strategy of security of enery supply slovak republic

Strategy of security of enery supply Slovak Republic

Alena Žáková, 4th October 2007

Seminar – Energy efficiency and energy security

Ministry of Economy of the SR

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The main challenges

Importance of energy sector in social life and in economy

It is needful do secure energy sources into the liberalized energy market within

acceptable prices.

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Strategic target of new EU energy policy

NEP EU – 10 January 2007 (EC introduction) 12 February 2007 (Ministerial Council) competitiveness – to ensure energy market opening

with contribution for consumers and whole economy security of supply – to decrease growing dependence

on energy imports and to solve vulnerability of national economy

sustainability – to develop alternative production facilities and energy medium, to improve air environment quality and to slowdown climate change

Action Plan – 14 March 2007 (Spring Summit)

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Priority of NEP EU (defined

in the Action Plan of EU)

competitiveness and internal market security of supply and solidarity from MS sustainable development - competitiveness solution of climate changes, innovation and

technologies external policy

„Liberalized package“ - September 2007

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Strategic target Energy policy of the SR

a.

to ensure such volume of electricity generation that will cover the demand on an economically efficient basis;

to ensure secure and reliable supply of all forms of energy in the required quantity and quality while at the same time ensuring maximum efficiency;

to reduce the share of gross domestic energy consumption in the gross domestic product (reduction of energy intensity).

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Strategy of Energy Security of the SR (SoES SR)

It should be approved by government by 31.12.07. It will define development of direction of the energy sector by 2030Goal:

...to reach competitive energy… … that ensures secure, reliable, effective supply of all

forms of energy… …for acceptable prices… …taking into consideration consumer protection,

environmental protection, sustainable development, SoS and technical security

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Strategy of Energy Security of the SR (SoES SR) (2)

Analyses status and proposes solutions for: electricity sector heat supply sector gas sector crude oil production, processing and transportation coal exploitation RES utilization energy efficiency

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Characteristic of energy sector of the SR

high dependency on import of primary energy, high energy intensity of the national economy, relatively law portion of utilization of RES, insufficient research, development and innovative

technologies, that are influence by global trends: Increase of energy prices on whole world market

climate change and its results

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Important facts on SR

restructuralization and privatization of energy

companies market liberalization voluntary commitment - within accession process into

the EU, decommissioning of NPP Jaslovske Bohunice

not by the technical or safety reasons SR will become import country (In the field of

electricity sector) compared with recent period as a

export country

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SoES SR a) Coal

Present status the most important prime energy source absence of black coal mining within the SR the most important element of raw material security

and energy securitydecrease tendency of volume of mining

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SoES SR a) Coal (2)

Measures for secure of coal supply to ensure after 2010 sale of produced (mined) coal

within remaining economical effectiveness of coal production by prolongation public service obligation for exploitation from deposit in the SR by 2020

continuously to update tendering procedure for black coal supplier

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SoES SR b) Crude Oil

Present status dependency on crude oil import – 99% supply from RF oil processing at the level 5.5 mil. ton/year – refinery

Slovnaft a.s. Bratislava, refinery Petrochema,a.s. Dubová covering domestic consumption of engine fuel by the

Slovnaft company a.s. at cca 60 % rest is covered by oil product market from Austria and Czech company.

assumption of increase of engine fuel consumption within 15 years – 2 times higher, by 2030 – 2.5 times higher

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SoES SR b) Crude Oil (2)

Measures for secure of crude oil supply to ensure oil supply in the SR from safe and

economically the most advantageous sources. to ensure stability of oil supply in time horizon of

upcoming 20 – 25 years minimally at the double level compared with present status

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SoES SR b) Crude Oil (3)

Diversification of transport routes and sources – besides RF, Kaspian area a Middle East, Northern Africa:

crude oil pipeline Družba (Russia) alterative crude oil pipeline - Adria from Szashalombatty (in case

of insufficient direct supply from Russia to Slovnaft) Odesa – Brody - Družba, (pipeline is politically complicated) utilisation of interconnection IKL-Družba provided the reverse

flow in crude oil pipeline Družba within simultaneous excluding of possibility of supply by crude oil pipeline Družba and Adria

Bratislava – Schwechat: interconnection is at present under discussion

in emergency situation - 90 days emergency oil and oil product stocks (needful to complete stocks for crude oil and oil products in compliance with EU and IEA regulation)

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SoES SR c) Gas

Present status dependency on gas import – 98 % of supply from RF(SPP a.s.

operator of transport lines) SR - important player in the field of Russia gas, approximately

20% of EU consumption passes through SR decrease of gas consumption (due to price increase), trends in

future – only a slight growth oh the consumption not completed process of electricity and gas market

liberalization - since 1.7.2007 all supplier has been eligible, but in spite of legislation environment gas and electricity market is really not fully opened yet

gas market concentration, dominant position of big and strong player

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SoES SR c) Gas (2)

Measures for secure of gas supplygas supply from safe and economically the most

appropriate sources functioning liberalised gas market – without barrier standard of security of gas supply last resort suppliercrisis management mechanism of emergency stocks – building

underground storagesmonitoring of gas supply

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SoES SR c) Gas (3)

Diversification of transport routes (competition for Slovak transport networks):

gas pipeline Blue stream – interconnects Russia with Turkey, Hungary, government announced interest to extend this gas pipeline (it means jeopardize of Nabucco) – gas source from Russia - capacity 16 bln. m3/year

gas pipeline South Stream – from Russia through Black Sea and Bulgaria to Europe (through Greece to Italy). In Bulgaria - separation to N and S line (through Hungary to Austria) - capacity 30 bln. m3/year

gas pipeline Nord Stream – Northbaltic gas pipeline - bypassing Poland, end in Germany (negative impact to SR, decrease of transported volumes through SR). Capacity 27,5 bln. m3/year (2010), 55 bln. m3/year

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SoES SR c) Gas (4)

Diversification of sources: in addition to Russia - North Europe (especially Norway),

Caspic and Middle East, North Africa gas pipeline Nabucco (from Turkey, through Bulgaria,

Romania, Hungary, to Austria), realized in cooperation with Austria, - oil from Caspian area and Middle East, capacity 31 bln. m3/year, assumption 2012

terminal Adria– LNG - island Krk, capacity 10 bln. m3/year, assumption 2011

possibility to transport liquid gas by supply from Lybia, Algeria, Quatar (also from Russia)

terminal Poland LNG – building up on the bank of Baltic Sea in Poland

common gas-logistic trade centre in Austria (Baumgarten)

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SoES SR d) Renewable energy sources (RES)

Present statusRES utilisation 34 PJ biomass (17PJ), hydro-

energy (17PJ),4,3% - portion of RES utilisation to domestic

energy consumption17% - portion of electricity production from

RES to electricity consumption2,5% - portion of biofuel to consumption of

engine biofuel

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SoES SR Measures for RES

implementation of innovative technologiesapplied researchRES cost effective integration into energy

sector

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SoES SR e) Heat

Present status tradition of Central Heat Supply over-equipped primary and secondary heat distribution lines convenient technical state of production facilities inconvenient state of secondary distribution lines

Measures for secure heat supply legislative and institutional measures preparation of supportive programs high efficient combined heat and electricity production, etc.

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SoES SR f) Electricity

Present statusStructure of export and import flows in 2006 (GWh)

Total balance of cross-border exchanges in 2006 - 1603 GWh in favour of export.

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SoES SR f) Electricity (2)

annual decrease of available installed capacity in SR by 2010 – 1370 MW; by 2030 – 3 855MW, e.g. 56% compared with 2006Reasons: international commitments, obsolescence,

environmental criteria Impacts: price increase of base-load electricity, problems with

auxiliary services

decrease of installed capacities in EU negative impacts of emissions fees on electricity prices more risky availability of fuels, price development is

influenced by global price trends

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Estimated development:

By 2030 it is supposed increase of electricity consumption by 13,5 TWh, e.g. almost 46 % increase compared with present

Forecast of electricity consumption development in SR

Year 2005 2006 2010 2015 2020 2025 2030

Low scenario GWh 28572 29624 30379 32008 33330 34603 35987

Base scenario GWh 28572 29624 31892 34713 37534 40418 43112

High scenario GWh 28572 29624 32815 37121 41530 45990 50544


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Requirements for deficit cover in production in ES SR:

about 6600 MW of new capacities and approx. 29 TWh in production

0

10

20

30

40

50

60

2005 2010 2015 2020 2025 2030

rok

TW

h

zníženie výroby vysoký sc. spotreby el.

referenčný sc. spotreby el. nízky sc. spotreby el.

29 T

Wh

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SoES SR Measures for secure electricity supply

Global goal: ensure volume of electricity, which covers demand on

economically effective principleMeasures:

production (balanced energy mix): increase of capacity of the existing production facilities build up of new production facilities

reinforce of capacity of transmission lines upgrade of national transmission system (increase of capacity of

existing lines and build up new lines) build up new cross-border interconnections optimalization of management system in real time

modernization of distribution system

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Proposed projects Technical parameters

Date of realization Estimated costs in mil. EUR

Electricity sources

Power increase NPP* 164 MW 2007 - 2010

NPP 3,4 unit Mochovce * 880 MW 2007 - 2012 2 100

Thermal power plant Nováky *(reconstruction)

125 MW do 2011 150

Heat supply Zvolen * 70 MW do 2009 33

Thermal power plant Vojany **(reconstruction)

830 MW

CHP region East Slovakia ** 200 MW do 2011 120

Thermal power plant region East Slovakia(alternative to Vojany)

600 MW 580

HPP Sereď* 52 MW 2008 - 2013 160

HPP Lietavská Lúčka ** 18 MW do 2015 60

VE Slatinka ** 3,5 MW do 2013 10

SoES SR Measures for secure electricity supply (2)

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Proposed projects (2):

Interconnections of electricity systems

TS – interconnection Bošáca – ČR 1x400 kV od 2013 78

TS – interconnection Kapušany – Lemešany – Moldava – MR***

2x400 kV od 2012 140

TS – interconnection Kapušany – Ukrajina 2x400 kV od 2012 6,3

TS – interconnection Varín – Poľsko 2x400 kV od 2015 100

Modernization of transmission system

TS Medzibrod 400/110 kV od 2010 58

Lines Večký Ďur – Gabčíkovo 2 x 400 kV od 2009

TS – Križovany a Lemešany 400/110 kV Od 2008

Modernization of distribution system

TS 110/22 kV region West Slovakia, 110 kV lines in region Middle Slovakia, reconstruction 110 kV system – Lemešany, Košice, Prešov, within coridor in region East Slovakia

SoES SR Measures for secure electricity supply (3)

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SoES SR Measures for secure electricity supply (4)ES SR do 2030

Project Technical parameters

Earliest operation

Estimated costs in mil. EUR

TS – interconnection Rimavská Sobota – Maďarsko

1x400 kV od 2012 18

HPP Wolfsthal 192 MW do 2020 580

NPP V3 Jaslovské Bohunice 1 200 MW do 2025 3 000

HPP Ipeľ 600 MW do 2025 660

NPP Kecerovce 1 200 MW

After decommision

NPP V2 Jaslovské Bohunice

3 500

Proposed projects (3):

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SoES SR g) Energy efficiency

Present status energy intensity of the SR is, in spite of some decrease,

significantly higher at present compared with EU 4,1-time higher, than is average of countries EU27 structure of industry is historically highly energy intensive barriers for setting up of principles of energy efficiency

regard: policy, legal and regulatory framework, institutional framework, budgetary, taxes and prices barriers, barriers informing

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SoES SR g) Energy efficiency (2)

Measures in favour of energy efficiency enhance to reach gradual decrease of energy intensity to level of

average of former 15 EU member to reach yearly savings 4 135 TJ/year => 1% of year

average of total consumption in line with Directive 2006/32/ES on Energy Services

Conception of Energy Efficiency of the SR:

analysis – barriers – frame measures:

industry, households, services, transport, agricultural sector (approved by government in July 07)

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SoES SR g) Energy efficiency (3)

Measures in favour of energy efficiency enhance3-year Action Plans (2008-10, 2011-13, 2014-16):

concrete measures: buildings, appliances, industry and agricultural, public sector, transport sector, horizontal measures (upgrade of political, legal and institutional framework, monitoring system, information campaign)

financing: Energy Efficiency Fund – public and private sector, structural funds - OP Competition and Growth, banks (e.g. EBRD Credit line)

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