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Analysis on the Possible Options for Interconnection of Wpp “Milkovitsa” to the Power Transmission Network of National Electric Company (“Nec”Ead)

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Analysis on the Possible Options for Interconnection of Wpp “Milkovitsa” to the Power Transmission Network of National Electric Company (“Nec”Ead) ANALYSIS ON THE POSSIBLE OPTIONS FOR INTERCONNECTION OF WPP “MILKOVITSA” TO THE POWER TRANSMISSION NETWORK OF NATIONAL ELECTRIC COMPANY (“NEC”EAD) I. GENERAL PROVISIONS: 1. History of the project: 1.1. Description: „W. POWER” LTD and „W. POWER 2” EOOD are owners of land properties within the grounds of Milkovitsa, Shiyakovo and Lenkovo villages, Gulyantsi Municipality, Pleven region and have united their efforts in the implementation of joint investment project on constructing of wind power park with production capacity of about 120 MW – Wind Power Plant “Milkovitsa” (“The Project” ). 1.2. Submitted documents and launched actions: In pursuance of the agreements, “W. POWER” Ltd. has submitted an application on researching the conditions for interconnection of the Project to the power transmission network of “NEC” EAD with incoming № 26.00-2268 dated 16.10.2009. Meanwhile, there has been made an organization on obtaining of EIA for the Project and the necessary monitoring - ornithological, wind and other analyses. There are prepared Detailed Site Development Plans, which have been approved by the Municipal Council of Gulyantsi with Resolution № 677 dated 29.01.2010 and Resolution № 743 dated 29.04.2010, which to date has entered into force. 1.3 Statement of the Bulgarian Transmission System Operator (“ESO” EAD): On the grounds of the above, “ESO” EAD issued statement on the conditions for interconnection of the Project under outgoing № 1049/19.03.2010, which is entered in “NEC” EAD under incoming № 53-00- 156 (1) on 22.03.2010. Parameters of the Statement of “ESO” EAD: 1.3.1 Territorially WPP “Milkovitsa” is situated near: • “Gulyantsi” 110/20 kV substation – appr. 6-7 km; • “Nikopol” 110/20/6 kV substation – appr. 13 km; • “Pleven 1” 220/110/20 kV substation – appr. 30-35 km (could be shortened depending on the place of the new increasing substation of the WPP) “Gulyantsi” substation 110/20 kV – OSG 110 кV is constructed under “single bus-bar system” scheme, with two 110 kV bays – OHL 110 kV “Milkovitsa”(“Gulyantsi” substation – “Nikopol” substation) and OHL “Podem” (“Gulyantsi” substation – “Pleven 1” substation – and OHL branch to “Bozhuritsa” substation). There is one available bay in the switchgear for 110 kV feeder, for which “ESO” EAD has issued statement for interconnection of new OHL 110 kV for 120 MW WPP of “ELBA ENERGY” AD (outgoing No. 2562/12.05.2009). “Nikopol” substation 110/20/6 kV – OSG110 кV is constructed under “double bus-bar system” scheme with two 110 kV bays – OHL 110 kV “Milkovitsa” (“Gulyantsi” substation) and OHL 110 kV “Lozitsa” (110/20 kV “Belene” substation). There are two available bays in the switchgear for 110 kV Page 1 of 8 feeders. For one of them ESO EAD has statement for interconnection of new cable line (CL) 110 kV for TPVPP “Nikopol” (16.75 MW) of “TPVPP NIKOPOL” EAD. “Pleven 1” substation 220/110/20 кV –OSG110 кV is constructed under “double bus-bar system” scheme . There are five available bays in the switchgear. For two of them “ESO” EAD has proposal for interconnection of two new OHL 110 kV for WPP (16-200MW) of “VEI ENERGY”EOOD. 1.3.2. Information for submitted applications for interconnection of RES in the region up to 19.03.2010: • WPP with a capacity of 120 MW of „ELBA ENERGY” AD: application № 26.00- 136/14.01.2009 and statement of ESO out. № 2562/12.05.2009, resp. statement of NEC out. № 26.00-136/09.06.2009 for interconnection to OSG 110 kV of “Gulyantsi” substation; • WPP with a capacity of 200 MW of „VEI ENERGY” EOOD: application № 26.00- 2530/23.11.2009 and statement of ESO № 6638/22.12.2009 (№ in NEC: 53-00- 1602/22.12.2009). The proposal of ESO is on interconnection to OSG 110 kV of “Pleven 1” substation with two new OHL 110 kV. • WPP with capacity 120 MW of „W. POWER” OOD: application № 26.00-2268/16.10.2009 and statement of ESO № 1049/19.03.2010 (in NEC 53-00-156(1)/23.03.2010), with two interconnection options: 1st option: to OSG 110 kV of “Pleven 1” substation, in case of interconnection of WPP of “ELBA ENERGY” AD to “Gulyantsi” substation and 2 nd option: to OSG 110 kV of “Gulyantsi” substation, where there is no interconnection of WPP of “ELBA ENERGY”AD to “Gulyantsi” substation; • TPVPP with a capacity of 16,75 MW of „TPVPP NIKOPOL” EAD: statement of “ESO” EAD on interconnection to available field 110 kV in OSG 110 kV of “Nikopol” substation; • TPP Sviloza: additional capacity of 58 MW; • TPP “TeTSeCo”, nearby TPP Sviloza – with a requested nominal capacity of 25,5 MW; • WPP with capacity of 5 MW of „ELBA ENERGY” AD ; • WPP with capacity of 5,3 MW for interconnection to OHL 20 kV “Pobeda”, terminal to “Gulyantsi” substation, client: “CEZ Distribution Bulgaria” AD • PVPP with capacity of 5 MW for interconnection to OHL 20 kV “Roza”, terminal to “Gulyantsi” substation, client: “CEZ Distribution Bulgaria” AD • PVPP with capacity of 5 MW for interconnection to OHL 20 kV “Somovit”, terminal to “Gulyantsi” substation, client: “CEZ Distribution Bulgaria” AD 1.3.3. Conclusion of the statement of ESO EAD: To date, including WPP “Milkovitsa” the total installed capacity in the region shall exceed 670 MW (including the installed capacities of TPP “Sviloza”). Transmission of such capacities through 110 kV ring, part of which are “Gulyantsi” and “Nikopol” substations, is technically impossible. Without any development of the transmission power network in the region there is no possibility the generation capacities, applied for interconnection to “Gulyantsi” substation or to OHL 110 kV “Milkovitsa” and “Podem” to operate without limitation by ESO EAD. The maximum capacity, which can be transmitted through OHL 110 kV “Podem” is 150 MW, and excluding WPP “Milkovitsa” and the electrical loads in the ring, the capacity which shall be transmitted through the big node “Pleven 1” substation is about 450 – 500 MW. This definitely shall cause limiting by “ESO” EAD on the generated capacities, if there is no upgrading of the transmission power network, which currently has no information to be planned by “NEC” EAD. 1.4. Chronology up to June 2010: To June 2010 , according to "NEC” EAD, excluding the small projects listed above, the only project with documentary merit and readiness for concluding of preliminary interconnection agreement is the project for WPP "Milkovitsa" of "W. POWER" OOD. The project of "ELBA ENERGY" AD (WPP "Somovit"), does Page 2 of 8 not have the necessary documents and technical solution for concluding of preliminary agreement with “NEC” EAD on interconnection to "Gulyantsi" substation. According to this the interconnection of WPP “Milkovitsa” appears to be financial and technical justified to be performed to "Gulyantsi" substation as the nearest interconnection point with capacity of 120 MW and simultaneously - project, which has no operating or potential competitive projects in the region. 1.5. The current situation: On 16.07.2010 to "W.POWER" OOD was proposed Preliminary agreement for interconnection of the WPP to the transmission network of NEC EAD. According to the draft of the preliminary agreement the interconnection shall be performed to “Pleven 1” substation through new OHL 110 kV from new Project’s substation to „Pleven 1" 220/110/20 kV substation. The agreement is proposed on the grounds of new statement of “ESO” EAD dated 16.07.2010. II. ANALYSIS ON THE POSSIBLE WAYS ON INTERCONNECTION OF WPP MILKOVITSA In this respect was necessary to be prepared this analysis on the possible options for interconnection, as the following changes in the existing situation were taken into account: 1) It is assumed that the "ELBA ENERGY" AD has provided the documents necessary for the conclusion of preliminary interconnection agreement with “NEC” EAD with way of interconnection – new OHL 110 kV to OSG 110 kV of “Gulyantsi” substation and using of the available capacity of 120 MW; 2) The land and sites around “Gulyantsi” substation are bought by "VEI ENERGY" Ltd. 3) OSG 110 kV of “Gulyantsi” substation is constructed under "single bus-bar system" scheme with two bays 110 kV – OHL 110 kV "Milkovitsa" ("Gulyantsi substation - "Nikopol" substation) and OHL 110 kV "Podem" (“Gulyantsi” substation - "Pleven 1” substation - and OHL branch to "Bozhuritsa" substation) The presence of two competing investment projects, involves the introduction of restrictive regime by ESO at the power generation (PG). As the probability for interconnection of two investors to “Gulyantsi” substation – “VEI ENERGY" Ltd. and "ELBA ENERGY" AD with capacity of 320 MW is certain prerequisite for generation limitations of about 60-70 % per year for park and therefore necessity of construction or reconstruction of power line to “Pleven 1” substation. Such situation is known in transmission system (TS) of Bulgaria with parks in the area of Dobrich-Kavarna-Shabla, so called “Dobrichki ring”, where several big investors - KWP and AES Geo Energy are in continual restrictive regime by “ESO” EAD and their generation is limited to about 70%. Technical solutions and measures envisaged for the provision of the parks’ generation are suspended and “NEC” EAD has banned interconnections till year 2013, respectively - the return of the investment is reduced to zero. Even if one of the two competitive projects is not fulfilled and if the Project is interconnected to “Gulyantsi” substation, following problems shall occur: • Difficulty in providing the easements for power line steps from new WPP’s substation to “Gulyantsi” substation, because the plots around the substation are bought by the competitor "VEI ENERGY” EOOD; • Park’s generation limitation by ESO EAD and probable generation of about 30-40% of the Project’s nominal capacity; • Further investment by "W.POWER" Ltd.
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