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hina has energised its first 1,000 kV ultra high voltage alter nating current (UHV AC) transmission line, which has an electricity transfer capacity of 5,000 MW from the northern to the eastern and central parts of the country. The Jindognan-Nanyang-Jingmen UHV AC transmission project began commercial operation in January 2009. The 650 km long line has two segments: a 360 km line from Jindognan in the northern province of Shaanxi to Nanyang, and a 290 km line from Nanyang to Jingmen in the central province of Hubei. The project includes a 3.7 km line crossing the Yellow river and a 2.9 km line crossing the Hanjiang river. The UHV AC has been built by the countrys largest transmission utility, State Grid Corporation of China (SGCC), at an estimated cost of CNY5.7 billion. The project, which began in 2006, took 28 months to complete and about 168 hours of test runs to be capable of commercial (continued on page 2)
razil is the emerging economy to watch in the coming years. The country may not have been able to completely sidestep the global financial crisis, yet, with a committed investment programme in the infrastructure sectors, it is better positioned than many emerging economies to weather the storm. The Brazilian government had launched the Growth Acceleration Programme in January 2007 to fund the infrastructure sectors, including housing, education, public health, transportation and energy projects, and allocated BRL475 billion (USD190 billion), to be invested up to 2010. In response to the global economic turmoil, this amount was increased by about 34 per cent to BRL636 billion (USD254 billion) in January this year, to be spent by 2010. While most of the big infrastructure projects are being funded from federal resources, foreign investors have snapped many opportunities, especially in the power sector. (continued on page 4)
he UK government seems to be taking steps to meet its ambitious 2020 renewable energy targets. In the recent months, it has not only announced measures to boost renewable generation, it is also striving to ensure that the necessary grid infrastructure is in place to move renewable-based power. At present, only 1.5-2 per cent of the UKs overall energy comes from renewable sources. Taking this up to 15 per cent by 2020 presents an immense and expensive challenge. The government is trying to ascertain the investment needs, especially for grid reinforcement, to make it happen. In a latest study, the electricity grid makeover cost to accommodate low-carbon generation has been assessed at GBP4.7 billion over the next 10 years. Last year, the UK government and the energy regulator Ofgem had asked transmission companies to identify the network reinforcements needed to support the 2020 targets. Based on the inputs, the Electricity Networks Strategy Group (ENSG) estimated the renewable-related transmission investment needs. (continued on page 6)
www.globaltransmission.info
Features
UHV AC technology offers many benefits. To begin with, a large quantity of power can be transferred over long distances at a very low current value, which means lower transmission line losses. Transmission line losses can be reduced to about 25 per cent and land requirements rationalised by 50-66 per cent as compared to standard extra high voltage (EHV) lines. Second, transmission utilities can deliver a high amount of power without having to install multiple transmission lines and equipment. This lowers operational costs. The cost per unit transmission capacity of UHV AC lines is expected to be 73 per cent that of 500 kV AC lines. In addition, in high voltage lines, utilities look for stabilisation of the power system to withstand large generation and transmission outages. The commercial application of such systems is, however, based on whether the increased transfer capacity can outweigh the cost of execution. Various studies have shown that UHV AC systems cannot be seen as a simple extension of the existing, lower voltage levels. Estimates show that the power transfer capacity of a 1,500 kV line is 4.2 times more than a 765 kV line, whereas its cost is greater by 3.5 times. These are only indicative estimates as the cost-benefit comparison for a specific utility is always determined by factors specific to the project. A competing option in the high voltage segment is DC systems. UHV DC offers almost similar advantages for long distance transmission. However, AC technologies have more flexibility in operations as key equipment and components such as transformers have achieved significant technological maturity. Industry experience also shows that AC transmission lines can easily connect loads and generation points along the route. While DC lines do offer a competitive option, the cost of building tapping stations has often been a deterrent. Overall, the choice between AC and DC is based on the individual characteristics of the project being considered. Also, as Chinas planned UHV network shows, UHV AC and UHV DC can be used together to derive the best of both technologies. In its pilot UHV AC project, China has made several breakthroughs in core technologies and equipment production to transmit power economically through the worlds most complex UHV lines. SGCC formulated its own specifications for rated voltages through extensive grid studies and investigations of voltage coordination. The major breakthroughs include voltage standard, electromagnetism environment, over-voltage and insulation coordination, reactive voltage control and lightningproof technology. As a result, China could domestically produce 90 per cent of the equipment needed for the project and now has intellectual property rights over UHV transmission lines. The UHV transformer was developed indigenously by China. The transmission system uses 1,000 MVA/1,000 kV single-phase autotransformers. Shunt reactors have been used for compensating the large charging reactive power of the transmission line. The 960/720/600 MVAR shunt reactors and neutral grounding reactors have been installed because the long length of the transmission line imposes significant concerns of temporary over-voltages. With the use of the fixed shunt reactor and neutral-point reactor, secondary arc currents and recovery voltages are limited to a fairly low value. The high insulation level of the UHV transmission line lowers the possibility of back flashover, caused by lightning strokes, to ground wires or tower tops. SGCC estimates that the lightning outage rate of the UHV line could be lower than that of a 500 kV
1,100 kV 1,000 kV 2,400 kV 1,100 kV 1,100+635 kV 2,400+900 kV 1,800 kV 1,675+900 kV 50 Hz 4,000 A 8,000 A 50 kA, 3s 125 kA
Transformer and reactor Circuit breaker and disconnector CVT, TA Clearance between open contacts of circuit breaker
Audible noise
CVT: Capacitor Voltage Transformer; TA: Transformer Ampere; RMS: root-mean-square. Source: SGCC
0.5 Mhz, 20 metres away from the projection of the outer phases in fair days Environmental protection requirements
Source: SGCC
line. The project makes use of a large cross-section and multiple conductor bundles, with an increased distance of the conductor to ground, to maintain the electromagnetic environment identical to that of 750 kV and 500 kV AC projects. The gas-insulated switchgear (GIS) for this system has been designed by ABB and the Chinese GIS supplier Xian Shiky. SGCCs experience highlights the importance of having technical standards in UHV AC technology. The lack of standardisation of UHV equipment directly affects the technoeconomic parameters of the project as utilities have to engage in elaborate research to achieve feasible solutions. For the transmission industry as a whole, technology standardisation helps achieve efficiency in the long run. Studies conducted by the International Electrotechnical Commission and CIGRE have
revealed several phenomena which are different for UHV systems as compared to EHV systems. Many standard values differ from those currently stipulated for lower rated voltages. Thus, there is a need to develop international standards to ensure the safe and efficient use of this technology. Encouraged by the progress in UHV AC transmission system development, China has announced the setting up of three new UHV AC systems for the national grid. Two of these lines will transmit electricity to Shanghai from power plants in the Anhui province and the Inner Mongolia Autonomous Region. The third line will link the northern Shaanxi province and Changsha city in Hunan. These lines are a part of the overall CNY100 billion investments planned for high voltage transmission networks by China.
Features
The project involves the construction of seven lines with a total length of 2,357 km along with two substations and six converter stations at an estimated cost of BRL7.21 billion. The five-year plan also envisages an investment of BRL442 million to build five substations (between 345 kV and 500 kV rating) in the state of Sao Paulo. This will be completed by 2011 to improve reliability as well as security of supply in this major demand centre. In addition, over the period 2009-13, five transmission lines and three substations will be built in the state of Gois at an investment of BRL576 million. The state of Espirito Santo will expand the Mesquita-Viana and Mascarenhas-Linhares transmission lines that will require an investment of BRL297 million. The Minas Gerais state will get three new substations at an estimated investment of BRL245 million. Another BRL243.9 million will be spent on four new substations for the cities of Fortaleza, Natal and Salvador. A robust transmission system is key to sustained economic growth. EPE estimates that demand for electricity in Brazil will grow at an average 4.9 per cent over the next 10 years. It has also released a 10-year plan (PDE 2008-17) which envisages an investment of BRL181 billion for the electricity sector over this period. Of the total, BRL142 billion will be invested in generation and the remaining BRL39 billion in transmission projects. The installed capacity is forecast to increase from 99,742 MW to 154,797 MW by 2017, which represents an increase of 55 per cent. About 36,387 km of transmission lines will be built during this period at an estimated investment of BRL25 billion. The remaining BRL14 billion will be spent on increasing the transformation capacity by 71,537 MVA to 259,944 MVA. About one-fourth (or BRL10 billion) of the investment will go into two big transmission projects the Tucuru-Manaus (1,829 km) line, and the Madeira lines (2,375 km). Most of the planned transmission lines, especially those connecting the north and southeast regions, will be at a voltage level of 500 kV or 600 kV. The 600 kV system, the kind used by the Madeira lines, will increase from 1,612 km to 10,962 km. The 500 kV system, which will be used for the Tucuru-Manaus line, will be extended from 29,262 km to 47,592 km by 2017. The EPE estimates that by 2017, Brazil will have 122,782 km of transmission lines, a 42 per cent increase over the 2007 transmission line length.
Rondnia, Acre and Mato Grosso are on the top of the list of states that will receive more funds, precisely because they are on the route of the line that will connect the Rio Madeira hydroelectric complex to Sao Paulo. These states will attract an investment of BRL1 billion. The projects in these states, called the pre-Madeira lines, are scheduled to be in service in 2011, much before the two proposed hydro power plants (the 3.3 GW Jirau and the 3.15 GW Santo Antonio) on Madeira river begin generation in 2012-13. Power regulator Aneel is working on holding the auction for these lines as soon as March-April 2009. The Madeira transmission lines were auctioned by Aneel in November 2008.
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Project
State
Voltage (kV)
Expected completion
Rio Verde Norte-Trindade, (double circuit) JaurCuiab, (single circuit) Santa Cruz AngraGraja Foz do IguauCascavel Oeste (single circuit) Pirapora 2Montes Claros 2 Mesquita-Viana, (single circuit) ImperatrizEstreito ItacaiunasIntegradora Trindade-Xavantes, (double circuit) Trindade-Carajs, (single circuit) PirineusXavantes II, (single circuit) Serra da Mesa-Niquelndia, (single circuit) NiquelndiaBarro Ao, (single circuit) NobresCuiab (single circuit) Nova MutumNobres (single circuit) MascarenhasLinhares 2, (single circuit) Baguari-Valadares, (single circuit) TransamaznicaTapajs IntegradoraXinguara BanabuiMossor EunpolisTeixeira de Freitas II Foz do ChapecGuarita Foz do ChapecXanxer Campo BomTaquara Pau FerroSanta Rita
Source: EPE (PET 2009-13)
Goias Mato Grosso Rio de Janeiro Parana Minas Gerais Minas Gerais/ES Maranhao Para Goias Goias Goias Goias Goias Mato Grosso Mato Grosso Espirito Santo Minas Gerais Para Para Ceara/Rio Grande do Norte Bahia Rio Grande do Sul Rio Grande do Sul Rio Grande do Sul Pernambuco/Paraiba
500 500 500 500 345 500 500 500 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230
200 335 19 125 148 270 123 165 33 22 40 105 87 115 100 99 29 210 70 177 152 70 68 29 100
June 2010 December 2010 May 2008 December 2008 August 2012 June 2011 December 2010 2011 June 2010 June 2010 June 2012 June 2010 June 2010 2010 2010 June 2011 June 2011 2011 2011 Immediately December 2011 January 2009 January 2009 2013 December 2009
433.261 319.220 17.525 183.354 68.170 244.759 102.550 226.771 37.655 15.402 14.696 46.830 31.583 37.909 33.824 52.175 13.925 60.056 22.979 23.230 45.000 25.655 54.137 14.197 35.445
Features
England. The cost of the reinforcement project is estimated at GBP760 million. In the second phase, upgrades estimated at GBP450 million will be carried out in North Scotland. Also planned is construction of the Eastern subsea HVDC link, a 1.8 GW line between Peterhead and Hawthorne Pit, at an estimated investment of GBP700 million.
To arrive at the investment estimates, ENSG studied the transmission projects that have been authorised or are planned to be in place in 2015 and 2020. Such transmission reinforcements include the BeaulyDenny rebuild; increasing the transmission capacity between Scotland and England; and setting up additional lines around North-West and North-East England. Here are some of the key region-wise plans
Scotland
Scotland has two transmission system operators (TSOs), Scottish Power Transmission Limited (SPTL) for southern Scotland and Scottish Hydro-Electric Transmission Limited (SHETL) for northern Scotland. These TSOs have planned several system upgrades for their respective licence areas and are aiming at enhancing electricity trade with England. The first stage of upgrades in Scotland will be required to reinforce the North-West Scotland link and enhance the transmission capacity to south towards the Central Belt. A key project in this phase is the 275 kV DounreayBeaulyKintore (DBK) upgrade. The total cost of the DBK reinforcement is estimated at GBP180 million. In addition, incremental upgrades which include reconductoring and re-insulation work on the existing tower routes, development of new and existing substations, and installation of series compensation are planned in Scotland at an estimated to cost GBP625 million. This phase also involves construction of the Western subsea high voltage direct current (HVDC) link, a 1.8 GW line between Hunterston and Deeside. This would provide additional capacity across the circuits between Scotland and England and across Upper North
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The proposed network reinforcements, costing GBP4.7 billion, will accommodate a further 45 GW of generation by 2020. Of this, 34 GW could be a combination of onshore and offshore wind generation, and 3.3 GW from two new nuclear installations.
In addition, it is expected that 3-4 GW of offshore wind generation capacity will be developed in waters directly east of East Anglia. Some nuclear capacity is also expected to be connected. Reinforcement of the network is required for offshore wind generation and/or nuclear replanting. The cost of the onshore works is estimated to be GBP400 million. The projects are slated for completion in 2017.
Features London
Additional transmission capacity is required in the London area due to several factors: the need for new low-carbon generation, a potential increase in power transfer with mainland Europe, and future increase in demand for power due to electrification of the transport system. Thus, there is a need for grid reinforcement. The proposed projects include upgradation of a 275 kV overhead line, from Waltham Cross to Hackney, to 400 kV. The cost of these works is estimated to be GBP190 million, with a target completion date of 2015. is that the UK government has a very short time in which to persuade the TSOs and other investors to make these considerable investments. The government needs to work to eliminate policy and procedural delays in approving the proposed projects. Already, China has dislodged the UK from the top five attractive destinations for investments in renewable energy, rising from sixth to joint fourth (with Spain), behind the US, Germany and India, in an Ernst & Young Attractiveness Index. Extended decision making processes mean a long period of consultation and review before any of the proposals is implemented. The government therefore needs to expedite planning and decision making if the UKs position is not to decline further. There are also several technical and supply chain challenges to overcome. The network solutions proposed by the TSOs incorporate technologies such as HVDC and series compensation that have not been used in the UKs energy system. Supply chain issues could also impose constraints, resulting in delays in procurement and project development. Add to that the limited availability of skilled personnel in this emerging industry and the impact of the global financial crisis on the grid operators ability to raise funds. The UK government thus needs to take a holistic approach towards developing a robust grid to accommodate renewables and maintain the countrys attractiveness as a destination for investment in green energy.
South West
The South West is characterised by large volumes of localised generation, high demand levels and a limited export capacity. The need for additional transmission capacity is driven by the potential for large volumes of new gas-fired generation and possible nuclear replanting. To meet the demand, a new 50 km long, 400 kV circuit between Hinkley Point and Seabank has been proposed. There are also plans to reconductor the existing circuits. The works are estimated to cost GBP340 million and be complete in 2017. Though the capital expenditure needs for the grid reinforcement projects might have been assessed, the challenge
Nuclear 0
Total 8 NA 1,565
180 625 760 450 700 350 225 510 400 190 340 4,730
NA
1,150
4-6
0-3.3
4-9.3
500
75
7-11
0-3.3
7-14.3
350
560
0 3.3-3.3 3.3-9.9
850
News
NORTH AMERICA
US eastern region interconnection plans to carry wind energy to cost up to USD80 billion
The Joint Coordinated System Plan (JCSP 2008), a transmission and generation system expansion analysis of the majority of the Eastern Interconnection, estimates the region will need up to USD80 billion in new transmission infrastructure to obtain 20 per cent of the regions electricity from wind generation by 2024. The report presents a preliminary analysis by a group of grid operators and utilities and examines two scenarios for transmission and generation possibilities between 2008 and 2024. The first, a reference scenario, assumes business as usual with respect to wind development, with approximately 5 per cent of the regions energy coming from wind. The second is a 20 per cent wind energy scenario based on the US Department of Energys Eastern Wind Integration and Transmission Study. The first scenario requires the addition of approximately 10,000 miles (16,000 km) of new extra-high voltage transmission lines at a cost of approximately USD50 billion, in addition to nearly USD700 billion in generation capital costs by 2024. In the second scenario, about 15,000 miles (24,000 km) of new transmission lines will have to be built at an estimated cost of USD80 billion. Another USD1.1 trillion will have to be spent in generation capital expenditure by 2024. The study represents the collaborative efforts of Midwest ISO, Southwest Power Pool, PJM Interconnection, the Tennessee Valley Authority, Mid-Continent Area Power Pool, and participants within the SERC Reliability Corporation. As previously stated, this is only the initial phase of the analysis. A follow-up will be initiated in the first quarter of 2009 to investigate additional scenarios and perform a detailed reliability assessment.
Transmission Expansion Plan 2008 (STEP). The 2008 STEP includes several recommendations that could enhance and improve the electricity grid of the eight states that make up its service region. The 2008 STEP outlines the need for transmission upgrades that would require an investment of USD2.7 billion over the next 10 years. Part of this amount would have to be used for constructing 1,753 miles (2,821.18 km) of new transmission lines and installing 80 new or upgraded transformers. The board of directors asked for a commitment of USD285 million within the next four years that would be used for reliability projects and enhancements. One-third of this amount would be used for new transmission lines. The STEP also includes the 120-mile (193.12 km), 345 kV transmission line between Woodward County and Oklahoma City in Oklahoma.
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create a smart grid interoperability framework.
West Virginia PSC allows Allegheny to build 500 kV transmission line in phases
The Trans-Allegheny Interstate Line Company (TrAILCo), a subsidiary of Allegheny Energy, has announced that the Public Service Commission (PSC) of West Virginia has ruled in its favour by allowing it to build its proposed 500 kV TrAIL transmission project in segments. TrAIL is a proposed inter-state transmission line passing through three states Virginia, West Virginia and Pennsylvania. The PSC will allow TrAILCo to build its transmission line in segments upon filing verifications that necessary permits and approvals have been obtained for a specific segment before start of construction on that segment. The PSCs initial order would have prevented TrAILCo from beginning construction on any West Virginia segment until a hearing was held to determine if all pre-construction permits and approvals had been obtained and all pre-construction conditions had been met for the entire length of the transmission line in the state. The PSC also did away with the need for a Static VAR Compensator (SVC) for the Meadow Brook substation which would cost TrAILCo more than USD58 million.
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of the Northwest grid. The proposed line will carry 870 MW of power including more than 700 MW of wind power. The environmental review for the proposed transmission project is complete. Construction is expected to begin in spring 2009 and the project is scheduled for completion in 2012. BPA has three other planned transmission projects. The four projects together will add 225 miles (360 km) of transmission lines and carry 3,700 MW of power including 2,700 MW of renewable power. to the proposal before service can begin, which is expected before the end of the first quarter 2009. northeastern Wyoming and southeastern Montana.
Sargent & Lundy to provide engineering services for the Susquehanna-Roseland project
Sargent & Lundy has signed a contract with PPL Electric Utilities to provide design and engineering services for its segment of the Susquehanna-Roseland transmission project (more in Company News).
News
project from utility customers. NYRI announced that it has asked the FERC to reconsider the rule by next month. The company believes that the project may fall through if the rule is not repealed. The rule was proposed by the New York ISO. The proposed transmission project is a USD2 billion, 190 mile (306 km) transmission line from Utica to Orange County being built to transmit electricity from upstate New York to southeastern parts of the state. NYRI has already approached the Public Service Commission for approval which is expected by August 2009. capable of carrying 3,000 MW of electricity and aims to serve markets in southern Nevada, Arizona and California. The regulatory commission for the first time approved a model that permits half of the capacity of the lines to be reserved by an anchor customer, instead of having an open season for all of a lines capacity. outlooks recognise the generally supportive nature of the Federal Energy Regulatory Commission (FERC) regulation that has been designed to encourage investment in transmission infrastructure. The affirmations consider the benefits provided by ITCs formulaic forward-looking rate setting and true-up process. The affirmations consider the economic slowdown currently impacting ITCs service territories and recognises the capital-intensive nature of ITCs business operations, and its need to periodically access capital markets. Given the lower risk nature of ITCs federally regulated, infrastructure investment model, Moodys believes the company should continue to be able to access capital markets. Moodys last rating actions on ITC and its subsidiaries occurred on January 11, 2008 when the outlooks were revised to positive from stable, and on January 15, 2008 when a rating and outlook was assigned to ITC Midwest.
Inadequate transmission capacity to carry wind and solar power in US, says new report
The US has inadequate transmission capacity to carry the electricity that wind and solar power projects could produce, according to a report released jointly by two renewable-energy groups Solar Energy Industries Association and American Wind Energy Association (AWEA). The release of the paper comes at a critical time. President Obama and the US
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Congress have made strong commitments to renewable energy as a driver for job creation and economic growth, but the countrys renewable energy resources cannot reach their full potential without increased investment in transmission infrastructure. The report also urges greater federal authority over siting transmission lines that could carry power across state lines. Most state regulators have little authority or incentive to require ratepayers in their state to help pay for an intestate network. Currently a patchwork of rules gives many state regulators primary authority to determine what electricity projects are built and how they are financed. These state regulators, however, often only consider the benefits of projects for residents of their states, the report said. The report titled Green Power Superhighways: Building a Path to Americas Clean Energy Future, details current inadequacies of the US electric transmission infrastructure and offers policy solutions to address them. In January 2009, EPE had presented its draft energy plan which spelt out an addition of over 36,000 km of new transmission lines during the 10-year period 2008-17. Most of the new transmission lines will be of the 600 kV and 500 kV rating, especially between the north and southeast regions. EPE forecasts that Brazil will have 122,782 km of transmission lines by 2017, a 42 per cent increase over the 86,395 km network built up to 2007. Investments in the new lines will reach BRL24.9 billion with BRL14.2 billion going to substations, including those built in border areas. (BRL1 = USD0.443) include eight transmission lines and six substations in the states of Bahia, Goias, Sao Paulo, Minas Gerais, Rio Grande do Sul, Alagoas and Rondonia. Aneel, Brazils power sector regulator, will be in charge of arranging tenders for these projects. The eight transmission lines are: 230 kV double-circuit Eunapolis-Teixeira de Freitas II in Bahia; 230 kV double-circuit Serra da Mesa-Niquelandia in Goias; 230 kV double-circuit Niquelandia-Barro Alto in Goias; 230 kV Trindade-Xavantes in Goias; 230 kV Trindade-Carajas in Goias; 500 kV Rio Verde Norte-Trindade in Goias; 230 kV Paulo Afonso III-Zebu in Alagoas; and 230 kV Porto Velho-Abuna in Rondonia. The substations include: 500 kV Trinidade in Goias; 440 kV Jandira in Sao Paulo; 440 kV Salto in Sao Paulo; 245 kV Santos Dumont in Minas Gerais; 345 kV Padre Fialho in Minas Gerais; and 230 kV Caxias 6 in Rio Grande do Sul.
LATIN AMERICA
Brazil to invest BRL3 billion in new transmission infrastructure during 2009-13
Brazil is expected to see an investment of over BRL3 billion in power transmission projects until 2013. About 2,500 km of lines and 22 substations are expected to be built over this period. This was stated in the Transmission Expansion Project (PET), prepared by the federal energy research company EPE. The auction for the new projects will begin in 2009. According to EPE, the Midwest region will get a greater part of the investment of about BRL1.027 billion, followed by the southeast with BRL998 million. The northeast will receive about BRL516 million, the northern region about BRL260 million and southern region about BRL245 million. Investments to link Acre, Mato Grosso and Rondonia states will total BRL1 billion in the next five years. Sao Paulo state will receive BRL442 million in investments for the construction of five substations. Five new transmission lines and three substations are scheduled to be built in Goias at an estimated BRL576 million.
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News
2,375 km Coletora Porto VelhoAraraquara 2 transmission line to cross Rondonia, Mato Grosso, Goias, Minas Gerais and Sao Paulo states. (BRL1 = USD0.443) Programme (PND). In the central-western Goias state, transmission lines Serra da MesaNiquelandia, Niquelandia-Barro Alto,Trindade-Xavantes, TrindadeCarajas and Rio Verde Norte-Trindade, and the Trindade substation may be auctioned after the decree. In Brazils northeast, the transmission line Eunapolis-Teixeira de Freitas II in Bahia state and the Paulo Afonso III-Zebu line in Alagoas state will be auctioned. In Sao Paulo, the substations Jandira and Salto will be offered. In Minas Gerais state two more substations will be auctioned Padre Fialho and Santos Dumont. The substation Caxias 6 in Rio Grande do Sul will also be included in the list. Minas Gerais state. Furnas won the concession in October 2008. Part of the investment will be covered by a loan from the Brazilian National Social and Economic Development Bank (BNDES). Construction is scheduled to start end-2009 with the operation start-up scheduled for October 2011. (BRL1 = USD0.443)
Brazils CTEEP gets installation licence for Mogi Mirim III-Jaguariuna transmission line
Sao Paulos environment secretariat has issued a 10-year installation licence for the Mogi Mirim III-Jaguariuna transmission line to be built by Companhia de Transmissao de Energia Eletrica Paulista(CTEEP). The proposed 138 kV line will cross Sao Paulos municipalities of Mogi Mirim, Santo Antonio de Posse, Holambra and Jaguariuna.
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News
Endesa Chile ratings reflect its geographic diversity, exposure to dry spells and growing demand. Fitch stated that the companys controversial 2.75GW HidroAysen project with Colbun eventually could impact its rating when it publishes project investment and financing details. Meanwhile, Transelec enjoys a low business-risk profile and adequate liquidity. Fitch expects the transmission company to fund its USD1.10 billion, five-year investment programme with a 50:50 combination of capital and new debt. five-month feasibility study for a transmission line through the Arequipa and Moquegua regions. The planned USD22 million, 220 kV, 100 km transmission line will connect the Montalvo substation to the Tia Maria substation and will be used to develop mining operations in the region. of 2010.
CAF, EPR sign USD16.7 million loan contract for SIEPAC project
EPR has signed a USD16.7 million loan with the Andean Development Corporation (CAF) for its SIEPAC project (more in Deal Watch).
Columbias government to start construction of Narino and Cauca transmission project in March 2009
Colombias Energy and Mining Ministry will start construction on the transmission project to interconnect nine municipalities in the departments of Narino and Cauca in March. This will be the largest project handled by the federal government in recent years. It will be undertaken by ISA (the state transmission company) at an estimated cost of COP210 billion. The project, which is scheduled to be completed in 2011, will connect Popayan with Guapi, Timbiqui, Lopez de Micay, Iscuande, Olaya Herrera, El Charco, La Tola, Francisco Pizarro and Mosquera. (COP1 = USD0.0003854)
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way for the Guatemalan segment of the line. The project will now be completed as soon as that is done. The Mexican segment of the line between Tapachula Potencia substation and the border is complete.
power
ASIA PACIFIC
Chinas power investments likely to hit CNY650 billion in 2009
China Electricity Council (CEC) predicts that Chinas power industry will see an investment of about CNY650 billion during 2009 as a result of the governments CNY4 trillion economic stimulus package. About CNY300 billion is expected to be spent on power generation and CNY350 billion on grid construction. About CNY576.3 billion was invested in Chinas electricity sector in 2008, which comprised CNY287.9 billion on power generation and CNY288.5 billion on the power grid. This was the first time in the history of Chinas electric power sector that investment in power grid construction surpassed that in power generation. (CNY1 = USD0.146)
By 2012, the length of UHV lines are expected to be 17,600 km, three times the current length in use and under construction by the grid. The company plans to invest about CNY100 billion over the next three or four years on UHV lines. In January, the company began operations of Chinas first UHV line spanning 640 km from northern Shanxi province to central Hubei province. The company has reportedly begun construction of two more UHV directcurrent lines, linking Sichuan in southwestern China to Jiangsu and Shanghai in the east, with each line extending over 2,000 km and costing CNY40 billion in total. (CYN1 = USD0.146)
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75 per cent of the total cost. The final phase of construction will begin in March and be complete by June 2009. (CNY1 = USD0.146) South Asia. Known as Central Asia South Asia 1000 (CASA 1000), the transmission project has been conceptualised by the World Bank and aims to carry over 1,000 MW of electricity from Tajikistan and the Kyrgyz Republic to Pakistan and Afghanistan. The 500 kV line is estimated at 750 km in length. It is expected to cost over USD610 million and is scheduled to be complete in 2012.
World Bank favours PGCIL for the Central Asia regional power project
The World Bank has reportedly given its approval for Power Grid Corporation of India Limiteds (PGCIL) participation in a regional transmission project in Central/
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News
project will improve reliability of power supply to Samar. The project was originally estimated to cost over PHP866 billion. The National Economic and Development Authority (NEDA) of the Philippines expects power rates in the area to remain the same after implementation of the project. Project costs can be recovered in the next 10 years. (PHP1 = USD 0.02)
outlook for the sector continues to be negative, as it has been for the last few years. Regulatory decisions made in 2008 were broadly negative. A number of regulatory decisions announced in 2008 will lead to tariff adjustments which are unfavourable to some regulated entities, resulting in deterioration of their credit metrics. In the long term, however, the credit rating for the sector outlook is more positive, with the Commerce Amendment Act leading to more transparency and certainty of earnings.
Philippines new private operator granted permission for transmission line upgrade
Meanwhile, the Energy Regulatory Commission (ERC) of the Philippines has given approval to the newly instated private transmission grid operator National Grid Corporation of the Philippines (NGCP) to carry out PHP700 million transmission line upgradation projects in the Visayas. These will be among the first of NGCPs projects after it took over operations and maintenance of TransCo in January 2009. The ERC has allowed NGCP to construct the 69 kV Sta. RitaQuinapundan transmission line estimated to cost PHP449.94 million. This project is expected to be completed next year and will loop with the existing 69 kV Wright-Taft-BoronganQuinapundan line that supplies power to the eastern part of Samar. The ERC has also allowed NGCP to implement the Sibalom-Culasi transmission project worth PHP260.895 million. The project aims to loop with the existing 69 kV line from Panitan to Culasi Load-end substation line and with the line from the Sta. Barbara to Sibalom Load-end substation. The ERC, however, pointed out that these two projects will not be automatically included in the maximum allowable revenue for NGCP for the current regulatory period. (PHP1 = USD0.02)
News
(NZD1 = USD0.52) and the UK added 836 MW to reach 3,241 MW. Austria and Greece have a little under 1,000 MW. Poland now has 472 MW, Hungary doubled its capacity to 127 MW and Bulgaria tripled it to 158 MW. Outside the EU, Turkey tripled its wind energy capacity from 147 MW to 433 MW. (EUR1 = USD1.26) Its preliminary 2008 EBITDA was EUR985 million. Revenue increased by 3 per cent to EUR1.39 billion. Net debt at the end of December 2008 was EUR3.37 billion, higher than the EUR3.10 billion figure recorded three months earlier. Terna intends to invest EUR3.4 billion under its 2009-13 business plan. The business blueprint includes a margin target for EBITDA of 77 per cent at the end of the plan period and a growth in revenues of around 5 per cent per year. Ternas regulated asset base (RAB) is expected to rise to about EUR10 billion at the end of the plan period, from EUR6.3 billion, due to investments and the acquisition of Enels high-voltage network. The company hopes the purchase of the Enel high-voltage network will be completed by summer 2009. The grid operator has also reached an agreement with its controlling shareholder, Cassa Depositi e Prestiti SpA (CDP), for a loan of up to EUR500 million. The loan, which will be at the Euribor rate plus CDPs borrowing costs plus a further 70 basis points, will be for a tenyear investment programme. (EUR1 = USD1.26)
EUROPE
Wind accounts for 43 per cent of new EU power installation in 2008
According to the European Wind Energy Association (EWEA), over two-fifths of all new power generation capacity in the European Union (EU) was from wind in 2008. A total of 19,651 MW of new generation capacity was constructed in the EU in 2008. Of this, 8,484 MW (43%) was contributed by wind power; 6,932 MW (35%) came from gas-fired plants; 2,495 MW (13%) from oil; 762 MW (4%) from coal and the remaining 473 MW (2%) from hydro power. About 357 MW of offshore wind capacity was added in 2008 to reach a total of 1,471 MW. Nearly 2.3 per cent of the total installed EU capacity is now accounted for by offshore wind plants. At the end of 2008, 64,949 MW of wind power was in operation, representing an increase of 15 per cent over 2007. Germany currently leads in windbased capacity with 1,665 MW, followed by Spain with 1,609 MW. In 2008, Italy added 1,010 MW to reach 3,736 MW. France added 950 MW to reach 3,404 MW
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News
EUR103.1 million, a 32.9 per cent increase over 2007; and total revenues were EUR757.3 million, a 3.5 per cent increase over 2007. The companys operating profit was EUR237.9 million in 2008, a 10.8 per cent increase over 2007. (EUR1 = USD1.26) The increase is part of the ongoing revision of its 2009-14 investment plan for electricity transmission and natural gas transportation, storage and regasification. Earlier, the investment plan stood at a total of around EUR1.76 billion with EUR313 million for 2009. Meanwhile, RENs net profits are around EUR135.7 million for 2009, a 7 per cent decline from the previous year. Its revenue is estimated to be 15 per cent lower at EUR 472.4 million. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) are projected to rise by 1 per cent to EUR315 million. (EUR1 = USD1.26)
AREVA T&D chosen to deliver smarter grid management solution to Frances RTE
French Transmission System Operator RTE has chosen AREVA T&D to deliver a smarter grid management solution (more in Company News).
News
takeover target by Swedish power giant Vattenfall. SSE and Stockholm-based Vattenfall are reported to be involved in USD16.2 billion takeover talks. The talks are believed to be at an early stage, however, and any takeover is understood to depend on the outcome of an auction of Dutch energy firm Nuon. Vattenfall is currently bidding for Nuon and the SSE talks are understood to be a fall-back position if the bid is unsuccessful. Vattenfall is believed to have a large cash fund for acquisitions and seeking to move into the UK market for some time. SSE is involved in generation, transmission and distribution of energy. It owns around 10,500 MW of electricity generation capacity, including its share of joint ventures and associates. This makes it the second largest electricity generator across the UK and Ireland. It supplies electricity and gas to some 9 million customers within the UK. In addition, SSE is responsible for around 127,000 km of transmission and distribution lines in the UK. sensible solution in the long run. The execution of the three projects would mean a great leap forward in the establishment of a shared electricity grid in the area of the Baltic Sea, said Fingrid. The schedule for new interconnectors will be finalised by end-May 2009.
Russian grid companies unlikely to shift to RAB this year, need state aid
Russias power grid companies, including the Federal Grid Company (FGC), do not expect to switch this year to a new pricing system needed to boost profits. At least some regions would have to delay the shift to regulated asset base (RAB) pricing until 2010. As part of Russias electricity sector reforms, all regional grid companies were to move by the end of 2010 to the new pricing system. The rollover to the new regime is being delayed due to the ongoing global economic crisis. With the delay in the shift to the new pricing regime, the grid companies are also looking for more state funding. In most cases, this should come in the form of loans. FGC still expects to stay out of the red this year but will need to borrow RUB1520 billion, partly in the form of bonds. The company is targeting a net profit of RUB5 billion in 2009 but is yet to release the financial results for 2008. It plans to issue infrastructure bonds to raise money for its funding plans. (RUB1 = USD0.028)
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News
electricity to China by the end of 2009. The electricity exports to China will begin from March 1, 2009 under contracts previously signed with State Grid Corporation of China (SGCC). China had suspended the electricity imports from Russia in 2007 after the latter asked for higher prices. The Georgia-Turkey interconnection is part of the 500-kV Black Sea Transmission project. This project is aimed at strengthening Georgias internal power grid and enhance trade between Georgia and the countries of the South Caucasus and other countries within the electric transmission network of the Black Sea, including Turkey. The Georgia-Turkey interconnection project involves construction of a new 500/400/220-kV substation in Akhaltsikhe (at the border between Georgia and Turkey) and a 20-km, 400 kV transmission line from Akhaltsikhe to the Turkish border. considerably reduce the cost of power generation. Once the grid is operational, Kuwait and Saudi Arabia would each receive an additional 1,200 MW capacity, the UAE would receive 900 MW, Qatar 750 MW, Bahrain 600 MW and Oman 450 MW.
Black & Veatch wins the contract for environment assessment of Black Sea project
Meanwhile, Black & Veatch has won the tender for assessment of environmental impact of the construction of the Black Sea transmission project in Georgia (more in Company News).
MIDDLE AFRICA
EAST
&
include construction of a 450 km highvoltage transmission line between Rabai substation near Mombasa and Embakasi substation in Nairobi. The voltage of the transmission line has been upgraded to 400 kV from the original 330 kV and line is being designed as a double-circuit line. It will comprise two parallel lines, 400 kV each, either built on the same tower (double circuit) or on separate but parallel towers (single circuit). A subproject involves construction of a new 24 km Isinya-Embakasi doublecircuit transmission line comprising 19 km of overhead cable and 5 km of underground cable. It includes setting up of transmission line terminating equipment and installation of reactors at Rabai substation and establishing terminating equipment for the new Isinya-Embakasi line at Embakasi substation. Rural electrification is another subproject which involves the setting up of high, medium and low-voltage lines to reduce the losses caused by overloaded 33 kV sub-transmission lines and to supply electricity to new consumers in rural areas. A total of 180 km of 132 kV and 50 km of 33 kV transmissions lines will be constructed, along with the installation of seven 15/20 MVA 132/33 kV substations and ten 33 kV distribution transformers.
Uganda issues general procurement notice for 132 kV transmission lines projects
Uganda Electricity Transmission Company Limited (UETCL) has announced a general procurement notice for two transmission lines projects. The first project includes construction of a 160 km, 132 kV transmission line between Mbarara and Nkenda, expansion of the Mbarara North and Nkenda substations and a new fort portal 132/33kV substation. The second project involves construction of the 260 km, 132 kV TororoLira transmission line. These projects will expand the national transmission grid to enable UETCL to transmit electricity from the upcoming 85 MW Mputa plant. The African Development Bank (AfDB) is part-funding construction of these two lines.
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TSO Focus
Power. The 90 mile (144 km) long line crosses the utilitys Virginia and West Virginia service areas. Continuing on this strategy, AEP has envisaged capital investments of USD400-USD600 million annually in the transmission business in its service areas. The company spent an estimated USD620 million on transmission in 2008. Given the current global financial situation, AEP has scaled down its capital expenditure plan for 2009 for various businesses but, for transmission, it has increased the investment by USD56 million to USD532 million. Clearly, transmission is AEPs key focus area. In this article, we take a look at AEPs major transmission plans and proposals. In its pursuit to build the transmission superhighway, AEP has announced several regional EHV (765 kV) initiatives. In the eastern region, AEP will develop over 1,200 miles (1,920 km) of transmission lines in the PJM and Midwest Independent System Operator (MISO) regions. This is estimated to cost over USD6.1 billion. In the Southwest, AEP is working on a USD1 billion project to build nearly 400 miles (640 km) of EHV lines in the Southwest Power Pool (SPP) region. In Texas, the company is involved with transmission projects worth over USD2.5 billion. In the Upper Midwest, AEP has announced over 1,000 miles (1,600 km) of potential 765 kV transmission development, which is estimated to cost between USD5 billion and USD10 billion. The company has formed joint venture (JV) partnerships for some of its plans.
he playing field has tilted towards clean energy in the US with the launch of President Barack Obamas stimulus package. Wind has taken the centre stage and transmission companies in the country are gearing up to put wind power on the wires. The largest transmission system owner in the US, American Electric Power (AEP), has plans to expand its transmission network to connect more wind farms with the grid. This might seem ironic given that AEP is the biggest burner of coal in the US utility sector. But with utilities under pressure to reduce carbon emissions, AEP has redefined its business strategy to decrease its carbon footprint. The company has, in fact, signed on as a corporate sponsor for The Pickens Plan proposed by oil and gas industry veteran T. Boone Pickens which advocates an increase in renewable energy and investing in the infrastructure needed to carry that energy. Headquartered in Columbus, Ohio, AEP is the largest investor-owned integrated utility in the US. It owns the biggest transmission network in the country, with nearly 39,000 circuit miles (63,000 circuit km) of lines of which about 2,116 circuit miles (3,386 circuit km) are extra high voltage (EHV) lines of 765 kV rating. The company owns about 38,000 MW of generating capacity. It operates in 11 states through seven regional utility divisions and serves more than 5 million people, and owns 212,781 miles (340,450 km) of overhead and underground distribution lines. AEPs transmission system, directly or indirectly, serves about 10 per cent of the electricity demand in the Eastern Interconnection the transmission system that covers 38 eastern and central states and eastern Canada. The system also caters to about 11 per cent of the electricity demand in the region under the Electric Reliability Council of Texas (ERCOT).
AEP Texas Appalachian Power Indiana Michigan Power Kentucky Power Public Service Company of Oklahoma Southwestern Electric Power Company Source: AEP
AEP has joined hands with ITC Transmission, a subsidiary of ITC Holdings Corporation, to extend AEPs 765 kV system through the state of Michigan and link it to the Midwest. The plan proposes that the existing 765 kV transmission system that extends into the southwest corner of the Lower
TSO Focus
Peninsula of Michigan be extended east across Michigan and south down to the existing 765 kV infrastructure in Ohio. The extension would consist of three segments, comprising about 700 miles (1,120 km) of transmission infrastructure 420 miles (672 km) in Michigan and 280 miles (450 km) in northern Ohio. The estimated cost of the project is USD2.6 billion. The entire project is expected to take approximately eight years to build. However, AEP has to study its relationship with ITC carefully as ITC has similar EHV plans in the SPP region. Another risk to this plan is how the costs of the project will be distributed between the MISO and PJM regions. worth USD789 million under the Texas Competitive Renewable Energy Zone (CREZ) plan. CREZ involves construction of approximately 2,400 miles (3,840 km) of 345 kV transmission lines and associated substations at an overall estimated investment of USD4.9 billion. Besides the CREZ transmission project, ETT is in the process of building a 138 kV transmission line, in collaboration with CPS Energy, to connect stations located in the Uvalde and Castroville areas in Texas. The line is expected to be commissioned by 2011. ETT plans to invest in additional ERCOT transmission projects over the next several years. Future projects will be evaluated on a case by case basis.
AEP has announced several regional EHV (765 kV) initiatives. In the eastern region, AEP will develop over 1,200 miles (1,920 km) of transmission lines in the PJM and MISO areas. In the Southwest, AEP is working on a USD1 billion project to build nearly 400 miles (640 km) of EHV lines. In Texas, the company is involved with transmission projects worth over USD2.5 billion. In the Upper Midwest, AEP has announced over 1,000 miles (1,600 km) of potential 765 kV transmission development.
Pioneer Energy
In August 2008, AEP formed a 50:50 JV company with Duke Energy to build and own new electric transmission assets. AEP and Duke are proposing to build 240 miles (384 km) of 765 kV EHV transmission lines and related facilities in Indiana at an estimated investment of USD1 billion. The project will link the Greentown and Rockport substations in the state and is expected to be commissioned by 2014-15. The JV will operate as a transmission utility and be subject to the rules and regulations of the FERC, the state of Indiana, PJM and MISO.
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TSO Focus Transmission line length, by state and voltage level (circuit miles, as on December 31, 2007)
State 765kV 500kV 345kV 230kV 161kV 138kV 115kV Arkansas 0 0 28 0 228 168 42 Indiana 600 0 1,380 0 0 1,426 0 Kentucky 258 0 8 0 46 320 0 Louisiana 0 0 105 0 0 248 0 Michigan 16 0 234 0 0 239 0 Ohio 509 0 1,793 0 0 3,358 0 Oklahoma 0 0 625 34 8 2,174 10 Tennessee 0 0 0 91 0 154 0 Texas 0 0 1,345 0 0 4,793 14 West Virginia 384 17 323 0 0 1,602 0 Virginia 349 96 69 15 0 1,720 0 Total 2,116 113 5,910 140 282 16,202 66
Note: 1 mile = approximately 1.6 km Source: AEP
88 kV 69 kV 0 461 0 412 0 544 0 233 0 299 0 2,636 0 812 0 3 0 5,151 23 457 0 709 23 11,717
46 kV 0 0 55 0 0 0 0 0 0 739 48 842
23 kV 0 0 0 0 0 225 0 0 0 0 0 225
Total 927 4,409 1,234 586 936 8,945 3,663 275 11,303 3,634 3,147 39,059
Transmission line length, by operating company and voltage level (circuit miles, as on December 31, 2007)
Operating Company APCo CSP I&M KGPCo KPCo OPCo PSO SWEPCo TCC TNC WPCo Total 765 kV 500kV 734 0 615 0 258 509 0 0 0 0 0 2,116 97 0 0 0 0 0 0 0 0 0 16 113 345kV 230kV 161kV 383 884 1,614 0 8 909 579 660 641 223 9 5,910 106 0 0 0 0 0 34 0 0 0 0 140 0 0 0 0 46 0 8 228 0 0 0 282 138kV 115kV 88 kV 3,302 893 1,665 0 320 2,464 2,149 1,195 2,453 1,586 175 16,202 0 0 0 0 0 0 10 42 0 14 0 66 23 0 0 0 0 0 0 0 0 0 0 23 69 kV 1,079 467 711 3 544 2,169 812 1,405 1,740 2,699 88 11,717 46 kV 40 kV 34.5kV 23 kV 787 0 0 0 55 0 0 0 0 0 0 842 0 59 0 0 0 0 0 0 0 0 0 59 230 0 739 27 3 365 0 0 0 0 0 1,364 0 113 0 0 0 112 0 0 0 0 0 225 Total 6,741 2,416 5,344 30 1,234 6,528 3,592 3,530 4,834 4,522 288 390,59
APCo: Appalachian Power Company; CSP: Columbus Southern Power Company; I&M: Indiana Michigan Power Company; KGPCo: Kingsport Power Company; KPCo: Kentucky Power Company; OPCo: Ohio Power Company; PSO: Public Service Company of Oklahoma; SWEPCo: Southwestern Electric Power Company; TCC: Texas Central Company; TNC: Texas North Company; WPCo: Wheeling Power Company; Note: 1 mile = about 1.6 km Source: AEP
PATH
2013
1,800*
14.30
*AEPs estimated share of the project cost is about USD600 million. **ETA is a 50:50 joint venture between AEP and MEHC. It will be utilised as a vehicle to invest in selected transmission projects outside of ERCOT. AEP owns 25 per cent of Tallgrass and Prairie Wind through its ownership in ETA. ***Seeking rate approval from the FERC. Source: AEP
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Policy Review
Smart Grid
Getting off the ground
ast month, about USD4.5 billion of funding was made avail able in the US as part of the economic stimulus package to accelerate the development of a smart grid. A smart grid is capable of moving power more efficiently from generation stations through the delivery system to electricity consumers and eventually the individual appliances. It can not only increase reliability, security and optimise the entire electricity system, it can enable the integration of dynamic forecasting, energy storage, clean distributed generation and energy efficiency technologies, including plug-in hybrid vehicles. Since 2007, several groups within the US have been working on making the smart grid a reality. This includes several demonstration projects, with one of the first large scale projects underway in Boulder, a 100,000-person university city in the state of Colorado. In the first phase of the city smart grid programme, Colorados largest electric utility, Xcel Energy, has installed about 14,000 smart meters in Boulder. It has also upgraded two substations and five feeders. The smart meters are capable of two-way communication and internet access so that customers can actively control how and when to use electricity. By June 2009, the citys 45,000 meters are expected to be capable of two-way communication and internet access. The next phase of the project involves upgrades to two more substations, 20,000 feeders, expanded deployment of in-home automation devices, and web portal access to all customers. Later, the smart grid, including plug-in hybrid vehicles, solar and wind cogeneration sources, will be integrated with the Boulder grid. By early next year, Boulder is expected to be the first city in the world to have a complete end-to-end smart grid.
sagometers and wireless mesh sensors, can use radio frequency identification (RFID) technology to provide utilities with realtime information on the status of specific lines. These sensors can detect problems on the grid as they develop and relay the information back to the utility so that action can be taken to avoid a massive blackout. For the regulators, this would ensure that the investments in smart grid trials are borne by the utilities as the latter would be the initial beneficiaries, and not lead to an increase in consumer bills. This will be critical to establishing the credibility of the programme amongst consumers and ensuring their buy-in to the smart grid. If the costs of expensive and not completed tested devices are passed on to consumers, it would lead to a considerable increase in bills. However, there are fears that such an either-or approach will not effectively demonstrate the true benefit of an end-to-end smart grid. Also important to the commercial success of a smart grid is the ability of the various devices in the system to communicate with each other in an efficient and secure manner and become interoperable. Achieving interoperability requires reliable standards along with validated performance. In the US, the National Institute of Standards and Technology (NIST) is leading the effort to develop protocols and model standards for interoperability of smart grid devices and systems. The current electricity grid infrastructure is based on numerous standards. The NIST is working with different stakeholders to assess the applicability of the standards for the smart grid and determine what new standards need to be developed. Due to the complexity of the grid, it is expected that rather than a single standard, a suite of standards will need to be developed for distributed energy resources, demand response devices/appliances, electric vehicles, wide area measurement systems, etc. Further, since the smart grid is itself evolving, the new standards, conformance tests and other efforts to ensure interoperability will also need to evolve. Working in close cooperation with the US Department of Energy (DoE) and its GridWise Architecture Council, NIST has set up expert working groups to cover key areas of the smart grid including transmission and distribution and commercial, industrial and residential buildings. Additional groups and task forces to address higher level and cross-cutting issues in business and policy, cyber security, and smart grid framework/ architecture have been formed as well. NIST is also working on designing the conformity assessment test framework with various laboratories to ensure that the smart grid devices and systems are truly interoperable. Once there is consensus on the standards, the Federal Energy Regulatory Commission will begin the regulatory process for adopting the new standards and protocols. The NIST is also working on cyber security standards to ensure the integrity and availability of the infrastructure, as well as the privacy of smart grid users. A large portion of the USD4.5 billion fund for the smart grid is expected to be used in investment grant programmes and regional demonstration projects. The industry is now awaiting DoEs notices of intent that are expected to provide information on project type, eligibility and the evaluation norms. This is an exciting development not just for the US but for the international electricity sector. The way we look at power delivery today could change completely in the coming few months.
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Smart grid will not only increase reliability, security and optimise the entire electricity system, it can enable the integration of dynamic forecasting, energy storage, clean distributed generation and energy efficiency technologies, including plug-in hybrid vehicles.
Such demonstration projects, covering a significant demographic area with varying income and education levels, are important. The information generated from these will help the regulators understand issues such as impact on price, consumer acceptance of new technology, the investments required and their fair apportionment between the utility and the ratepayers, and the actual potential of the new technology and devices to deliver power safely and reliably to consumers under all conditions. From a regulatory perspective, deployment of select technologies to make the grid more reliable and safe before bringing the customers on board makes more sense. A few of the equipment under demonstration, such as phasor measurement and backscatter sensors on the transmission grid along with video
Spotlight
In fact, European nations are driving the Euro-Med energy partnership. Over EUR55 million has been allocated under the EC MEDA programme over the past eight years to support the gradual integration of the European and Mediterranean energy markets. The European Investment Bank has lent over EUR2 billion to energy infrastructure projects in the region. The MedRing project is central to the energy exchange plans between Europe and the southern Mediterranean countries. The project will link the power grids from Spain to Morocco, and travel through the North African and Arabian countries up to Turkey. From Turkey, the ring will then link back into the European grid via Greece or Bulgaria. The MedRing is composed of four separate electricity blocks Union for the Co-ordination of Transmission of Electricity (UCTE), South West Mediterranean Block (SWMB), South East Mediterranean Block (SEMB) and Turkey. The UCTE interconnects 26 European countries. The SWMB comprises Morocco, Algeria and Tunisia, whichhave been interconnected and are operated in synchronous mode for a long time. In addition, the SWMB is synchronously connected to the UCTE system via two Morocco-Spain interconnectors. The SEMB comprises Libya, Egypt, Jordan and Syria. In 2005, an attempt to synchronously link the SEMB and SWMB via a 220 kV alternating current (AC) transmission line between Libya and Tunisia failed. The test is proposed to be carried out again in April-May 2009. If successful, the SEMB will be connected to the SWMB and the two blocks will constitute one long synchronous
he Mediterranean region is assuming increasing importance in the energy strategy of the three continents it encircles. It is crossed by key energy routes from non-European countries that have huge energy resources and low demand to European Union countries that have high energy demand but fewer resources. The opening of new routes for electricity exchange across the Mediterranean is now considered essential for energy security in the region. To that end, the Mediterranean countries are working towards establishing an energy corridor known as the Mediterranean Electricity Ring or MedRing. While the project has been under discussion for over a decade, it has made real progress only in the past few years. Divergent interests on both sides of the Mediterranean are backing this project. On the southern shore of the Mediterranean, secure and efficient supply of electricity is seen as a key ingredient for economic growth. In the north, EU countries view North Africa as a critical source of diversification for Europes energy needs, not only in terms of conventional energy sources (gas and oil reserves in Algeria, Egypt and Libya) but also for the development of renewable energy sources (solar and wind power).
Capacity (MW)
Length (km)
Line characteristics
2,000 500 (1,000) 600 (1,000) 500 or 1,000 500 or 1,000 600 (1,200) 600 (1,200) 600 1,100 350 750
240 265-660 via Sardinia NA 500 NA 250 120 210 20 124 250
500 kV DC undersea cable 400/500 kV DC undersea cable 500 kV DC undersea cable 400 kV DC undersea cable 400/500 kV AC overhead line 400 kV 225 kV AC (400 kV AC*) overhead line 225 kV AC (400 kV*) overhead line 400 kV AC overhead line 500/400 kV DC undersea cable 400 kV AC overhead line 400 kV AC overhead line
2010+ 2010+ 2010+ 2010+ 2012 2015 2006** 2006** 2012 2010+ To be decided 2008**
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Source: Terna
system, connected to the European UCTE system via Spain. Thereafter, the SEMB system would be connected through Syria to the Turkish grid, which would then be synchronously interconnected to the UCTE. The four interconnected blocks would then form an elliptical ring that would be 4,000 km east to west and 2,000 km north to south. Thus, the closing of the Libya-Tunisia link, the Turkey-Syria link and the interconnection of the Turkish grid with the UCTE system will complete the MedRing. Several feasibility studies have already been conducted on the proposed project. A MedRing feasibility project (2001-03), co-financed by the European Commission, envisaged the closing of the electricity transmission superhighway by 2005-06. It also recommended 10 new AC cross-border lines, mainly at 500/400 kV, around the basin to be built between 2005 and 2010. However, some of these timelines have not been met due to the unsuccessful attempt to complete the Tunisia-Libya interconnection in 2005. If the work could be accelerated, the entire ring could be completed over the next two to three years. Once complete, the MedRing would increase electricity exchange in the region to 75 TWh by 2010 and the expected energy not supplied (EENS) would be reduced by 12 GWh per year, resulting in an estimated USD24 million of savings per year. In light of this, closing the ring is now getting a renewed thrust from the European Commission. The interconnections under the MedRing are part of different projects: the Euro-Maghreb interconnections, the Maghreb interconnection, the Egypt-Tunisia-Libya-Algeria-Morocco (ETLAM) interconnection, the Egypt-Iraq-Jordan-LebanonLibya-Syria-Turkey (EIJLLST) interconnection and the Turkey-
UCTE interconnection. Some of the interconnections form a part of the EuroMed Energy Action Plan 2008-13 launched last year.
Euro-Maghreb interconnections
The first interconnection of the MedRing was achieved in August 1997, when the 700 MW, 400 kV Morocco-Spain submarine AC linkwas completed. Withthis, the -integrated gridsof Morocco, Algeria and Tunisia in the Maghreb region were put into synchronous operation with the UCTE system. In July 2006, a second submarine AC link was put into operation between Spain and Morocco, increasing the capacity to 1,400 MW. The plan is to expand the existing links between the Maghreb region and Europe under the Euro-Maghreb interconnection project. The proposed links under the project include AlgeriaSpain, Algeria-Italy, Tunisia-Italy and Libya-Italy. These are all 400 kV direct current (DC) interconnections. The feasibility studies of all these DC links have been completed and the projects are at various stages of implementation. These HVDC links will be a precursor for Europes plans to import solar power, particularly from the Sahara desert, where solar panels would be capable of providing up to three times more energy than those in Europe. In fact, one of the priorities of the Union for the Mediterranean, formed in July 2008, is to develop the Mediterranean Solar Plan. European renewable energy developers are building large solar thermal plants (50200 MW) in Algeria, Egypt and Morocco. According to the German government, HVDC lines from North Africa could carry 700,000GWhofsolarpowerannuallyby2050.Strengtheningof the Euro-Maghreb links is imperative to realise this plan.
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1. Synchronous parallel operation of Turkish block with UCTE system 2. Closing the Libya-Tunisia links 3. Closing the Turkey-Syria link after detailed analyses
EIJLLST interconnection
The countries in the SEMB represent the next frontier for the MedRing. One of the key electricity infrastructure projects in this region is the EIJLLST project. Some of the interconnections already under operation in this block are the 400 kV Egypt-Jordan link, the 400 kV Jordan-Syria link and the 220 kV Libya-Egypt link. These existing interconnections are being augmented and strengthened under the EIJLLST project, which envisages interconnection between the North African countries of Egypt and Libya, the near-eastern countries of Syria, Jordan, Lebanon, Iraq and Palestine, and Turkey. While Lebanon, Iraq and Palestine are not a part of the MedRing project, the Turkey-Syria interconnection under EIJLLST is a key component of the MedRing. The 124 km, 400 kV Syria-Turkey link was completed in 2003. However, the line is expected to start operations after Turkeys connection to the UCTE system.
Turkish power system to the UCTE is viable through Bulgaria and Greece. Turkey already has two 400 kV interconnections with Bulgaria. One 400 kV link with Greece is under construction. The EUR1.5 million phase one of technical studies to connect Turkey to the UCTE system was completed in April 2007. The EUR2.5 million phase two of studies for the improvement of the frequency control performance is currently underway. As per the timelines finalised for the studies, the trial operation is scheduled for 2010. Until the Turkish system is interconnected with the UCTE, the tie lines with non-UCTE countries would be operated in an isolated mode.
Market deregulation is uneven with the incumbent owning and operating the transmission system in most cases. There is no regional electricity market yet. Moreover, the non-consistent approach to internal power sector regulation is a hurdle in the free trade of electricity in the region. Consequently, it is only natural to realise harmonised internal market regulation as the first step towards the establishment of a regional market.
Turkey-UCTE interconnection
Turkey has been pushing for the integration of the Turkish grid with the EU network for a long time in order to get the benefit of synchronous parallel operation. Several studies have been conducted, which reveal that the synchronous connection of the
30
Spotlight
of the UCTE-Turkey link may cause instability in the southeastern part of the system in case of heavy power import by Turkey. If the test run of the Libya-Tunisia link fails again, the Mediterranean countries will have to opt for HVDC interconnections for completing the ring. In this event, the AC grids on the two sides would not need to be synchronised and could run at different frequencies. However, this would require significant additional investments. For now, the North African countries are more focused on the relatively economical frequency stabilisation that AC offers. Another weakness in the system is the interconnection between Libya and Egypt. Due to technical constraints, the 220 kV line linking the two systems currently has a maximum power exchange capacity of only 180 MW against the design capacity of 600 MW. With a peak load of approximately 20,000 MW, the Egyptian power system is the largest in the southern Mediterranean area, and is therefore subject to higher fluctuations. In a synchronous structure, these fluctuations would be transmitted throughout the system. A back-to-back interconnection, which acts as a filter for normal power frequency fluctuations on either side has been proposed. In addition to the purely technical challenges of synchronising the varied systems and ensuring sufficient interconnection capacities, there is also the issue of how to align the different institutional frameworks in the electricity sectors of the Mediterranean countries. Market deregulation is uneven with the incumbent owning and operating the transmission system in most cases. There is no regional electricity market yet. Moreover, the non-consistent approach to internal power sector regulation is a hurdle in the free trade of electricity in the region. Consequently, it is only natural to realise harmonised internal market regulation as the first step towards the establishment of a regional market. Another concern relates to the doubts that have been rasied on whether the investments made so far have paid off. This is mainly because the volume of energy exchanged on a commercial basis has been small, with two exceptions between Spain and Morocco, and between Egypt and Jordan. Also, commercial exchange within the Maghreb and Mashreq is minimal, consisting mainly of Algeria exporting to Morocco and Tunisia, and Egypt exporting to Libya. An initial analysis highlighted that North-South HVDC links were not profitable due to the huge investment costs and the fact that the North-South energy exchanges were heavily influenced by oil prices. However, given the recent plan of sourcing renewable energy from North Africa, the profitability of these interconnections may be justified in the long run. Going forward, blueprints are being drawn up to extend the Euro-Med interconnected system to the east with a 220 kV EgyptSudan line and to the Middle East by interconnecting Jordan and the western part of Saudi Arabia (which forms part of the Gulf Cooperation Council power grid project, to be put into operation soon). For now, all eyes are set on the second test run of the Libya-Tunisia AC line which will determine the next sequence of events.
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31
orway is the sixth largest producer of hydro power in the world. Over 98 per cent of the countrys electricity production is based on hydro power, which puts it in a unique position when it comes to renewable energy. It is estimated that renewable sources account for 62 per cent of Norways energy consumption. As of December 2007, Norways total electricity generation was 137 TWh, of which 135 TWh was from hydro power plants. The total installed capacity at the end of 2007 stood at 30,313 MW. Norways electricity sector, though completely deregulated, is dominated by state-owned companies. Many generation and distribution companies are partially or wholly owned by the government. The state-owned Statkraft is the largest power producer and, together with its associates, accounts for half of Norways electricity production. The rest comes from regional generating companies. Small local companies control the electricity distribution market and the respective local electricity grids. Norways national electricity transmission network and international interconnections are owned and operated by the transmission system operator (TSO) Statnett, which is also a stateowned company.
* Includes a small contribution from condensing power CHP: combined heat and power Source: Nordel website
119,919 135,043 1 123 674 449 673 1,443 713 730 901
Renewable sources account for 62 per cent of Norways energy consumption. As of December 2007, Norways total electricity generation was 137 TWh, of which 135 TWh was from hydro power plants. The total installed capacity at the end of 2007 stood at 30,313 MW.
Statnett, as of 2007, owned and operated over 9,000 km of transmission lines, accounting for over 90 per cent of Norways high-voltage electricity grid (132 kV to 400 kV). In 2008, the companys revenues from the transmission business amounted to NOK3,122 million (about USD460 million). Statnett is a member of Nordel a regional grid operators association comprising the TSOs of the Nordic countries Norway, Sweden, Iceland, Denmark and Finland.
121,715 137,387
* Includes a small contribution from condensing power CHP: combined heat and power Source: Nordel website
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Interconnection
Length (km)
DenmarkNorway Tjele-Kristiansand (Skagerrak 1,2,3) FinlandNorway Ivalo-Varangerbotn NorwaySweden Sildvik-Tornehamn Ofoten-Ritsem Rssga-Ajaure Nea-Jrpstrmmen Lutufallet-Hljes Eidskog-Charlottenberg Hasle-Borgvik Halden-Skogsster NorwayRussia Kirkenes-Boris Gleb Norway Netherlands Feda-Eemshaven
Source: Nordel website
250/350
1,000
1,000
240
220
100
100
228
1,000
1,300
39 58 117 100
40 100 2,200
20 100 2,150
18 13 106 135
154
100
100
10
450
700
700
580
NA: not applicable * Includes Russia, Germany, Poland and Estonia. Of these, Norway has electricity trade with only Russia Source: Nordel website
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SkareheiaHolen VarangerbotnSkogfoss and end in 2013 SimaSamnanger line in May 2008 rskogFardal
Expected to be in operation by autumn 2009 Construction is expected to begin in 2010 Statnett received the licence to build this Statnett has applied for a licence to build this line. A decision is expected in the first half of 2009. Statnett applied for a licence to build this line in 2007 Statnett expects to submit an application for a licence during spring 2009 Statnett announced its plans for this line in December 2008 Statnett notified the authorities in February 2008. It has decided to apply for a licence for parts of the project by spring 2009.
NamsosRoan BalsfjordHammerfest
82 350
420 420
500 2,300
OfotenBalsfjord RoanTrollheim
157 165*
Planned cross-border interconnections Nea (Norway) to J rpstrmmen (Sweden) 100 (25 km in Norway, 75 km in Sweden)
420
400
The 420 kV line of 750 MW capacity is under construction and will replace the existing 300 kV line. The Swedish TSO Svenska Kraftnat will set up the 75 km connection in Sweden. The entire line is expected to be completed in 2009. This is a new 600 MW interconnector with Denmark. The total cost is estimated at NOK3 billion, to be equally shared between Statnett and Energinet.dk, the Danish TSO. Statnett sent the notification to the authorities in December 2008. The cable could be ready in 2014. The interconnector will have a capacity of 1,200 MW. It could be ready by 2015.
400
1,500
700
420
NA
* Includes an additional 8 km long undersea cable that crosses the Trondheim fjord NA: not available (NOK1 = USD0.146) Source: Nordel, Statnett and GTR Analysis
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Deal Watch
NORTH AMERICA
USDA extends USD356 million for rural electric infrastructure
The United States Department of Agriculture (USDA) will offer USD356 million in loans to rural utilities and cooperatives in ten states to upgrade 3,830 miles (6,128 km) of transmission and distribution lines. The funding will be extended to 16 utilities through the USDA Rural Development Electric Program. The Central Alabama Electric Cooperative will receive USD22.2 million in loans to build or improve 159 miles (256 km) of distribution lines. The Victory Electric Cooperative Association will receive a USD54.7 million loan for construction and upgradation of 98 miles (158 km) of distribution lines and for acquiring 678 miles (1,091 km) of distribution and transmission lines.The Western Farmers Electric Cooperative will get a USD103.3 million loan to finance transmission projects.
granted by the bank for a single project. In December 2008, BNDES authorised BRL6.1 billion in funding for the second hydro plant the 3.15 GW Santo Antonio project. (BRL1 = USD0.427)
CAF, EPR sign USD16.7 million loan contract for SIEPAC project
EPR has signed a USD16.7 million loan with the Andean Development Corporation (CAF) for its SIEPAC interconnection project in Central America. CAF approved the financing in December . The USD405 million, 1,786 km, 230 kV line will connect six Central American countries Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The project also entails interconnections between Guatemala and Mexico, and Panama and Colombia. It will also facilitate Central Americas interconnection with Mexico and Colombia.
EUROPE
EUR400 million EIB loan for Frances RTE
The European Investment Bank (EIB) has announced it will lend EUR400 million to RTE, the French power grid operator. The money will be used for upgrading and expanding the French power grid over the period 2009-12. The loan will be directed toward 31 projects with a total cost of EUR1 billion under RTEs investment programme of EUR5 billion. These projects involve the installation of over 150 km of new transmission lines and upgrading of 700 km of 400 kV, 225 kV and 90 kV lines. The projects aim to enhance the security of supply, especially in the Provence-Alpes-Cote dAzur region, and to increase transmission capacity with Belgium and Italy. The programme also includes constructing a 3,200 km optical fibre grid, creating a centre for administration and supervising the remote control network using RTEs fibre optic infrastructure. (EUR1 = USD1.29)
LATIN AMERICA
BNDES to fund Jirau hydro plant and transmission line
Brazils national development bank BNDES has approved BRL7.2 billion in financing for the 3.3 GW Jirau hydro plant in the Amazon Valley. Jirau is one of two mega-hydro projects on the Madeira river in Rondonia state that will be connected to the national grid. The loan will go to the Energia Sustentavel do Brasil (ESBR) consortium, formerly known as Enersus, and includes support for the transmission system that will link the plant to the city of Porto Velho. Multinational energy group GDF Suez has a 50.1 per cent stake in ESBR and engineering firm Camargo Correa holds 9.9 per cent. Brazils federal power holding company Eletrobras subsidiaries Eletrosul and Chesf hold 20 per cent each. The financing, which will cover 68.5 per cent of the required investment for the Jirau project, is one of the largest loans ever
Project Update
NORTH AMERICA
Interior to Lower Mainland (ILM) Transmission Project, Canada
Developer: BC Transmission Corporation (BCTC) Project detail and status: BCTC has plans to build a 500 kV transmission line from Nicola substation near Merritt to the Meridian substation in Coquitlam. The ILM project is the largest expansion to BCs transmission system in 30 years. The total length of the line will be 240 km and for the most part it will run parallel to an existing 500 kV line. The BC Utilities Commission (BCUC) has already approved the project. The Commission approved the project at the estimated cost of CAD602 million and has provided a ceiling of CAD725 million to allow for increased costs over the multi-year construction phase of the project. BCTC is expected to file the updated cost report about a year after completion of the environmental assessment process. Before construction can begin, the project needs an Environmental Assessment Certificate from the BC Environmental Assessment Office (EAO), for which BCTC has already filed an application. BCTC anticipates receiving EAO approval by summer of 2009, with an expected in-service date for the project of fall 2014. In January 2009, BCTC held open houses on the project. In February 2009, BCTC floated an international tender inviting bids for the design and construction of the line.
be delayed. In February 2009, it was reported that construction work on the project has been delayed by at least five months because of appeals in the US and Canada. Some Canadian landowners have objected to the locations of the poles along the proposed route. These landowners have appealed a construction permit issued by the Alberta Energy and Utilities Board. They also want MATL to prove that the project is in public interest. The proposed transmission line has also faced opposition in Montana, where landowners are appealing to the states Board of Environmental Review. Once operational, the project would be capable of transporting 300 MW of electricity in either direction. The company has already signed several transmission rights agreements for capacity to be made available on the line. SNC Lavalin is the prime contractor for the project.
Project Update
and incentives for the construction of the project. June 2009. The authority expects to complete construction in late 2012.
Project Update
Over the past two months, the PSC has held several public information forums and public statement hearings on the project. In December 2008, the staff of the Department of New York PSC recommended that the project follow the existing Marcy South power line route rather than the one proposed by the developers. The department has stated that the original proposal to run the line southward through local communities including South Utica, Sauquoit, Clayville, Cassville and Waterville is not the best option. In January 2009, another group from the staff of the PSC said that the state regulator should altogether deny the application of NYRI. The staff told the PSC that the line is not needed at this time. The testimony is the position of the staff and not the PSC itself. But their opinion carries weight. It has also been reported that the regional independent operator NYISO has not determined there is a need for the NYRI project. The ultimate decision, however, rests with the New York PSC, not the staff. In February 2009, NYRI asked the FERC to reconsider a rule approved last fall that would make it difficult for NYRI to recover investment costs of its proposed transmission line project from utility customers. The company believes that the project may fall through if the rule is not repealed. The rule was proposed by the New York ISO. The company estimates that the line will cost USD2 billion and if the PSC gives its approval it could be in service by 2012. kV Vernon to Cavendish line. VELCO and CVPS had jointly filed a petition with the Vermont Public Service Board (PSB) in 2007. In February 2009, the PSB approved the construction of the project. In doing so, the board rejected recent criticism claiming that the project was not needed. The project is estimated to cost between USD265 million and USD329 million.
Project Update
permitting and public consultation during 2009-11. Construction is slated for 2012-13. The project will be in service in early 2013.
LATIN AMERICA
Coletora Porto Velho-Araraquara 1 Transmission Line, Brazil
Developer: Madeira Transmissao Project detail and status: This is the first Madeira line, connecting the hydroelectric power complex on the Madeira river with Sao Paulo. It will be a 600 kV, 2,375 km long line cutting across the states of Rondonia, Mato Grosso, Goias, Minas Gerais and Sao Paulo. The project is expected to begin in 2012. The Madeira Transmissao consortium won the contract to build and operate the line in November 2008. The consortium offered BRL176 million in annual revenue. The consortium is composed of Eletrobras subsidiaries, Furnas and Chesf, with 24.5 per cent equity stake each, and CTEEP with 51 per cent stake. The consortium plans to invest BRL2 billion in the projects. The concession contract for the project was signed in February 2009. The Brazilian development bank, BNDES, has agreed to partly fund the project.
Project Update
The Integracao Norte Brasil consortium comprises Eletronorte (24.5 per cent), Eletrosul (24.5 per cent), Abengoa (25.5 per cent) and Andrade Gutierrez (25.5 per cent). The first two are subsidiaries of the federal power company Eletrobras. Abengoa is a Spanish engineering and construction company. Andrade is also an engineering firm. The consortium won the concession in November 2008 by agreeing to receive revenue of BRL174 million a year. The concession contract for the project was signed in February 2009. The Brazilian development bank, BNDES, has agreed to partly fund the project. February 2009, the CFE announced that the interconnector is now likely to be energised by end 2009. The Panama-Colombia interconnector is estimated to entail an investment of over USD207 million. This is a planned 614 km HVDC undersea cable (274 km in Panama and 340 km in Colombia) and is targeted for completion in 2012. The IDB is financing the technical, economic and financing feasibility studies for this line. Panamas ETESA and Colombias ISA have formed a joint venture, Intercolpa, to develop this interconnector.
ASIA PACIFIC
Sarawak Undersea Cable Project, Malaysia
Developers: Tenaga Nasional Bhd Project detail and status: Plans to construct an undersea cable to link Sarawak on Borneo island with Peninsular Malaysia began as early as the 1990s but were scrapped after the 1997 Asian financial crisis. The plans are tied to the Bakun hydroelectric plant in Sarawak, which is under construction and nearing completion. The cable was planned to transmit electricity from the project to Peninsular Malaysia at Yong Peng in the state of Johor. The undersea cable plans have been revived since Tenaga and Sarawak Energy, a regional utility, took over the operations of the Bakun project in January 2009 from Sime Darby Bhds. The cable is expected to export approximately 1,600 MW to the peninsula via a high voltage direct current system. In February 2009, Tenaga announced its intention to call for tenders for construction of the cable by the end of this year. The submarine cable will span a distance of 670 km and is estimated to cost up to MYR15 billion. In addition, the on-land portion of Bakuns transmission system will stretch some 730 km in east Malaysia and 300 km in Peninsular Malaysia. The project can start operations in 2015 given that construction starts next year. Tenaga is expected to form a joint venture with Sarawak Energy to develop the undersea cable. The on-land transmission systems for Peninsular Malaysia and Sarawak will be developed by Tenaga and Sarawak Energy.
EUROPE
Tirana-Prishtina Transmission Line Project, Albania/Kosovo
Developers: Albanian Transmission System Operator (ATSO) and Kosovo Market and Transmission System Operator (KOSTT)
Project Update
Project detail and status: The proposed 238 km, 400 kV transmission line project will interconnect Tirana in Albania with Prishtina in Kosovo. Feasibility and environmental studies for the project were conducted by CESI of Italy with World Bank funding in 2005. This study was later updated by DECON of Germany (now called MVV decon) with KfW funding in April 2008. The project is estimated to cost EUR60 million. In October 2008, KfW agreed to contribute part of the EUR35 million which Albania will need for the construction of its section of the transmission line. KfW has also agreed to extend a EUR12 million soft loan for the construction of the 85 km long Kosovo section of the power line. The Kosovo section is estimated to cost EUR25 million. In February 2009, an interconnection agreement was signed between the two countries. The grid operators of the two countries will construct the portions of the line passing through their respective countries. Construction is expected to begin in 2009 and will take about 20 months for completion.
Company News
NORTH AMERICA
AREVA T&D takes over US maintenance firm
AREVA T&D has acquired RB Watkins of the US. The acquisition is expected to enhance AREVA T&Ds service business unit capability to install, maintain and repair power transformers in the US. The company has not disclosed the value of the deal.
Grid US under a USD35 million long-term contract. The equipment will be supplied on a turnkey basis to National Grids 69 kV to 345 kV projects in New York and New England. The contract is valid until 2014 and is part of National Grids USD600 million power grid-enhancement project.
Sargent & Lundy to provide engineering services for the Susquehanna-Roseland project
Sargent & Lundy has signed a contract with PPL Electric Utilities to provide design and engineering services for its segment of the Susquehanna-Roseland transmission project. The proposed 130-mile (209 km), 500 kV SusquehannaRoseland transmission line project will connect PSE&Gs switching facilities in Roseland, New Jersey with PPLs Susquehanna switching station near Berwick, Pennsylvania. The PJM Interconnection, which oversees reliability planning for the regional power grid in the Mid-Atlantic region, identified the need for the new line. It directed PPL to build the Pennsylvania segment and PSE&G to build the New Jersey segment of the line. PPL submitted its application for the project to the Pennsylvania Public Utility Commission in January 2009. The entire project is expected to go online in mid-2012.
ASIA PACIFIC
Siemens energises substation in the Philippines
Siemens has energised the 300MVA power transformer and substation equipment in a new 230 kV substation in Amadeo, Cavite in the Philippines. The substation is owned by the Manila Electric Company (Meralco). Siemens provided the design, installation, factory-testing and commissioning of the transformer and major substation equipment. Meralco also awarded Siemens two additional supply contracts of 115 kV, 83MVA transformers for its substations in Central Business Park and Fort Bonifacio Global City.
42
Company News
The project is expected to be fully commissioned by April 2010. AREVA will supply a 420 kV and 230 kV GIS package for the project.
EUROPE
AREVA T&D takes over UK maintenance firm
AREVA T&D has taken over Powermann, a Dorset-based maintenance firm, to add to its services business unit and to increase its customer base and presence in the UK. AREVA did not disclose the value of the deal. Powermann is engaged in maintaining, installing and testing of high-voltage power equipment.
AREVA T&D chosen to deliver smarter grid management solution to Frances RTE
French Transmission System Operator RTE has chosen AREVA T&D to deliver a smarter grid management solution to monitor, estimate and forecast wind generation to be connected to the grid. AREVAs system will be able to connect around 1,000 wind farms and support the development of renewable energy generation. This collaboration between AREVA and RTE is aimed at optimisation and increase of capability of the French grid to incorporate renewable energy sources. The solution is based on AREVAs e-terra product range, which is in operation on wind farm supervision systems in the US, Portugal, Spain and Denmark.
Black & Veatch wins the contract for environment assessment of Black Sea project
Black & Veatch has won the tender for assessment of environmental impact of the construction of the Black Sea transmission project in Georgia. The impact study will be funded by the grants sanctioned by the European Bank for Reconstruction and Development (EBRD). The 500 kV project aims at stable operation of the electric transmission network of Georgia and assist in trade between Georgia and the South Caucasus countries and Turkey. The project also involves construction of a 400/500 kV transmission line between Georgia and Turkey.
43
Company News
Of the total 18 companies which participated in the first stage of the tender, six companies were selected for participation in the second stage. Apart from Black & Veatch Royal Haskoning, Environ UK Limited, Fichtner Gmbh, Louis Berger SAS and Geographic Limited, and Mott MacDonald were in the running for the contract. The company will sign relevant agreements with the Energy Ministry of Georgia soon. The total cost of the project is estimated at EUR220 million. The project will be funded with credit provided by KfW, EBRD and the European Investment Bank (EIB) as well as with the funds allocated by the Government of Georgia. (EUR1 = USD1.26) Dubais transmission and distribution network. AHEC is part of the Al Hassan Group, which has companies in Oman and the UAE operating in contracting, trading and manufacturing.
The Al Ain Distribution Company (AADC) has awarded Indias Larsen and Toubro (L&T) an engineering procurement and construction (EPC) contract worth USD164 for construction of seven electrical substations, associated cabling and an overhead transmission line in Al Ain city in Abu Dhabi. L&T will design and set up the 33/11kV primary substations to the specifications of the international consultant PB Power. The order is expected to be completed within 24 months. Each substation consists of 33 kV gas-insulated switchgear (GIS), 11 kV air-insulated switchgear (AIS), 15/20 MVA 33/11 kV transformers, substation control and monitoring system, a protection and telecommunication system, a DC system and auxiliaries. L&T has also received another EPC order for augmentation and expansion of a 33 kV power transmission network. This order valued at USD67 million is from Abu Dhabi Distribution Company. Works includes design, supply and construction of 300 km of 33 kV transmission network in the western region of Abu Dhabi. The order is expected to be completed within 22 months.
NORTH AMERICA
Supply of 550 kV and 230 kV disconnect switches
Country: Canada Organisation: BC Transmission Corporation Description/Scope of work: International competitive bids are invited for the supply of four 550 kV and two 230 kV disconnect switches. Closing date: March 17, 2009 Contact: Bennett, Bonni, Suite 1100, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49260, Vancouver, British Columbia, V7X 1V5 Canada Phone: +1 604 699 7569 Fax: +1 604 699 7580 Email:bonni.bennett@bctc.com
Closing date: March 20, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx
LATIN AMERICA
Construction of transmission lines in Neuvo Leon
Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: International competitive bids invited for the construction of seven transmission lines in the state of Neuvo Leon, of 400 kV and 115 kV rating, with a total length of 179 km. The tender includes three substations with a total capacity of 500 MVA and 12 feeders. Closing date: March 11, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx
Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: CFE invites international competitive bids for the construction of a 230 kV transmission line with a total length of 109 km running across the states of Baja California and Sonora. The tender includes two substations with ratings of 230 kV and 34.5 kV along with five feeders. Closing date: April 28, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx
45
ASIA PACIFIC
Expansion of a 132 kV substation
Country: Australia Organisation: Transgrid Description/Scope of work: International competitive bids are invited for the expansion of the Cowra substation. Works include the installation of two 132/66/11 kV, 60 MVA transformers, and two 11kV/415V 200 kA auxiliary transformers. Closing date: March 10, 2009 Contact: Mr Richard Glover, Transgrid, Metropolitan Area Centre, 200 Old Wallgrove Road, Eastern Creek, NSW 2776 Phone: +61 2 92843286 Email:richard.glover@transgrid.com.au
47
Tenders & Contracts Supply of power cables, auxiliary cables and accessories
Country: Singapore Organisation: Singapore Power Limited Description/Scope of work: International competitive bids are invited for the supply and installation of 230 kV power cables, auxiliary cables and accessories. Closing date: April 17, 2009 Contact: Tender/Quotation Counter, 111 Somerset Road, #08-02 Singapore Power Building, Pin/Zip 238164, Singapore Phone: +65 6823 8888 Fax: +65 6823 8188 Email:corpcomms@singaporepower.com.sg Website:www.singaporepower.com.sg Closing date: March 24, 2009 Contact: Foreign Relation Department, 393, Trung Nu Vuong Street, Danang City, Vietnam Phone: +84 511 2210377 Fax: +84 511 3625071 Email:frdpc3@gmail.com
EUROPE
Supply of a 66/22 kV power transformer
Country: Spain Organisation: Endesa Distribucin, S.A. Description/Scope of work: International competitive bids are invited for the supply, testing and assembly of a 66/22 kV power transformer substation. Closing date: March 16, 2009 Contact: Srta. Diana Martin Munoz, Aprovisionamientos, Avenida Paralel 51, E-08004 Barcelona, Spain Phone: +34 9121310000 Email:diana.martin@endesa.es
49
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