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POWER TRANSMISSION SYSTEM IN

Vaida Tamašauskaitė Power System Development Department Power System Planning Division Lietuvos energija AB

Tallinn, 21 April, 2006 LIETUVOS ENERGIJA AB: Owns: • 110-330 kV transmission grid; 2 • HPP and Kruonis HPSP; • The dispatch centre; • The telecommunications and information system.

Main functions: • Maintenance and Development of Transmission System • System Operation • Market Administration • Security of Supply in Lithuania

Owners • 96,62% - state; • 3,38% - private shareholders. THE S TRUCTURE OF POWER S ECTOR IN LITHUANIA

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PRODUCTION • 3 production companies • 3 CHP of district heating companies • Few private mini HPP • Few industrial power plants DIS TRIBUTION • Two distribution companies (one private) TRANS MIS S ON • One Transmission System Operator company – Lietuvos Energija AB INS TALLED GENERATING CAPACITIES (BRUTTO) IN LITHUANIA

4 MW Fuel 2005 2010 2015 Nuclear: Ignalina nuclear 1300 - - Thermal: 2630 2342 2462 Gas, HFO, Elektrėnai (condensing) 1800 1500 1500 orimulsion Vilnius CHP 384 372 372 Gas, HFO Kaunas CHP 178 170 170 Gas, HFO Mažeikiai 160 160 160 HFO Others 108 140 260 Hydro: 1024 1028 1033 Kaunas HPP 100 100 100

Kruonis HPSPP 900 900 900 Small scale HPP totally 24 28 33 Other renewables: 34 222 335 Wind 30 200 300 Others 4 22 35 Total generation 4988 3592 3830 Total without hydro and 3934 2364 2497 wind Peak demand 2100 2450 2900 INS TALLED GENERATION CAPACITIES IN LITHUANIA

Mažeikiai 5 160 MW Telšiai Šiauliai

Panevėžys Klaipėda Ignalina Utena 10 MW 1300 MW

Jurbarkas Sovetsk 170 MW Kaunas 1800 MW Neris 100 Elektrėnai MW Kruonis Vilnius 900 MW 384 Alytus MW DEMAND IN LITHUANIA 2005 and 2025

Mažeikiai 6

Telšiai Šiauliai Panevėžys Klaipėda 2.4 TWh 1.6 TWh 4.3 TWh Utena Ignalina 2.9 TWh 0.7 TWh 1.2 TWh

Jurbarkas Jonava Sovetsk Kaunas Neris Elektrėnai Kr2u.o9n TisWh 2.5 TWVilhnius 5.3 TWh 4.4 TWh

Alytus DEMAND FORECAS T

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Demand forecast (final comsumption + losses) in Lithuania

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16 h W

T 14

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6 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Year LEI slow growth LEI base scenario LEI fast growth AB LE forecast Max AB LE forecast Basic AB LE forecast Min Fact BALANCE OF LITHUANIAN POWER S YS TEM (MW) 8

2009 closed 2009 closed 200 INPP, without INPP, with 2005 2015 2020 9 power plants power plants development development Disposable Capacity of Power Plants – 426 5634 2580 3111 3546 3537 Total 8 118 Ignalina Nuclear Power Plant 2367 0 0 0 0 1434 Lithuania Power Plant 1732 1448 1848 2204 2204 3 Vilnius Power Plant 367 344 344 344 344 344 Kaunas Power Plant 160 229 160 230 229 229 Mazeikiai Power Plant 148 148 148 148 148 148 Klaipeda Power Plant 10 47 10 47 94 94 Panevezys Power Plant 0 24 0 24 48 48 Kaunas Hydro Power Plant 90 90 90 90 90 90 Kruonis Hydro Pump Storage Power Plant 760 760 0 0 0 0

Average demand forecast 222 Required maximal system capacity 1810 2225 2225 2676 3058 1350 Essential long - term reserve 1300 300 400 400 400 0 Power balance (excess "+", deficit "-") 2524 743 55 486 470 79

PROBLEMS

9 • In maintenance regimes – low security of supply in Klaipeda region, impossible to reserve Klaipeda region through 110 kV net. • Long 330 kV transit – Jelgava-Broceni-Grobinia- Klaipeda-Sovietsk. During maintenance one of those lines possible shut-down of some regions. • Lack of 330 kV cross section lines. Eastern and western system parts connected with one 330 kV double-link line Kruonis HPSPP-Lietuvos PP. • In the far future it is necessary to improve security of supply for Vilnius region – should be build third 330 kV substation near Vilnius, to connect Vilnius and Neris 330 kV substations. Will be less dependency from Byelorussia system. 330 KV TRANS MIS S ION GRID DEVELOMPMENT

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• After 5-10 years Baltic region could be deficit area; • Interconnections with other market areas must be build for Security of Supply of the Baltic area and for extension of small Baltic power market; • Fuel supply mostly from Russia; • Could be limited import possibilities from Russia in some periods. NEW INTERCONNECTIONS

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NORDEL

ZSwvieeddernija SFoinmlaijnad

ESTLINK 350 MW 11.2006

Norvwēaģyija Integrated Baltic Lithuania - and CIS energy system Sweden IEgsatouniiaja 700 MW

KRurisesviaija Latvijaa

Dānija Liethtuuvaania

UCTEI// Baellotkrruisevija CENTRAL Europe PoPoliajnad

Lithuania – VGāercmijaany Ukrainae Poland ČCezhecijha 1000 MW POWER BALANCES AND SOS. POSSIBLE SOLUTIONS 13 • Without Poland – Lithuania interconnection: – not to close Ignalina NPP reactor No. 2. – close Ignalina NPP reactor No. 2 and build No. 3. • Shortage in sufficient generation capacities after closure of INPP. – New NPP. Only for whole Baltic. – No for NPP? Closure of INPP and not build of new NPP? Then in Lithuania will be no longer NPP (losing of specialists). – New CHP. – Import. • Interconnection of Baltic power systems with other power systems is necessary for increasing SoS and for market. • The best and cheapest solution – postpone close of Ignalina NPP reactor No. 2 till 2017. INTERCONNECTION LITHUANIA – POLAND 1000 MW 14 L I TH UA NI A Kaunas K R UO NI S

R USSI A Lietuvos PP G D A NSK A L Y TUS B-to-B station M À TK I B E L O R USSI A

O lsztyn ELK Grodno E xisting 330 or 400 kV substation E xisting power plant E xisting 330 or 400 kV line G R UD Z I A Z E xisting 220 kV line Perspective 330-400 kV lines O strolęka NA R E W PL O C K

M I L O SNA

M O SC I SK A PO L A ND INVES TMENTS IN LITHUANIA- POLAND INTERCONNECTION 15 According IPA-EB RD study, year 2003: Investments, mln. € Interconnection 304 Upgrading of power plants in the 130 TOTAL 434

Financing: Investments, mln. € Grant 267 Commercial 167 TOTAL 434

The upgrading of Baltic states power plants is presently implemented by using of finances from financial sources not related to the project. Remaining part of investments for LT-PL interconnection is 304 mln. €. INVES TMENTS IN LITHUANIA- POLAND INTERCONNECTION (continued)

16 Unit mln. € LT 1000 MW back-to-back converter 105 territory 400 kV line Alytus – state border (48 km) 20 330 kV line Kruonis – Alytus (double circuit, 53 km) 20

PL 400 kV line state border – Elk (106 km) 43 territory 400 kV line Elk – Narew (134 km) and Elk – Matki 89 (169 km) Preliminary work to promote the project 27 TOTAL 304

Financing of the Project International Ignalina PP Decommissioning Fund (provisional) 144 Commercial part 160 TOTAL 304 PRES ENT S TATUS OF LITHUANIA – POLAND INTERCONNECTION 17 • According to the Accession Treaty to the European Union 2003, protocol No 4 on Ignalina Nuclear Power Plant in Lithuania, Article 2, paragraphs 3 and 9, the enhancement of security of supply in Lithuania is supported by EU in the context of closure of Ignalina NPP; • LT-PL interconnection project is listed in the European Commission “Quick start” projects list and in the updated TEN Guidelines • 142.8 mln. € for the Project (LT-PL interconnection) for 2007-2013 are marked in the programme of Ignalina NPP closure; • The line route has been defined on the Lithuanian territory; • Lithuanian side is ready to start immediately the implementation of the Project by establishing a project implementation company; • Polish side is willing to continue with analysis. INTERCONNECTION LITHUANIA – S WEDEN

18 • Completed Pre-feasibility Study; • Capacity ~700 MW; • Investments – about 400 million €; • Technical and economical analysis is in progress; • Feasibility study will provide detailed technical and economical analysis of the Interconnection; • Benefits: – Integration of Baltic power systems to Nordel electricity market; – Higher Security of Supply for Baltic and Nordic power systems; – Better use of power resources in Baltic and in Nordel; S ECURITY OF S UPPLY IN THE BALTICS

19 • The Baltic Power systems are isolated from the EU market (island); • The capacity of Estlink interconnection will be only 4% of installed capacity of the Baltic States. • Low security of supply after the closure of the Ignalina NPP; • The Baltic power systems have gas supply through only one gas supply source; • Projected new gas pipe line routes bypass the Baltic States; • Very high dependence on gas fuel supply. S ECURITY OF S UPPLY AND POWER BALANCE, INITIAL DATA ABOUT THE

S ITUATION 20

• increasing number of wind power (in 2010 planed 200MW). • demand increasing is in accordance with average – maximum plan. • Real start with construction of new capacity in Panevezys CHP (35MW). • Interconnection of Lithuanian and Polish power systems is not started. • It is coming time to close NPP. New one? CONCLUS IONS

• The Baltic power systems are isolated from the EU market 21 (island); • 142.8 mln. € are marked in the Ignalina NPP closure programme for the Lithuania – Poland interconnection; • After closure of the Ignalina NPP (year 2009):  Lost of ~60% of the cheapest electricity generation;  Increased electricity tariffs;  Lost electricity export;  Lost fuel diversification;  Electricity production based on Russian natural gas supply.  Lower security of supply of Baltic region;  Lithuania and Baltic states: problems to cover peak load in extreme situation during period 2010-2015 and deficit area after 2015. • New generation capacities and fuel diversification are required. 22

Vaida Tamašauskaitė Power System Development Department Power System Planning Division Lietuvos energija AB