Multicriterial analyses and selection of the best option for revitalization and development of the southern part of Croatian 400 kV network and connection to the power system of Bosnia and Herzegovina

The southern wing of the Croatian transmission network was constructed for 220 kV in the early 1960’s, with additional 400 kV reinforcement at the end of 1970’s. Its route of more than 200 km is quite demanding due to extreme climate, environmental specifics and related costs. However, operational experience during more than 50 years has been quite positive. Nowadays, at the end of its lifetime it is again extremely important to analyze and select the best option for network revitalization and development to serve the network users for the next 50 years, but in very different conditions of technological development, more restrictive environmental requirements, electricity market conditions and large scale RES integration. Moreover, special attention should be given to the potential opportunity and need to use this revitalization also for new interconnection to the power system of Bosnia and Herzegovina (BiH). Altogether with its length of more than 380 km this is one of the largest transmission projects in South East Europe in the last few decades. This paper presents the main findings of the multicriterial and comprehensive study covering technical, economic, financial, geographical, environmental, social and legal assessment, identifying locations of new 400 kV transmission system nodes, internal and interconnection 400 kV lines routes, together with the potential upgrade/replacement of the existing 220 kV circuits. Network analyses have been prepared on more than 180 different scenarios using PSS/E software, while market analyses were completed for 21 selected scenarios using PLEXOS software. Scenarios were based on the following criteria/uncertainties related to the power systems of Croatia and BiH: 1. analyzed time-horizons (2023 and 2028) 2. demand growth (referent, low, high) 3. analyzed operation conditions (winter/summer peak/off peak load) 4. generation scenarios (high, low, new RES, CO2 prices) 5. hydrological and climate conditions (average, extreme hydrology and wind speed) 6. power balance (import, export) 7. power transits Five main options have been initially selected as topology candidates for problem resolving. Detailed methodology and criteria for the selection of optimal option (revitalization and development scenario and topology) were developed and approved by all involved stakeholders. For selected option, based on comprehensive analyses and approved methodology , for further detailed analyses ( system reliability, technical design, investment, economics /CBA/ and environmental analyses) have been prepared, including assessment of its impact on transmission tariffs of each country. Sensitivity analyses to the most uncertain variables (investment costs and CO2 prices) were also performed. The environmental and social assessment was very demanding due to the complex governance structure and three legal frameworks to be respected (two countries, along with two entities in BiH). The Project impact was evaluated with respect to: air quality, water quality, waste management, noise, biological diversity, electromagnetic field, social measures and protected areas. This paper presents above mentioned analyses, findings and recommendations, as the most comprehensive analytical approach to the transmission line development that’s ever been applied in this region

Transit on the Open Electricity Market

Nakon desetogodišnjih privremenih rješenja za međukompenzacije dijela troškova između operatora prijenosnih sustava nastalih uslijed prihvata tranzita tržišnih sudionika (poznatih pod kraticom ITC) danas je u primjeni ustroj zasnovan na odredbama relevantnih propisa EU. Promjene u tom proteklom razdoblju imale su za cilj smanjivanje troškova tranzita trgovcima električne energije, kako bi se tim dodatnim poticajem za prekograničnu trgovinu ubrzala integracija europskih tržišta električne energije, a uz istovremeno omogućavanje što pravičnije naknade operatorima prijenosnih sustava putem čijih mreža se tranziti realiziraju. Aktualni ustroj kao obračunski element za nadoknadu relevantnih infrastrukturnih troškova koristi ostvarene prekogranične tokove, a za nadoknadu gubitaka uzrokovanih tranzitima tzv. metodu WWT (sa i bez tranzita). Dan je povijesni usporedni pregled metoda za obračun tranzita električne energije od razdoblja prije otvaranja tržišta električne energije do aktualnog stanja, uključujući i očekivani budući razvoj predmetnih metoda. Obrađen je i proces otvaranja tržišta električne energije od nacionalne razine do europske razine uz pregled relevantnih propisa, kao i glavnih čimbenika. Analizirane su uzročno-posljedične veze tog procesa s primjenom metoda za obračun odnosno međukompenzaciju tranzita električne energije, uz osvrt na upravljanje zagušenjima kao glavnog aktualnog pokretača integracije ne samo nacionalnih nego i regionalnih tržišta električne energije.After ten years of temporary solutions for compensation for the costs of hosting cross-border flows of electricity (under abbreviation ITC) today is in implementation ITC mechanism for the first time based directly on the stipulations of relevant EU regulation. Changes done in the meantime were aiming at reducing transit costs for electricity traders, in order to facilitate European electricity markets integration with this additional trigger for cross-border trade, at the same time enabling as fair as possible compensation of transmission system operators which networks are hosting transits. Actual mechanism uses realised cross-border flows as a basis for calculating compensation for the costs of making infrastructure available to host cross-border flows of electricity, while for the compensation of losses incurred on national transmission systems as a result of hosting cross-border flows of electricity so called WWT (with and without transits) method is used Comparative historical review is given for transit compensation methods from before market opening until today, including expected future development of this issue, relevant framework and main players. Interdependence of market opening with implementation of ITC mechanisms are analysed as well as with congestion management being main driver for actual integration of national and regional electricity markets in Europe

Transit on the Open Electricity Market

Nakon desetogodišnjih privremenih rješenja za međukompenzacije dijela troškova između operatora prijenosnih sustava nastalih uslijed prihvata tranzita tržišnih sudionika (poznatih pod kraticom ITC) danas je u primjeni ustroj zasnovan na odredbama relevantnih propisa EU. Promjene u tom proteklom razdoblju imale su za cilj smanjivanje troškova tranzita trgovcima električne energije, kako bi se tim dodatnim poticajem za prekograničnu trgovinu ubrzala integracija europskih tržišta električne energije, a uz istovremeno omogućavanje što pravičnije naknade operatorima prijenosnih sustava putem čijih mreža se tranziti realiziraju. Aktualni ustroj kao obračunski element za nadoknadu relevantnih infrastrukturnih troškova koristi ostvarene prekogranične tokove, a za nadoknadu gubitaka uzrokovanih tranzitima tzv. metodu WWT (sa i bez tranzita). Dan je povijesni usporedni pregled metoda za obračun tranzita električne energije od razdoblja prije otvaranja tržišta električne energije do aktualnog stanja, uključujući i očekivani budući razvoj predmetnih metoda. Obrađen je i proces otvaranja tržišta električne energije od nacionalne razine do europske razine uz pregled relevantnih propisa, kao i glavnih čimbenika. Analizirane su uzročno-posljedične veze tog procesa s primjenom metoda za obračun odnosno međukompenzaciju tranzita električne energije, uz osvrt na upravljanje zagušenjima kao glavnog aktualnog pokretača integracije ne samo nacionalnih nego i regionalnih tržišta električne energije.After ten years of temporary solutions for compensation for the costs of hosting cross-border flows of electricity (under abbreviation ITC) today is in implementation ITC mechanism for the first time based directly on the stipulations of relevant EU regulation. Changes done in the meantime were aiming at reducing transit costs for electricity traders, in order to facilitate European electricity markets integration with this additional trigger for cross-border trade, at the same time enabling as fair as possible compensation of transmission system operators which networks are hosting transits. Actual mechanism uses realised cross-border flows as a basis for calculating compensation for the costs of making infrastructure available to host cross-border flows of electricity, while for the compensation of losses incurred on national transmission systems as a result of hosting cross-border flows of electricity so called WWT (with and without transits) method is used Comparative historical review is given for transit compensation methods from before market opening until today, including expected future development of this issue, relevant framework and main players. Interdependence of market opening with implementation of ITC mechanisms are analysed as well as with congestion management being main driver for actual integration of national and regional electricity markets in Europe

Transit on the Open Electricity Market

Nakon desetogodišnjih privremenih rješenja za međukompenzacije dijela troškova između operatora prijenosnih sustava nastalih uslijed prihvata tranzita tržišnih sudionika (poznatih pod kraticom ITC) danas je u primjeni ustroj zasnovan na odredbama relevantnih propisa EU. Promjene u tom proteklom razdoblju imale su za cilj smanjivanje troškova tranzita trgovcima električne energije, kako bi se tim dodatnim poticajem za prekograničnu trgovinu ubrzala integracija europskih tržišta električne energije, a uz istovremeno omogućavanje što pravičnije naknade operatorima prijenosnih sustava putem čijih mreža se tranziti realiziraju. Aktualni ustroj kao obračunski element za nadoknadu relevantnih infrastrukturnih troškova koristi ostvarene prekogranične tokove, a za nadoknadu gubitaka uzrokovanih tranzitima tzv. metodu WWT (sa i bez tranzita). Dan je povijesni usporedni pregled metoda za obračun tranzita električne energije od razdoblja prije otvaranja tržišta električne energije do aktualnog stanja, uključujući i očekivani budući razvoj predmetnih metoda. Obrađen je i proces otvaranja tržišta električne energije od nacionalne razine do europske razine uz pregled relevantnih propisa, kao i glavnih čimbenika. Analizirane su uzročno-posljedične veze tog procesa s primjenom metoda za obračun odnosno međukompenzaciju tranzita električne energije, uz osvrt na upravljanje zagušenjima kao glavnog aktualnog pokretača integracije ne samo nacionalnih nego i regionalnih tržišta električne energije.After ten years of temporary solutions for compensation for the costs of hosting cross-border flows of electricity (under abbreviation ITC) today is in implementation ITC mechanism for the first time based directly on the stipulations of relevant EU regulation. Changes done in the meantime were aiming at reducing transit costs for electricity traders, in order to facilitate European electricity markets integration with this additional trigger for cross-border trade, at the same time enabling as fair as possible compensation of transmission system operators which networks are hosting transits. Actual mechanism uses realised cross-border flows as a basis for calculating compensation for the costs of making infrastructure available to host cross-border flows of electricity, while for the compensation of losses incurred on national transmission systems as a result of hosting cross-border flows of electricity so called WWT (with and without transits) method is used Comparative historical review is given for transit compensation methods from before market opening until today, including expected future development of this issue, relevant framework and main players. Interdependence of market opening with implementation of ITC mechanisms are analysed as well as with congestion management being main driver for actual integration of national and regional electricity markets in Europe