Development of the energy sector
The energy sector in Europe is currently in the midst of an unprecedented transformation process. First steps to advance climate protection measures sustainably on a global scale were already taken when the Kyoto targets were decided. This process was accelerated considerably by the European Union’s 20/20/20 climate goals along with the latest decisions made at a national level involving the “phasing out of nuclear energy”. Austria always has regarded itself as a pioneer in developments like these and will continue to pursue this role in the future. Its recently adopted decision on the amendment to the Austrian Eco-Electricity Act in July 2011 is further proof of Austria’s pioneering role.
Increase in the percentage of renewables
The European Union’s 20/20/20 climate goals document its clear commitment to sustainable energy supply and will help to increase the share of renewable energy sources in overall production to 35% in Europe. By the year 2050, the European energy supply is to be practically CO2-neutral, which will require around 80% of European electricity production to be generated from renewables. The EWIS study (European Wind Integration Study) forecasts almost a tripling of the wind power capacity installed in Europe, taking it from 70 GW to more than 200 GW. The forecast trends for photovoltaic applications are similar.
Consequences for the power grid
The expansion of the transmission infrastructure is a sine qua non if we are to achieve the goals mentioned above. This is also confirmed by the Ten-Year Network Development Plan, published for the first time in 2010 by the ENTSO-E, the European Network of Transmission System Operators for Electricity, on behalf of the European Commission. The plan defines expansion needs of more than 35,000 kilometres of high-voltage lines in Europe and expects investment costs of more than EUR 25 billion.
According to the DENA II study, in Germany alone, the required expansion of the transmission network infrastructure is as high as 3,500 kilometres. Furthermore, along with the constantly growing requirements in the grid control sector, technological concepts like smart grids are developed.
EU Energy Commissioner Günther Oettinger has risen to this challenge by adopting the European Infrastructure Package. This autumn, he will be presenting an Action Plan outlining the key measures to achieve the EU climate goals. This, too, will attach outstanding importance to the necessary expansion of the network infrastructure.
Green electricity from Austria
In view of its Eco-Electricity Act 2012, which provides for substantial increases in the subsidies for green electricity and was recently adopted by the Austrian National Council, Austria faces similar challenges. The installed wind power capacity is to triple by 2020, from 1,000 MW to 3,000 MW. Where photovoltaic systems are concerned, the defined target is even at around 1,200 MW, which is as much as twelve times the amount today. Furthermore, domestic hydropower, being one of the main pillars of Austrian electricity production, will continue to undergo further expansion.
APG Master Plan
Fulfilling its statutory responsibility to expand its transmission networks in a forward-looking, safe and reliable manner, Austrian Power Grid AG (APG) published its Network Master Plan for the first time in 2009. In it, APG defines its long-term strategic network expansion plans which are driven by the developments in the European energy sector mentioned above. A significant part of the projects defined in the APG Master Plan are classified as TEN-projects by the European Commission and are therefore rated outstandingly urgent. The expansion and network improvement requirements defined in the Master Plan are coordinated across Europe and are part of the Ten-Year Network Development Plan published by the ENTSO-E.
The new Network Development Plan
This Network Development Plan (NEP) is legally required by ElWOG (pursuant to Section 37 ElWOG 2010) and is based on the long-term strategic plans defined in the APG Master Plan 2020. APG informs all stakeholders which major transmission infrastructures are to be developed in the APG network over the next ten years (2012 – 2021). The NEP contains a list of already decided investments, as well as projects to be implemented over the next three years.
The NEP additionally presents further network plans for the next ten years based on the previously mentioned long-term development forecast for the energy sector. The contained projects are categorised as projects of national and European interest, on the one hand, and those involving network integration and network partners, on the other, which are initiated by other market participants.
The latter are only presented in the Network Development Plan if the necessary contractual requirements (e.g. conclusion of a declaration of intention or a construction contract) are met, thus ensuring a sufficient level of planning reliability. Altogether, in the period from 2010 to 2021 yearly investments of about EUR 150 million are planned, which require strong efforts from both APG and responsible regulatory authorities.
The implementation of NEP projects and the associated strengthening of network capacities to meet the existing and/or forecast requirements are an essential prerequisite to continue to fulfil the transmission network system operator’s important tasks for Austria.
All of the relevant market participants were entitled to present their view on the Network Development Plan 2011 in the period up to 12 August 2011 as part of a consultation. Taking into account these comments, the Network Development Plan 2011 will be submitted to E-Control for approval.