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Romanian Electricity Sector Facts and Perspectives
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Where we are?
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ANRE Present structure of the electricity sector
Transmission and system operatorMarket operator
8 Distribution and supply companies
16 Industrial platform distributors
120 Suppliers
14 municipal CoGenproducers and other IPP and self-producers
Hydro producer
Nuclear producer
7 Major thermal producers
RENEL
S120S1 S10 S11
Transelectrica TSO
OPCOM – Market operator
Nuclearelectrica
Hidroelectrica
Ro Cr De ElB TeTu Ga
D_1 D_2 D_16
TrNBa OlMuS TrSMoDo MuN
ENEL SpaApril 28 2005
June 2006
E.ONApril 04, 2005
CEZApril 05, 2005
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17
2836
4943
52 51
7061
112
68
128
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 Aug-06
Producers, license holders Suppliers, license holders
Rules for granting licenses and authorizations in the electricity sector approved by GD 540/2004, published in Romanian Official Gazette 399/2004
Authorizations and licenses
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ANRE The wholesale electricity market
Bilateral Contracts Centralised Market
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Bilateral Contracts Market
regulated contracts between producers and 8 DISCOs
(suppliers of captive consumers)
negotiated contracts between market participants
Bilateral Contracts Centralized Market -starting with December 2005
Trading platforms on the wholesale electricity market (1)
GENERATORS PARTICIPATION TO ELECTRICITY GENERATION
Jan - Jun 2006
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Centralized Markets:– DAM (voluntary)– Balancing (mandatory)– Ancillary System Services (mandatory) – Cross Border Capacities (explicit auctions)
Priority productions• Renewable energy: supply quota & green certificates market• Cogeneration: capacity payments
Trading platforms on the wholesale electricity market (2)
Introduction of a financial market is envisaged
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ANRE
Volume tranzactionate pe PZU si PE
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
iul 2005 aug sep oct nov dec ian 2006 feb mart apr mai iun
% din consumul intern
Volum tranzactionat pe PZU Volum tranzactionat pe PE
Electricity traded volumes on DAM and BM
% from final consumption
Electricity traded on DAMElectricity traded on BM
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ANRE PRETURI SPOT MEDII ZILNICE- stabilite de S.C. OPCOM S.A. -
Ianuarie - Iunie 2006
0
10
20
30
40
50
60
70
80
90
100
1-Jan
8-Jan
15-Ja
n22
-Jan
29-Ja
n5-F
eb12
-Feb
19-F
eb26
-Feb
5-Mar
12-M
ar19
-Mar
26-M
ar2-A
pr9-A
pr16
-Apr
23-A
pr30
-Apr
7-May
14-M
ay21
-May
28-M
ay4-J
un11
-Jun
18-Ju
n25
-Jun
Euro/MWh
Daily average DAM prices
Last months results:
July 41.33 Euro/MWh
August 41.03 Euro/MWh
A yearly average of 36.4 Euro/MWh
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ANRE Evolution of the electricity market opening degreeEvolutia gradului de deschidere a pietei de energie electrica
in perioada ianuarie 2004 - iunie 2006
12% 14% 15%21% 21% 22% 23% 23% 24% 24% 23% 24%
28% 27% 28%31% 33% 33% 35%
38% 38% 39% 40%38%
40% 40% 41%46%
48% 49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ian 20
04 feb mar apr
mai iun iulau
g
sep oct nov
decian
2005 feb mar ap
r
mai iuniul 2
005
aug
sep oct nov
decian
2006 feb mar ap
r
mai iun
Ponderea consumului consumatorilor care si-au schimbat furnizorul sau au renegociat contractul, din total consum
HG 1563/2003: 40%
HG 1823/2004: 55%
HG 644/2005: 83,5%
Grad de deschidere piaţa permis prin Hotărâre de Guvern
legal market opening degree real market opening degree
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ANRE
Cote de piata ale furnizorilor de energie electrica pentru consumatorii finali - Iunie 2006 -
F1, 5.38%F2, 3.71%F3, 5.78%
F4, 7.01%
F5, 9.28%
F6, 6.78%
F7, 5.68%
F8, 7.22%
E1, 9.73% E2, 9.67%
E3, 2.66%
E4, 2.82%
E5, 2.39%
E6, 2.08%
E7, 1.17%E8, 1.11%E9, 1.25%E10, 1.55%E11, 1.41%
E12, 1.59%
E14, 1.39%
Altii, 9.29%
E13, 1.07%
Indicatori concentrare piata:HHI - 575 C4 - 36%
F1 … F8 furnizori pentru consumatorii captiviE1 … E14 furnizori pentru consumatorii eligibiliCategoria "Altii" include 31 de furnizori ale caror cote de piata individuale sunt sub 1%
Electricity suppliers market shares
June 2006
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ANRE Support schemes for priority production (1)
Green certificates trading: bilateral or on a centralized market organized by the Market Operator (operational from November 2005)
Max and min limitation for green certificates values set up by ANRE (minimum value 24 Euro / MWh, maximum value 42 Euro / MWh)
Renewable sourcesMandatory supply quota for suppliers Generators received green certificates
November – August 2006
7839 green certificates traded on centralized market
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Cogeneration units
• Capacity payments for efficient qualified units
• Contracts between TSO and generators with efficient qualified units
• Contract prices: ancillary services tariffs
Support schemes for priority production (2)
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Transmission and Distribution – regulated activities Applied regulation - incentive regulation
Transmission:
revenue cap;
zonal Gs & Ls based on marginal costs
Distribution:
price cap (tariff basket)
Network tariffs
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• NUT ensured by ANRE until full liberalization of the market
• Full pass through upstream costs
• Regulated margin of 2.5% of the acquisition costs
• Six month ex-post adjustments
Captive end-user tariffs
End-users average electricity price (without taxes) 74 Euro/MWh
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Perspectives
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ANRE Main Projects for Electricity Sector
• Distribution of the necessary investments 2006-2008• Total - 3,6 billion euros
Grid10%
Nuclear power plant10%
Thermal power plants35%
Hydro power plants 35%
Distribution networks
10%
Source: Romanian Energy Policy 2006-2008 - draft
District Heating program “Termoficare 2006-2009”
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ANRE Undergoing privatisations
• Remaining three distribution/supply companies – 2006 - 2007;
• Complexul Energetic Turceni - S.A. – integrated electricity&mining;• Complexul Energetic Rovinari - S.A. – integrated electricity&mining;• Complexul Energetic Craiova - S.A. – integrated electricity&mining
SC "Hidroelectrica" - S.A. Bucuresti• Private capital increase for finalizing some hydro objectives under construction (public
private partnership). • Hidroserv branches• For small hydro power plants
– new companies with mix capital (private and public);– other forms of partnership;– sell of assets.
"Transelectrica" - S.A. Bucuresti• Sell of shares for branches/services• 10% of shares offered on the stock exchange
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ANRE Investments projects to enforce regional cooperation and trade:
Pump-storage Power Plant Tarnita-Lapustesti• Units 2, 3 and 4 of Cernavoda Nuclear Power Plant
• 400 kV Interconnection Lines with Hungary and Serbia & Montenegro•400 kV Interconnection Lines with Moldova (Gadalin-Suceava-Balti)
• Black Sea DC link cable (Romania –Turkey) Regional cooperation:
•Increase communication, exchange of information,
rules harmonization
•Promote opportunities for investment developments
•Generation cost savings
• Macroeconomic benefits
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ANRE Conclusions
• Consistent legal and regulatory framework• Potential for investments • Undergoing privatization process for generation and
distribution
Romania has:
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ANRE
Thank you for your attention!
Romanian Electricity and Heat Regulatory Authority Phone: (+ 40 21) 311 22 44Fax : (+ 40 21) 312 43 65
www.anre.ro