Pumped storage hydroelectric power plants: Issues and applications BIH Case Study

Sasa ScekicScekic,,,, Head of Licensing and Technical Affairs Dpt., SERC BIH

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting wwwwww.. erranet.org October 191919, 19 , 2012016,6, Bratislava, Slovakia Power System of and

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 222 October 191919, 19 , 2012016,6, Bratislava, Slovakia Basic Power Indicators of

GWh

Year 2015 EP BIH ERS EP HZHB Komunalno Br čko BIH

Generation in hydro 1,436.28 2,166.12 1,823.14 5,425.54 power plants Generation in thermal 5,413.40 3,298.66 8,712.06 power plants Generation in small and 160.68 93.55 16.03 270.26 industrial PPs

Generation 7,010.36 5,558.33 1,839.17 14,407.86

Distribution consumption 4,542.81 3,661.53 1,376.42 265.38 9,846.14

Transmission losses 359.37

Large customers 449.56 159.31 1,763.43* 2,372.30

PPs self-consumption and 13.96 13.90 27.86 pumping

Consumption 4,992.37 3,834.79 3,153.75 265.38 12,605.66

* Including the amount of 861.86 GWh which Aluminij and B.S.I. purchased as eligible customers

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 333 October 191919, 19 , 2012016,6, Bratislava, Slovakia Basic Data on Installed Capacity of Generation Units

 Total installed capacity of generation units in Bosnia and Herzegovina amounts to 4,009.14 MW:  2,054.90 MW hydro power plants  1,765 MW thermal power plants  97.41 MW small hydro, wind, solar and biogas power plants  91.23 MW industrial powers plants. Capacity Energy

Hydro Hydro Thermal Thermal Smal Industrial Small and Industrial

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 444 October 191919, 19 , 2012016,6, Bratislava, Slovakia Major Generation Units

Hydro power Capacity of power Total installed Thermal power Installed capacity Available capacity 2Year 2015 plants unit (MW) capacity (MW) plants (MW) (MW) I 2´54 +1×63 171 TUZLA 715 635 Trebinje II 8 8 G3 100 85 G4 200 182 (BIH+HR) 2×108 216 Čapljina 2×210 420 G5 200 180 Rama 2×80 160 G6 215 188 Jablanica 6×30 180 Grabovica 2×57 114 KAKANJ 450 398 Salakovac 3×70 210 G5 110 100 3×24 72 G6 110 90 Mostarsko blato 2×30 60 G7 230 208 Pe ć-Mlini 2×15 30 Jajce I 2×30 60 GACKO 300 276 Jajce II 3×10 30 Bo čac 2×55 110 UGLJEVIK 300 279 Višegrad 3×105 315 Ustipra ča 2×3.5 7 ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 555 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 666 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina --- description

 Owner and license holder - JP Elektroprivreda HZHB d.d. Mostar

 The only PHPP in the power system of Bosnia and Herzegovina and the largest HPP in the system

 Location – settlement Svitava, municipality Capljina

 Started operation in 1979

 Multipurpose unit capable of different roles in the system

 Designed for the yearly production of 480 GWh from non-regulated, regulated and water obtained by pumping

 Current yearly planned production is 192 GWh

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 777 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– description (2)

 Operation by the water used:

 Non-regulated water – natural inflows

 Regulated water – discharge of the upstream power plants

 Water obtained by pumping

 Designed for the operation:

 During dry summer and autumn period (cca 225 d/y) should operate in night hours (23 – 05) in pumping regime, and during day (5 – 6) hours as a peak plant (pumping/generation ratio is 0.74).

 During winter and spring period (cca 140 d/g) with enough inflow in the upper reservoir planned average operation is 12 – 14 hours daily.

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 888 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– description (3)

 Production from non-regulated water flows:  Electricity produced from non-regulated water flows all belongs to the license holder JP EPHZB, and is used for supply to end-use customers and commercial sale  Production from regulated water flows discharged from Gorica profile (HPP Trebinje II)  Water discharged from the tail water reservoir Gorica (through HE Trebinje 2 or as spill water) superimposed to the natural flows in “”, and net of losses, flow through the feeding channel to the reservoir “Popovo polje”. Given the high installed power of PHPP Capljina coordination is important, not so because of the regulation of flows, but mainly because of financial reasons.  Electricity produced using these flows is split between MH ERS and JP EP HZHB, which is regulated by a separate agreement or contract.  Framework Agreement on Cooperation was signed in April 2016 between MH ERS (owner of the upstream power plants) and JP EP HZHB.  Production from pumping  Electricity produced from water obtained by pumping all belongs to the JP HZHB.  Exception can be the agreement with a party that provides electricity for pumping, and takes on produced electricity. Ratio of electricity for pumping / electricity obtained in this arrangement is cca 1:3.

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 999 October 191919, 19 , 2012016,6, Bratislava, Slovakia Main technical characteristics

Basic technical characteristics Basic data Number of generator sets: 2 Turbine: Francis reversible Nominal power (MW): 2x220 3 Nominal flow (m /s): 2x112,50 Technical minimum (GWh): 140 Total 84 % average yearly production (GWh): 400 3 energy from 1m of 0,52-0,55 water (kWh): water needed for 1,92-1,82 3 1kWh (m /s):

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 101010 October 191919, 19 , 2012016,6, Bratislava, Slovakia Main technical characteristics

3 Flows, average yearly flow (m /s): reservoir, reservoir capacity total: 7.23 head height 3 (mil. m ) Usable capacity: 6.47 mrtav prostor: 0.76 Ectrical energy capability of 3.40 reserovir (GWh): reservoir level maximum: 231.50 (m.n.m.) average: 227.00 minimum: 224.00 tail-race level (m): 3.00 gross head heght maximum: 228.50 (m) average: 224.00 minimum: 221.00

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 111111 October 191919, 19 , 2012016,6, Bratislava, Slovakia Trebisnjica river basin

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 121212 October 191919, 19 , 2012016,6, Bratislava, Slovakia Trebisnjica power plants profile

Hydrosystem Trebisnjica Longitudinal profile

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 131313 October 191919, 19 , 2012016,6, Bratislava, Slovakia river basin

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 141414 October 191919, 19 , 2012016,6, Bratislava, Slovakia Position in company’s portfolio ---energy

POWER PLANTS SHARE IN TOTAL ELECTRICITY PRODUCTION - EPHZHB

HPP Mostarsko blato HPP Pe ć-Mlini 8% 4% HPP Rama 39% HPP Jajce 2 9%

HPP Jajce 1 13%

HPP Mostar 15% PHPP Čapljina 12%

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 151515 October 191919, 19 , 2012016,6, Bratislava, Slovakia Position in company’s portfolio ---power

POWER PLANTS SHARE IN INSTALLED CAPACITY – EP HZHB

HPP Rama 19.2% HPP Pe ć-Mlini HPP Mostarsko Blato 3.6% 7.2%

HPP Jajce 1 7.2% HPP Jajce 2 3.6%

HPP Mostar 8.7%

PHPP Čapljina 50.5 %

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 161616 October 191919, 19 , 2012016,6, Bratislava, Slovakia Monthly production

PRODUCTION EPHZHB I II III IV V VI VII VIII IX X XI XII TotalGWh

HE Rama 65.0 65.0 50.0 20.0 20.0 55.0 50.0 50.0 65.0 65.0 70.0 70.0 645.0

CHE Čapljina 28.0 28.0 26.0 20.0 8.0 5.0 1.0 0.0 5.0 15.0 26.0 30.0 192.0

HE Mostar 25.0 21.0 27.0 30.0 23.0 16.0 10.0 9.0 12.0 20.0 25.0 27.0 245.0

HE Jajce 1 20.0 20.0 23.0 29.0 25.0 17.0 12.0 5.0 10.0 14.0 18.0 23.0 216.0

HE Jajce 2 15.0 14.0 16.0 18.0 17.0 14.0 9.0 8.0 8.0 9.0 10.0 15.0 153.0

HE Peć-Mlini 11.0 11.0 10.0 9.0 5.0 3.0 1.0 1.0 1.0 2.0 7.0 12.0 73.0

HE Mostarsko Blato 21.0 23.0 17.0 15.0 12.0 3.0 0.0 0.0 2.0 4.0 12.0 23.0 132.0

TOTAL 185.0 182.0 169.0 141.0 110.0 113.0 83.0 73.0 103.0 129.0 168.0 200.0 1 656.0

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 171717 October 191919, 19 , 2012016,6, Bratislava, Slovakia Operation of PHPP from 2002 ---2016

Power 2002-2016 Power

Power 2002-2016 Power Number of hours

NumberNumber of of hours hours

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 181818 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– pumping regime

 From 1979. to 1991. total number of pumping regime starts was 1621, averaging around 125 pumping cycles/year

 Since 1991. until today pumping regime is greatly reduced. Main reasons being::

 High fees for hydro reservoirs and flooded land – 8.18 EUR/MWh. Fee is paid for every MWh produced, even in the cases when the water in the upper reservoir is obtained by pumping.

 With low energy price, tariff for transmission, ISO and system services, which is paid for electricity consumed, is relatively high - 5,82 EUR/MWh for profitable production for energy market.

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 191919 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– voltage/reactive power regulation

 Identification of voltages exceeding mandatory voltage ranges on the BIH transmission network – study, ISO October 2010  Technical and economical aspects of the voltage regulation as ancillary (system) service – identification and recovery of voltages exceeding mandatory voltage ranges on BIH transmission network – EIHP study, 2012  PHPP Čapljina is a multipurpose production unit which can be used for regulation of voltage / reactive power flows  Between pumping and turbine mode, depending on the situation in the system, the plant can operate in the compensation mode which can be in over and under excitation with 150 – 160 MVAr per generator unit  It is rarely used in the compensation regime mainly because there is no financial compensation of such work  SERC’s decision from January 2016 on tariffs for system and ancillary services stipulated usage of reactive power on transmission system setting the tariff for excessive take-on of reactive power from the transmission network to zero (0) €/kvar

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 202020 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– voltage/reactive power regulation (2)

 Played a key role in resynchronization of I and II UCTE zones in 2004. Operating in the compensation regime lowered voltages of 400 kV busbars in RP Trebinje from 426 to 410 which allowed switching on of the 400 kV Trebinje – Podgorica power line and establishment of the united UCTE system.

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 212121 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– voltage/reactive power regulation (3)

 Recorded voltages on main transmission nodes in BIH in 2015:

Maximum Number of Percentage of recorded hours above time above the Substation Busbars voltage allowed value allowed value (kV) (h) (%) 400 kV 441,58 7262 83 Mostar 4 220 kV 249,34 199 2,27

400 kV 441,54 6113 69,78

Trebinje 220 kV 252,16 1138 12,99 110 kV 125,55 22 0,25

400 kV 435,21 4076 46,53 Tuzla 4 220 kV 249,34 199 2,27

400 kV 437,40 5720 65 Sarajevo 10 110 kV 124,81 152 1,74

400 kV 431,02 1299 14,83 Banja Luka 110 kV 124,71 77 0,88

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 222222 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– voltage/reactive power regulation (4)

 Study (EIHP – 2012) states that the total amount of compensation for generators for their ability to compensate reactive power is around 5.5 million € (1.5 for ability to operate in capacitive area and 4 million € for inductive area)  If the remuneration is used just for capacitive operation, which can solve the high voltage problems in the long term, 1.5 million € should be collected for this service  If only PHPP Capljina is used for this, the total cost of the service of compensation of reactive power and synchronous compensation of this power plant is estimated do 1 million €/year:  650 000 € - reactive power  350 000 € - cost of active power, or losses in compensation mode  Compensation mode of PHPP Capljina is estimated to 470,000 €:  335 000 € - losses of active power  135 000 € - compensation of reactive power

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 232323 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– tertiary control

 Tertiary control in BIH is obtained on the market since 1.1.2016  BIH signed an agreement on the control block level about joint tertiary control. This contract reduced necessary tertiary control for the BIH system from 250 to 184 MW.  Average price for capacity for Tertiary control upward obtained on the market was 4.438 EUR/MW/h  Price cap for positive tertiary control – energy price was 200 EUR until 1. July and 243,14 EUR from 1. July  PHPP Capljina has not offered capacity to the market  Very high technical minimum of the plant – 140 MW, so with the current rules it cannot offer capacity on its own, needs aggregation on the company or higher level  Certain period of time (24 – 48 h) would be needed between consecutive engagement  PHPP Capljina used to offer reserve for other operators outside BIH gaining a good price  ISO shall not allow any producer to sell tertiary control to other TSOs until necessary tertiary control is provided for BIH system (Grid code – article 7.2.30)

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 242424 October 191919, 19 , 2012016,6, Bratislava, Slovakia Tertiary control ––– volume and price of upward energy in BIH in 2016

2500 250,00

2000 200,00

1500 150,00

MW €/MWh Volume (MWh)

1000 100,00 Average price (€/MWh)

500 50,00

0 0,00

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 252525 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– black start capability

 ‘Black start capability’ means the capability of recovery of a power-generating module from a total shutdown through a dedicated auxiliary power source without any electrical energy supply external to the power-generating facility. (RfG – Regulation EU 2016/631)

 Generating units with a black-start capability shall provide this service at their own expense (Article 30 – Tariff pricing methodology for services of electricity transmission, independent system operator and ancillary services)

 ISO issued a Study on Black start in 2009 identifying units that are capable and suitable for this service

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 262626 October 191919, 19 , 2012016,6, Bratislava, Slovakia PHPP Capljina ––– black start capability (2)

 Study established these criteria:

 Voltage level of power plant (ability to send the voltage to a customer node without further transformation, 110 kV is preferred voltage)

 Technical minimum (lower technical minimum allows faster transition to the permanent operation)

 Ability to start the power plant without extern voltage (installed diesel or auxiliary generator)

 Power of the external source (diesel or auxiliary generator)

 Auxiliary power of the power plan (whether auxiliary sources can cover auxiliary power needs)

 Vicinity and load of the consumption points

 Ability of operation between 0 and Pmin

 PHPP Capljina is not identified as a generation unit with black start capability

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 272727 October 191919, 19 , 2012016,6, Bratislava, Slovakia Conclusions

 PHPP Capljina is not adequately utilized in the power system

 Operation of the PHPP greatly depends of the market design, network and system tariff settings, operational agreements, size of the system

 Network, system, environmental and other charges for pumping regime with generally low energy price reduce profitability of selling at energy markets

 PHPP Capljina should use opportunity to sell tertiary reserve

 Reactive power compensation should be financially remunerated

 Operational agreements with other companies should be used for better utilization

 Block or regional wide usage of resources should be beneficial

ERRA LicensingLicensing////CompetitionCompetition Committee Meeting 282828 October 191919, 19 , 2012016,6, Bratislava, Slovakia THANK YOU FOR YOUR ATTENTION!

EEE-E---mail:mail: [email protected]

W Web: www.derk.ba