Kaunertal Extension Project

December 2014

Contact

TIWAG-Tiroler Wasserkraft AG Eduard-Wallnöfer-Platz 2 A-6020 Innsbruck

Name Coordinates Issue DI Dr. Peter Bauhofer +43 699 1257 2511 Energy Strategy and Efficiency [email protected] (internal PCI coordination)

DI Wolfgang Stroppa +43 699 1257 2152 Kaunertal Project Manager [email protected]

Mag. Bernhard Beyer, M.A. Controlling

Contents

1. Technical Description...... 7 1.1 Technical Description of the Kaunertal Extension Project ...... 7 1.2 Motivation for the Project and the Project’s Role for EU Energy Policy ...... 10 1.2.1 Benefits for Security of System Operation and Supply ...... 11 1.2.2 Benefits Regarding Availability ...... 12 1.2.3 Benefits for Socio Economic Welfare ...... 12 1.2.4 Benefits for RES- and Market Integration ...... 13 1.2.5 Benefits for Variation in Losses ...... 13 1.2.6 Benefits for Sustainability ...... 13 1.3 Other technical parameters ...... 14 1.4 Project Status...... 14 1.5 Investment and Costs ...... 14 1.6 Point of Connection and Indication at ENTSO-E Map ...... 15 1.7 Main Environmental and Sociological Impacts ...... 17 1.7.1 Transparency and Stakeholder Integration ...... 17 1.7.2 Planned public consultation ...... 18 1.8 Additional Information ...... 18 1.9 Technical Experience ...... 19 1.9.1 Engineering and Operation of Hydro Pumped Storage Power Plants ...... 19 1.9.2 Pan-European Perspective ...... 20 2. Appendix ...... 21 2.1 Excerpt of 1rst EU PCI-List as published by EU Commission on 14th of Oct. 2013 ...... 21 2.2 Kaunertal Extension Project within ENTSO-E TYNDP 2014 ...... 21

6 1. Technical Description 1.1 Technical Description of the Kaunertal Extension Project The existing hydro storage Kaunertal Power Station (HS Prutz) was built between 1961 and 1964. It uses the copious water supply from the mountains of the Kaunertal with its glaciers, as well as from the neighbouring Radurschltal and Pitztal.

The heart of the complex is the Gepatsch reservoir (138 Mio m3). The head of water, between the Gepatsch reservoir and the existing power plant Prutz, having an approximate height of 900 m, is used in a single stage with an engine output of 392 MW and an average yearly production capacity of 661 GWh/a including natural inflow. HS Prutz is still one of the most powerful storage power plants in Austria. It generates high-quality peak-load and ancillary service products also for cross border use, in particular all reserves for load frequency control (primary, secondary and tertiary control reserves).

Existing HS Prutz and new HS Prutz 2

Prutz

Feichten

new Platzertal Reservoir Existing Gepatsch Reservoir

New PHS Versetz

Vent Obergurgl

Fig. 1: Geographical project overview.

7 The Kaunertal Extension Project (AK) benefits the water resources of the rearmost Oetztal and consists of a number of new technical measures:

• Platzertal reservoir: 42 Mio m3 usable volume, • Versetz Power Station (PHS Versetz): 400 MW turbine and pump, 12 GWh/a (nat. inflow), • Prutz 2 Power Station (HS Prutz 2): 500 MW turbine, 609.5 GWh/a (nat. inflow), • a 23 km diversion tunnel from the Ötztal to the Gepatsch reservoir including two major and two small water intakes, • a new pressure shaft feeding HS Prutz and HS Prutz 2 power station, • additional compensation measures to reduce floods and surge effects for the river Inn.

The new Platzertal reservoir is located above the existing Gepatsch reservoir. The new Versetz Pow- er Station is located between Gepatsch reservoir and Platzertal reservoir using a drop height of 600 m. To increase the amount of water in the Gepatsch reservoir, thus increasing power generation, the project is using water from the neighbouring Oetztal. There are two large (Gurgler Ache and Venter Ache) and two smaller (Koenigsbach and Ferwallbach) catchment areas associated with the intake points.

existing headrace and tunnel for future Ghigh voltage cable

Fig. 2: Kaunertal Extension Project, an overview (red = new components, blue/grey = existing components).

8 The additional catchment area of approx. 272 km² in the Oetztal reaches from the Gurgler Ache to the Koenigsbach and Ferwallbach up to the Venter Ache. The water catchments are situated at approx. 1850 m above sea level. The upper reservoir Platzertal featuring a natural catchment area of approx. 8 km². The new pumped hydro storage power plant Versetz will be situated in a cavern on the left hand side in front of the Gepatsch dam. As the existing pressure shaft between Gepatsch reservoir and HS Prutz will be replaced, the existing one will be used as a cable duct for the 220 kV connecting cables.

As an additional benefit the project will provide flood control measures for the Oetztal, Kaunertal and also the Inntal improving safety for residents in these regions.

The following statements of this document are prepared according to our understanding of the EN- TSO-E Guideline for Cost Benefit Analysis of Grid Development Projects and of the ENTSO-E Proce- dure “Inclusion of 3rd Party Projects – Transmission and Storage – in the 2014 Release of the TYNDP”, both as published at ENTSO-E website per 23rd of Sept. 2013.

In case of further questions please do not hesitate to contact us.

Kaunertal Extension Project has already been assessed “eligible” within EU-Commission’s first PCI-assessment process.

With reference to the 1st EU PCI-List, published on 14th of Oct. 2013 the project number is 2.18 (see appendix: page 1 of 1rst EU PCI List).

This project is assessed and published under project code 222 within the ENTSO-E TYNDP 2014

9 1.2 Motivation for the Project and the Project’s Role for EU Energy Policy Improved energy efficiency together with an extended use of hydropower as the dominant regional form of the renewable energy resources are the corner marks of the Tyrolean Energy Strategy 2020 (2010). This strategy underlines the significant role of Tyrolean hydro (pumped) storage power plants for security of supply focusing on peak load export versus base load import. Tyrol also wants to con- tribute to cover the ever increasing demand of ancillary services (system stability) caused by extended volatile RES production (wind, PV) in the entire EU-transmission system to meet the EU climate and energy goals.

Sharing global responsibility on climate change the Tyrolean Sustainability Strategy (2012) clearly states, that local hydropower has to be developed and to be integrated in the European market at its best.

Austria and in particular Tyrol have been in a very close cooperation with the German electricity market. The evolution of German generation capacity and generation mix thus immediately influences the market development of the entire region. In 2020 German RES electricity production is expected to share more than 30 % and in 2050 80 % of the entire electricity production (EEG 2012) having met the 24-%-level already in 2012. Although RES integration succeeds rapidly, additional installation of storage capacities is lacking. To keep the system stable already from a 20 % share on additional flexibility measures have to be set.

To meet future challenges, in 2012 the ministers of economy of Germany, Austria and Switzerland signed the D-A-CH convention underlining the need for additional hydro pumped storage invest- ments in their regions supplemented by a close cross border collaboration to give an inevitable sup- port enabling the further RES integration in the EU electricity system.

As energy transition in Germany goes hand in hand with a gradual reduction of nuclear and conven- tional thermal electricity production, relevant strategy studies (inter alia German TYNDP, Leitstudie 2011, …) expect a significantly increasing demand for flexibility capacity (GW) from 2020 to 2035 meeting both, charging and discharging the system, and up to 2050 additional capacities (GW and TWh) expanding flexible production to replace thermal plants expected to be dropped off at that time.

As the cross border operation of Hydro Storage (HS) and Pumped Hydro Storage (PHS) Power Plants has always been one of TIWAG’s core businesses, the company has decided to expand its production portfolio inter alia by the Kaunertal Extension Project (AK) to follow the Tyrolean Ener- gy- and Sustainability Strategies operating the plant on a market oriented basis for Tyrolean, national and cross border purposes.

HPS and thus AK is the most efficient (economic and energy efficiency) large scale storage technology available1.This proven technology positively impacts the development of the entire electricity system in terms of an added value for society as improvement of security of supply, increase of capacity for trading energy and balancing services between the unique common bidding zone Germany-

Austria as well as across bidding zones, RES integration, CO2 and loss reduction, resilience and flexibility.

1 [Ref.: DG ENER: The future role and challenges of energy storage, 2012]

10 1.2.1 Benefits for Security of System Operation and Supply AK will be able to compensate and balance supply and demand (smoothing effect) effectively in every time frame (Fig. 2) and significantly supports power and energy balancing with unrivalled efficiency. In this role AK supports system stability by providing all sorts of ancillary services (LFC control reserves, voltage/reactive power control, black start capability, …). By charging and discharging the system it supports energy balancing and seasonal energy shifting and thus avoids energy surplus or deficit as well as drop off of must run RES and thermal production.

Fig. 3: Load smoothing is essential for system security and production portfolio optimization. Kaunertal Extension Project (AK) as hydro pumped storage offers a broadband application.2

Typical alpine hydro (pumped) storages, and thus AK have huge storage capacities as a combination of reservoir volume, drop height and as a rule of natural inflow. This characteristic makes AK useful for medium and long-term and above all seasonal pump storage and the simultaneous operation of highly flexible products like LFC-reserves. As PHS are usually designed as daily storage reservoir this huge capacity of AK is an ideal supplement for the entire D-A-CH system (Fig. 2 and 3).

Kaunertal Ext.

Fig. 4: Kaunertal Extension (AK) contributes a huge storage capacity (note logarithmic ordinate!).

2 [Ref.: www.stoRe-project.eu]

Capability of Additional Ancillary Services AK can provide market based additional ancillary services at the excellent and most available way a HPS is good for:

PHS Versetz HS Prutz 2 islanding operation Yes Yes black start capability No *) Yes voltage/reactive power control Yes Yes

LFC-Reserves primary control Yes Yes secondary control Yes Yes tertiary control Yes Yes

*) Remark: In case of a black out HS Prutz 2 is the leading power plant for PHS Versetz. Despite technically feasible, Versetz is not planned to be operated in an individual black start.

It is also worth mentioning, that alpine pumped hydro storage power plants have played a significant role in avoiding major disturbances of the interconnected European electricity system or restoring it after black outs (see disturbance of 2006, etc. …).

1.2.2 Benefits Regarding Availability As of the robust construction we await unavailability only for maintenance at planned periods that will occur not on yearly basis. Some measures can be applied to single machines while keeping of the power plant in operation. Unavailability caused by inspections is expected on conditions which will be fixed at the permitting process. The resulting availability is significantly higher than 90 % respecting the planned measures in the view of power availability over time.

1.2.3 Benefits for Socio Economic Welfare AK helps to adopt the load and supply profile resulting in a generation portfolio optimization in particular by reducing losses, costs and CO2 emissions of fossil thermal plants as well as the drop off of RES must run units (wind and PV) and therefore supports efficiency improvement and electricity cost reduction for the customer.

2.410

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2.330 1.Jun 1.Jul 31.Jul 30.Aug 29.Sep 29.Okt 28.Nov 28.Dez 27.Jän 26.Feb 28.Mär 27.Apr 27.Ma Jun Dec Mai

[Ref : TIWAG

Fig. 5: Example for a possible operation; AK makes medium-, long-term and seasonal storage simultaneously feasible together with running highly flexible LFC-products.

12 Charge and Discharge Conditions Inflow conditions are weather dependent and are moreover concentrated to the summer period beginning with the snow-melting period. Operation will be oriented on market and security requirements.

Operating Constraints Extreme weather conditions may influence operation of Prutz 2 in order to prevent or reduce flood damages at residential areas.

1.2.4 Benefits for RES- and Market Integration AK significantly supports RES integration with its load smoothing and ancillary services-ability by providing products for the Austrian/German market at its full operational capacity and thus inter alia providing cross border system balancing products (market integration of balancing products). AK benefits from already existing strong transmission capacities making cross border market access feasible.

1.2.5 Benefits for Variation in Losses PHS is the most effective and efficient electricity storage technology available. Thus AK helps to avoid huge amounts of losses including avoided curtailments of power and provision of all sorts of products supporting system security and stability.

The efficiency of HPS Versetz is expected 86.7 % (turbine mode) and 89.6 % (pumping mode) referenced to medium height. The round trip efficiency of Versetz will be 75.4 % as mean value referenced to the yearly operation mode.

The efficiency of Prutz 2 is expected 89 % referenced to medium height. The efficiency referenced to additional inflow is expected 87 % taking into account the operation of the whole group: HPS Versetz, Prutz and Prutz 2.

1.2.6 Benefits for Sustainability The further development of hydropower for Tyrolean, national and cross border provision of pumped hydro storage products is one of the central goals of the Tyrolean Sustainability Strategy.

AK produces 621.5 GWh/a of renewable energy by additional natural inflow, supports RES integration in the entire D-A-CH-system and supports production portfolio optimization by efficiency improvement as well as CO2 reduction. It also helps to avoid RES production drop offs while energy surplus.

AK supports the improvement of security of supply at moderate costs and thus supports the regional, national and European development of economy.

Environmental impact of HPS and thus AK is reduced to local effects.

AK project management highly focuses on transparency by public and individual stakeholder integration.

AK project supports local development of residential and touristic areas in Tyrol improving traffic infrastructure and providing substantial environmental risk management measures such as flood protection and avalanche protection. These TIWAG-measures unburden the public and should be han- dled as a credit for the project in the CBA.

With an estimated AK’s technical live time of more than 80 years, the beneficial time frame is a multi- ple of the 6 years construction phase, which may affect parts of the local population.

For further details being relevant for sustainability aspects we refer to chapter 1.7ff and the expertise for the environmental impact assessment.

13 1.3 Other technical parameters

Tab. 1: Main project data

Water- and energy data Additional catchment area reservoir Platzertal 8.2 km² Additional catchment area Oetztal 271.5 km² Head upper / lower stage 647 m / 864 m Rated power HPS Versetz / KW Prutz 2 400 MW / 500 MW Additional energy capacity due to natural intake 621.5 GWh/a Reservoir Platzertal capacity 42 Mio. m³ storage level 2412 mMh Drawdown elevation 2330 mMh Water area at storage level 90.2 ha Volume of rock fill dam 8.2 Mio. m³ maximum height 119 m Dam crest width / length 8 m / 660 m Storage capacity Platzertal – HS Prutz 2 152 GWh Storage capacity Platzertal – PHS Versetz 64 GWh HPS Versetz Cavern volume 158,000 m³ Turbine axis 1638 mMh Rated power 400 MW Number of units 4 pump-turbines Maximum processed water quantity turbine / pump 77.2 m³/s / 53.6 m³/s Rated power (TU / PU per unit) 110 / 110 MW Nominal performance generator (per unit) 140 MVA Reactive Power (per Generator/unit) 84 MVAr Power plant Prutz 2 volume ca. 97,500 m³ Turbine axis 873 mMh Rated power 500 MW Number of units 4 Pelton turbines Maximum processed water quantity 70 m³/s Rated power (per unit) 135 MW Nominal performance generator (per unit) 160 MVA Reactive Power (per generator/unit) 96 MVAr

1.4 Project Status The submission to the authority for the environmental impact assessment (UVP-Verfahren) was on 7th of Apr. 2012. The first step of the proceeding consists in the so-called "completeness check". The individual assessor and the authority inform at the end of this phase with the help of a so-called "improvement order", which supplementary information or measures are required. We have received this "improvement order" from the authority on 5th of April 2013.

Like in every assessment of environmental effects, the completeness check has shown, that the presented documents have to be completed. All sorts of requests are in its kind and amount in a common relation for projects of that size and complexity. We will meet them in due course. The date for handing over the supplemented documents has been preset by the authority by the end of June 2015.

Commissioning date is expected by 2024.

1.5 Investment and Costs The overall project costs are 1.1 billion Euros without grid connection (price basis at the year of submission 2012). Construction time is expected approx. 6.5 years.

14 1.6 Point of Connection and Indication at ENTSO-E Map The point of grid connection of Kaunertal Extension Project will be at the 220-kV-busbar of the already existing UW Prutz (ENTSO-E Nr. O9PRUT21) operated by DSO TINETZ. For this purpose the busbar has to be adopted.

Energy transport will be done via a planned TSO-APG 380-kV-station UW Prutz (ENTSO-E Nr. OPRUT11) with a planned 380/220-kV-transformation to the existing DSO TINETZ UW Prutz (EN- TSO-E Nr. O9PRUT21) as well as via the existing DSO TINETZ 220-kV-lines 277/288 from UW Prutz to UW Westtirol (ENTSO-Nr. OWESTT21). The 380-kV-interface is planned to APG Pradella powerline that passes UW Prutz in close vicinity.

At both nodes, UW Westtirol (ENTSO-E Nr. OWESTT21) and UW Prutz (ENTSO-E Nr. OPRUT11), TINETZ has the point of connection to the transmission grid of TSO APG.

Fig. 6: Location of AK grid connection in ENTSO-Map 2013 (red circle).

UTM coordinates (GPS Geoplaner – GeoConverter, Routenplaner online: gpso.de):

HS Prutz2: N-Hemis.; 32 T; 626399 x-re; 5214122 y-ho

UW Prutz: N-Hemis.; 32 T; 626494 x-re; 5214245 y-ho

PHS Versetz: N-Hemis.; 32 T; 631625 x-re; 5202041 y-ho

UW Westtirol: N-Hemis.; 32 T; 6641666 x-re; 5233892 y-ho

15 TSO Austrian Powert Grid (APG) Leupolz Bürs Memmingen Bürs

Pradella

380kV UW Prutz 380kV UW Westtirol (geplant) (OWESTT11) (OPRUT 11)

DSO TINETZ (geplant) Zell

Zell

220kV UW Prutz 220kV UW Westtirol (O9PRUT21 bzw. (OWESTT21) D7PRUT21) ~ ~ ~ KW Kaunertal Oberstufe 400 MW(Pumpe/Erzeugung) 392MW

Unterstufe 500 MW (Erzeugung) Silz Silz Silz (Bestand TIWAG) Ausbau Kaunertal (geplant TIWAG )

Legende 380kV 220kV 110kV

DSO TINETZ

TSO APG Eigentum TIWAG Fig. 7: Scheme (existing and planned) for AK grid connection.

16 1.7 Main Environmental and Sociological Impacts A project of that size and complexity has environmental and sociological impacts. All these aspects are part of the environment impact assessment done by the authority (see also project status, chapter 1.4.).

The main benefits/impacts are as follows:

Environmental Benefits/Impacts • extended climate change risk management (flood warning, flood protection/control, avalanche protection/control) in Oetztal and Inntal; • direct avoidance of CO2 emissions of 358 000 tons. • enhanced hydrological situation at the Inn river, caused by an additional reservoir situated at HPP Imst to reduce floods and surge-effects as part of the project. • hydrologic influence due to the water diversion from Oetztal to the Gepatsch reservoir; • the new Platzertal reservoir will require an area of 100 ha. • increased traffic while construction phase

Sociological Benefits/Impacts • no relocation of residents; • tax revenues for communities and State of Tirol; • increased revenue for regional enterprises;

For further details to environmental and sociological impacts we refer to the expertise for the environmental impact assessment.

1.7.1 Transparency and Stakeholder Integration To saveguard full transparency for all stakeholders we duly involve the public before starting a new project phase and integrate requirements in planning procedures as far as possible. For that purpose we organize information meetings in all regions affected by the project repeatedly and offer open dia- logue via discussion platforms and distribution of newsletters.

At TIWAG-website we inform about the project and the ongoing activities as well as other projects: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte

Regarding Kaunertal Extension Project people interested may find relevant informations at:

Project Name and general Webpage of the project “Ausbau Kraftwerk Kaunertal”: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/

Within this link you may find detailed more information:

Project description: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/projektvorstellung- kraftwerk-kaunertal/

Information regarding the necessity of the project from energy policy perspective is available at the link to the topic “Energiewende” as well as “activities for public communication, information and consultation”.

Project area: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/projektgebiet- kraftwerk-kaunertal/

Current status of the project: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/projektstand-kraftwerk- kaunertal/

17 Contact to the project management: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/projektkontakt- kraftwerk-kaunertal/

Activities for public communication, information and consultation: http://wasserkraftausbau.tiwag.at/unsere-kraftwerksprojekte/ausbau-kraftwerk-kaunertal/newsletter-dialog- kraftwerk-kaunertal/

Additionally, at any time interested parties may contact the project management to discuss questions individually. All contact details are available via the project web-site.

1.7.2 Planned public consultation On our project website all newsletters and previous information activities are available. Newsletters as well as the project description and information sheets are ready for download (see web link in item 1.7.1). Since 2005 a wide range of project presentations have been done to inform the residents, local authorities, land owners or any other stakeholders. The resident population will be informed on every activity in the project area and every project variation by sending out a newsletter. Additionally, it will also be presented on our homepage.

Themed “Dialog und Begegnung” (“Dialog and Meeting”) an open discussion with all persons con- cerned have been and still will be carried out.

1.8 Additional Information By the planned expansion of the KW Kaunertal additional flexibilities arise in the context of the operation of the existing power plant.

We expect revenues of Euros 1.68 billion, 12500 employment relationships and approx. 3100 jobs during the construction phase for the economy predominantly in Tyrol and Austria as significant benefits.

18 1.9 Technical Experience 1.9.1 Engineering and Operation of Hydro Pumped Storage Power Plants TIWAG is one of the leading Austrian hydro power producers and one of the leading hydropower storage operators. TIWAG staff is experienced in engineering, maintenance and operation of hydro power plants with and without storage and continuously involved in construction, retrofitting adaption, maintenance and operation – in total 380 employees, each of them an expert in his field.

Founded in 1924 TIWAG started its business with the construction of the Achenseekraftwerk, at the time one of Europe’s largest storage facilities. From its very beginning this site has been a European cross border operation. For this purpose TIWAG constructed one of Europe’s first internationally interconnected power lines. Since then TIWAG expanded its expertise on engineering, constructing and operating a number of different kinds hydro power plants. The most important of them as storage or pumped hydro storage facilities with internationally relevant dimensions.

AK sums up in an 1100 MEuro investment for the benefit of the regionial and European industry. In times of expected economic recession we consider this fact of particular importance.

Tab. 2: TIWAG's flexible hydropower capacities, assets and PCI-projects.

Assets year of nom. nom. prod. incl. storage drop Investment commission power power natural capacity height turbine pump inflow [MW] [MW] [GWh/a] [Mm3] [m] [MEuro]

KW Silz 1981 500 3 1.247 KW Kühtai 1981 289 250 60 420 Total SSi 789 250 450 63

Kaunertal 1964 392 661 138 844

Achensee 1927 79 220 66 390

Imst 1956 89 550 0,80 144

Amlach 1988 60 219 0,24 370

total of assets 1409 250 2100 268

Projects Kaunertal extension 2027 900 400 622 42 647 1100

As a construction principle we use rockfill dams with an asphalt-concrete core, being a TIWAG pa- tent, or earth core rock fill dams. As these storages are not only in the vicinity of residual areas but also of intensively used sensitive touristic sites, TIWAG has been a trend setter for environmental oriented dam building and earned thus international attention. In this role a leading expert of TIWAG was member of the board of the international hydro dam commission.

At the 1st International Symposium on Rockfill Dams in China, 2009, our engineers obtained the outstanding “International Milestone Rockfill Dam Award”.

Moreover, dam building in combination with expanding traffic infrastructure and avalanche protection in high alpine regions helped to extend and to develop touristic use of these areas combining hotel sites and skiing areas in immediate vicinity of this powerful energy infrastructure.

When engineering the Imst power station, as ownder TIWAG supported the development of a new method for water tunneling, internationally known and used as “The New Austrian Tunneling Method (NATM)”.

The two 250-MW-Pelton-turbines of Silz Power Station were the most powerful at their time and its 6 nozzles powering a 250-MW-turbine were an outstanding technical innovation.

19 All future projects will be based on this TIWAG know how being constantly improved.

To pass on knowledge to the next generation TIWAG experts are inter alia engaged at the Manage- ment Center Innsbruck, University of Innsbruck and the Technical Universities of Vienna, Graz and ETH Zürich.

Underlining its expertise on an international oriented hydro power level playing field TIWAG is inter alia full member of the International Hydropower Association (IHA).

1.9.2 Pan-European Perspective Since its very beginning TIWAG has been in close cooperation with Austrian and German power industry partners in particular regarding the operation of TIWAG’s large storage power plants. This cross border cooperation inter alia resulted in the founding membership of TIWAG in UCPTE in the early 1950ies being continued until the year 2000 with UCPTE’s legal successors. Following the unbundling rules TIRAG, a former subsidiary of TIWAG, operated from 2000 – 2010 the transmission and distribution grid and above all the control area of Tyrol being part of the German Control Block. In its role as a TSO, TIRAG was member of ETSO until 2010. Following the needs of Austria’s electricity law TIWAG Netz AG and finally TINETZ AG were TIRAG’s legal successors.

Thus, TIWAG as one of Austria’s most important hydropower producers and hydro (pumped) storage operators has developed its experience on national and international electricity trade and in particular on servicing TSO’s with ancillary service products in Austria as well as cross border via the German LFC- platform “regelleistung.net”.

20 2. Appendix

2.1 Excerpt of 1rst EU PCI-List as published by EU Commission on 14th of Oct. 2013

Tab. 3: Excerpt of the 1rst EU-PCI-List

2.2 Kaunertal Extension Project within ENTSO-E TYNDP 2014 Under project code 222 the CBA results for Kaunertal Extension project have been published within the TYNDP 2014/investment plan for the continental central south region (CCS). We agree on these results.

Tab. 4: ENTSO-E 2014 CBA results [Ref.: ENTSO-E, TYNDP 2014, Regional Investment Plan 2014, Continental Central South, download 15th of Jan. 2015, 10:42 hrs]