27.9.2013 Boris Schucht

SESSION I – Regional scenario building and common principles

Energy Transition from a European Perspective, Round Table Discussion, 27. September 2013

50Hertz at a Glance

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109,360 km² (31%)

9,980 km (28%)

approx. 98 TWh (20%)

approx. 15 GW (21%)

Surface area

Total length of lines

Maximum load

Energy consumption (based on electricity supplied to final consumers in acc. with the EEG)

Installed capacity: - Renewables - Wind

Turnover- Grid

Value (share in DE)

~ 42,900 MW (~26%) 20,583 MW (~31%) 12,533 MW (~40%)

8.6 billion € 0.8 billion €

Workforce 757

source: 50Hertz, as at 15/07/2013

27.9.2013 Boris Schucht

August 2013: Number of units: ~ 1,3 Mio. Power > 72 GW Energy (2012) ~ 135 TWh

Wind

Photovoltaik

Biomass

Extension of Renewables in Germany

2000 2006 2012

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Source: 50HertzT, TenneT, Amprion, TransnetBW, Google Earth

27.9.2013 Boris Schucht

Roles in the current Transformation of the Energy System Role of the transmission grid - Enables competition in the electricity market - Ensures balance between generation and demand - Ensures system stability and security of supply Role of electricity markets - Efficient and reliable dispatch of generation, storage, and demand response - Signals for new investments in generation, storage, and demand response technologies

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Major problems in the current Transformation of the Energy System - Development of the energy prices (especially in Germany) and their impact on

competitiveness of the economy - High inefficiencies in the current development (eg. PV in “sunny” Germany, no European

thinking and acting) - Low wholesale prices causing a serious profitability issue for generators - New investments in generation assets not profitable - Flexible power plants (gas, pump storage) are technically needed but have the biggest

profitability problem – flexibility has currently no real value - Local capacity constrains due to nuclear phase out or other reasons - CO2 emission trading system not used as the “leading” system to reduce CO2 emissions

– system has currently even a negative impact - Low coal prices due to the shale gas revolution in the US lead to an increase of CO2

emissions in Germany - Development of the infrastructure not as fast as the development of RES - Increasing risks for the system stability (system changes very fast and is more often at the

limits)

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Challenges in the further transformation of the Energy System Major Challenges

- Further development of the support schema for renewable energies

- Evolution of the market design that fosters efficient investments in conventional generation, storage, and demand response technologies

- Development of the needed infrastructure to integrate RE and markets

- Alignment of markets and support schemas within Europe to use the advantage of the open EU market

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How Grids enable the Market to find an efficient Technology Mix Large bidding areas - Foster liquid markets and competition Enable efficient dispatch and investment decisions

- Need strong transmission grids to keep / reduce redispatch on an acceptable level Strong interconnectors - Allow the market to increase efficiency by combining regional potentials - Need common evaluation to foster realization of projects that increase social welfare;

National regulation schemas should enable TSOs to realize such projects

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50Hertz measures approved by Federal Network Agency

50Hertz Measures not yet approved by Federal Network Agency

German Efforts to preserve German/Austrian Bidding Area

Corridor D confirmed by Federal Network Agency (2 GW HVDC; route length 450 km) Construction of a new HVDC line from Lauchstädt (50Hertz) to Meitingen (Amprion)

Direct current

Alternating current

06.18.2013 50Hertz

The draft legislation on the Federal Requirement Plan of December 2012

Adopted in June 2013

Conclusion

We see serious challenges but no need to questions principles of

current roles in the energy system

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Vielen Dank für Ihre Aufmerksamkeit.

Boris Schucht 50Hertz Transmission GmbH

Thank you for your attention.

BACKUP

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Increased pace for 50Hertz grid expansion projects

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South-West Interconnector (partially under construction) 4

380 kV overhead line "Nordring Berlin" 3

Uckermark line Neuenhagen – Bertikow 2

6 3rd interconnector to Poland

8 Offshore connections in the Baltic Sea

1 Northern line Krümmel – Görries

‒ Accelerated grid expansion in 2012 thanks to political backing

‒ Plan approval decision for second section of South-West Interconnector

‒ Agreement on Kriegers Flak Combined Grid Solution signed

Placement of new conductors on the Remptendorf line 5

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6

2 3

4

5

8

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10 Kriegers Flak Combined Grid Solution Construction of Baltic 2 offshore connection

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7 Bärwalde-Schmölln line

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27.9.2013 Boris Schucht