Lithuania – the region’s energy competence centre
Litgrid 2015 Activity Report for Shareholders and the Public 27 April 2016, Vilnius Table of Implementation of Litgrid strategic goals contents Reliability of the electricity system and network Development of the organisation and the region’s energy competence centre Financial results
Upcoming tasks for strategy continuity Strategic interconnections • The first electricity link between Lithuania and Poland, between the Baltic countries and Western Europe • The link has been in operation since 9 December 2015 • 163 km electricity transmission line Alytus-Elkas • 500 MW HVDC converter station near Alytus • Total project cost – € 580 million: € 150 million in Lithuania and € 430 million in Poland • EU funds – € 200 million (in Poland) and € 31 million (in Lithuania)
4 LitPol Link implementation
2009 2010 2011 2012 2013 2014 2015 2016
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
OBTAINING OF PERMITS 400 kV line DESIGN CONSTRUCTION OPERATION Alytus – state border OBTAINING OF PERMITS
TERRITORIAL PLANNING AND DESIGN
400 kV line CONSTRUCTION OPERATION Elk – state border DESIGN, MANUFACTURING, AND CONSTRUCTION OPERATION HVDC OBTAINING OF PERMITS Converter Station TERRITORIAL PLANNING AND OBTAINING OF PERMITS
DESIGN
Alytus 330 kV CONSTRUCTION OPERATION Switchyard Expansion OBTAINING OF PERMITS Elk Substation Reconstruction TERRITORIAL PLANNING, DESIGN, AND CONSTRUCTION OPERATION Reinforcement of corner pylons on the line Alytus – state border Contract work resources of the line Alytus – state border before and after 26 June 2015
Iki 15.06.26 5 Before 26 June 2015 4,5 Po 15.06.26After 26 June 2015 4 3,5 3 2,5 2 1,5 1 0,5 0 PoliųFor įrengimui pylon ForGalvenų header KampuočiųFor corner Laidų tempimuiFor wire installation installationįrengimui suvirinimuireinforcement pulling
50% 40% 30% 20% 10% 0% Iki 15.04.01 Po 15.06.26
LaidųWire tempimas pulling PamatųInstallation montavimas for foundation NordBalt Implementation
2009 2010 2011 2012 2013 2014 2015 2016
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
SEABOTTOM INVESTIGATION OBTAINING OF PERMITS – LT HVDC Cable OBTAINING OF PERMITS – SE
DESIGN AND MANUFACTURING OPERATION PREPARATION LAYING LAYING WORKS
OBTAINING OF PERMITS – LT HVDC OBTAINING OF PERMITS – SE Converters DESIGN, MANUFACTURING, AND INSTALLATION OPERATION
Klaipėda TECHNICAL DESIGN OPERATION Transformer TECHNICAL DESIGN CONSTRUCTION Substation Reconstruction
330 kV OL TERRITORIAL PLANNING, DESIGN, AND OBTAINING OF PERMITS CONSTRUCTION OPERATION Klaipėda – Telšiai
Nybro Substation DESIGN AND CONSTRUCTION OPERATION Reconstruction Horizontal drilling under the Curonian Spit
1 640 m under the the Curonian Lagoon and 800 m under sand dunes Cable pulling under the Curonian Lagoon
64 tons, 2 days from the delivery of the cable to the port to pulling under the Curonian Lagoon Crossing with the Nord Stream gas pipeline
Concrete mattresses under and on the cable at a depth of 60 m Filling of the sea cable with rubble
58,860 tons of rubble delivered by 4 ships The symbolic links connection ceremony in the Grand Dukes Palace of Lithuania on 14 December 2015 A subsidiary of Litgrid has fully taken over the operation of the connections Electricity transmission never stops
HVDC connections Electricity generators 24/7 electricity disconnected 138 times in disconnected 67 times in transmission to consumers 2013 Lithuania in 2014 is ensured by the Litgrid System Control Centre NordBalt – technologically complex and second-longest connection
35% Connection unavailability per Vyborg Link (RU-FI) 1981 1 9% year, % SwePol (SE-PL) 2000 254 35% HVDCLength jungčių of HVDC ilgis, connections, km km Storebaelt (DK-DK) 2010 57 8% Skageraak 4 (NO-DK) 2014 226 Skageraak 3 (NO-DK) 1993 213 17% Skageraak 2 (NO-DK) 1977 211 16% Skageraak 1 (NO-DK) 1976 212 16% NordNed (NO-NL) 2008 580 5% NordBalt (LT-SE) 2016 450 Konti-Skan 2 (SE-DK) 1988 150 23% Konti-Skan 1 (SE-DK) 2008 150 29% Kontek (DK-DE) 1986 160 4% Fenno-Skan 2 (FI-SE) 2011 299 7% Fenno-Skan 1 (FI-SE) 1989 233 13% Estlink 2 (FI-EE) 2014 171 15% Estlink 1 (FI-EE) 2006 105 13% Connection Baltic Cable (SE-DE) 1994 262 32% unavailability per year, % 0 100 200 300 400 500 600 700 Reliable and effective network In 2015, demand for electricity increased 1.4% • In 2015, 10.86 TWh of electricity was consumed in Lithuania • Electricity consumption by industrial companies increased more by than 3%, while the needs of the service sector grew 1.8% • Consumption by the population remained stable • Almost 16% of the consumed electricity was produced from renewable energy sources.
Pramonė 6,5 TWh Industry TransportasTransport 6,0 ŽemėsAgriculture ūkis 5,5 Population GyventojaiServices and other consumers 5,0 Paslaugos ir kiti vartotojai 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015 Best reliability indicators
2015 END = 4.5 MWh, AIT =0.23 min.
1,08
36,50 0,49 0,35 0,35 0,34 0,23 0,31 0,25 0,23 0,15 0,06
12,07 11,63 7,53 7,36 Operatoriaus atsakomybė 4,75 6,70 5,36 4,54 The operator’s responsibility 1,79 2,24 ENDTotal bendras, END, MWh MWh AITTotal bendras, AIT, min min 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
• The majority of disconnections is caused by natural conditions and other external causes • A quarter of incidents is caused by the careless behaviour of people in overhead line protection areas Facilities are reconstructed to maintain the reliability of the network
60 50 Nusidėvėjimo normatyvas, 40 Depreciation35 metai rate, 35 years 30 20 10 0 59 TP ≤ 35 y 80 TP ≥ 35 y
95 reconstructed 139 non-reconstructed substations substations Substation operation time, years
• In 2015, 15 transformer substations were reconstructed • Substations, lines, and other facilities age and naturally wear, so investments in the network facilities are continued with rather high intensity Concern for smaller ones
• In 2015, a total of 6,000 special wire markers, stork protection devices, additional insulators were installed and 121 nesting-boxes for kestrels were mounted • Works amounting to EUR 164,155 were performed • A monitoring plan was drawn up in order to assess the impact of the newly constructed and operating lines – LitPol Link and Klaipėda- Telšiai The sense of community and social responsibility - The website www.elektrosistorija.lt, which is designed to provide, in simple terms, general knowledge on the members, a brief history and present time of the electricity system, currently operating power stations and assurance of electricity demand as well as key development aspects - For four consecutive years, Litgrid employees plant forest trees on the occasion of the professional holiday of Power Engineer's Day - During 2015, the company received 25 groups of visitors who were interested in the electricity system and the strategic interconnection projects and learned about the specifics of the work of energy professionals - Attention to the activities of Litgrid from officials of various countries and experts and high-rank executives of international organisations brings Lithuania into an international focus www.elektrosistorija.lt Traditional forest planting 25 tour groups
Litgrid – the company with Lithuanian and Swedish the strongest sense of Nasdaq award for the most heads of states community prominent progress Enhancement of the design and contract work quality and occupational safety
To enhance the safety of the work of contractor and customer specialists
To improve the quality of projects being implemented
To manage risks more efficiently
To raise the quality standard for contract work The expected result – better quality
High-quality and reliable expert examination of projects
The procurement of works is based on the Updated standard design principle of economic and work contracts efficiency
The enhancement of Contract termination technical supervision and option occupational safety quality Financial results
• Litgrid will pay EUR 0.0091 per share in dividends • Lower costs due to more efficient operating costs and ITT management • The asset value reduction after the asset evaluation performed in 2014 led to lower depreciation costs • The subsidiary Tetas operated profitably and paid dividends in 2015 Key financial indicators 19% reduction in transmission tariff rate Without regard to the result of asset depreciation
89% – for the implementation of strategic projects
250
208 2013 200 2014 159 2015 150
106 101 100 86 60 47 50 34 20 20 21 27
0 Pajamos, mln. eurų Veiklos sąnaudos, mln. eurų EBITDA, mln. eurų Investicijos, mln. eurų The reduced transmission tariff rate resulted in lower
80 income 0,8 70 0,7 60 0,6 50 0,5 40 0,4 30 0,3 20 0,2 10 0,1 0 0 2011 2012 2013 2014 2015 2016
Investicijos,Investments, mln.EUR millioneurų PerdavimoPrice cap, kainos cent/kWh viršutinė riba, ct/kWh Salaries and social Darbo užmokestis ir ElektrosElectricity perdavimo sale income SODRAinsurance 2% 9% pajamos TurtoAsset remontasrepair and ir priežiūramaintenance 5% BalansavimoBalancing energy energijos income 17% pajamos ITT paslaugos 31% ITT services 3% 9% SisteminiųSystem service paslaugų income MokesčiaiTaxes 4% pajamos 2% 50% ITT income PatalpųRent of premises;nuoma, ITC pajamos transportastransport 15% 9% PSO MokymaiTraining andir VIAP tarptautinėinternational activitiesveikla 28% Kitos 15% Other Other electricity-related Kitosincome su elektros energija susijusios pajamos OPEX structure, 2015 Income structure, 2015 Strategy continuity assurance The network projects for synchronisation start this year
Ignalina NPP transformer substation reconstruction
Vilnius junction strengthening Reasons for Vilnius junction strengthening
Growing demand • Today, the demand of Vilnius region accounts for one third of the national capacity demand
Decreasing production • Electricity production at Vilnius power plants decreases
Synchronisation • The synchronisation of Lithuania's electricity system with СEN and de- synchronisation from IPS/UPS Projects
The construction of the 330 1 kV electricity line Vilnius – Lithuania Power Plant Vilnius transformer 2 substation strengthening The construction of the 110 3 kV electricity line Neris – Baltupis and reconstruction 4 of the 110/10 kV Baltupis transformer substation The construction of the 330 kV electricity line Vilnius – 5 Vilnia – Neris (with installation of Vilnia transformer substation 330 kV switchyard) The reconstruction of Neris transformer substation The reconstruction of INPP transformer substation
In operation since 1981 For new customer • The condition of the facilities connection is critical and requires major • The nuclear fuel storage will repair be connected here Strongly integrated with the Belarusian electricity system • Non-adapted for the isolated operation of the Baltic countries and asynchronous operation of the Baltic electricity systems with IPS/UPS The projects important to Lithuania are in the list of Europe's common interest projects
The second Lithuania – Poland link
The electricity line Alytus – Kruonis HPSP
The synchronisation of the Baltic countries with the CEN The optimal use of the network and links
The sustainable AEI integration and management model The decision on the increase of LitPol Link capacity The isolated operation test of the electricity systems of the Baltic
countries Isolated operation is an important step of preparation for synchronisation
The start of the dynamic and static stability study The results of the study
The decision on the isolated operation test
Preparation works and analysis The isolated operation test
2016 Q2 Q4 2017 Q2 Q3 2018 The results we are proud of were achieved by the team • The average employee age – 42 • The average length of experience in the energy sector – 12 years • The longest experience – 51 years • 74% of the staff – men; 26% – women • 50% of the staff are graduates of KTU • 8 doctors of science work in Litgrid • By successfully implementing unique energy projects of European significance, we accumulate exclusive competences Experience of unique projects
5,089 Mentoring training programme hours
235 professionals' Reports at 5 19 internship international team places for conferences students
25 tours for 43 interested specialised visitors conferences The issues of the electricity market, links and generation development remain relevant
Per year, ~€ 90 lower The second link with The development of costs on electricity Poland flexible and effective generation in the region
The second link with The regional discussion Sweden on energy strategies Lithuania – the region’s energy competence centre
Until 2016, Lithuania is the EU's energy island
• 12 electricity links with Latvia, Russia, and Belarus • Estlink 1 and 2 are the only electricity links with the Northern Europe • From 2010, the biggest electricity importer among the energy systems in Europe • No power connection with the Western Europe Today, Lithuania is the crossroad of power flows Empowering the growth of Lithuania