Global Transmission Report

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1 MARCH 2014 VOLUME 6, ISSUE 6 Global Transmission Report Information and analysis on the global electricity transmission industry Colombia s Power Sector Plans Focus on renewable energy and grid expansion Sound economic policies and promotion of free trade agreements in recent years have helped Colombia maintain a respectable level of economic growth. For the past three years, the country has registered a GDP growth rate of about 4 per cent. Oil exports comprise a significant portion of the country s GDP. The dependence on oil exports is likely to increase given the country s target of extracting about 1.6 million barrels of crude oil per day by Though this oil boom can help the country maintain its economic performance in the short term, the rising global concern over environmental degradation can adversely affect development in the longer run. This highlights the need for the Colombian government to shift its focus towards the country s large renewable energy potential. Despite having tremendous renewable energy potential, its harness rate has remained very low in the country. Rehabilitating Afghanistan s Power Sector Focus on increasing energy access and security Three decades of conflict have greatly damaged Afghanistan s power infrastructure and today the country has one of the lowest per capita electricity consumption and electrification rates. With the help of donor aid over the last few years, Afghanistan has begun to build its electricity infrastructure and is now slowly moving towards achieving greater energy security. The country has also built a few, and is in the process of building more, cross-border interconnections to import power from its central Asian neighbours. The government has accorded top priority to the development of the energy sector, a key element in fuelling the country s economic growth. In 2008, the government approved the Afghanistan National Development Strategy (ANDS), which calls for investments in infrastructure, particularly for energy security. Tanzania s Grid Expansion Plans Aim to meet power demand and link isolated areas Tanzania is one of the fastest growing economies in Africa. Fuelled by population growth and economic development, Tanzania s energy sector is likely to witness significant expansion over the coming years. Also, Tanzania is one of the six partner countries that have been selected by the US government for facilitating the development of their electricity sectors. In July 2013, President Obama announced Power Africa, a new USD7 billion initiative to double access to electricity in sub-saharan Africa. The programme aims to help the countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions. The other five countries with which the US plans to work with initially are Ethiopia, Ghana, Kenya, Liberia and Nigeria. Tanzania has also formulated an ambitious power sector development plan. The key objectives of the plan are to ensure electricity supply to rural areas, meet future load growth and interlink isolated systems. It also aims to diversify the existing generation mix to reduce the dependence on hydro resources. (continued on page 2) (continued on page 4) (continued on page 6) INSIDE THIS ISSUE Features Colombia s Power Sector Plans... 1 Rehabilitating Afghanistan s Power Sector... 1 Tanzania s Grid Expansion Plans... 1 News North America... 8 Latin America Asia Pacific Europe Middle East & Africa TSO Focus Israel Electric Corporation Policy Review Europe s Energy and Climate Change Goals Spotlight Transmission Investment in ASEAN Data & Statistics: North America Installed Capacity, Electricity Generation and Consumption 28 Expected Capacity Addition and Consumption Existing and Expected Growth in Transmission Network Deal Watch Project Update Company News Tenders & Contracts

2 Features Colombia s Power Sector Plans (Contd...) Although the country meets about 70 per cent of its electricity requirement through hydro energy, the majority of the hydropower potential remains untapped. As per World Bank s estimates, the country has about 93 GW of hydro potential of which only little more than 9 GW has been harnessed so far. Wind energy is another abundantly available form of non-conventional energy in the country. Among all the South American countries, Colombia has the highest wind energy potential. The Guajira Peninsula on the north-eastern tip of the country alone has the potential to generate 21 GW of wind energy, enough to meet double the current domestic demand. However, even with this rare wind potential, Colombia has an installed capacity of only 19.5 MW, a mere 0.4 percent of Guajira s potential. The country s proximity to the equator makes it an excellent source of solar energy. Apart from being the windiest, the northern coast is also the sunniest region of the country and receives solar radiation of up to 6 kwh m2 per day, year round. Currently, about 78,000 photovoltaic panels have been installed in the country, producing around 6 GW of energy. But the majority of the solar potential remains untapped. The large scale agricultural activities in the country also provide a significant amount of biomass fuel. Power demand in the country is rising rapidly with the expansion of the middle class category consumers. According to energy and mining planning unit Unidad de Planeación Minero Energética s (UPME) Plan de Expansion de Referencia Generacion Transmisión , electricity demand is expected to reach 85,091 GWh by 2022 under an average growth scenario. This translates to a compound annual growth rate (CAGR) of 3.9 per cent over the period By 2027, consumption is expected to increase further to reach 98,864 GWh. Thus, the country s renewable energy sources are an effective solution to provide the required impetus to the economy in a very sustainable as well as environment friendly manner. Acknowledging this, the government has planned to install more renewable energy projects. Under its Plan de Expansion de Referencia Generacion Transmisión , UPME has announced two alternative capacity addition plans. Under the first, Colombia plans to add about 6,569 MW of capacity over the period This capacity expansion includes 5,257 MW of hydro-based capacity, 500 MW of gasbased capacity, 710 MW of coal-based capacity, 88 MW of liquid-fuel based capacity and 14 MW from cogeneration plants. Under the second alternative, 6,809 MW of capacity, including renewable, has been planned during This capacity includes 5,257 MW of hydro-based, 500 MW of gasbased, 410 MW of coal-based, 300 MW of wind-based, 100 MW of geothermal-based and 88 MW of liquid fuel-based capacity, and 154 MW from cogeneration plants. To accommodate this capacity addition, the country has planned to add about 1,958 circuit km of transmission lines to its network between 2014 and Most of these planned additions (about 1,742 circuit km) are at the 500 kv level. About 216 circuit km of lines are at the 230 kv level. There are also plans to reconfigure 44 circuit km of existing lines. Power sector overview Colombia s installed capacity stood at 14,361 MW as of About 64 per cent of this capacity is accounted for by Figure 1: Expected growth in electricity consumption in Colombia (GWh) Source: Unidad de Planeación Minero Energética 2 Global Transmission Report March 2014

3 Features hydropower plants. Thermal plants contribute about 31 per cent with gas-based plants accounting for 15 per cent and coal-based plants accounting for 7 per cent of the capacity. The balance is contributed by small and cogeneration power plants. Since 2005, Colombia s capacity has grown only moderately at a CAGR of 1 per cent. As of October 2013, Colombia had an installed capacity of 14,415 MW. In terms of generation mix, in 2012, hydroelectric power accounted for 75 per cent and thermal power accounted for 19 per cent. The balance 6 per cent was contributed by small and cogeneration plants. For 2013, the total generation in Colombia is estimated to be 62,063 GWh. Colombia also exports electricity to Venezuela and Ecuador and imports a very small volume from Ecuador. In 2012, total exports from Colombia stood at 714 GWh. Of this, 236 GWh was exported to Ecuador and 478 GWh to Venezuela. In 2012, imports were only 6.5 GWh. Up to October 2013, Colombia exported 1,155 GWh and imported 28 GWh of electricity. As of 2012, Colombia had a transmission line length of 24,392 circuit km. Of this, 14,109 circuit km of lines were a part of Sistema de Transmisión Nacional (STN) or the National Transmission System i.e., of 220 kv and above voltage levels. Of the total transmission line length, about 10 per cent of the lines are at the 500 kv level, 48 per cent are at the 220 kv and 230 kv levels and the remaining 42 per cent are below 220 kv but above 110 kv. As of March 2013, the transmission line length stood at 24,401 circuit km. Colombia s transmission network has shown almost no growth over the last three years. Colombia currently has six major cross-border electricity interconnections three with Venezuela and three with Ecuador. The country is a net electricity exporter. The interconnections with Venezuela have an aggregate capacity of 336 MW. Two of the interconnections are at 230 kv and one is at 115 kv. With Ecuador, Colombia has electrical interconnections under the Andean International Electricity Transactions scheme. These interconnections were commissioned under the Decisión De La Comunidad Andina De Naciones No. 536 (Decision 536). The purpose of Decision 536 is to develop the energy sector in the Andean region, to promote the construction and development of infrastructure including power plants and transmission networks of common use and to create a single regional transmission system. Two of the interconnections with Ecuador are at 230 kv with a combined capacity of 500 MW and one is at 138 kv with a capacity of 35/113 MW. Grid expansion plans In order to maintain the reliability and stability of the grid with the higher generation especially from renewable energy sources, the government has planned to add 1,958 circuit km of transmission lines to its network between 2014 and For its transmission expansion plan, UPME has announced a USD2 billion investment over the period Some of the key projects at the 500 kv level include the 266 circuit km long Ituango Porce III Sogamoso line; the 257 circuit km Sogamoso Norte line; the 200 circuit km Chinú Copey line; the 190 circuit km Virginia Nueva Esperanza line; the 183 circuit km La Virginia Alférez line; the 158 circuit km Medellín La Virginia line; the 131 circuit km Cerro Matoso Chinú line; the 125 circuit km Ituango Medellín line; and the 110 circuit km Ituango Cerro Matoso line. At the 230 kv level, a 206 circuit km Betania Mirolindo line is one of the key projects. Colombia also has plans to develop new interconnections with its neighbours. Colombia s state-owned power company Interconexión Eléctrica S.A. E.S.P. (ISA), along with the Empresa de Transmisión Eléctrica SA (ETESA) of Panama, is developing the Colombia Panama electricity transmission interconnector. This is a 614 km, high voltage direct current (HVDC) undersea cable project connecting the power grids of Panama and Colombia. The cable will stretch 274 km within Panama (234 km on land and 40 km underwater) and 340 km across Colombia (325 km on land and 15 km underwater). It will connect a substation in Panama City to the Cerro Matoso substation in Colombia. It will have the capacity to transport up to 300 MW of electric power in either direction. However, lack of political will and problems in acquiring funding are delaying the project. Colombia is also involved in discussions with Bolivia, Chile, Ecuador and Peru to develop a possible interconnection between the five Andean countries. The project, called the Andean Interconnection, is likely to consist of 2,536 km of power lines and cost about USD950 million. Further, talks have begun between Colombia and Venezuela to improve existing and create new electricity interconnections. In August 2013, the inter-government committee for Venezuela and Colombia s electricity sector held its first meeting in Caracas. The group discussed, among other topics, proposals for new electricity interconnection lines between the two countries. These include Puerto Inirida (Colombia) San Fernando de Atabapo (Venezuela); Puerto Colombia (Colombia) Maroa (Venezuela); Casuarito (Colombia) Puerto Ayacucho (Venezuela); Guasdualito (Venezuela) Arauca (Colombia); and San Carlos de Río Negro (Venezuela) San Felipe (Colombia). Conclusion Colombia s electricity demand is projected to grow tremendously over the coming years. Expected demand in 2022 is estimated to be 40 per cent higher than the current demand. Given this scenario, the country will be focusing on expanding its capacity base and accordingly will have to develop transmission infrastructure. There is also a requirement to provide new and innovative mechanisms to finance renewable energy projects in the country as currently these projects depend largely on private banks to meet their debt requirements. Thus strong political will and private players participation is required along with partnership with multilateral institutions to provide the required impetus to the country s renewable energy sector along with expanding its transmission network. In addition to meeting the country s power demand, this will help boost its economic growth with increased exports of renewable energy to neighbouring countries. Global Transmission Report March

4 Features Rehabilitating Afghanistan s Power Sector (Contd...) The government aims to have a self-sufficient power supply and create an integrated power network in Afghanistan. Another key goal of the government is to enable its power sector to supply electricity to the country s entire population. At present, only around 30 per cent of Afghan households have power supply with the electrification rate ranging from zero in rural areas to almost 100 per cent in urban regions. Other key priorities of the government include rehabilitation of power infrastructure damaged by the war and expansion of installed capacity and the distribution network; rebuilding the electricity tariff system; improving sector governance and coordination; and promoting publicprivate partnerships. The government also has plans to develop renewable energy such as micro-hydro and solar. In 2012, the government launched the National Energy Supply Program to accelerate existing electricity projects; encourage new cost-effective investments in electricity generation, transmission and distribution; and increase capacity to manage electrical production and distribution efficiently. The state-owned vertically integrated power utility Da Afghanistan Breshna Sherkat (DABS) operates and manages the entire electricity infrastructure in Afghanistan including generation, imports, and transmission and distribution activities. The Ministry of Energy and Water (MEW) is responsible for policy and strategy development for the electricity sector in Afghanistan. Afghan power sector At the end of 2012, Afghanistan had an installed capacity of 522 MW, almost equally contributed by hydro and thermal power plants. Until recently, hydroelectric power was a dominant source of electricity in Afghanistan. However, in the last few years, some diesel-based power plants have been installed with the help of multilateral aid. The country has so far failed to develop any renewable source of energy. There are currently no centralised power plants that utilise renewable energies like solar, wind, biomass or geothermal. Wind and solar power have the maximum potential for future development. However, renewable resources are not expected to play a significant role in power generation in Afghanistan within the next 20 years. Afghanistan is estimated to have generated 915 GWh of electricity in Despite an increase in the thermal installed capacity, the power generated by thermal sources has been consistently falling since Thermal generation accounts for barely five per cent of the total generation. A key reason for this decline is that only one fifth of the installed thermal capacity is operational. The low available capacity has made Afghanistan heavily dependent upon imports to meet its electricity needs. Imports from neighbouring countries have increased from 432 GWh in 2005 to 3,129 GWh in 2012 and supplied nearly 75 per cent of the country s electricity demand. Afghanistan s grid operates through four distinct networks. The North East Power System (NEPS) consists of a grid linking 17 load centres (Kabul, Mazar-i-Sharif, Jalalabad, etc.) with Uzbekistan and Tajikistan; the South East Power System (SEPS) links Kandahar, Helmand etc. with Kajaki; the Herat system links the Herat zone with Iran; and the Turkmenistan system links Herat, Aqina, Andkhoi East/West, Shirin, Tagab, Mimana, Khoja Doko, Sarepul, Shibirghan and Mazar. At the end of 2012, Afghanistan s high voltage grid comprised 1,884 km of transmission lines across the 110 kv, 220 kv and 500 kv voltage levels. It also has 1,398 MVA of transformer capacity and 30 substations across the 110 kv, 132 kv and 220 kv voltage levels. The country has been able to expand and strengthen its high voltage grid with the help of donor aid. During 2007 and 2012, the country added over 800 km of new lines to its high voltage grid. Afghanistan s grid is linked with Iran, Turkmenistan, Tajikistan and Uzbekistan via nine cross-border interconnections, of which seven are at 110 kv and above voltage levels. At present, Afghanistan s electricity system is not synchronised with any neighbouring systems which, apart from those of Iran and Turkmenistan, are themselves not synchronised with one other. This results in operational challenges for Afghanistan, which is required to split its system into 10 electric islands thereby increasing costs and reducing reliability of supply. Power sector rehabilitation The Asian Development Bank (ADB) has prepared a Power Sector Master Plan for Afghanistan, which identifies priority projects that need to be implemented to achieve the goal of providing power supply for the entire country. As per the plan, USD10.1 billion needs to be invested in the country s power sector up to Of this, it has been proposed that around USD7.3 billion should be invested in developing Afghanistan s power generation sector. Table 1: Transmission infrastructure in Afghanistan in 2012 Voltage Line length (km) Transformer capacity (MVA) No. of substations 110 kv 1, kv kv Total 1,884 1, Source: Afghan Energy Information Center; Global Transmission Research 4 Global Transmission Report March 2014

5 Features Table 2: Existing key cross-border electricity interconnections in Afghanistan Interconnection Voltage (kv) Type Herat (Afghanistan) Taibat substation (Iran) 132 Single Herat (Afghanistan) Torbat-e-Jam substation (Iran) 20 Single Zaranj (Afghanistan) Zohak substation (Iran) 20 Single Kunduz SS (Afghanistan) Geran substation (Tajikistan) 110 Single Kunduz SS (Afghanistan) Sangtuda substation(tajikistan) 220 Double Andkhoy (Afghanistan) Zernow substation (Turkmenistan) 110 Single Toragundi and Herat (Afghanistan) Mary substation (Turkmenistan) 110 Double Naibabad (Afghanistan) Surkhan substation (Uzbekistan) 220 Double Source: Asian Development Bank The total peak demand in 2032 is expected to stand at around 3,500 MW and electric consumption at 18,400 GWh (base case scenario). To meet this demand, 3,163 MW of new capacity is proposed to be added, of which 1,563 MW will be added through hydroelectric power plants and 1,600 MW through the thermal segment. However, new capacity addition will only take place beyond 2017, with nearly MW of generation capacity being added during the period As per the Power Sector Master Plan, the country must commission several power plants over the next few years to ensure stability of power supply. These include the 180 MW Surobi 2 hydro plant, which will be commissioned in 2018, the 40 MW Salma hydro plant to be commissioned at the latest by 2020, and the 100 MW Kajaki hydro plant addition to be commissioned by In addition, the 400 MW Sheberghan combined cycle power plant, which is being developed with support from the US Agency for International Development (USAID), is expected to be commissioned at the earliest by While wind and solar power have the maximum potential for future development, renewable resources are not expected to play a significant role in power generation in Afghanistan over the next 20 years. Over the next two decades, Afghanistan must focus on strengthening and expanding its transmission infrastructure. The grid expansion will help increase access to electricity for households, strengthen grid capacity to facilitate cross-border power exchanges and connect new generation facilities. There are also plans to create a unified national grid, which will enable Afghanistan to benefit from being an electricity transit country between energy-rich Central Asia and energypoor South Asia, and be an anchor country of the regional Turkmenistan Uzbekistan Tajikistan Afghanistan Pakistan (TUTAP) interconnection concept. By 2032, there are plans to add around 6,350 km of lines, 10,000 MW of transformer capacity and 94 substations to its existing grid. As per the master plan, Afghanistan will need to spend nearly USD3 billion on developing its transmission infrastructure by A key project proposed to be implemented in the country is the 500 kv Turkmenistan to Afghanistan interconnector. The line will begin from the 500 kv Atamyrat substation (150 km from the Turkmenistan-Afghanistan border) and connect to Sheberghan via Andkhoy in Afghanistan (110 km). Initially, the line will be operated at the 220 kv level. The plan also entails a further connection between Sheberghan and Mazar-i-Sharif (140 km) via a new 220 kv double-circuit line. This system will enable the transfer of 300 MW of power from Turkmenistan. During , the project will be further expanded, entailing the construction of a 500 kv back-to-back convertor station at Pul-e-Khomri, a 500 kv line from Sheberghan to Pul-e-Khomri, a 220 kv Andkhoy Sheberghan line and expansion of the Andkhoy and Sheberghan substations. This system will enable the import of 1,000 MW of power from Turkmenistan. A 500 kv line is also proposed to be constructed across the Hindu Kush to remove existing capacity constraints, which prevent Afghanistan from importing a greater amount of power from Turkmenistan. Under this project, 500 kv substations at Pul-e-Khomri and Arghandi will be established along with a 296 km long, 500 kv line between the two substations. There are also plans to link the SEPS to NEPS to transfer the power generated or imported in the north to the south. The project, driven by USAID funding, entails the construction of a 450 km long, 220 kv line between Arghandi and Kandahar. A 500 kv line to connect Pakistan s grid with Afghanistan is also proposed by The project entails the expansion of the Arghandi substation and construction of a 210 km long, 500 kv transmission line from Arghandi to the border with Pakistan via Jalalabad. Besides this, a 132 kv single-circuit line is also being planned from Iran to Farah in Afghanistan to enable additional electricity imports from Iran. Afghanistan is also part of the Central Asia-South Asia Electricity Transmission and Trade (CASA-1000) project under which a high voltage direct current (HVDC) connection between Central Asia and South Asia crossing the Hindu Kush will be set up to transport surplus power from the power systems of Kyrgyzstan and Tajikistan to Pakistan via Afghanistan. Future outlook The long years of war have severely damaged the energy sector in Afghanistan. The surviving power infrastructure is aging and inadequate. Any kind of rebuilding of the economy will require huge investments in the energy sector, which serves as the backbone for all industries. However, since the Government of Afghanistan lacks the required resources and expertise, foreign aid and private sector participation seem indispensable in the near future. Moreover, a strong commitment from the government to ensure a stable political environment as well as to develop an appropriate legal framework are needed to improve the investment climate to facilitate infrastructure development. Global Transmission Report March

6 Features Tanzania s Grid Expansion Plans (Contd...) It plans to increase the share of renewable energy in the total energy mix from the current close to zero level to around 650 MW by Tanzania had an installed generation capacity of 1,438 MW as of Its high voltage transmission network comprised of 4,270 km of transmission lines of 132 kv and 220 kv voltage levels in Tanzania Electric Supply Company (TANESCO) also owns 546 km of 66 kv lines. The country has a high voltage transformer capacity of 2,189 MVA and 38 primary grid substations. Tanzania currently has interconnections with Uganda at the 132 kv level, Zambia at the 33 kv and 66 kv levels and Kenya at the 33 kv level. Tanzania s electricity sector is dominated by the stateowned, vertically integrated utility TANESCO, which owns around 60 per cent of the country s generation plants and the entire transmission and distribution network. In 1992, the sector was opened up and private participation was sought. Today, several big independent power producers (IPPs) exist and contribute the remaining 40 per cent of the installed capacity. These include Independent Power Tanzania Limited, Songas, Symbion and Aggreko. Expansion plans Tanzania plans to increase its capacity to 3,400 MW by 2017 and further to 8,990 MW by Of this capacity, 3,304 MW will be based on hydro, 995 MW on gas, 3,800 MW on coal while the remaining will be renewable and exports. Some of the planned power plants are the 150 MW Kinyerezi I, 210 MW Somanga Fungu, 240 MW Kinyerezi II, 200 MW Kiwira I, 60 MW Solar I, 50 MW Wind I and 50 MW Wind II power plants. To cater to the upcoming electricity generation capacity, Tanzania has planned to increase the capacity of its grid as well as increase access to electricity. TANESCO has devised a large-scale grid expansion plan to modernise the old and aged line network as well as to strengthen links with neighbouring grids. The company is implementing plans to expand the grid and make additions to the transmission network at the 330 kv and 400 kv levels. Additions to the existing 220 kv and 132 kv lines have also been planned. A total of 6,894 km of 132 kv and above lines will be constructed during The maximum addition has been planned at the 220 kv voltage level. Tanzania has planned an investment outlay of around USD2.6 billion over the period Of the total planned investment, 73 per cent will go towards developing transmission lines and the remaining 37 per cent is for developing substations and transformers, and paying for compensation and distribution system losses remediation. Key grid projects Tanzania has planned six interconnection projects for implementation during the period. A key project is the Backbone Transmission Investment Project, which entails the construction of the 670 km long, 400 kv transmission line from Table 1: Overview of Tanzania s power sector (as of 2012) Installed capacity (MW) 1,438 Generation (GWh) 5,230 Consumption (GWh) 3,770 Transmission lines (km) 4,270 Transformer capacity (MVA) 2,189 Number of substations 38 Source: Global Transmission Research from Iringa via Mtera, Dodoma and Singida to Shinyanga. The project is intended to supplement and strengthen electricity supply in the north-western part of Tanzania. This project is also linked with the planned 400 kv Zambia Kenya Tanzania interconnection project. The project is estimated to cost over USD468 million and is being funded by several multilateral financial institutions. The African Development Bank (AfDB) has committed to provide USD64.8 million, Korea s Economic Development Cooperation Fund (EDCF) will provide USD36 million, the European Investment Bank (EIB) will provide USD134.5 million, the World Bank s International Development Association (IDA) will provide USD150 million and Japan International Cooperation Agency (JICA) will provide USD64.8 million. TANESCO will contribute USD18 million for the project. TANESCO has also planned an interconnection project with Kenya and Zambia. The 1,560 km line will link the power grids of Zambia, Kenya and Tanzania (ZKT). The ZKT project entails the construction of a 700 km long, 400 kv double-circuit transmission line originating in Serenje in Zambia and ending at Mbeya in Tanzania (Zambia Tanzania interconnector); reinforcement of Tanzania s transmission system through the construction of about 600 km of transmission lines; and construction of a 260 km long, 400 kv transmission line between Arusha in Tanzania and Isinya (near Nairobi) in Kenya. The Tanzania Kenya section is expected to be completed in 2016 while the Zambia Tanzania section is likely to be completed in Uganda and Tanzania are planning to construct a 220 kv line between Masaka (Uganda) and Mwanza (Tanzania). The line will stretch for about 85 km in Uganda and for about 215 km in Tanzania. The project is scheduled for completion by Tanzania is also planning a new 220 kv connection with Mozambique. The project is presently in the initial stages of discussion. Tanzania, Rwanda and Burundi are planning a 63 MW hydropower plant project at Rusumo Falls located on the Tanzanian borders with Rwanda and Burundi. The project will link the national grids of the three countries through a 220 kv transmission line by The transmission project entails the construction of a 161-km long line to connect Rusumo to Gitega in Burundi; a 109-km long line to connect Rusumo to Birembo near Kigali in Rwanda; and a 98-km long line to connect Rusumo to Nyakanazi in Tanzania. A 220 kv line is also being planned between Tanzania and Malawi. The line will help transfer power from a 340 MW hydro plant proposed to be set up at Songwe, on the Tanzania Malawi border. This is a longer-term project and is expected to be completed by Global Transmission Report March 2014

7 Features Among the other transmission line projects being implemented by Tanzania is the 133 km long, 220 kv Geita Nyakanazi transmission line slated to be slated to be completed in Another is the Morogoro Hale Arusha transmission line project, which aims to strengthen and enhance power supply to Tanzania s north-eastern grid. Under the project, TANESCO plans to construct a 640-km long, 400 kv transmission line from Morogoro to Arusha via Hale. Tanzania has also formulated plans to develop substations in the country to add to the transformer capacity. A transformer capacity of 11,450 MVA is expected to be added during the period Of the total, 2,950 MVA is to be added at the 220 kv level and the remaining 8,500 MVA at the 400 kv level. Also, a total of 25 substations will be developed during the period with 14 at the 220 kv level and 11 at the 400 kv level. Summing Up To meet the increasing electricity demand, as well as to enhance access to and stability of the electricity supply, Tanzania plans to expand the country s installed capacity, both by installing new capacity and by rehabilitating existing power plants. The country is also working to increase the share of renewable energy in its total energy mix to reduce its dependence on hydropower. To cater to this upcoming generation capacity, Tanzania has set medium term and long term transmission targets. The country is also developing several cross-border interconnection projects. The government has received financial assistance from several donor agencies for implementing its power sector plans. These measures are expected to strengthen Tanzania s power sector significantly. Table 2: List of key proposed transmission projects in Tanzania Project Length (km) Voltage (kv) Scheduled/ Expected completion Bulyanhulu Geita transmission line project Geita Nyakanazi transmission line Backbone Transmission Investment Project Morogoro Hale Arusha transmission line project /2016 Mtwara Singida HVDC transmission project ~1,000 ±330 kv HVDC 2014/2015 North-West grid extension project 1, /2016 Somangafungu to Kinyerezi transmission line Makambako to Songea transmission line Nyakanazi to Kigoma transmission line Masaka to Mwanza transmission line Mkuranga A to Mkuranga B transmission line Mlandizi to Zinga transmission line Wind project Sinigda Mtwara power plant Kiwira to Mbeya transmission line Mbeya to Iringa transmission line Dar es Salaam to Chalinze Tanga Arusha transmission project Nyakanazi to Mbeya transmission line 1, Dar es Salaam Morogoro Dodoma transmission line Ngaka to Makambako transmission line Somanga Lindi Mtwara transmission line Nyakanaz to Rusumo transmission line Kigoma to Sumbawanga transmission line Pensulo to Mbeya transmission line Mchuchuma to Mufindi transmission line Masigira to Makambako transmission line Rumakalo to Mbeya transmission line Notes: HVDC high voltage direct current Source: Ministry of Energy and Minerals Global Transmission Report March

8 News NORTH AMERICA NU to invest USD4.3 billion during on transmission infrastructure Connecticut-based Northeast Utilities (NU), which operates New England s largest energy delivery system, has planned to spend USD4.3 billion on transmission infrastructure improvement during This is about 15 per cent higher than its previous year s estimates and equal to the amount spent by the company during As per estimates of the company, the northern part of New England holds significant renewable energy potential, which can be utilised to fulfill the rising power demand of the southern area of the state. The funds will also be spent on its Northern Pass Project, which NU is jointly developing with Canadian company Hydro-Québec (HQ). The project involves construction of a new participant-funded transmission interconnection between New England in the US and Québec, Canada. The USD1.4 billion project, also known as the New England Québec interconnection project, aims to deliver 1,200 MW of hydro power from HQ s Des Cantons substation in Quebec, Canada to the proposed converter terminal at Franklin in southern New Hampshire, further extending to the Deerfield substation in Deerfield, USA. The project is likely to be completed by The US Department of Energy (DoE) is likely to reveal an alternative route for the Project before releasing the draft environment impact assessment (EIA) study by end of In January 2014, the New Hampshire s Congressional delegation requested DoE to provide details of the alternative route of the project. In response to this, the energy department has sent a letter to the state congressional delegation, while highlighting that it is under the process of reviewing the public comments received from local residents and organisations. NIPSCO receives approval for USD1 billion power network upgradation project Northern Indiana Public Service Company (NIPSCO) has received approval from the Indiana Office of Utility Consumer Counselor for its USD1 billion project to strengthen its aging power transmission and distribution network in the region over the next 7 years. This includes its Reynolds Topeka Electric System Improvement Project. This now allows the company to start construction works of the project in Kosciusko County in the next few months. The project entails the construction of a 160 km, 345 kv single-circuit line starting from the Reynolds substation in White County, proceeding to the Burr Oak substation near the town of Burr Oak in Marshall County, and terminating at the Hiple substation near the town of Topeka in LaGrange County in Indiana. The USD271 million project is one of the 17 similar projects led by the Midwest Independent Transmission System Operator (MISO) across the Midwest. The project is scheduled for completion in Ohio Edison to invest USD475 million on Ohio grid network during 2014 Ohio Edison, a subsidiary of FirstEnergy Corporation, has planned to invest about USD475 million in 2014 to upgrade the power network across 36 counties of Ohio. This represents about an increase of USD233 million compared to the previous year s investment plan of the company for the region. Major projects scheduled for 2014 include the building of new substations, starting construction of a new 100 mile (161 km) transmission line project, installation of enhanced remote-control technology in multiple facilities, inspection and replacement of utility poles, and continuation of tree-trimming work. Of the total USD475 million infrastructure investment plan for the region for 2014, more than USD344 million will be spent on power transmission projects built and owned by American Transmission Systems (ATS) Incorporated, a subsidiary of FirstEnergy. The planned investment amount will be spent on: Initiating the construction of a 100 mile (161 km), 345 kv transmission line from FirstEnergy s Bruce Mansfield Power Plant located near Ohio River to the Cleveland area to enhance system reliability. It is anticipated that approximately $128 million will be invested in this multi-year project in Initiating construction of a USD52 million transmission substation in the Massillon area and a USD38 million substation in Toronto, Ohio, to help enhance system reliability. Continuing construction work on a 138 kv transmission line in the Springfield area with an investment of USD34 million in Constructing a USD4.8 million transmission line segment near Boardman to serve Pennant Midstream facilities to enhance power supply in the eastern Ohio shale gas region. Installation of remote-control equipment and breaker upgrades at substations in Portage, Mahoning and Trumbull counties at a cost of more than USD1.6 million. Investing more than USD18.6 million as part of Ohio Edison s ongoing treetrimming programme to maintain proper clearances to help reduce treerelated outages in Akron, Alliance, Ashland, Aurora, Barberton, Bellevue, Elyria, Girard, Lisbon, Lorain, Mansfield, Marion, Massillon, Medina, Niles, North Ridgeville, Ravenna, Sandusky, Springfield, Twinsburg, Warren and Youngstown. Upgradation of major circuits in Columbiana, Stark and Trumbull counties at a cost of USD3 million. Completion of a USD1.2 million modular substation in Bath Township to serve additional load growth. Investing more than USD6.8 million for inspection and replacement of distribution poles in the Ohio Edison service area. This inspection process is conducted on a 10-year cycle. More than 59,000 utility poles will be inspected in 2014, with about 2,000 expected to be replaced. JCP&L to spend USD250 million in 2014 Jersey Central Power & Light (JCP&L), a subsidiary of FirstEnergy, has planned to spend more than USD250 million to further expand and strengthen its 8 Global Transmission Report March 2014

9 News infrastructure to enhance and maintain service reliability throughout its 13- county service area, in The funds will be spent on the completion of transmission line projects in Monmouth, Ocean and Morris counties, along with a smart grid project in Morris County and construction of a new substation in Hunterdon County. The company has also planned to upgrade 118 circuits, add new circuits, inspect and replace utility poles, and perform tree trimming work on more than 3,400 miles (5,474 km) of distribution and transmission lines. JCP&L s planned system expenditure includes: Upgradation of more than 118 distribution circuits at a cost of nearly USD6 million in various communities to enhance service reliability. Initiating a USD7 million worth smart grid project of DoE on three circuits serving Bernards Township, Harding Township and Morristown. Replacing underground distribution cables. Performing infrared scans on 300 circuits to detect equipment in need of replacement and replace them. Performing tree trimming work on 3,400 miles of line. In addition to this, JCP&L will continue its Energizing the Future transmission system enhancement programme, under which USD150 million will be spent on: Completing a 115 kv line between the Englishtown substation in Manalapan and the Wyckoff substation in Hightstown. The USD23 million project also includes the addition of four 115 kv breakers within the substation. Completing construction on a new USD10 million substation in West Amwell to provide flexibility and enhance reliability in Hunterdon County and the Hopewell area of Mercer County. Installing equipment to upgrade the Manalapan substation in Monmouth County, including a new transformer, a new 230 kv breaker and constructing two new distribution circuits. Planning and designing a new USD13.5 million, 34.5 kv line between the Montville and Riverdale substations in Morris County to support future load growth. Planning and designing a new USD19 million, 230 kv line between the Whippany and Montville substations to support future load growth and enhance reliability. Planning and designing a new USD53 million, 230 kv line between the Oceanview substation in Neptune and the Larabee substation in Howell. FirstEnergy to invest USD210 million in West Virginia and northwest Ohio FirstEnergy has planned to invest about USD110 million in 2014 on service reliability infrastructure upgrades in Mon Power s 34-county service area, primarily in north-central West Virginia. This represents about a USD32 million increase compared to its previous year s investment. Projects scheduled for this year include transmission improvements, building new distribution lines, replacing underground cables, inspecting and replacing equipment including utility poles and ongoing tree trimming programmes. Major investment plans include: Investing USD36 million to continue Mon Power s ongoing tree trimming programme in Beverly, Buckhannon, Chester, Clarksburg, Elkins, Fairmont, Huttonsville, Lewisburg, Morgantown, Wellsburg, Weirton and Weston Investing more than USD33 million to support the expansion of Marcellus shale gas industry Investing more than USD17 million to provide electrical service to new residential and commercial customers in north-central West Virginia, including Morgantown, Fairmont, Parkersburg and Weirton Increasing capacity of the Collins Ferry Osage 138 kv transmission line at a cost of more than USD5 million to benefit Mon Power customers in Monongalia County near Morgantown Inspecting 40,000 distribution poles and replacing about 250 poles at a cost of more than USD2 million Investing about USD1.8 million to replace electrical equipment identified during routine inspections of the transmission system to enhance reliability throughout Mon Power s service area FirstEnergy has also planned to invest USD100 million to upgrade power infrastructure of the service region of its subsidiary of Toledo Edison in northwest Ohio in This represents about an increase of USD25 million over its last year s investment. Of the total planned investment amount, USD59 million will be spent on transmission projects built and owned by ATS Incorporated, a FirstEnergy transmission company. Some of the projects planned under this investment plan are: Initiating the construction of a 345 kv substation in Middleton Township in Wood County, scheduled to be completed in 2015 with an investment of USD18 million in Continuation of the construction works of a 48 mile (77.28 km) transmission line project to connect several substations. During 2014, USD14 million will be spent on the project. Upgradation of the capacity of existing substations by adding more transformers at a cost of more than USD12 million and replacement or upgradation of existing equipment with an investment of more than USD3 million. Inspection and replacement of utility poles in Clyde, Fremont, Defiance, Green Springs, Swanton and Toledo. This inspection process is conducted on a 10- year cycle. Inspections began in January, with replacement work scheduled to be performed throughout the year at a cost of more than USD3 million. Continuation of Toledo Edison s ongoing tree-trimming programme to maintain proper clearances and help harden distribution and transmission facilities against tree-related storm damage. Some of the communities scheduled for work this year include Defiance, Maumee, Perrysburg, Rossford, Sylvania, and Toledo. West Penn Power plans to invest USD160 million in 2014 West Penn Power, a subsidiary of FirstEnergy, has planned to invest Global Transmission Report March

10 News USD160 million in 2014 on infrastructure upgrades to enhance service reliability in its 24-county service area. Of this, the company will spend USD23 million on power transmissionrelated projects built and owned by Trans-Allegheny Interstate Line Company, a FirstEnergy transmission affiliate. Scheduled projects include: Installing a new transformer at a substation in Armstrong County at a cost of about USD22 million Spending more than USD25 million to trim trees along more than 4,500 miles (7,245 km) of distribution and transmission lines as part of West Penn Power s ongoing programme Investing more than USD23 million on various projects to expand the distribution system throughout West Penn Power s 24-county service area Building new transmission switching facilities in central Pennsylvania to help enhance transmission reliability and capacity in the State College and St. Marys regions at a cost of more than USD10 million Investing USD2.1 million to increase the transmission capacity of the Enon substation near Ryerson station in Greene County to help support electricity demand of the area s coal mines Reinforcing breakers at the 500 kv Yukon substation in Washington County at a cost of more than USD800,000 Installing additional distribution line capacity in the Park Hills area of State College at an investment of nearly USD600,000 Upgrading the Byerly Crest distribution substation in the North Huntington area of Route 30 in Westmoreland County at a cost of more than USD300,000 Building a new 2 mile (3.22 km) distribution line in the Manifold area of Washington, at a cost of more than USD360,000 Inspecting about 54,000 utility poles and replacing or reinforcing about 1,100 poles at a cost of nearly USD4 million (this inspection process is conducted on a 12-year cycle in Pennsylvania, and replacement work is scheduled to be completed by the end of the fall) Upgrading equipment on 135 distribution circuits throughout the service territory at a cost of more than USD600,000 Potomac Edison plans to invest USD143 million in 2014 Potomac Edison, a part of FirstEnergy, has planned to invest more than USD143 million in 2014 in transmission and distribution infrastructure upgrades in its service area. Major projects scheduled for this year include transmission enhancements, building new distribution circuits, replacing underground cables and making system enhancements in high-growth areas. Of the total investment amount, about USD42 million will be spent on transmission-related projects built and owned by Trans-Allegheny Interstate Line Company, a FirstEnergy transmission affiliate. Kay projects of the company include: Rebuilding of a 500 kv transmission line in Frederick County, Maryland, as part of a joint project with Dominion Power. Potomac Edison will invest USD13 million for the project. Investing more than USD18 million to trim trees and control vegetation along 2,600 miles (4,186 km) of distribution and high-voltage transmission lines in Allegany, Berkeley, Frederick, Garrett and Washington counties Continuing improvements at the Doubs substation in Frederick County at a cost of more than USD4 million Installation of new equipment at a cost of more than USD2.5 million to increase capacity of the Davis Mill substation in Montgomery County, Maryland, to accommodate accelerated power demand in the Germantown and Clarksburg areas Installation of new equipment at the Corning substation in Berkeley County, West Virginia, to allow for load growth and help enhance reliability for existing customers in the Tabler and Inwood areas Completing systematic repairs and replacing equipment on a 138 kv regional transmission line spanning Hardy and Mineral counties, West Virginia, to help enhance regional reliability APCO to spend USD130 million on Virginia and West Virginia networks Appalachian Power Company (APCO) is seeking regulatory approval for its USD130 million worth power network upgradation project in southern West Virginia and Southwest Virginia. As per the company, the region s aging power network required upgrades to ensure reliable power supply in the area. Areas specifically targeted for the infrastructure upgrade include Tazewell, Buchanan and McDowell counties. Under this project, the company is planning to spend USD50 million in southwest Virginia to build a new substation in Buchanan County, improve three existing substations in Tazewell County, build 138 kv transmission lines in Tazewell and Buchanan counties, and upgrade an existing 69 kv, 8.5 mile (13.68 km) line in Tazewell County also to 138 kv, along with about 3.5 miles (5.6 km) of the line in West Virginia. In West Virginia, the company plans to spend about USD80 million to upgrade transmission infrastructure in McDowell County. The project scope includes the retirement and removal of a 35 mile (56.35 km), 88 kv transmission line; retirement and removal of two existing substations; construction of three new substations; associated improvements at other existing substations; and upgradation of an existing 17 mile (27.37 km), 88 kv line to the 138 kv level. In addition, the existing wood H-frame tower structures will also be replaced with steel H-frame structures. Wood H-frame tower structures also will be replaced with steel H-frame structures in both states. The steel structures are taller and sturdier, according to the company. Both the projects require approval from Virginia and West Virginia regulators, and are scheduled to be completed by The company has also hosted an informational workshop for the projects on February 24 and 25 in Virginia and on February 27 in West Virginia. FPL to upgrade more than 100 transmission lines in 2014 Florida Power & Light (FPL) Company has planned upgrades of about 100 power lines and other related 10 Global Transmission Report March 2014