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NEK – TODAY AND IN THE FUTURE

NATSIONALNA ELEKTRICHESKA KOMPANIA EAD. NEK – TODAY AND IN THE FUTURE. Vasil Anastasov Deputy Chairman of the Board of Directors of NEK, Bulgaria. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD.

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NEK – TODAY AND IN THE FUTURE

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  1. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK – TODAY AND IN THE FUTURE Vasil AnastasovDeputy Chairman of the Board of Directors of NEK, Bulgaria

  2. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD THE ELECTRICAL POWER SECTOR IN THE REPUBLIC OF BULGARIA 2) ELECTRICAL POWER TRADING AND MARKET OPENING 3) THE BULGARIAN SYSTEM OPERATOR – CONGESTIONS MANAGEMENT AND CHALLENGES 4)UP-GRADING OF THE ELECTRICAL POWER SYSTEM, EXTENTION OF THE INTERCONNECTIONS AND CONSTRUCTION OF NEW CAPACITIES 5) ELECTRICITY DEMAND FORECASTS IN THE REPUBLIC OF BULARIA HIGHLIGHTS Bucharest, April 3-5, 2006

  3. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK is established as a business company in 2000, in conformity with the EU integration processes- License for transmission of electrical power /transmission network total length 14 601 km/- License for public supply of electrical power - License for electrical power generation at HPPs and PSHPPs /31 HPPs and PSHPPs with 2563 MW total installed capacity/NEK is one of the main guarantees for keeping the energy reliability and the energy balance in the Balkan regionNEK fulfils successfully the functions ofsystem operator within UCTE THE ELECTRICAL POWER SECTOR IN THE REPUBLIC OF BULGARIA Bucharest, April 3-5, 2006

  4. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD POWER TRANSMISSION NETWORK OF THE REPUBLIC OF BULGARIA Bucharest, April 3-5, 2006

  5. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK total sales in 2005 are 36 626 GWh, 7 574GWh of which are commercial exportDuring the last yearsNEK is the main exporter in the region - about 75% from the regional export of powerNEK is practically a guarantor for the reliability of the electrical power supply in the regionNEK works intensively for the development of a competitive energy market: growth of the electrical power export by 28% compared to 2004Closure of Units 3&4 at Kozloduy NPP by the end of 2006:- The remaining in operation capacities will be sufficient to cover even the growing by 2,5 to 3% domestic demand - Serious problem appears to meet the deficiency in the region ELECTRICAL POWER TRADING AND MARKET OPENING Bucharest, April 3-5, 2006

  6. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD Together with the market opening NEK has a multifunctional role according to the Energy Act and the secondary legislationThe Bulgarian power market operates in full conformity with the requirements of the European legislation:- Regulated third party access to the networks - Competition in the energy supplies to the end users - Transactions at regulated and at deregulated prices ELECTRICAL POWER TRADING AND MARKET OPENING Bucharest, April 3-5, 2006

  7. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD Results of the market liberalizationin Bulgaria: - Continuous increase in the number of registered market participants - 2712 GWh traded at contractual prices in 2005 - As a transmission company, NEK provides access to its network and ensures the transmission of all contracted energy quantities ELECTRICAL POWER TRADING AND MARKET OPENING Bucharest, April 3-5, 2006

  8. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK is a full UCTE member and follows strictly the technical rules for joint operation in the framework of the synchronized systemUCTE is finalizing a new Operational Handbook with the rules applicable for the synchronized united systems The Bulgarian Grid Code is fully harmonized with the Regional Grid Code and the UCTE Operational HandbookPower deficiencies are seasonal: in winter – to the West, toward Serbia, in summer – to the South, towards GreeceBulgaria and Macedonia are constructing jointly a new interconnection line to increase the possibilities for transfer of electrical power in three directionsStrong need in reinforcement Southwards – by a second 400кV interconnection linebetween Bulgaria and GreeceA priority in the Bulgarian energy policy - Turkey to interconnect soon to UCTE and to use the existing interconnection infrastructure between Bulgaria and Turkey THE BULGARIAN TRANSMISSION SYSTEM OPERATOR – CONGESTIONS AND CHALLENGES Bucharest, April 3-5, 2006

  9. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD THE BULGARIAN TRANSMISSION SYSTEM OPERATOR – CONGESTIONS AND CHALLENGES ELECTRICAL POWER COMMERCIAL EXPORT COMPARISON BY YEARS, GWh 7574GWh 7000GWh Bucharest, April 3-5, 2006

  10. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK succeeds to export keeping the safety conditions for its own system and for the neighboring systems as wellNEK improves by additional technical and organizational measures at a regional scale the adequate use of the existing transmission infrastructureThe TSOs shall endeavour to meet the technical and commercial rules, when improved, in order not to let distortions to turn out at the emerging European liberalized power marketFor lack of established favourable preconditions, the advantages of such a market may turn in disadvantages and may impeach the reliable electricity supply THE BULGARIAN TRANSMISSION SYSTEM OPERATOR – CONGESTIONS AND CHALLENGES Bucharest, April 3-5, 2006

  11. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD Examples of existing challenges at the Pan-European scale: - Prices of electricity for end consumers go up, instead of going down - The electrical power mega-utilities in Europe extend their activities and their monopolistic participation and influence on the electricity trade - The non-solved in an accurate and fair way relations between the power trading and the transmission infrastructure safety lead usually to transgression of the safety criteria and result in black-outs of entire power systems (Italy) or of parts of them (Greece, Germany) - At the Balkan region and all round Europe a tangible lack of generating capacities is present THE BULGARIAN TRANSMISSION SYSTEM OPERATOR – CONGESTIONS AND CHALLENGES Bucharest, April 3-5, 2006

  12. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEK investment priorities:- Modernizationof the existing power transmission network, including rehabilitation, refurbishment and erection of substations &overhead power lines and construction of new interconnection lines - Development of the power generating capacities including rehabilitation and refurbishment of the existing HPPs and building of new HPPs Project Energy 2 - Rehabilitation and modernization of the power transmission networkProject 400 кV interconnection overhead line between the Stip substation(Republic of Macedonia)and the Chervena Mogila substation (Republic of Bulgaria)Feasibility studies for the construction of a new interconnection line between Bulgaria and Greece UP-GRADING OF THE ELECTRICAL POWER SYSTEM, EXTENTION OF THE INTERCONNECTIONS AND CONSTRUCTION OF NEW CAPACITIES Bucharest, April 3-5, 2006

  13. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD Project for designing, construction and commissioning of the Belene NPP units 1 and 2 /1000 MW each/Maritsa East 1 TPP – new /2 units of 330 MW each, on lignite/ Tsankov Kamak Hydro Power Project - 80 MW installed capacityHPPs and wind mills at a total capacity of 500 MW are now designed and prepared for construction UP-GRADING OF THE ELECTRICAL POWER SYSTEM, EXTENTION OF THE INTERCONNECTIONS AND CONSTRUCTION OF NEW CAPACITIES Bucharest, April 3-5, 2006

  14. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD NEED OF NEW CAPACITIES IN THE REPUBLIC OF BULGARIA, MW The need of generation capacities in the system is defined by the maximum load development in the country and the required reserve capacity. The blue line of the available capacities in the existing power plants gradually decreases due to the decommissioning of capacities. The blue zone with two-side hatching corresponds to the need of new capacities. Bucharest, April 3-5, 2006

  15. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD FORECAST OF GROSS ELECTRICITY DEMAND IN THE REPUBLIC OF BULGARIA Bucharest, April 3-5, 2006

  16. NATSIONALNA ELEKTRICHESKA KOMPANIA EAD Thank you for your attention. Bucharest, April 3-5, 2006

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