As energy security is being discussed more and more lately, can you tell us what are the most important pillars of the company’s investment strategy?
It is already evident that in recent years, the directions of the energy sector are projecting a very complex dynamic, and to adequately discuss the current energy context, we must have in mind a filter to understand the changes and transformations that have an impact on the field. I am referring both to the strategies assumed at the European level regarding the path towards a clean economy in tandem with technological developments, as well as to the current geopolitical context which brings additional challenges. Starting from these coordinates, energy security, not only national but especially regional, has become a priority at the level of the European interconnected electric energy system. Intensification of national investment programs is the main way to maintain and strengthen energy security in this context.
From this perspective, we, Transelectrica, as the TSO with a leading role in the National Energy System (SEN), but also regionally in the context of interconnected operation and the coupling of energy markets, support an active process of adaptation to the changes in the energy sector.
We have an investment portfolio of about 2 billion euros for the next 10 years if we also include the prospect of the DC cable with Georgia. This portfolio provides essential projects for the modernization of the energy infrastructure in the sense of digitization, the implementation of the SMART GRID concept, interconnections and network expansion to integrate new renewable energy production capacities.
How advanced are these projects?
We have already obtained 100% non-reimbursable financing for 9 projects, with a total value of 424 million euros from the Modernization Fund, projects of major complexity and importance for SEN. This is the largest financing from European funds obtained by Transelectrica over time. The realization of these investments will contribute to the increase of the interconnection capacity with the European energy system, as well as to the development of Romania’s electric transmission network, respectively to the security, flexibility and adequacy of the SEN, providing the premises for the commissioning of new energy production capacities from sources renewable.
The investment objectives of Transelectrica financed through the Modernization Fund represent 30% of the total funds obtained by Romania from this financing instrument and respectively 14% of the total financing obtained by the 8 countries from Central and Eastern Europe with approved projects: Romania, Czech Republic, Slovakia, Croatia, Lithuania, Hungary, Poland, Estonia.
An important step in the infrastructure modernization process is the implementation of SMART GRID at the level of our networks. Together with the partners from DELGAZ GRID, we are developing the CARMEN project, a Common Interest Project, worth approximately 120 million euros, which aims to develop an intelligent transmission and distribution network to improve the quality of services offered to customers and make investments to ensure compliance mandatory performance standards, by modernizing and digitizing the electricity infrastructure.
The project has already passed an important phase, namely the submission of the application for financing through the Connecting Europe Facility Mechanism, on August 31, 2022, which demonstrated the commitment of the Transelectrica – DELGAZ GRID partnership. We are currently preparing the inclusion of CARMEN on the 6th list of Projects of Common Interest at the level of the European Commission.
What role does digitization play in Transelectrica’s investment plans?
In this regard, we focus both on investments for the re-engineering of the network and in the research-innovation area, which is crucial for the sustainability of the changes to which we have to adapt.
It is not by chance that among the 9 projects financed by the Modernization Fund, there is the re-engineering of the Alba Iulia station into a digital station concept – a unique project in Romania – and the digitalization of the electricity transmission network in Romania by installing two online systems, for metering and management of electricity measurement data in the wholesale market and for monitoring the quality of electricity.
Thus, through a complex approach in terms of investment, Transelectrica proposes a 360-degree optimization of the electrical transmission network.
In conclusion, I think we can all agree that there are two plans we need to pursue to make energy systems more efficient for energy security. On the one hand, we are consistently pursuing the acceleration of investments for the modernization and
digitization of the energy infrastructure. On the other hand, we attach great importance to the development and maintenance of a constant in energy research, as it is a fundamental resource for both experienced specialists and young people studying and starting a career in this field.
What are the achievements of 2022?
One of the biggest achievements of 2022 was the signing of financing contracts from the Modernization Fund. We are talking about projects that will be concretely translated, in the coming years, into relevant indicators at the network level, such as an increase in the transmission capacity of RET by approximately 1,700 MW; the construction of about 480 kilometres of new overhead power lines; expansion of 5 electrical stations with a voltage level of 400 kV; digital concept re-engineering of the Alba Iulia station; increasing the interconnection capacity by 600 MW (cumulative on the borders with Serbia and Hungary); implementation of power quality monitoring systems in 15 stations; as well as the optimization and monitoring of overhead power lines through digital systems.
The year 2022, even if it was a difficult one in the context of the energy market, is characterized by a clear acceleration of investment projects and maintenance programs. Our responsibilities as transmission and system operators are immense in the
current energy context. If we discuss the maintenance of the electric transmission network, it must be said that this year, we have already reached the level of 96% in terms of the degree of achievement. In the coming period, we are considering large-scale activities in terms of power lines, but also electrical transformer stations. The objectives we have are those of increasing safety in operation, supplying consumers with electricity and developing the electric transport network to integrate renewable energy sources.
Currently, we have several lines on the construction on which we are focusing and where we have made progress in the year 2022. We will complete the 400 kV Cernavodă-Stâlpu Overhead Electric Line by the end of the year, we are working on the construction of the 400 kV Gutinaș-Smârdan Line, a line that goes to the Moldova area – co-financed from POIM – and next year we will complete the Iron Gates – (Anina) – Reșita, in the Banat area, precisely to prepare the closing of the 400 kV ring. 400 kV ring that was talked about even before 1989 and which, this time, is no longer a story, it is a reality.
How are we doing in terms of interconnections?
The capacity available for cross-border trade in Romania’s interface has doubled in the period 2015-2021, increasing from approximately 1,500 MW in 2015 to approximately 3,000 MW in 2021. Currently, we have a cross-border capacity of 3,000 MW, even 3,500 MW per import. For the period 2022-2030, Transelectrica proposes projects for the development of the electric transmission network that will lead to the increase of the available capacity up to about 7,000 MW in 2030.
As I said, in 2023 we will start the projects to complete the 400 kV ring in the Banat area, projects financed by the Modernization Fund. It is important to say that the Banat area has the potential in developing renewable capacities. We will build the 400 kV overhead power line from Reșita to Timișoara, Săcălaz and Arad. On this occasion we will increase the interconnection capacity by 600 MW because we will also complete the 400 kV station at Reșita and finally the interconnection line with Serbia – Reșita-Pancevo – will become operable. We are confident that we will achieve our target of increasing the degree of interconnection by 2030.
At the same time, internally, at Transelectrica, respectively at the distribution operators, starting from connection requests and concluded contracts, the volume of requests amounts to about 37,000 MW, most of them in renewable energy projects. We are all aware that not all of them will be done, we don’t know exactly what those projects are, but we will try to satisfy as many of the system requirements as possible. Projects from the Modernization Fund allow the construction of new 400 kV overhead power lines. Among these, I would highlight Medgidia Sud-Constanța Nord, which will allow the increase of connection capacity in Dobrogea by over 600 MW, as well as the Banat Axis, from Reșita-Timișoara / Săcălaz and Arad,
For the southeast area, if we think that somewhere around 3,000 MW of capacity will be installed offshore, we have to consider another evacuation of around 1,500 MW. Given that we will also have an interconnection with Georgia, Azerbaijan, with a direct current cable, we have already included in the budget for next year to do a study and then the design for a direct current cable that will go along the line of gas pipelines from Tuzla to Podisor and further BRUA, towards Europe.
These are all ongoing projects. And because we are a company that has to play regionally much more, it is necessary to consider developing the interconnection with Bulgaria, because Bulgaria also has a capacity and a period of congestion similar to ours, and then we can take over and let’s evacuate all through this cable future direct current cable
Next, apart from the offshore area, we have issued connection approvals for wind and solar, including those representing distribution operators, of about 7,500 MW, of which only Transelectrica has issued authorizations for 4,500 MW. At the beginning of the year, in February, we had 2,800 MW, so many more approvals were obtained during the last months. On the other hand, we find that implementation is not as fast or as high as the volume of issued notices. 5 months ago, we had a production capacity of about 18,308 MW in the country, and today we have 18,637 MW, so very little of a very large capacity was installed during this period.
Do you think it is necessary to adapt the specific legislation so that the implementation of a large investment, such as those managed by Transelectrica, is easier?
Certainly, the adoption of legislation similar to the BRUA Law would greatly facilitate an energy infrastructure investment, investments that are extremely complex anyway. We have initiatives in this regard and count on the support of government forums in supporting the efforts.
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This interview first appeared in the printed edition of Energynomics Magazine, issued in December 2022.
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