Romania Industry structure

Transcription

1 Country Profiles Romania Industry structure Romania was among the first few southeast European countries to initiate power sector reforms in the late 1990s as the country negotiated its European Union (EU) membership. Over the period, the vertically integrated state-owned monopoly Regia Autonomade Electricitate (RENEL) was divided into five separate entities: Nuclearelectrica SA (for nuclear generation); Hidroelectrica SA (for hydro generation); Termoelectrica SA (for thermal generation); Transelectrica SA (for transmission); and Electrica SA (for distribution and supply). The reform process also resulted in the creation of a separate company for nuclear generation called the Regiei Autonome pentru Activităţi Nucleare (RAAN) or the Romanian Authority for Nuclear Activities. RAAN is also responsible for research and development in the Romanian nuclear power sector. In addition, several generation and distribution companies were partially privatised. The generation segment has witnessed significant growth over the past decade. Majority of the large generation companies are owned by the Romanian state. Hidroelectrica SA and Nuclearelectrica SA are the largest generation companies, each accounting for a 20 per cent share in the country s total generation capacity. Turceni Energetic Complex, Rovinari Energetic Complex and Craiova Energetic Complex, the three power generators in the Oltenia province, collectively account for a 30 per cent share. Other large generation companies Electrocentrale Bucuresti, Hunedoara Energy Complex, OMV Petrom and RAAN account for another 20 per cent of total generation in Romania. The remaining 10 per cent of generation is contributed by several small independent power producers (IPPs), especially in the renewable energy segment. Under the EU s third energy package, Romania has adopted the independent system operator (ISO) model in the transmission segment. Romania s transmission network is majority owned by the government and operated by Transelectrica SA. About 58.7 per cent of Transelectrica s share capital is owned by the Romanian state; 13.5 per cent by Fondul Proprietatea and the remaining 27.8 per cent of the share capital is with other shareholders. The company has been listed on the Stock Exchange since August Traneselectrica is also responsible for the development of Romania s high voltage grid. In addition, it manages the electricity market through its subsidiary Operatorul Pieteide Energie Electrica SA (OPCOM) or the market operator. Romania is currently planning to integrate its power market with those of Czech Republic, Slovakia, Hungary and Poland. In the distribution segment, Electrica SA was segregated in 2001 to create eight main distribution system operators (DSOs). Five of these DSOs were later sold to private energy co gea, CEZ E.ON Moldova. The remaining

2 Europe three DSOs under the government ownership are Electrica Transilvania Sud, Electrica Transilvania Nord and Electrica Muntenia Nord. Electrica SA owns 78 per cent equity share in each of these three DSOs and Fondul Proprietatea holds the remaining 22 per cent. Apart from these eight main DSOs, there are about 35 more companies holding distribution licenses and serving less than 100,000 customers. The DSOs are also incumbent electricity suppliers. There are over 180 companies holding licenses for electricity supply. Romania s electricity market was fully liberalised in July However, the regulated electricity supply market continues to account for over 40 per cent of the total electricity consumption. The government plans to phase out regulated electricity prices for nonhousehold customers by the end of 2013 and for household customers by the end of At the central government level, the Ministry of Economy, Trade and Business Environment (MECMA) is responsible for development and implementation of the national energy strategy. The National Energy Regulatory Authority (ANRE), established in 1999, is responsible for determining the sector s regulatory framework Existing capacity, generation and consumption The installed electricity generation capacity in Romania was X MW in This was almost 8 per cent higher than the previous year primarily due to an increase in the wind-based generation capacity. According to Transelectrica, the generation capacity further increased to X MW in 2013, driven by renewable capacity expansion. Between 2005 and 2013, generation capacity increased at a healthy compound annual growth rate (CAGR) of X per cent. Romania s energy mix includes thermal (accounting for 47 per cent of installed capacity), hydroelectric (31 per cent), nuclear (7 per cent) and renewable energy (15 per cent) sources. Over the past five years, the share of renewable energy has increased significantly. Table : Growth in Romania s installed electricity capacity (MW) Hydro X X X X X X X X X Nuclear X X X X X X X X X Thermal X X X X X X X X X Renewable X X X X X X X X X Total X X X X X X X X X Annual growth rate (%) X X X X X X X X X Source: European Network of Transmission System Operators for Electricity (ENTSO-E); Transelectrica SA During 2012, Romania generated X GWh of electricity. This was X per cent lower than generation in the previous year. Fuel-wise, X per cent of the total power was generated from thermal power sources, X per cent from hydro, X per cent from nuclear and X per cent from renewable energy sources. Electricity consumption during 2012 was X GWh, marginally lower than the previous year. Global Transmission Research

3 Country Profiles Electricity generation and consumption in Romania have fluctuated considerably throughout the past decade. Overall, power consumption increased at a CAGR of X per cent between 2005 and 2012, while generation decreased marginally by X per cent. Romania is a net exporter of electricity. However, in 2012, imports were higher than exports for the first time in five years due to reduced domestic production. According to ANRE, the imports during 2012 were X GWh (up X per cent as compared to the previous year) and the exports were X GWh (down X per cent). Table : Growth in electricity generation and consumption in Romania (GWh) E Generation X X X X X X X X X Annual growth rate (%) X X X X X X X X X Imports X X X X X X X X X Exports X X X X X X X X X Consumption X X X X X X X X X Annual growth rate (%) X X X X X X X X X Note: Production and consumption data for 2013 have been derived from actual figures till October Source: European Network of Transmission System Operators for Electricity (ENTSO-E); Global Transmission Research Expected capacity addition and consumption According to Romania s Power Transmission Grid (PTG) Perspective Plan , the electricity generation capacity in Romania is expected to increase to X MW by the end of This will include X MW of thermal power, X MW of hydroelectric, X MW of nuclear and X MW of renewable energy capacity. Among renewable, capacity addition will be led by wind-based energy projects. By 2020, the installed capacity of wind-based energy projects is expected to be X MW. Figure : Expected generation capacity addition in Romania over the period (MW) Source: Transelectrica SA

4 Europe Electricity consumption is expected to increase at a CAGR of X per cent from X GWh in 2014 to X GWh in 2022 under a baseline scenario. In the case of a high economic growth scenario, electricity consumption may even increase to X GWh by Figure : Expected growth in electricity consumption in Romania (GWh) Source: Transelectrica SA Existing transmission network Transelectrica s transmission network included X km of alternating current (AC) power lines at the end of No new lines were commissioned by Transelectrica during Between 2005 and 2012, the total transmission line length reduced at a CAGR of X per cent due to the decommissioning of several 220 kv lines in the past few years. Majority of the transmission lines in Romania operate at the 400 kv and 220 kv voltage levels. At the end of 2012, 400 kv lines accounted for X per cent of the total transmission line length while 220 kv lines accounted for X per cent. In addition, Romania also has 400 kv and 750 kv transmission lines installed in the form of interconnections with neighbouring countries. This section provides details of transmission lines operated by Transelectrica only and does not include 110 kv and below network owned and operated by distribution companies. It is estimated that about X per cent of the 110 kv distribution network comprises underground cables. Table : Growth in Transelectrica s transmission line length by voltage (km) Voltage E 110 kv X X X X X X X X X 220 kv X X X X X X X X X 400 kv X X X X X X X X X 750 kv X X X X X X X X X Total X X X X X X X X X Annual growth rate (%) X X X X X X X X X Note: Data for 2013 is based on the compound annual growth rate (CAGR) for the previous years. The table does not include 110 kv lines operated by distribution companies. Source: Transelectrica SA; Global Transmission Research Global Transmission Research

5 Country Profiles At the end of 2012, Transelectrica owned and operated X transmission transformers with an aggregate capacity of X MVA. Between 2005 and 2012, transformer capacity increased at a CAGR of X per cent. Almost X per cent of the transformation capacity is at the 220 kv voltage level, another X per cent is at 400 kv and the remaining X per cent is at 750 kv. Table : Growth in Transelectrica s transformer capacity by voltage (MVA) Voltage E 220 kv X X X X X X X X X 400 kv X X X X X X X X X 750 kv X X X X X X X X X Total X X X X X X X X X Annual growth rate (%) X X X X X X X X X Notes: Data for 2013 is based on the compound annual growth rate (CAGR) for the previous years. Source: Transelectrica SA; Global Transmission Research At the end of 2012, Transelectrica had X operational transmission substations. Between 2005 and 2012, Transelectrica added three new substations to the country s transmission network. Most of the substations are of 220 kv and 400 kv voltage, while there is only one 750 kv substation. Table : Number of Transelectrica s substations by voltage E 220 kv X X X X X X X X X 400 kv X X X X X X X X X 750 kv X X X X X X X X X Total X X X X X X X X X Source: Transelectrica SA; Global Transmission Research Romania is connected to the power systems of neighbouring Serbia, Bulgaria, Hungary, Ukraine and Moldova through 16 interconnectors. There exist four interconnectors with Serbia including one at 400 kv and three at 110 kv; five with Moldova including one at 400 kv and four at 110 kv; four with Bulgaria at 400 kv; two with Hungary at 400 kv; and one with Ukraine at 400 kv. Table : Existing cross-border electricity interconnections in Romania Interconnection Voltage Capacity (MVA) Portile de Fier (Romania) Djerdap (Serbia) 400 kv AC 1,135 Jimbolia (Romania) Kikinda 1 (Serbia) 110 kv AC 65 Ostrovu Mare (Romania) Kusijak (Serbia) 110 kv AC 90 Gura Văii (Romania) Sip (Serbia) 110 kv AC 87 Continued

6 Europe Isaccea (Romania) Varna (Bulgaria) Interconnection Voltage Capacity (MVA) 750 kv AC (operational at 400 kv AC) 4,500 (operational at 2,168) Ţanţareni (Romania) Kozlodui (Bulgaria) 400 kv AC 1,300 Ţanţareni (Romania) Kozlodui (Bulgaria) 400 kv AC 1,300 Isaccea (Romania) Dobrudja (Bulgaria) 400 kv AC 1,135 Arad (Romania) Sandorfalva (Hungary) 400 kv AC 1,135 Nadab (Romania) Bekescsaba (Hungary) 400 kv AC 1,300 Rosiori (Romania) Mukacevo (Ukraine) 400 kv AC 1,135 Isaccea (Romania) Vulcanesti (Moldova) 400 kv AC 1,135 Stanca (Romania) Costeşti (Moldova) 110 kv AC 119 Husi (Romania) Cioara (Moldova) 110 kv AC 87 Ţutora (Romania) Ungheni (Moldova) 110 kv AC 87 Falciu (Romania) Gotesti (Moldova) 110 kv AC NA Notes: NA Not available Source: European Network of Transmission System Operators for Electricity (ENTSO-E); Global Transmission Research Expected addition to transmission network Transelectrica s future transmission plans are driven by the need to provide connectivity to the upcoming generation projects in Romania. Between 2015 and 2022, the company is expected to commission nearly X km of new transmission lines. The new lines will entirely be at 400 kv AC voltage level. Some of the significant upcoming transmission lines are the X km long X line, the X km long X and X lines, the X km long X line, the X km long X line, the X km long X line and the X km long X line. Transelectrica also plans to upgrade the existing X km X power line to 400 kv from the current 220 kv voltage level. In addition, the company plans to reconductor the existing 220 kv X transmission lines in 2018 and 2015 respectively. Table : Expected year-wise addition to transmission line length in Romania (km) Voltage kv AC OHL X X X X X X X X X Note: Table includes Romanian portion of planned electricity transmission interconnections. OHL: Overhead lines Source: European Network of Transmission System Operators for Electricity (ENTSO-E); Global Transmission Research Between 2014 and 2020, over X MVA of new transformer capacity is expected to be added at the 400 kv voltage level to the Romanian transmission system. Global Transmission Research

7 Country Profiles Table : Expected addition to transformer capacity in Romania (MVA) Voltage kv X Source: Global Transmission Research Transelectrica plans to construct X new substations at the 400/110 kv level between 2016 and New substations will be located at. In addition, the company plans to refurbish the existing 400 kv X substation with gas insulated switchgear (GIS) technology. Table : Number of expected new substations in Romania Voltage /110 kv X X X X X X X X Note: The construction of 400 kv substations in 2022 involves decommissioning of existing 220 kv substations at the same location. Source: European Network of Transmission System Operators for Electricity (ENTSO-E); Global Transmission Research Romania is in the process of developing new interconnections with its neighbouring countries. Transelectrica along with its Serbian counterpart Elektromreža Srbije (EMS) is developing the fifth interconnection between the two countries. The project entails the construction of a X km long, 400 kv double-circuit overhead line from the existing X substation in Serbia to the X substation in Romania. Of the total line length, X km will lie in Romania and X km in Serbia. The construction works are planned to commence in 2014 and be completed in In addition to the recently commissioned 110 kv Falciu Gotesti transmission interconnection with Moldova, Romania is developing two more transmission lines. The first is a X km long 400 kv overhead transmission link running between X in Romania to X in Moldova, expected to be operational by Of the total line length, X km will be located in Moldova and the remaining X km in Romania. The other is the 400 kv overhead link between X in Moldova and X in Romania. Though the route is yet to be finalised, the power line is expected to be about X km long and is scheduled to be operational by Romania was planning to develop a 400 kv high voltage direct current (HVDC) submarine cable link with Turkey via the Black Sea, but the two countries are now exploring the possibility of power transfer through the Bulgarian network via overhead lines Expected investment in transmission network According to Transelectrica s perspective plan , the company plans to invest over X between 2014 and This includes overall spending on new projects as well as investments in system upgrades.

8 Europe Table : Expected investment in Romania s transmission network (RON million) Year Investment X X X X X X X X Source: Transelectrica SA Outlook Romania s power sector is set to witness significant generation capacity addition over the next decade, the majority of which will be in the form of renewable energy projects. Construction of new transmission lines to evacuate and transmit power from upcoming generation capacities will lead to unprecedented capacity addition in the country. It will be challenging for Transelectrica to complete these projects on time. An additional challenge will be to refurbish and renovate the existing transmission assets. This is critical to maintaining reliability as over 75 per cent of the existing infrastructure is estimated to be over 25 years old. Global Transmission Research