties are also presented during the maintenance of the transformer and its fields, since in such circumstances a complete interruption of supply is necessary. On the other hand, consumption should be covered with sufficient transformation capacities that respond to the continuous load increase. For the reasons mentioned above, the installation of the second transformer in SS Gjilani 5 is necessary. The expected benefits of the project are: - Reduction of undelivered power to consumers, - Increased safety and reliability of supply to a part of Gjilan consumption and surroundings - Increased transformation capacities - Optimization of maintenance processes The project is planned to be completed in the second quarter of Project (T-L2 PEJA3-UJMAN): New 110 kv line SS Peja 3- HPP Ujmani A consistent growth of consumption in the Mitrovica region, and a single 110 kv line connecting HPP Ujman with the transmission network, are factors necessitating construction of a new 110 kv line to connect the plant with the strong network node SS Peja 3. The figure 5-7 shows the geographical location of the 25 km long line. This project allows for development of a new 110 kv ring road, which is important for the optimization of the transmission network for the Mitrovica region. The expected consumption growth in the region, especially due to the Trepca mine, will be more secure in terms of electricity supply, in due consideration of increased transmission capacities. The new line will enable a relief of supply lines for the 110 kv ring SS Kosova A SS Bardhi SS Vushtrria 1&2 SS Trepça. Expected benefits from the project are: - Fulfillment of the N-1 criterion for HC Ujmani

64 ver. 0.2 page 64 of Optimization of power flows in 110 kv lines, particularly discharging of supply lines of SS Vallaqi - Creation of necessary disconnection reserves during the maintenance process or during unplanned breakdowns of the transmission system - Valorization of transmigration capacities of Peja 3 The project is planned to be completed in Figure 5-8. Line SS Peja 3- HC Ujmani Project Pack (T/RING_400kV): RING 400 kv GJAKOVA-PRIZREN-FERIZAJ The current 400 kv network configuration is characterized as a star network, where the centre of the star is the SS Kosova B. The optimal configuration of high voltage electricity networks is the ring configuration, which ensures a higher operational flexibility and security in the power system.

65 ver. 0.2 page 65 of 148 The expected development in terms of new generation capacities and load forecast, the forecast of increasing flux of loads in regional exchanges, determine the need for reconfiguration of the 400 kv network. Earlier studies, such as ESTAP I, have recommended the reconfiguration of the 400 kv network in a ring form, thereby avoiding 220 kv network development. Computer simulations undertaken in complex models, which incorporate regional systems, in consideration of new generation capacity development scenarios in the country and the region, and the forecasted load development also in the country and the region, reflect the need for creation of the 400 kv ring in the territory of Kosovo. This configuration is presented as an optional long-term project also in the earlier developments of KOSTT. A detailed study on redesigning of the 400 kv network, and its impact on the Kosovo power system, was undertaken by a German consultancy Fichner. The study s concept recommends the establishment of powerful 400/110 kv nodes, which are to supply load groups, and by establishing capacity reserves in 110 kv lines, with a view of optimization of load flows. Computer simulations in complex models undertaken by KOSTT have shown that the network area of the Prizren region will not be compliant to the N-1 criterion after 2020, due to high impedance of two 220 kv supply lines of SS Prizren 2. A larger problem would occur if the 220 kv interconnection line Fierza-Prizren 2 would fail. In this case, voltage collapse may occur, coupled with the disconnection of the load at SS Prizren 2. If one would view the transmission network before the construction of the 400 kv ring, one would be able to spot the existence of four powerful and sufficient nodes of transformation to 110 kv: SS Peja 3 supplying Dukagjini consumption, SS Ferizaj 2 supplying southeastern part and SS Kosovo A, together with SS Prishtina 4, which mainly supply Prishtina consumption. All these nodes are connected to a powerful horizontal network, while SS Prizren 2 remains connected also to a horizontal 220 kv network, which is relatively poor. All these nodes are connected to the powerful horizontal network, while SS Prizren remains connected in the network also in the horizontal, but relatively weak 220 kv.

66 ver. 0.2 page 66 of 148 The 400 kv network reconfiguration from the star shape to the ring shape configuration brings about the following benefits: - Enables the support for new generation capacities - Increases the 400 kv network s reliability and security. - Facilitates the security of power exchange between Kosovo and countries in the region, or transits going through our network. - Enables the reconfiguration of the 110 kv network with the aim of optimizing operational conditions of the transmission system - Enhances the quality of consumption supply in the region of Prizren. - Facilitates the 400 kv line maintenance process. The ring project is expected to be completed in two phases: First stage: Includes construction of the 400 kv distribution station Gjakova 3, which will be positioned very closely to the 400 kv interconnection line SS Kosova B SS Tirana 2, where it should be connected at a length of 51 km from SS Kosovo B, as shown in the figure 5-8. SS Gjakova 3 is expected to perform the function of the new interconnection point in a 400 kv ring. It should include three 400 kv line fields, with a possibility of expansion, and one 400 kv connection field. Simultaneously, the SS Prizreni 4 400/110 kv will be developed, which initially will have an installed 300MVA auto-transformer. The substation will be positioned in a sequence to SS Prizreni 2, to use the existing 100 kv bus bars, with a difference in placing a 110 kv sectional bus bar divider. The substation provides also for the development of double 400 kv bus bars, to contain two 400 kv line fields, and sufficient space for reserve line and transformer fields. The figure 5-9 shows the configuration of SS Prizren 4. Both substations would operate in parallel at the 110 kv level, which means the use of existing 3x150MVA auto-transformers at SS Prizren 2. Existing 220/110 kv auto-transformers will be used to the end of their life cycle, to be replaced with additional AT-s 400/110 kv to be installed at SS Prizreni 4. The distribution substation Gjakova 3, 400 kv will be connected by a 400 kv line, 2x490 mm 2 (1316 MVA/1900 A), at a length of 31.5 km with SS Prizren 4, 400/110 kv. The first stage is planned to be completed in 2023.

67 ver. 0.2 page 67 of 148 Second stage: Includes the stage of ring completion, with the development of a 400 kv line, 56.5 km line from SS Prizren 4 to SS Ferizaj 2, as presented by figure 5-9. The construction of this line may be completed in the period between , and must be in timely coordination with new generation capacity development projects. The project is also in line with the TSO development plan, which foresees the interconnection of the planned hydro power plant Skavica (350 MW) in the 400 kv line, which is connected in the other side of SS Prizreni 2. Krushevc NISH RIBAREVINË NS Peja 3 B DR TC A PR4 Fierzë SSH Gjakova km NS Ferizaj 2 TIRANA km Prz. 2 NS Prizreni 4 SHKUPI 5

68 ver. 0.2 page 68 of 148 Fig. 5-9 Geographical positioning of the 400 kv ring SS Gjakova 3 - SS Prizren 4 - SS Ferizaj 2 Reserve SY GJAKOVA 3 SS FERIZAJ 2 400kV 220kV coupling bay 300MVA Reserve. 3x 150MVA coupling bay 110kV disconnetor 110kV coupling bay Lines 110kV Lines 110kV Lines 110kV Figure Single pole scheme of modified substation SS Prizren 2, 220/110 kv to SS Prizreni 4, 400/220/110 kv kv line revitalization projects The important factors that are taken into account for determining the list of lines which will have the conductors replaced with larger transmission capacity are: The age of the lines, Line overload frequency (N-1) The level of power losses in the line The first factor is clearly defined; while the second and third factors are identified by computer analysis, thereby simulating load flows for different transmission system operation conditions, in due consideration of perspective development of projects, which would considerably impact the change of load flows in the transmission network. All 110 kv lines

69 ver. 0.2 page 69 of 148 with 150 mm 2 section, in the transmission network, have been analyzed in terms of load losses, thereby pursuing reinforcement at the long term. Lines that are 40 years old and lines with larger overload frequency and, understandably, higher losses, are listed in the first place. The main objective of this category of projects is to increase the capacity of 110 kv lines with section conductors of 150 mm 2 (83 MVA), in conductor 240 mm 2 (114 MVA). Some very old lines mainly have concrete towers and replacement of the existing conductors with conductor on greater weight in mechanical and statically terms require reinforcement of towers, with special emphasis on angular towers. Also portal towers require reinforcement and eventual addition of the towers in order to increase the mechanical stability of the whole line. The following 110 kv lines are selected for reinforcement for period as in following: Project (T-RIV/L126/2): Revitalization of the 110 kv line: SS Peja 2-SS Deçan, L126/2 Line of 14,57 km connecting SS Peja 2 with SS Deçan, presented in figure 5-11, is a line built in 1967, which contains 52 towers of portal type and conductor of 150 mm 2. Line L126/2, is an important line, segment of the substations ring of 110 kv SS Peja 3 SS Peja 1 SS Peja 2 - SS Deçan SS Gjakova 1. The project for the revitalizing of this line includes strengthening of the angular towers of the portal form, installing new insulators and changing phase conductors. The project will assist in the increase of the transmitting capacities and will assist in improvement of the N-1 security criteria. Expected benefits from the project are: - Enhancing the transmission capacity of the line from 83 MVA to 114 MVA - Reduction of active and reactive power losses - Fulfillment of the N-1 criterion for the section of the network connecting 110 kv substations of the Dukagjini region The project is planned to be finalized in the fourth quarter of 2016.

70 ver. 0.2 page 70 of 148 Fig Line 110 kv SS Peja 2 SS Deçan with a length of 14.57km Project (T-RIV/L163/1): Revitalization of the 110 kv line SS Kosova A- SS Bardhi SS Vallaqi From all results obtained from computer simulations, the current line L163/1 from Kosovo A to SS Vallaq at the capacity of 83 MVA (150 mm 2 ) seems to be more problematic in comparison to other lines (150 mm 2 ) which are in the list for replacing conductors. After the completion of the project of reinforcement of SS Bardh supply, whereby connection of SS Kosovo A SS Vallaq was completed, a part of the line remained with the section 150 mm2, therefore the project as a whole includes the revitalization of this section. Improvement of capacity of this line should relief its overload, in the case of disconnection of supply line SS Kosova A SS Vushtrri 2. The same line with connect SS Mitrovica 2 as well, allowing for an improvement of security and reliability of supply for the load in the Mitrovica region. The figure 5-12 presents the part of the line planned for revitalization. The Project includes

71 ver. 0.2 page 71 of 148 replacement of conductors 150 mm 2 (83 MVA/440A) with 240 mm 2 (114 MVA/605 A) conductors, and necessary reinforcement in portal pillars, due to the added load on the conductor. Expected benefits from the project are: - Enhancement of line transmission capacity from 83 MVA to 114 MVA - Reduction of active and reactive power losses - Fulfillment of the N-1 criterion for the section of the network connecting the ring: Kosova A-Bardhi-Vushtrria 1&2-Trepça-Mitrovica 2-Vallaq The project is planned to complete by the fourth quarter of Fig Line 110 kv SS Kosova A SS Bardhi SS Vallaq with a length of 38.5 km Project: Revitalization of 110 kv line, SS Prizren 1 SS Prizren 3 The project provides for replacement of conductors, from 150/25 mm 2 to 240/40 mm 2 at a length of km, from SS Prizren 1 to SS Prizreni 3, as presented by figure The

72 ver. 0.2 page 72 of 148 project also provides on static reinforcement of existing pillars, placement of new composite insulators, and replacement of phase conductors. The line is an interconnecting segment for the supply of SS Prizren 3. Revitalization of this line shall substantially impact the increase of security and operating reliability of that part of the 110 kv network. Expected benefits from the project are: - Fulfillment of the N-1 criterion for the section of the 110 kv network connecting 110 kv substations in the region of Prizren - Enhancement of line transmission capacity from 83 MVA to 114 MVA - Reduction of active and reactive power losses The project is planned to be completed by third quarter of Fig kv line SS Prizren 1 SS Prizren 3 with a length of km Project (TRIV/L155/2): Revitalization of the 155/2 line, in coordination with development of the SS Leposaviq 110/10 kv The new SS Leposaviq 110/10(20) kv is planned to he supplied by the existing cross border line SS Vallaq - SS N. Pazar, which shall be realized by a section close to the SS Leposaviq 35/10 kv. The line currently does not have sufficient capacity due to its sectional width (150

73 ver. 0.2 page 73 of 148 mm 2 ). On the other hand, this line is one of the oldest lines of the transmission system of Kosovo, therefore its reinforcement is necessary. Replacement of the conductor is planned for 15 km of the line, starting from SS Vallaqi to the point where the section is planned to occur in the line L155/2. The figure 5-14 shows the geographical position of the project. Expected benefits from the project are: - Enhancement of the line transmission capacity from 83 MVA to 114 MVA - Reduction of active and reactive power losses - Enabling the realization of SS Leposaviq 110/10(20) kv The project is due to complete by the fourth quarter of 2020 Fig Revitalization project for the line L155/2 in coordination with construction of SS Leposaviq 110/10(20) kv.

74 ver. 0.2 page 74 of Load support projects The following are technical descriptions of projects supporting the load and expected benefits from them Project (T&D-L4/MIT2) : SS Mitrovica 2, 110/10(20) kv The continuous increase in electricity demand in the area of Mitrovica raise the need for creating a new distribution facility in the area. The southern part of Mitrovica is currently being supplied by the substation in the Industrial Complex of Trepça. The current capacities of the distribution grid are limited, and during peak loads, 35 and 10 kv lines and cables are overloaded. On the other hand, the mining and metallurgic industrial development requires special, safe and independent supply. These are the factors necessitating the construction of an SS Mitrovica 2, 110/10(20) kv, transforming capacity 2x40MVA. Line SS Skenderaj SS Vallaq, nearly 2.6 km from the connection point of the bypass line, namely 6.2 km from SS Vallaq, will be cut and a dual line will be developed 110 kv, 240 mm 2 with an estimated length of around 2 km. Line SS Bardhi SS Vallaq, nearly 6.15 km from SS Vallaq, will be cut and a dual line will be developed 110 kv, 240 mm 2 with an estimated length of around 1.5 km. This option will include two corridors of dual lines, which will allow interconnection of SS Mitrovica with three substations 110 kv: SS Skenderaj, SS Vallaq and SS Bardhi. The Line with SS Vallaq will be dual. In terms of power flows and security criteria, this option enables the fulfillment of criteria of the Grid Code, also fulfilling the N-2 criterion. The Substation will mainly be supplied from SS Peja 3 and SS Kosovo A. In relation to the previous KOSTT Development Plan and the Master Plan , the revitalization of the section (9 km) of the line SS Skenderaj - SS Vallaq is planned to be included, with the 150mm 2 section. Revitalization includes the replacement of the existing line with a new single 240 mm 2 line, but the tower construction must be for dual lines, in order to make preparations for the future line SS Peja 3 - SS Mitrovica 2, which is planned in the Development Plan. This eliminates issues of opening new corridors and expropriation of land for the line construction.

75 ver. 0.2 page 75 of 148 Figure 5-15 shows the connection to the substation Transmission Network. By this topology, this substation shall provide good security in terms of N-1 security criteria, and as such, it will be an important 110 kv node for the energy system of Kosovo. The expected benefits of the project are: - Reliable and qualitative supply of consumption in Mitrovica - Reduction of large amounts of undelivered power, as a result of elimination of bottlenecks in the distribution grid - Reduction of technical losses in the distribution network - Support to economic development of Mitrovica The project is planned for completion in the fourth quarter of Fig Connection of SS Mitrovica 2 in the Transmission Network Project (T-L2/PRISHTINA 6): SS Prishtina 6, 110/10(20) kv In terms of security of supply for distribution customers, the construction of the new substation Prishtina 6 in the center of Prishtina is important as the current capacities of distribution substations SS Prishtina 1, SS Prishtina 2 and SS Prishtina 3 will not suffice in the midterm period. Consumption of Prishtina and its suburbs is the highest in Kosovo, comprising almost 25% of the national consumption. Issues with distribution capacities are more prevalent during the winter consumption and the situation particularly deteriorates if

76 ver. 0.2 page 76 of 148 the District Heating Utility of Prishtina has difficulties, when the electricity consumption increases significantly. The proposed position on the new substation is located in or near the closed facility of SS Prishtina III 35/10 kv which is located near the KEK and KOSTT HQ. The substation s geographical position which is located in an urban area clearly determines the supply of the substation through underground cables. Also, the type of high voltage equipment must be modular-compact (GIS technology) which requires small a construction area. Figure 5-16 shows the proposed position of the substation. Figure Geographical position of two SS Prishtina 4 and Prishtina 6 Based on satellite images, we can be see that the cabling must pass through a very urbanized area, particularly near SS Prishtina 6. Arrangements for this connection are also shown in the two previous transmission network development plans. Figure 5-17 shows the conceptual configuration of SS Prishtina 6 connection in the transmission network. In previous plans based on information from the Project Implementation Department in KOSTT, the cable route had been defined and at the time an urban consent was issued by the Municipality of Prishtina. The route had a length of 5.3 km, and because of delays in the

77 ver. 0.2 page 77 of 148 project, several constructions have been made in the approved route and in adjacent sites, which will necessarily require its deviation. KOSTT-DSO joint teams have intensified visits in the Municipality of Prishtina in order to accurately define the exact route of 110 kv cables. Expected benefits from the project include: - Reliable and quality supply of consumption for the city center - Discharge of transformers in SS Prishtina 1, 2 and 3 - Reduction of technical losses in the distribution network - Optimization of power flows in 110 kv lines as a result of transformer discharge in SS Prishtina 1, 2 and 3 - Reduction of large amounts of undelivered energy to the customers as a result of elimination of bottlenecks in the distribution network The Project is planned to be completed in the fourth quarter of SS PRISHTINA 6 110/10(20) kv Double Underground Cable 110 kv, 5.3 km SS PRISHTINA 4 220/110 kv Fig Connection configuration of SS Prishtina 6, 2x40 MVA, 110/10(20) kv in transmission network

78 ver. 0.2 page 78 of 148 Project (T&D-L3/DRAGASH): SS Dragash and 110 kv line SS Kukës - SS Dragash - SS Prizren 2 The project includes the development of SS Dragash 110/10(20) kv to be supplied with two lines: SS Dragashi SS Prizreni 2 (21km) and SS Dragashi - SS Kukës (39 km). From Zhur to Dragash, the line shall be double, while from Prizren 2 to Zhur, the line will be single, but with doubled pillars, so that the other pillar line is used for the HPP Zhur project. The Figure 5-18 presents the geographical location of the project, with relevant data. The project initially coordinated between KOSTT and KEK-DSO and now approved by KEDS is considered to be of importance for both parties. For KEDS the project allows for a better supply for the southern area of Kosovo (Dragash and surroundings), reduction of technical losses at distribution, and relief of 110/35 kv transformers at SS Prizreni 1. In terms of benefits created by the transmission system project, we can underline a few: - Optimization of load flows between two systems KOSTT (Kosovo) and OST (Albania), and minimization of electricity generation costs for both system generators. - Relief of load from 110 kv lines SS Prizren 1-SS Prizren 2 and SS Prizren 1-SS Prizren 3, equivalent to the Dragash load. - Exchange of electricity surpluses between systems, which can be facilitated by radial operation. - Secure supply for SS Dragash and SS Kukës, thereby fulfilling the N-1 criterion (outage of a line does not interrupt supply for SS Dragash or SS Kukës, due to doubled supply) The project is expected to be operational by the fourth quarter of 2018.

79 ver. 0.2 page 79 of 148 Double Circuit 110 kv line Prizren 2- Zhur, 8 km SS PRIZRENI 2 220/110 kv SS PRIZRENI 1 110/35 kv 110 kv Single line Zhur Kuks 26 km and Zhur Border 9 km Double Underground Cable 110 kv, 5.3 km Double Circuit 110 kv line Dragash- Zhur, 13 km SS KUKSI SS DRAGASHI 110/10(20) kv HPP Dikance Figure Project of SS Dragash and line 110 kv with SS Kukës. Project (T-L2/MALISHEVA): Malisheva 110/10(20) kv Following the transfer of 110 kv assets from KEK-DSO to the KOSTT, the process of planning 110/10(20) kv substations for load support was taken by KOSTT, in due harmonization with plans and priorities of DSO. The project Malisheva was included with the list of capital projects for load support and strengthening transmission capacities of the network for the following reasons:

80 ver. 0.2 page 80 of 148 a) The condition of supply for the Malisheva is unsatisfactory, since this region is currently supplied by a 35 kv line from SS Rahoveci. The length of this line causes large losses of active and reactive power, thereby adversely influencing the quality of electricity delivered to consumers. The 35 kv voltage level and other distribution levels during the winter load are below minimum allowed values according to the distribution code. To be able to provide for sustainable and long-term supply of electricity for the Malisheva region, it is necessary to construct a 110/10(20) kv substation, with transformation capacities of 2x40 MVA. b) The implementation at SS Malisheva shall be made in synchronization with a new line project 110 kv SS Rahoveci - SS Theranda. In this case, SS Malisheva with connected in the middle of the line SS Rahovec and SS Theranda through the double line with a length of 12 km. This shall optimize the load flows, it will increase disconnection reserves, while the line SS Theranda SS Ferizaj 1 may operate remaining open or closed, depending on the load flows and the system security assessment. The double 110 kv line shall be of 240 mm 2 in dimension. Also this project is to be coordinated with the equipment revitalization project at SS Theranda, which having to do with the replacement of 110 kv equipment, and migration to the double busbar system. At SS Rahovec, there is an existing 110 kv line field, while at SS Theranda, a new line field must be constructed. Figure 5-19 shows the geographical coverage of the project package. The expected benefits of the project are: - Reliable and quality supply of consumption in Malisheva - Development of a new flexible 110 kv ring Rahovec - Malisheva - Theranda - Elimination of radial supply for SS Rahoveci (N-1 Criterion) - Optimization of load flows and discharge of transformers at SS Rahovec - Raising the safety of the operation of wind farms "Zatriqi" - Reduction of large amounts of undelivered power to the consumers, as a result of elimination of bottlenecks in the distribution network - Reduction of technical losses in the distribution grid - Support to economic development of Malisheva

81 ver. 0.2 page 81 of 148 The project is planned for completion by the third quarter of SS MALISHEVA 110/10(20) kv Wind Park Zatriqi 45 MW Double circuit Line 110 kv, 240 mm2, length 12 km, SS Malishevë Connection Point Interconnection line 35 kv Connection Point SS RAHOVECI Line 110 kv, 240 mm2, Lengthi 15 km, SS Rahovec SS Theranda SS THERANDA To SS Ferizaj 1 To SS Prizreni 3 To SS Prizreni 2 Figure 5-19 Geographic position of the project package SS Malisheva Project (T-L2/F_KOSOVA): SS Fushë Kosova 110/10(20) kv The list of priority projects from the view of KEDS includes the construction of the substation Fushë Kosova 110/10(20) kv, close to the existing substation 35/10 kv. This substation is supplied by two 35 kv lines, 95 mm 2 from SS Kosova A and SS Prishtina 1. Based on the information from the KEDS, 35/10 kv transformer capacities are close to the critical limit, while on the other hand, the load in the region of Fushe-Kosova shows a tendency of continuous growth. For this reason, there is a necessity of creating a new 110/10(20) kv node in Fushë Kosova, which should have sufficient long-term transforming

82 ver. 0.2 page 82 of 148 capacities in 2x40 MVA, which would be able to respond to the continuous load growth, in accordance with technical criteria of transformation reserve. The construction of the substation should allow for the relief of transformers at SS Prishtina 1 and SS Kosova A, and reduction of load flows in supply lines of the SS Prishtina 1. In the technical aspect of connections, based on the geographical position of the substation, the optimal position of connection with the transmission grid would be the 110 kv L112 line SS Kosova A- SS Lipjan, which passes close to the position proposed. The geographical position of the connection of SS Fushë Kosova is presented in the figure A double line of around 1 km in length, standard dimensions of 240 mm 2, will be connected to the 110 kv Kosova A- Lipjan line point at a distance of 4. 3 km from Kosova A. In this way, an optimal use of the line earlier converted from 220 kv to 110 kv is achieved, by supplying two substations SS Lipjan and SS F. Kosova. The expected benefits of the project are: - Reliable and quality supply of consumption in Fushe-Kosova - Relieved transformers at SS Prishtina 1 and SS Kosova A - Reduction of technical losses in the distribution network - Optimal usage of converted L112 line (Kosova A-Lipjan Ferizaj 2) - Optimization of load flows at 110 kv lines, which supply substations of Prishtina, as a result of relieving transformers at SS Prishtina 1 and Kosova A - Reduction of large amounts of undelivered power to the consumer, as a result of elimination of bottlenecks in the distribution network The project is scheduled for completion by the fourth quarter of 2018

83 ver. 0.2 page 83 of 148 SS KOSOVA A Existing 110 kv line SS Kosova A-SS Lipjan SS F.Kosova Connection point 4.3 km far from SS Kosova A Double 110 kv line 1 km, 240mm2 Figure Configuration of connection of SS Fushë Kosova to the transmission network. Project (T-L2/DRENAS 2): SS Drenasi 2, 220/35/10(20) kv Drenas and its suburbs are currently supplied by the industrial substation Feronikeli, 220/35 kv, 2x160 MVA. Supply is made through the 35 kv line, which supplies substation 3x8 MVA, 35/10 kv. This substation supplies the consumption of the industrial area in Komoran, which load is continuously increasing. In order not to risk the security of supply for Ferronikeli foundry and to enhance supply capacities for the consumption of the region of Drenas, KEDS, in consultation and harmonization with KOSTT, has included in its development plan the priority construct of SS Drenas 2, 220/35/10(20) kv. The substation will be constructed near the load center, namely near the existing substation 35/10 kv. According to computer analysis and technical-economic criteria, the optimal

84 ver. 0.2 page 84 of 148 configuration of supply to SS Drenas 2, is to provide the substation with a dual 220 kv line, with a length of 4.5 km, which will have a solid connection in the end of existing lines 220 kv SS Drenas 1-SS Feronikel (near Feronikeli). The Substation will be designed as a substation with combined levels of voltage: 220/35/10(20) kv as shown in figure Satellite imagery is shown in Figure SG DRENASI1 220 kv Direct Connection SS FERONIKELI 220/35 kv New line double circuit 220 kv, 360mm2, 4.5 km Industrial Zone SS DRENASI 2, 220/10(20)kV 2x40 MVA SS DRENASI 35/10 kv 3x8MVA Fig Connection configuration of SS Drenasi 2, in transmission network.

85 ver. 0.2 page 85 of 148 Figure Satellite imagery of the layout of the dual 220kV line 4.5 km from the solid connection in the supply lines 220 kv near Ferronikeli to the location of SS Drenas 2. Expected benefits from the projects are: - Reliable and quality supply of consumption of Drenas and its suburbs - Reduction of large amounts of undelivered energy to the customers as a result of elimination of bottlenecks in the distribution network - Reduction of technical losses in the distribution network - Supporting the economic development of the Drenas region - Quality supply for the industrial zone in Komoran The project is planned to be completed in the fourth quarter in Substation Revitalization Projects In determining the list of substations that required revitalization the following factors were taken into consideration: - Impact of the failure of the substations in the transmission system

86 ver. 0.2 page 86 of The age of the substation - Frequency of the failures and damages in the equipments of the high voltage - The level of the fault currents in the substations Probability of failures in high voltage equipment begins to rise with age of equipment, especially equipments that are greatly used. Also the substations which are characterized by large currents failures considerably influenced in the accelerating the loss of their credibility. Based on data archived in KOSTT related to the above mentioned factors a list was drafted of substations requiring revitalization in the first five years of the development plan. Projects (TD/RIV_GJ1, TD/RIV_GJL1, TD/RIV_FER1, TD/RIV_PR2&LIP ): Revitalization of equipment in TM at SS Gjakova 1, SS Gjilani 1, SS Ferizaji 1, SS Prishtina 2 and SS Lipjani Within a detailed analysis of the technical condition, and age of equipment transferred from KEK-DSO to KOSTT, a certain number of projects is ranked according to priorities in the development plan. This list includes revitalization of medium voltage equipment, managed by KOSTT, at substations: SS Gjakova 1, SS Gjilani 1, SS Ferizaji 1 SS Prishtina 2 and SS Lipjani The project shall be implemented in the next 4 years, according to the priorities listed in Table 5-5. This package envisages the replacement of transformer fields 35 kv, internal and external construction, connection equipment of transformer neuters, and modernization of transformer relays. Expected benefits of the Project: - increased security and reliability of substation operations

87 ver. 0.2 page 87 of reduction of undelivered power, as a result of interruptions caused by failures - improved safety of personnel working at the substation, and maintenance personnel The project shall be implemented in the period Project: (TD/RIV_VALL): Revitalization of the substation SS Vallaq: SS Vallaqi is one of the first substations built in Kosovo. Revitalization of this substation is necessary because of the fact that its 110 kv busbars are connected with 5 110kV lines, one of which transmits electricity generated by HPP Ujmani. The technical condition of the substation is not satisfactory and it threatens the safety and reliability of supply to consumers. Revitalization of the substation envisages the replacement of high voltage 110 kv equipment, replacement of the busbar system and its portals with the development of a double busbar system and connection field. The project is scheduled to be completed in the fourth quarter of Expected benefits from the projects are: - Enhancement of the security and reliability of the substation operation - Optimization of the operation of the substation after the shift to dual busbar system - Reduction of undelivered energy to customers - Enhancement of security of staff working on the substation and maintenance staff Project (T/CB_PR4): Replacement of circuit breakers in SS Prishtina 4: SS Prishtina 4, 220/110 kv, 3x150MVA, is a very important transformation node in Kosovo s transmission system. As a result of proximity with existing and planned generation sources, the high level of breakdowns in this substation may risk the dynamic stability of the system. Historical data of incidents recorded as a result of failures of circuit breakers indicate the importance of their replacement. The project envisages the replacement of all 110 kv and 220 kv circuit breakers except circuit breakers 110 kv and 220 kv of the new transformer field of AT3 which has been installed in This project is listed in the group

88 ver. 0.2 page 88 of 148 of projects to be financed by the German Bank KfW through low interest loans and is planned to be implemented in the fourth quarter in Benefits from the project are: - Enhancement of the security and reliability of the operation of substation and transmission system in general. - Reduction of undelivered energy to the customers as a result of reduction of the frequency of breakdowns in circuit breakers after their replacement. - Appropriate dimension of circuit breakers in line with the electricity code - Higher safety conditions for the staff working in substation and maintenance staff Project (TD/RIV_THER): Revitalization of SS Theranda: This project is of particular importance, as it is related to the construction project of SS Malisheva where the new 110 kv lines; Malishevë - Therandë will be connected in the substation. Also based on the application for connection to the transmission network of Wind Energy Park "Budakova", with an installed capacity of 48 MW, and the conducted technical analysis, this park will be included in SS Theranda. The current bus bar (H system) configuration of the SS Theranda does not allow for an optimization of system operation, while representing a difficulty in the process of maintenance. Based on planning standards, substations that have three or more lines must be configured in double bus bar systems and connection fields. This project envisages the replacement of existing 110 kv high voltage equipment, development of a double bus bar system (360 mm 2 ), installation of a 110 kv connection field, and the replacement of medium voltage transformer fields. The existing relay protection system in line fields is planned to be replaced with modern numeric relays. The project package SS Malisheva with the 110 kv lines, and the substation revitalization project must be integrated in a joint project. Expected benefits from the projects are: - Enhancement of the security and reliability of the operation of substation

89 ver. 0.2 page 89 of Optimization of operation of the substation after the shift to dual busbar system - Reduction of undelivered energy to the customers - Higher safety conditions for the staff working in substation and maintenance staff The duration of the project is expected to be coordinated with the new project of 110 kv line Rahovec - Therandë, namely in the second quarter of Project (TD/RIV_VIT): Revitalization of Substation SS Vitia: Exploitation of high voltage equipment for the substations in question, built in 1984, until the planned time period for revitalization (2021) is economically feasible. Substation of Vitia represents a node which belongs to an important ring 110 kv: Sharr- Viti Gjilan 5 Gjilan 1. Modernization of high voltage equipment, medium voltage equipment which belong to KOSTT, and protection equipment, will have an effect in increasing the operational security and reliability of that part of the transmission network. Revitalization of 110 kv high voltage equipment at SS Vitia, 110/35 kv is planned to be completed by Expected benefits are: - Enhancement of the substation operation reliability and security - Reduction of undelivered energy to consumers - Increase of the safety of staff members working in the substation and maintenance teams Projects to enhance monitoring, control and measurement systems in the Transmission System The following are TDP projects considered necessary to fulfill the requirements of the Grid Code and ENTSO/E Operation Handbook.

90 ver. 0.2 page 90 of 148 Project (TD_Metering): Installation of metering groups in the new boundary between KOSTT and KEK/OSSH The project of installing metering groups in the new commercial boundary with DSO (KEDS), after the displacement of such boundary, is considered to be a project of high priority. The project envisages for the installation of current and voltage metering transformers in all transformer fields in 35 kv and 10(20) kv levels, in transformers transferred from DSO to the KOSTT. Metering transformers must have technical features in compliance with metering code. Meters from the earlier metering points will be used, only replacing entry sizes, which were earlier taken from the 110 kv metering transformers, while now from the 35 kv and 10(20) kv transformers. The project is scheduled to be completed by the third quarter of The expected benefits from the project are: - Electricity metering pursuant to the metering code - Accurate metering of losses in the transmission network, including the 220/TM kv and 110/TM kv transformers. Project (T/SCADA_INTERC): Implementation of changes and their incorporation in SCADA/EMS Continuous development and changes to the transmission network, namely the construction of new substation, requires their integration into the existing SCADA/EMS system. This is required after any change in configuration and with the aim ensuring an optimal use of the SCADA/EMS system. This project is related to projects carried out by the DSO which are yet to be integrated in the SCADA/EMS such as SS Prishtina 7, SS Gjilan 5 etc. This is an ongoing and permanent project and as such is planned to be concluded by the end of Expected benefits from the projects are: - Enhancement of the security and reliability of transmission system operation - Accurate use of SCADA/EMS applications in the transmission system work analysis - Monitoring and command of the entire transmission system - Fulfillment of technical criteria from the ENTSO/E Operation Handbook.

91 ver. 0.2 page 91 of 148 Project (T/TELEK_OPGW): OPGW in the interconnection lines Currently there are no telecommunications routes OPGW at the boundary lines. Requirements of Policy 6 of the ENTSO/E Operation Handbook require that an TSO must have at least two lines of communication with neighboring systems. Therefore, the project of establishment of OPGW in the interconnection lines up to the border point is considered important for KOSTT and regional system as a whole. In order for the project to be operational there should be an Agreement between TSO s so the OPGW will be installed in the entire length of the line on both sides of the border. The main objective of this project is installation of protective conductor with OPGW (up to the border with neighboring TSO) and telecommunications equipment in the existing interconnection lines of 400 kv: - L 407, SS Kosova B SS Nish 2, with a length of 41 km - L 437/2 SS Peja 3 SS Ribarevina, with a length of km - L 420 SS Ferizaj 2 SS Shkupi 5, with a length of 30. 6km Total length of the OPGW installment is km This project is classified in the group of projects that will be funded by the German Bank KfW through low interest loans and provided as such planned to be implemented in the fourth quarter of Expected benefits from the project are: - Fulfilling the technical criteria from the ENTSO/E Operation Handbook - Exchange of data with neighboring systems - Increasing operational safety of regional transmission systems Project: INTER-TSO Meters Currently there are measuring points in all interconnection lines; however, they are not completely in compliance with the Metering Code and the technical requirements of ENTSO/E. The problems fall in two aspects:

92 ver. 0.2 page 92 of Current and voltage metering transformers have only one core for measuring, while the Metering Code requires having two commercial cores with identical characteristics. - Meters should be of multiple tariffs Project foresees replacement of the measuring points in the interconnection lines: - Line 400 kv: SS Kosova B SS Nish - Line 220 kv: SS Podujeva SS Krushevc, SS Prizreni 2 SS Fierza - Line 110 kv: SS Vallaqi SS N. Pazari, SS Berivojca SS Bujanovci Also the project will include three other measuring points in SS Kosovo B in the border with PP Kosova B: - Line 220 kv, SS Kosovo B TPP Kosovo B - Two fields of generation units B1 and B2 in SS Kosovo B. This project will complete the measuring points in all border of the transmission system with others. This project is alsolisted in the group of projects to be financed by the German Bank KfW through low-interest loans and is planned to be implemented in the fourth quarter of Metering electricity between KOSTT and neighboring systems in line with the metering code. Project (T/GIS-SYSTEM): GIS System in support of Transmission System The geographical information system (GIS) is to be used for organizing and processing of transmission data for the whole territory of the Republic of Kosovo. The main feature of the GIS system is the possibility of spatial/geographical data inter-relation, classification of all technical details of transmission assets in correlation with the surrounding areas. The GIS system also allows for communication with other IT systems. The application of a GIS system in the Transmission System would enable: Accurate geographical positioning of line (pillars) and substations, information on properties in and around installation positions.

93 ver. 0.2 page 93 of 148 Detailed Technical information on each line (pillar), substation, telecommunication antenna, etc Information on property structure and construction in routes planned for new lines. Remote communication by equipment such as: thermal vision cameras, laser height meters, GPS photo cameras, logistical means of GPS equipped maintenance teams. Data collection and processing inside a single collection center. Communication with other IT systems Benefits from the GIS system are rather large, both in terms of savings in the maintenance process, and in the process of operational and long term planning. This system shall also integrate a system for identification of intensity and positioning of lightning discharges, which would contribute in further enhancement of preventive maintenance. The project is due to be completed by Expected benefits from the project are: - Minimization of transmission network maintenance costs - Optimization of the planning and maintenance process, reduction of action time - Systematization of technical data 5.5. Rationale of changes in projects of TDP compared with TDP The current development plan has differences in the list of projects and time of implementation compared to TDP Main reasons for such changes are: - Displacement of technical and commercial boundaries between KOSTT and KEK-DSO - Change of KEDS priorities in relation to substations 110/TM - Delays in the project implementation process as a result of various obstacles. - Applications for connection to the transmission network unforeseen with the past plan - Optimization of distribution of capital costs in years.

94 ver. 0.2 page 94 of 148 In many transmission systems in European countries and wider, planning criteria are similar to criteria applied by KOSTT in long-term planning processes of the transmission system. The fulfilment of the N-1 security security is rather challenging even for the most developed countries, due to the high investment costs in such realization. For this reason, KOSTT also takes into consideration the costs of reaching system operation security criteria in its planning processes. The main objective is to fulfill such criteria within the shortest period possible. The technical criteria of operation security require time to be met, while additional information is provided to the ERO for the reason of derogation. The process of replacing the transformer with a greater power, which is developed by KEK-DSO during the years and 2012 has resulted in some of functional but not operational transformer. After technical analyses, and additional testing of transformers, KOSST initiated their return to operation in substations which are considered necessary. In this case, the SS Berivojce was selected, which currently operates with only one transformer and SS Vitia which operates with limited 2x20 MVA power transformer. A 31.5 MVA transformer, 110/10 kv will be installed in SS Berivojce and a 20 MVA transformer, 110/35 kv will be installed in SS Vitia. The selection of projects which are moved in time result from technical analysis of all projects, the level of their impact on the safety and reliability of the system and prioritizing based on projects that bring particular benefits. Relocation of the border from 110 kv in the medium voltage level, between KOSTT and KEK-DSO and changing of KEDS priorities, constitute a major factor which has contributed to the introduction of new projects and the relocation of some projects time of implementation. Technical Assessment of the transferred assets has identified emergency needs for additional investments. Also, the planning approach of 110/TM kv substations has changed somewhat, introducing additional responsibilities to KOSTT in their planning and its harmonization with KEDS plans. A specific case is the introduction of SS Drenasi priority which was not part of the previous plan. Some of the projects which in

95 ver. 0.2 page 95 of 148 TDP are planned for the northern transmission network, such as the revitalization of the SS Vallaqi, are listed as a priority, while other projects that are not part of the network have no changes. The following are projects which were added as new projects, which were not part of the TDP , as a result of displacing technical and commercial boundaries between KOSTT and KEK-DSO: The reason for projects presented and expected benefits from their implementation is provided with technical descriptions of each project presented above.

96 ver. 0.2 page 96 of NETWORK PERFORMANCE ANALYSIS 6.1. Description of the network model Transmission network planning begins with creating basic mathematical model which corresponds to network situation at the end of 2013 using technical data elements that comprise the Power System. The parameters necessary for creating basic mathematical model include: - Electrical parameters of existing generators - Electrical parameters of 400 kv, 220 kv and 110 kv lines - Electrical transformer parameters, including the 220/35/10 kv, 110/35/10 kv and 110/10 kv transformers - The maximum active and reactive power during winter and summer season in the points of distribution and other expendable points. - Common power flow in border lines - Normal configuration of the transmission network. Simulations and technical analysis of system performance in different periods have been conducted with the help of software package PSS/E 33. This applicable software for the planning processes of transmission networks is used in most countries of South-East Europe, but also in many European countries and the world. Iterative method (recurring), "Full Newton Raphson is used to calculate the power flows, while in calculating the security network criteria is used the module ACA " AC Contingency Solution "which is integrated into the PSS/E. For the purpose of calculating the analysis of short circuits to the system nodes, and disconnection ability of the breakers for voltage level: 400 kv, 220 kv and 110 kv a more complex model was used, which includes the entire region of South-East Europe, model which contains the order parameters of positive, negative and nular elements of the network. To calculate the short circuit currents in the transmission network are implemented the method of calculation according to the IEC standard.

97 ver. 0.2 page 97 of 148 Power System is analyzed for the most unfavorable conditions during the maximum load on the network. Operating conditions and system performance depends on network configuration, interconnection flows and connection of existing generators. The analyzed performance of the current network has identified the network sections which do not comply with technical requirements and the needs for reinforcement in appropriate time sequences, in correlation with the planned development of the system load Actual capacities of the transmission network Q Transformation Capacities; Q Transformation capacities of the transmission network, managed by KOSTT, are installed at substations 400/220 kv, 400/110 kv and 220/110 kv, 220/TM kv and 110/TM kv. The largest transformation capacity is installed at SS Kosova B 400/220 kv. At this substation, there are three auto-transformers installed with a nominal load of 400 MVA. The total transformation capacity of this substation is 3*400 = 1200 MVA. - At SS Peja 3, 400/110 kv, only one auto-transformer of nominal load of 300 MVA is installed. In SS Ferizaj 2 400/110 kv also, an automatic transformer with nominal power of 300 MVA was installed. - At SS Kosova A, 220/110 kv, three auto-transformer of nominal load of 150 MVA are installed, with a total transformation capacity of 450 MVA. - At SS Prishtina 4, 220/110 kv, three auto-transformer of nominal load of 150 MVA are installed, with a total transformation capacity of 450 MVA. - At SS Prizreni 2, 220/110 kv, there are three auto-transformers with nominal power 150 MVA, with a total capacity of 450MVA. - Whereas, substations 110/TM kv and 220/TM kv have an installed capacity of 1837 MVA (without transformers in Feronikel, Trepça, Sharri and Ujmani). Table 6-1 shows transformation capacities of the transmission network in Kosovo, as per network configuration Q

98 ver. 0.2 page 98 of 148 Tab. 6-1 Transformation capacities at transmission network; Q TRANSFORMERS 2013 Nr. TRANSFORMER CAPACITY 400/220 kv SS Kosova B MVA 400/110 kv SS Peja 3 SS Ferizaj 2 220/110 kv SS Kosova A SS Prishtina 4 SS Prizreni 2 110/35 kv, 110/10 kv 220/35/10 kv, 220/10 kv MVA 300 MVA 450 MVA 450 MVA 450 MVA 1757 MVA 80 MVA Total Auto-transformer MVA Total Transformer MVA The actual interconnection capacity with neighboring countries The maximum capacity of load exchange with neighbors (at natural line power) with high voltage transmission lines is 1740 MW. At 400 kv lines, the existing cross border transmission capacity is around 1500 MW (3x500 MW), while at the 220 kv level, some other 240 MW are added (120 MW line with Albania, and 120 MW line with Krusevac, Serbia). NTC 2 (Net transfer capacity) of interconnection lines in Kosovo is smaller than their natural power, and it largely depends on the regional electricity balance in neighboring countries, and from limitations to the regional horizontal network, which may appear in various operational regimes. The table 6-2 shows the current capacities of interconnection lines as per their natural power (P), average NTC and nominal thermal power (Sterm) [10] 2 NTC means max total electricity power exchange between two control areas, compatible to security standards applicable in all regulatory areas, and in due consideration of technical uncertainties of the network condition (definition from the ENTSO-E Operation Handbook).

99 ver. 0.2 page 99 of 148 Table 6-2. Current interconnection line capacities SYSTEMS AND INTERCONNECTIVE LINES Kosovo- Serbia SS Kosova B- SS Nish 2 SS Podujeva SS Krushevac Voltage Level 400 kv 220 kv Capacity 500 MW 120 MW Termal Power 1317 MVA 300 MVA Kosovo - Macedonia SS Ferizaj 2- SS Skopje kv 500 MW 1317 MVA Kosovo - Mali i Zi NS Peja 3 NS Ribarevina 400 kv 500 MW 1317 MVA Kosovo Albania SS Prizreni 2 SS Fierza 220 kv 120 MW 300 MVA NTC 600 MW 400* MW 400* MW 210* MW *Nga The simultaneous interconnection transmission capacity (KNTI) is different from NTC, and is calculated for two cases: When the electro-energy system simultaneously imports through all interconnections (at different time periods), until a first limitation at the horizontal network appears for the importing country and exporting countries (for the N-1 criterion). When the power system simultaneously imports through all interconnections (at different time periods), until a first limitation at the horizontal network appears for the importing country and exporting countries (for the N-1 criterion). Calculation is rendered by the PSS/E software, based on long term demand and generation forecasts for the regional countries, correlated with regional transmission system development plans [8]. Natural flows at interconnection lines are flows defined by system impedance, generation location and loads in case when individual systems are balanced (no exchange). Natural flows are amongst key factors affecting various capacities of interconnection for imports and exports.

100 ver. 0.2 page 100 of 148 The Simultaneous Interconnection Transmission Capacity is not calculated as an amount of Net Transfer Capacity (NTC), and as such, it is much smaller3. Currently, the KNTI of the transmission system in Kosovo is approximately 900 MW for power imports, and 1000 MW for power exports. Considering the electricity balance, it may be considered that current interconnection capacities are rather large, and allow for any exchange program for the needs of the power system in Kosovo. In order to ensure effective access to the transmission network and implicitly market infrastructure for cross-border transactions, is developed regulations 1228/2003/EC which sets out the principles for congestions managing. In this case, it has become clear that interconnection lines congestions should be selected on the basis of market orientation and non-discriminatory methodology. The allocation of capacity currently based on the calculation of NTC, on the interconnection lines between TSOs. The experience of recent years has shown that cross-border capacity allocation method based on the market can lead to inefficient use of interconnection capacity, if not taken into account the real power flows properly. Allocation based on power flows, now is used by several TSO in Europe. In general, capacity allocation based on power flows presents a method which applies to large group of TSOs. This means that bids for energy and relevant cross-border capacities are optimized by a centralized entity that takes care of the actual allocation "Coordinating Allocation Office." In capacity allocation mechanism based on power flows, commercial transactions are not limited to interconnections where they have been reported, but they are converted into the physical flow of power using simplified models in order to assess the impact of flows in other interconnections, and to assess the overall safety of the transmission system which includes the entire TSO-s group. The expected advantages from the establishment of the "Office for coordinating allocation" using coordinated sales based on the power flow are: optimal use of existing interconnection high level of system security Facilitate regional market activities due to the efficient use of the transmission network and the establishment of cross-border transactions 3 ENTSO/E Raport: System Adequacy Forecast

101 ver. 0.2 page 101 of 148 Increasing transparency between the parties involved. Promote investment in infrastructure Analysis of the transmission network condition as per configuration Q Investments made in the transmission network during have had an effect in improving the operational performance of the transmission system. Current ongoing projects, and those expected to be completed by the end of 2013, will enhance the network even further towards compliance with the technical requirements as per Grid Code. Figures 6-4, 6-5 and 6-6 show Kosovo s power system, as per network topology Q Figure 6-5 shows power flows and voltage levels in the Power System in PSS/E N-security criterion analysis The system was analyzed for a gross max load of 1220 MW, with all elements (lines, transformers, load) at operation. In this case, power flows were monitored, together with the level of voltage at bus bars, and level of load on 400 kv, 220 kv and 110 kv lines; in autotransformers 400/220 kv, 400/110 kv and 220/110 kv, and also in 220/35/10 kv, the 110/35 kv and 110/10(20) kv transformers. Simulation results have not identified any overloaded elements. The maximum capacity of internal transmission network, as per technical security criterion N for the end of 2013 is around 1500 MW. This means that the transmission system can supply a gross load of 1500 MW, while fulfilling the N-security criterion. If one refers to the forecasted maximum load, there is a sufficient security margin, approx. 23% (280 MW) N 1 security criteria analysis The system performance was analyzed in terms of the N-1 security criterion, thereby monitoring line and transformation loads, and the level of voltage at bus bars when a critical element (transformer, line, cable) fails. Table 6-3 presents the lines which do not fulfill the

102 ver. 0.2 page 102 of 148 N-1 criterion, the outage of which causes deviation of load or voltage, beyond the limits allowed by the Grid Code. Table 6-3. Lines falling out of N-1 criterion, as per network configuration Q4:2013 Nr Critical fall Q Overload element Iter 1 L 110 kv Prizren 2 - Prizren 3 L 110 kv Prizren Prizren 1 2 L 110 kv Prizren 2 - Prizren 1 L 110 kv Prizren Prizren 3 3 L 110 kv Gjakova 1- Gjakova 2 L 110 kv Peja 3 Peja Peja 2 Peja 1 Deçani Gjakova1 4 L 110 kv Peja3-Peja1 L 110 kv Gjakova1-Gjk2 L 110 kv Deqan-Gjk1 L 110 kv Peja 3 Klina L 110 kv Deçan-Peja 2 [%] Busbars with voltage me Peja 1 Peja 2 voltage fall >10% Un 110 kv 110 kv 110 kv 110 kv 110 kv 110 kv kv kv kv kv kv kv 1 Radial line L 110 kv Rahovec- Prizren2 In addition, critical outages are also associated with the line SS Drenas SS Prizren 2, but this is only eliminated if we import 100 MW or more from Fierza. Critical failures numbered 1 and 2 will be eliminated if the line 110 kv SS Prizren 2-SS Prizren 1 with a length of 3. 2 km, is converted into a dual line. Critical failures 3 and 4 will be eliminated in 2014 year with the completion of the project of line allocation L1806 from Gjakova 2 to Gjakova 1. In terms of transformation, there are further restrictions to the fulfillment of N-1 criterion. Table 6-4 shows substations which do not fulfill the N-1 criterion.

103 ver. 0.2 page 103 of 148 Table 6-4. Auto-transformers falling out of N-1 criterion (Q4:2013) Nr Critical fall ATR Q Overload element Iter 1 AT1, 300 MVA, NS PEJA3 L 110 kv Kosova A- Vushtrri 2 L 110 kv Palaj-Vallaq L 110 kv Vallaq-Skenderaj [%] Busbars with voltage fall Peja 3 Burimi Klina Peja 1 Peja 2 Deqani Skenderaj >10% Un 110 kv 110 kv 110 kv 110 kv 110 kv 110 kv 110 kv kv kv kv kv kv kv kv Computer analysis (simulations in PSS/E in the system model) have shown that currently the transmission network can fulfill the N-1 criterion for loads smaller than 1080 MW. N-1 capacity remained the same as last year due to a delay in implementing the project: Allocation of L1806 line from Gjakova 2 in Gjakova 1, a project which affects the transmission capacity enhancement. The effects of the enhanced capacity will be observed after the introduction of the abovementioned project in the first quarter of Figure 6-1 presents development of N and N-1 capacities of the (internal) network, in relation to the seasonal load for the period Q1/2011-Q1/2014.

104 ver. 0.2 page 104 of 148 Figure 6-1 Development of internal transmission network capacities from Q to Q Voltage profile Development of powerful nodes in SS Peja 3 and SS Ferizaj 2, and construction of two 110 kv lines and their reinforcement has had an impact so that in the normal operation of the transmission system (at maximum load), the voltage in the Q configuration was in the allowed band under the Grid Code, as shown in Figure 6-2. We can observe the impact of the entry into operation of 110 kv line in SS Ferizaj 2 - SS Gjilan 5 and SS Lipjani interconnection with line L112, which lead to a significant increase in the voltage level in 110 kv nodes in several substations in the Gjilan region interconnected with the substation. In terms of fulfilling the N-1 security criteria for the voltage levels, Tables 6-3 and 6-4 show the critical declines which cause voltage drop below the level allowed by the Grid Code.

105 ver. 0.2 page 105 of 148 Fig 6-2. Voltage profile at 110 kv by network topologies Q The system is also monitored during the minimum load regime, where we have observed, in 220 kv network in SS Kosovo B and SS Kosovo A, very high voltages which are close to critical (maximum) values. Figure 6-3 shows the one-off voltage level in main substations as recorded in the SCADA system on 05/19/2013 at 5:30 pm. National consumption in the aforementioned date is recorded in the value of 320 MW. The increase of the voltage level in low load regime is impacted by the following factors: Minimum system load Network reinforcement General influence of the regional network in the Kosovo Transmission Network Minimum load operation reduces losses of active and reactive power in the network, contributing to raising the voltage level across the network. High voltage lines inject reactive power in function of the voltage quadrant. This represents an additional factor in raising the level of critical voltage level (over-voltage).

106 ver. 0.2 page 106 of 148 Transmission network reinforcements in the last six years have directly contributed to the reduction of power losses and increase of the voltage level. This is emphasized in the 220 kv voltage network. 400 kv network is influenced by the regional network which also works under the same regime in minimal load. Overvoltage problems are also reported in other regional systems, which represent a challenge to the coordination of insulation. Issues of overvoltage in the Transmission Network in Kosovo have been reported in the past three years, after the entry into operation of the SS Peja 3 and SS Ferizaj 2. Most critical node is still SS Kosovo B and SS Kosovo A because of the fact that voltage at 220 kv level are close to the maximum value, while on the other hand the level of pollution in those substations is high, risking insulator discharges which result in short circuits in busbars. For this reason, the System Operator is forced to take measures to reduce the voltage in the allowed value in case the voltage level exceeds 235 kv. This can be achieved by changing the configuration of the network, namely the opening of several 220 kv voltage lines on both sides, if they do not threaten the security of supply. SS RIBAR. NISH 2 SS KOSOVA B U=410 kv U=417 kv U=420.4 kv SS FERIZAJ 2 SHKUPI 5 AT1 AT1 SS PEJA 3 Besiana U=234.5 kv AT1 AT2 AT3 G1 G2 SS KOSOVA B U=238.3 kv U=232.5 kv SG DRENASI U=238.2 kv U=237.1 kv SSH DRENASI-1 SS KOSOVA A SS PRISHTINA 4 AT1 AT2 AT3 TS FERONI U=236.1 kv AT1 AT2 AT3 AT1 AT2 AT3 Fig 6-3. Voltage level in main substation registered in date at 05:30 TS PRISHTINA - 4

107 ver. 0.2 page 107 of Power losses in transmission network The system was analyzed also in terms of load loss in maximum load, while the computer calculation results are presented with the table 6-5. Losses were calculated specifically in lines and transformers, as per level of voltage. Calculated load losses in peak load are based on ideal resistance and inductivity of elements modeled at PSS/E, and do not reflect real losses, which are dependent on other factors which cannot be modeled, such as: resistance of contact of high voltage equipment, resistance of connection bridges in line conductors, crown effect, impact of temperature change at Ohm resistance, etc. Nevertheless, the results gained provide important comparisons showing the trend of loss development at the function of load changes and network capacity. Grid load losses for various years do not match with energy losses during a year, since in the majority of cases, grid reinforcements take place in the fourth quarter of a year, while the effects at the volume of energy losses in the network can only be recorded in the next year, after relevant reinforcements are made. Tab Active and reactive power losses at maximum load (Q4-2013) Power losses/topology Q P Q Losses [MW] [MVAr] [%] Losses in lines 400 kv Losses in lines 220 kv Losses in lines 110 kv Total losses in transmission lines Losses in auto-transformer 400/220 kv Losses in auto-transformer 400/110 kv Losses in auto-transformer 220/110 kv Losses in auto-transformer 110/TM kv Total losses in transformation Total losses in transmission network

108 ver. 0.2 page 108 of 148 The largest part of losses of active power occurs in transmission lines (75%) predominantly losses in 110 kv level the share of which 51.2 % in total losses. 110/TM transformers comprise 14 % in total losses in the transmission losses. Compared to peak losses in 2012 (32.1 MW), losses in the current year have been reduced slightly, only by 2.2% over the previous year. Losses of reactive power are mainly caused in power transformers, whereas lines in total inject firstly reactive power in the network, and as a result in the operation conditions with a maximal load. Due to the large number of transformers and automatic transformers, the total need for reactive power which is absorbed in the transmission network is around MVA. This value is added to the reactive power of the load, which for the power factor cos =0.95, and for P max =1220 MW is Q max =401 MVAr.

109 ver. 0.2 page 109 of 148 Fig. 6-4 Single line diagram, Kosovo power system, network topology Q4-2013

110 ver. 0.2 page 110 of 148 Fig. 6-5 PSS/E Model of the Kosovo Power System by network topology Q4-2013

111 ver. 0.2 page 111 of 148 Fig. 6-5 Kosovo Power System by network topology Q4-2013

112 ver. 0.2 page 112 of Analysis of the transmission network condition by topology During 2019, rather important projects are due to complete, thereby influencing directly the improvement of the operational performance of the transmission system. In the period , we expect to have operational the following projects - SS Mitrovica 2 110/10(20) kv - Interconnection line 400 kv SS Kosova B SS Tirana 2 - Hydropower Plant Lumi Deçani 35 MW - Wind Parc 45 MW Zatriqi - Wind Parc 45 MW Budakova - Second auto-transfomer 300 MVA, in SS Peja 3, 400/110 kv - Second auto-transfomer 300 MVA, in SS Ferizaj 2, 400/110 kv - New 110 kv line SS Peja 3- SS Peja 1 - Revitalization of the line L155/2 and L163 - Second transformer in SS Berivojce, SS Klina and the third in SS Vitia - SS Dragashi and line 110 kv SS Kukës - SS Dragash - SS Prizren 2 - SS Malisheva and line 110 kv SS Rahovec - SS Malisheva SS Theranda - SS Prishtina 6 110/10(20) kv - SS Fushë Kosova 110/10(20) kv - SS Drenasi 220/35/10(20) kv - Revitalization of the line110 kv: L126/2 SS Peja 2- SS Deçan Gross maximal load in 2019 is forecasted to be 1390 MW. Figure 6-10, 6-11 and 6-12 is shown in Kosovo s Power System, by network topology Q Figure 6-11 shows the power flows and voltages in the Power System in PSS/E N-security criterion analysis The system was analyzed for the maximum estimated gross load of 1390 MW, for the network topology Q4-2019, with all elements (lines, transformers, load) in operation.

113 ver. 0.2 page 113 of 148 The simulation results have not identified any lines or transformers overloaded. The maximal capacity of the internal transmission network, as per N-security criterion for the end of 2018 will increase considerably compared to 2012, as a result of planned reinforcements in the transmission network. Maximal capacity of the internal transmission network would revolve around the amount of 1870MW. This means that the transmission system can supply a gross power of 1870 MW by the end of 2019, without any network bottlenecks and under the allowed voltage level limits. Referring to the maximum estimated load for 2018, there is a sufficient security margin, which circles around 34.5 % (480 MW) in reference to the maximum load N-1 security criterion analysis Implementation of planned projects until 2019 will result with a transmission system which will fully meet the technical criteria required by the Grid Code, in terms of security and quality of supply. From the fourth quarter of 2018, the transmission system will fulfill the N- 1 security criterion for lines (cables) and transformers, always referring to the values outlined for the load in the next ten years. If the load forecast goes according to the low scenario, the N-1 criterion will be fulfilled earlier. Planned projects after 2019 are selected so that they assist the maintenance of the N-1 criterion if it is threatened. Such a situation may vary in the case of a different development of generation capacities other from the current plan, or if no load development goes under the base scenario. If new generation capacities are developed not only in the area where the existing power plants are located, the flow of power will be lower and therefore the N - 1 criterion will be positive. Annual revision of the development plan, based on new information from both generation and load sides, necessarily requires the change of priorities during the planning process. The period of the second five-year may be affected by uncertainties, predominantly in generation and load development. Figure 6-6 shows N and N-1 capacity development of the (internal) network, in relation with the seasonal load for the time period Q1:2014-Q4:2019

114 Kosova A Prishtina 4 Prishtina 1 Prishtina 2 Prishtina 3 Prishtina 5 Lipjani Palaj Vushtrii 2 Vushtrii 1 Trepça Vallaqi Peja 3 Burimi Skenderaj Klina Peja 1 Peja 2 Deçani Gjakova 1 Gjakova 2 Rahoveci Prizreni 2 Prizreni 1 Prizreni 3 Theranda Ferizaj 1 Sharri Gjilani Viti Berivojca Office: Long-term Planning and Development ver. 0.2 page 114 of 148 Figure 6-6 Internal transmission network capacity development, from Q to Q Voltage profile and losses The voltage profile at all 110 kv voltage levels in the 2019 network topology should remain within optimal limits in maximum load, as shown in the figure 6-7. kv Profili Q4_2019 Umax Umin Unom Fig. 6-7 Voltage profile in 110 kv bus bars as per 2019 network topology In operational regimes at summer loads in the system, the higher voltage levels will be recorded, especially at 400 kv and 220 kv horizontal grids, as shown in the figure 6-9. The

115 ver. 0.2 page 115 of 148 reason for such an increase in voltage is development of the 400 kv network capacities in the region capacity building in the internal network, construction of a 239km long line SS Kosova B- SS Tirana 2, which in minimum load regimes should inject around 75 MVAr of capacitative reactive power in SS Kosovo B bus bars. In this case, the installation of an inductive reactor 120 MVAr at SS Tirana 2 (220kV bus bars) is considered. The control of voltage level at 400 kv bus bars is almost negligible, by undertaking operational measures within the relatively small power system of Kosovo, while the voltage level at 220 kv bus bars is partially controllable, by making limited modifications of the network topology (opening of the SS Fierza SS Prizren 2 line, disconnection of a line SS Kosova B SG Drenasi etc). Over-voltage levels at 110 kv level can be managed easily, since the 110 kv network topology can be modified as per certain modes, with a view of avoiding line overcompensation. The only technical possibility of controlling overloads on transmission grids is installation of an inductive static reactor 100 MVAr at SS Kosova B (at 220 kv bus bars). Due to high uncertainty of network developments in the region, the voltage level at the horizontal network (inside and outside the system) will be monitored carefully, so as to ensure a timely decision on planning installation of a 100 MVAr reactor at SS Kosova B. Fig. 6-8 Voltage level at 400 kv and 220 kv bus bars in summer minimum load regimes simulated for 2019 year.

116 ver. 0.2 page 116 of 148 Active power losses will be reduced at 110 kv lines, while at 400 kv lines there will be an increase of losses, as a result of construction of the 400 kv line SS Kosova B SS Tirana 2, and the increased transit flux in the transmission network. The active power losses will increase in comparison to 2013, while reactive power losses will increase less than in comparison to The following table shows total losses at transmission network, and loss percentages as per voltage level and type of element. Tab Active and reactive power losses in maximum load (2019) Power losses/topology Q P(MW) Q(MVAr) ΔP(%) Total losses in lines 400 kv Total losses in lines 220 kv Total losses in lines 110 kv Total losses in transmission lines Total losses in transformers 400/220 kv Total losses in transformers 400/110 kv Total losses in transformers 220/110 kv Total losses in distribution transformers Total losses in transformers Total losses in transmission network

117 ver. 0.2 page 117 of 148 Fig. 6-9 Single pole scheme of Kosovo power system, network topology 2019

118 ver. 0.2 page 118 of 148 Fig Model of the Kosovo Power System in PSS/E according to network topology 2019

119 ver. 0.2 page 119 of 148 Figure Kosovo Power system according to network topology 2019

120 ver. 0.2 page 120 of Analysis of the transmission network condition, topology The operational performance of the transmission system was analyzed for 2023, modeled in PSS/E by integrating all planned projects for the next 10 years. As per a list of projects selected by a computer analysis determination, a considerable number of important projects of transmission network reinforcement is planned for implementation for the time period such as the following: - Revitalization of the line SS Prizren 1 SS Prizren 3 - New line 110 kv SS Prizren 1- SS Prizren 2 - Revitalization of the line L163 SS Kosova A- SS Bardhi - SS Mitrovica 2- SS Vallaq - New line 110 kv SS Peja 3- HC Ujmani - Revitalization of the line110 kv, L115/2 - Project Package 400 kv ring Gjakova - Prizren - Ferizaj (phase I) Figures 6-15, 6-16 and 6-17 shows Kosovo s Power System according to network topology of Q Figure 6-16shows the power flows and voltages of the Power System in PSS/E N security criterion analysis The system was analyzed with 1000 MW of new generation capacity connected to SS Kosova B and decommissioning of the TPP Kosovo A, referring to the conservative generation development scenario as per document Generation Adequacy The system was modeled to a gross load of 1519 MW as forecasted for The construction of SS Prizren 4, 400/110kV and creation of a 400kV ring, should ultimately bring the transmission network to a condition conducive to further support for the load and development of large generation capacities, both conventional and renewable. As presented by the Fichner study, the new 400 kv network topology will enable the sectioning of load groups connected at 110 kv network, and enhancement of operational security of the transmission network, by establishing reserve disconnection capacities. The internal network capacity will have attained the amount of 2100 MW with a 40.5% (606 MW) security margin

121 ver. 0.2 page 121 of 148 in relation to the maximum load for The figure 6-12 presents a horizontal scheme of the transmission network, modeled after the regional network (SECI_2020_PSS/E). The model shows the load flows for certain regimes of regional exchange. The ring configuration allows for the creation of four consumption groups to be supplied by main transmission substations. Fig Horizontal network of transmission system, after development of 400 kv ring - topology Horizontal Network topology N-1 security criterion analysis The 2023 network topology transmission system does not identify any lines or transformers, the outage of which would create any overload in other parts of the network. Such a network topology allows for a full compliance with the N-1 security criterion up to the consumption rate of 1520 MW. The creation of a 400 kv ring, and creation of four

122 ver. 0.2 page 122 of 148 consumption supply groups, all create higher flexibility and operation security of the system. The failure of any single 400 kv line would not influence the security of supply for consumption and regional exchange. The N-1 criterion is fulfilled both for interconnection lines and internal lines. Development of internal network capacities for the period is presented with the figure Fig Internal transmission network capacity of transmission Voltage profile and losses The reconfiguration of the 110 kv network, by creation of four supply groups I- Peja 3, II- Kosova A & Prishtina 4, III- Ferizaj 2 and IV-Prizreni 2&4, creates an almost maximal optimization conditions for load flows, reflected into an ideal voltage profile at all bus bars 400, 220 and 110 kv during the winter consumption. Figure 6-14 shows the voltage profile for 110 kv bus bars.

123 ver. 0.2 page 123 of 148 Voltage Profile Voltage [kv] 110 kv Substations Fig Voltage profile in 110 kv bus bars as per network topology for 2023 MW-expressed network active power losses will be higher than 2019, as a result of growing consumption. As per computer calculations (Table 6-7), losses of active power in peak load 1519MW will be 41.2 MW, from which 77.4 % are caused by lines, where line losses dominate 110 kv (53.4 3%). In terms of reactive power balance in the transmission system, the influence of 400 kv ring is rather present. Lines inject a total reactive power of 161 MVAr (capacitative) into the network, while on the other hand transformers can absorb a reactive power rate or approx 234 MVAr (inductive), which means that only 77 MVAr are counted as reactive power losses caused by the transmission network. The reactive side of consumption is to be covered by domestic generation sources.

124 ver. 0.2 page 124 of 148 Tab Active and reactive power losses in maximum load (2023) Humbjet e fuqisë/topologjia Q P(MW) Q(MVAr) ΔP(%) Totali i humbjeve në linjat 400 kv Totali i humbjeve në linjat 220 kv Totali i humbjeve në linjat 110 kv Totali i humbjeve në linjat transmetuese Totali i humbjeve në transformatorët 400/220 kv Totali i humbjeve në transformatorët 400/110 kv Totali i humbjeve në transformatorët 220/110 kv Totali i humbjeve në transformatorët distributiv Totali i humbjeve në transformatorë Totali i humbjeve në rrjetin e transmisionit

125 ver. 0.2 page 125 of 148 Single Line Diagram of Kosovo Power System, 400/220/100 kv Fig Single-line diagram of the Kosovo power system, network topology

126 ver. 0.2 page 126 of 148 Fig Model of the Kosovo Power System in PSS/E according to network topology

127 ver. 0.2 page 127 of 148 Figure 6-17 Kosovo Power System by network topology

128 DEVELOPMENT PLAN ver. 0.2 page 128 of General conclusion The Kosovo transmission system must develop in a manner of allowing for a secure, reliable and qualitative supply of consumption, pursuant to technical requirements of the Grid Code and the operation manual of ENTSO/E. An adequate and sustainable development of the transmission system provides for favorable conditions of development of conventional and renewable generation capacities. Appropriate long term planning for transmission system development is essential to meeting above-mentioned requirements. The Transmission Development Plan has identified medium and long term needs for infrastructure projects necessary for the enhancement and maintenance of the operational performance of the system, in relation to development in consumption, generation and regional markets of energy. The TDP sets forth the development priorities broken down by category and implementation timelines. The full realization of transmission development plans is challenging to the most developed countries. Difficulties in accessing property, global economic crisis, lack of financial resources, social implications, are some of the factors which may slow or prevent the realization of projects which are necessary to be taken into account by planning engineers. If one would refer to development of KOSTT in the last 5 years, it may be considered that development objectives have largely been realized thanks to financial support of the Kosovo Budget and international donors. Positive impacts of projects completed and those ongoing have been analyzed in the previous development plan, while the following are general comments on new development projects presented in the TDP Developments in the last 5 years of the transmission system have created conditions for KOSTT membership to ENTSO/E. Regarding policies arising from ENTSO/E Operation Handbook which relates with technical requirements to be fulfilled each TSO, KOSTT with recent investments, increasing the transmission capacity, security and reliability of the system as well as development modern systems for measurement, monitoring and control, is in the same position or better than some of the TSO-s in the region which are already members of the ENTSO/E. With development of the secondary control project which represents one of the main technical requirements for membership in the ENTSO/E, KOSTT will be fully ready for membership. Given the activities for the establishment of a common market with Albania and

129 DEVELOPMENT PLAN ver. 0.2 page 129 of 148 joint operation of both systems, the accession process to ENTSO/E shall not have any restrictions Network capacity development The implementation of projects identified by the TDP will enable a consistent enhancement of internal network capacities, which in turn would render conducive to supply consumption. Reinforcement at key nodes at SS Peja 3, SS Ferizaj 2 and SS Prizren 4, 400 kv and 110 kv network reconfiguration with the development of new 110 kv lines, are the key factors to foster development of transmission network capacities. The figure 6-18 shows a chart of development of internal network capacities in relation to load development for the next 10 years, in two scenarios of peak development. Fig Development of internal network capacities in relation to load development for the next 10 years In the next ten year period, the horizontal network will also be subject to capacity enhancement, as a result of development of the new 400 kv interconnection line SS Kosova B SS Tirana 2, and construction of the 400 kv ring in Kosovo. The capacity of transmission network interconnection lines in Kosovo will be much higher than the import margin, or possibilities of electricity export available to our country for the next 10 years, even in due consideration of a considerable volume of transit flows (through our network) for the regional

130 DEVELOPMENT PLAN ver. 0.2 page 130 of 148 countries. However, on the other hand, restrictions may be announced which make it difficult to realize high-volume imports. In most cases, capacities presented by TSO-s of the region, particularly by EMS, are considerably lower than the reality. Figure 6-19 provides indicative values of simultaneous interconnection capacity for export and import, calculated in a regional model. The estimated capacities take into consideration the N-1 criterion for the whole horizontal network of regional transmission systems. When referring to planned generation development in Kosovo, the horizontal network will be able to accommodate considerable generation capacities in full compliance with technical requirements of ENTSO/E. In case of construction of a second 400 kv line SS Kosova B SS Skopje, interconnection capacities would be considerably higher. This project remains optional, and its advancement will largely depend on the changes of transit flows to Southeastern European countries, and the size of generation capacities to be installed in Kosovo. SYSTEM ADEQUACY Fig Simultaneous interconnection capacity development N-1 security criterion If one was to review the situation in the network before 2009, the N-1 security criterion would not be compliant even in summer consumption, while in normal operation conditions, the

131 DEVELOPMENT PLAN ver. 0.2 page 131 of 148 network would be subject to overloads which were managed by reducing load. In reference to the current situation (2013), the network condition has changed largely for the better, in which case the network does not display any bottleneck, while the N-1 security criterion is not complied with only at 5% of the annual time, excluding radial supplies of Rahovec. Full implementation of the N-1 security criterion requires considerable investment. If we refer to development processes planned for the next 10 years, the security criterion will be fully complied with only after 2018, while until then, the criterion will be very close to completion. N-1 criterion 220/TM kv and 110/TM kv substations, due to the high cost and tariff implications, cannot be completed in its entirety, but in coordination with KEDS we will examine the technical possibilities to partially complement the issue from reserves in the distribution network. The figure 6-20 shows the ability of the network to fulfill the N-1 security criterion, in a relation with the maximum load for the next 10 years, for three load scenarios. It is clear from the Figure that the N-1 criterion will not be fulfilled even after 2018 if we take as reference the high load increase scenario, whereas if the low load scenario is implemented, the N-1 criterion will be met entirely in Fig N-1 capacity development of the transmission network

132 DEVELOPMENT PLAN ver. 0.2 page 132 of Quality of supply and efficiency Not long ago, a considerable part of the transmission network could not provide quality supply in winter peaks due to the poor network, large active and reactive power losses. All this resulted in rather low voltage levels at the 110 kv level, especially in areas remote to generation sources. On the other hand, the amount of energy undelivered to consumption, as a result of restrictions in the transmission network, was rather high. Reinforcements to the network, especially after 2008, have created the conditions for a quality supply of consumption and an extraordinary reduction of power losses in the grid. The voltage level for a considerable part of the network was stabilized after the commissioning of Peja 3 project, whereas the construction of SS Ferizaj 2 and other developments in the southeast Kosovo brought the tension levels to those allowed in the technical requirements of the Grid Code. Reinforcements planned for the upcoming 10 years will enable further advancement of supply quality and efficiency, and for its maintenance within the limits set forth in technical requirements described in the ENTSO/E Operational Handbook.

133 DEVELOPMENT PLAN ver. 0.2 page 133 of FAULT CURRENTS IN THE NETWORK 7.1 Introduction This chapter examines the problem level of fault currents in all bus bars of 400 kv, 220 kv, 110 kv and medium voltage levels of 35 kv and 10 kv which are part of KOSTT network. Review of fault currents or three phases and one phase to ground short circuit level was made for periods in relation to the planned developments in transmission network and the overall Kosovo Power System. 7.2 Calculation of fault currents level Kosovo Power System is strongly interconnected to regional transmission network 400 kv and 220 kv. Relevant supplies of fault currents which are characterized by serious impact on system security are concentrated in two main substations of the system: SS Kosovo B and SS Kosovo A. All existing TP plants are connected in the two substations. The objective of the study of short circuits is assessment of the impact of fault currents in the security of the system. Fault currents will be calculated in accordance with Policy 3 of the ENTSO-E Operation Handbook. The essential objective of this study is to identify the bus bars in which the level of fault currents exceeds breaking capacities of the existing breaker and sustainability and other equipment (switchgear, measuring transformers, busbars, etc.) and determination of security margin of all installed breakers or those that will be installed in the transmission system in Kosovo Mathematical model, calculation methodology and applied software In order to determine the maximum fault currents in transmission system of Kosovo and the impact of neighboring systems in these currents, in study was used regional model which include 13 models of integrated Power System of the countries of South-Eastern Europe. For this analysis is also used software PSS/E 33. Part of the network which is interconnected with

134 DEVELOPMENT PLAN ver. 0.2 page 134 of 148 this model it s equal to the Teveneni network (method for simulations of models in the case of large networks). Calculation methodology is based on the IEC standard. Maximum effective value of the sub-transient component of the total fault currents three-phase and one-phase with ground, is applied to every bus bars of level 400 kv, 220 kv, 110 kv, 35 kv and 10 kv. Different from the previous documents, two and tri layer 220/TM and 110/TM kv transformers were incorporated in computer models in PSS/E. The generators are equaled to their sub-transient reactance x" d. The time of 100 ms is considered as the time of fault elimination. Based on IEC standard, calculations are made for no load operation, while the initial conditions of the equaled network voltage of the Tevenen is taken as 1.1xUn. Time Ik = Effective value of the fault currents ip = The initial amplitude of the fault currents Ik= Continual fault currents idc = Dc component of the fault currents A = Initial value of the dc component of idc Fig 7-1 Form of the fault currents and its components

135 DEVELOPMENT PLAN ver. 0.2 page 135 of Features of the power circuits of the transmission network In the transmission system currently in the existing substations of KOSTT are installed different types of circuit breakers in terms of producers. While in terms of types of dielectrical medium for extinguish electric arch are installed two types of breakers: - Oil circuits and - Gas circuits SF6 The old generation of the breakers have usually used oil as a dielectric medium for extinguish the arch, while new generations of breakers use SF6 gas with a dielectric characteristic and better durability. Breakers with SF6 medium for arch extinguish represent necessary standard of breakers for installation in transmission network. Also this kind of breaker has general features significantly better than oil breakers, as in electro-mechanical stability during the process of normal connections and disconnection, or the occurrence of fault currents. KOSTT systematically is replacing the oil breakers with the new breakers within the revitalizing projects of the existing substations. Disconnection capacity of circuit breakers is different starting from 16.5 ka, 18.3 ka, 23 ka, 31.5 ka and 40 ka. The safety margin of the breakers and other high voltage equipments is estimated by recognizing the level of faults currents failures in a long-term domain that can occur in all substations and compared with the level of disconnection capacities of the breakers Results of the calculated fault currents Based on IEC standard, are calculated three-phase and one-phase to ground short circuit for voltage levels 400 kv, 220 kv, 110 kv, 35 kv and 10 kv of the transmission network. Calculation of currents is made in computer models in relation to the project development under the network configuration: 2013, 2019 and In Chapter 8, in a more general manner, we have presented the effects of installing new generators to increase the value of fault currents in the domain of the second five year planning period, starting from the lowest scenario development of generating units of TPP New

136 DEVELOPMENT PLAN ver. 0.2 page 136 of 148 Kosovo, the HPP Deçan River connected in SS Deçan and two wind energy parks "Zatriqi" and "Budakova" Assessments of the calculated fault currents in busbars 400 kv, 220 kv and 110 kv (2013) Results of simulation of three-phase and one-phase fault currents with ground for network configuration according to the latest situation in 2013 based on the IEC standards is presented in Figure The results of computer calculations in PSS/E show greater level of short circuit power in two main substations, SS Kosovo A and SS Kosovo B, which are very close to generating resources and supplies from the powerful interconnection of 400 kv. At 220 kv busbars at SS Kosovo A the one phase to ground short circuit at a value of 27 ka represents the largest electricity transmission network. Also in the SS Kosovo B at the both levels of voltage the one phase to ground short circuit are relatively large at 20.9 ka (at 400 kv) and 26 ka (220 kv). In all other parts of the network, distancing from generator sources, threephase short circuit current dominates over the single-phase. All 110 kv substations near SS Kosovo A (Prishtina area), are characterized with large fault currents. Results of calculating the level of fault currents lead to the following conclusions: kv, 220 kv and 110 kv breakers installed in the transmission network have a sufficient security margin (>20%). Their disconnection capacity towards fault currents level is within the limits allowed under the IEC standards for the high voltage disconnection equipments. Plans for re-vitalizing of substations SS Peja 1, SS Gjakova 1 etc, will help increase the safety margin of these substations, which have very old breakers installed that do not guarantee the stated nominal stability.

137 DEVELOPMENT PLAN ver. 0.2 page 137 of 148 Fig. 7-2 Chart of three and single phase earthed fault currents, for the current network topology Assessments of the calculated fault currents in busbars 35 kv and 10 kv After the transfer of distribution transformers 220/TM kv and 110/TM kv from DSO in KOSTT, two and three-layer transformer models were transferred to calculate short circuits in the computer model, for the busbars 10 kv and 35 kv. Transformer fields and owner consumption fields are now part of the KOSTT infrastructure. Calculation of fault currents have identified breakers which have no security margin and their operation may risk the security of supply. Table 8-1shows values of three-phased short circuit current values for busbars 10 kv and 35 kv for the case when transformers are not working in parallel in the medium voltage side, as it is the practice. Single-phase short circuit currents with grounding in distribution systems are usually limited through Xg reactance or Omic resistance Rg. According to the Distribution Code, transformers 110/35 kv must ground their neutrals through the so-called Petersen reactance, which represents and resonant impedance and are applied when there are long and numerous 35 kv cables. In this case, single-phase short circuits with grounding are limited in the range A.

138 DEVELOPMENT PLAN ver. 0.2 page 138 of 148 Transformer neutrals 110/10(20) kv are grounded through omic resistor of various resistances, depending on the transformer power and desired value of single-phase short circuit limitation with grounding. Usually single-phase fault currents with grounding are limited in the range A. The breakers security margin was determined from the calculations of three-phased fault currents comparing with the disconnection breakers installed capacity in existing substations. The data presented in Table 8-1 identify three substations with inadequate dimensioning of currents breakers. Calculation results of the level of fault currents lead to the following conclusions: - In SS Prishtina 1 and SS Prishtina 3, existing breakers of 10 kv level risk the security of supply, as they have a negative security margin - In SS Klina, the 10 kv transformer field breaker has the best dimensioning (25 ka), but other outgoing breakers 10 kv have a highly reduced margin. Breakdowns during night time when voltage level may exceed 1.1 Un, may be a risk for the substation. - Other substations have a sufficient security margin - Installation of transformers 63 MVA of voltage level 110/10 kv must be avoided due to high fault currents in busbars 10 kv

139 DEVELOPMENT PLAN ver. 0.2 page 139 of 148 Table 8-1 Calculations of three-phased short circuit current in busbars 35 kv and 10 kv Substation Ik3 [ka] CB [ka] Margin Besiana 35kV % Besiana 10kV % Prishtina 1 35kV % Prishtina 1 10kV* % Prishtina 2 10kV % Prishtina 3 10kV* % Prishtina % Bardhi 35kV % Vushtrria 1 35kV % Vushtrria 2 10kV % Skenderaj 10kV % Vallaq 35kV % Burim 10kV % Peja 1 35kV % Peja 2 10kV % Deçan 10kV % Klinë 10kV % Gjakova 1 35kV % Gjakova 2 10kV % Rahovec 35 kv % Rahovec 10kV % Prizren 1 35kV % Prizren 1 10kV % Prizren 3 10kV % Therandë 35kV % Therandë 10kV % Lipjan 35kV % Lipjan 10kV % Ferizaj 1 35 kv % Ferizaj 1 10kV % Viti 35kV % Gjilani 1 35kV % Gjilani 5 10kV % Berivojce % Assessments of the calculated fault currents (2019) The development of the network and change of the configuration change affects the values of fault currents. An input in raising fault currents should be given by the new interconnection line 400 kv SS Kosovo B SS Tirana 2, which is expected to enter operation in Also impedance reduction of 110 kv lines due to their reinforcement impacts the growth of fault

140 DEVELOPMENT PLAN ver. 0.2 page 140 of 148 currents. Figure 7-3 shows the values of short circuit currents, three and single-phased earthed connections in main substations. Based on the plan for re-vitalization of substations in relation to the disconnection capacity of high voltage equipment and values calculated for the fault currents in the system for configuration 2019 can be concluded that: - All circuit breakers installed in the transmission network and all high voltage equipment have sufficient margins of safety (>20%). Plans for re-vitalizing of substations SS Peja 1, SS Gjakova 1, etc will help increase the safety margin of these substations, which have very old breakers installed that does not guarantee the stated nominal stability. Fig. 7-3 Chart of three and single phase earthed fault currents, for the 2019 network topology Assessments of the calculated fault currents (2023) The 2023 model takes into account the development of new generation units based on the conservation scenario of the Generation Adequacy Plan In this model TPP Kosova

141 DEVELOPMENT PLAN ver. 0.2 page 141 of 148 A is disconnected, and two units 2x300 MW are modeled as shown in Figure From results presented in Figure 7-4, a notable increase is noticed in the level of fault currents as a result of the construction of new generation capacities, and the construction of the ring 400 kv. At 400 kv bus bars at SS Kosovo B the one phase to ground short circuit at a value of 29.3 ka represents the largest current transmission network. In 220 kv busbars, there is a domination of single-phased short circuit current with grounding with a 26.8 ka value. Because of the decommissioning of TPP Kosovo A, the level of fault currents will be lowered if compared with the calculated values from 2013 and 2019 models. The effects of construction of SS Prizren 4, 400/110 kv connected with the 400 kv ring, are also noticed in the extended network region of Dukagjini. Fault currents are notably higher in substations near SS Prizren 4 than before construction. If we compare the disconnection ability of fault breakers with the level of fault current level, we reach the following conclusions - All installed power breakers in the transmission network have a sufficient security margin. (20%). - Installed power breakers in SS Kosova B and SS Kosova A and all high voltage equipment are not risked by the construction of TPP New Kosova, 2x300 MW. Their disconnection capacity 40 ka allows sufficient security margin.

142 DEVELOPMENT PLAN ver. 0.2 page 142 of 148 Fig. 7-4 Chart of three and single phase earthed fault currents, for the current network topology 2023.