View
217
Download
3
Category
Tags:
Preview:
Citation preview
Issues and Challenges of Electricity Market
Liberalisation in Hungary
Dr. Tibor DRASKOVICSChairman of the BoardMVM ZrtHungary
Contents of presentation
1. General description of Hungarian Power System – before 2006
2. Market opening
3. Changes in 2005 - Implementation - TSO Effects
PotentialsMVM Group
Structure and operational model of the Hungarian power industry 31. 12. 2005
Public ServiceWholesale
TransmissionPublic service + distribution
Public service customers
Eligible customers
Power plans+ import
Trading companies
MVMMVM
The main relations between the players
MAVIR Rt.Independent System
Operator
The privatised Hungarian Power SystemPower Generation Companies in 2005
Owner GWh/year* %
MVM 13.368 53,2
Electrabel 2.909 11,6
AES 1.664 6,6
RWE 3.807 15,1
ATEL 1.715 6,8
EDF 1.315 5,2
Croesus 215 0,9
Transelektro 0 0
E.ON 0 0
EMA Power 0 0
ÁPV Rt. 147 0,6
Total: 25.140 100,0
EDF
*Electricity sold to the public service wholesaler (MVM)
The privatised Hungarian Power System Distribution & Supply Companies in 2005
Electricity bought from the public service wholesaler (MVM) in 2005
Steps of market opening
•First step from 1 January 2003 eligible
customers with consumption of above 6.5 GWh/year
•Second stepfrom 1 July 2004 all customers
except household customers are eligible
•Next step - Directive 2003/54/ECfrom 1 July 2007 household customers also eligible - 100% of the market is open
The evolution of marketfrom 01. 01. 2003
Years Public Service Market
consumption
TWh
Competitive Market
consumption
TWh
Competitive Market
consumption / total
consumption
%
2003(1stf Jan. - 6.5 GWh/a)
29.7 3.6 11%
2004(1st May - all but households)
28.3 6.9 20%
2005 22.9 11.2 33%
Important Political Decisions in 2005
affecting the Hungarian Power System - practically with consensus of all four political parties in the parliament
1. Amendment of Privatisation Act – • no further privatisation of electricity industry • state owned Hungarian electricity industry
integrated into one hand - Holding
2. Life extension of Paks Nuclear Power Station
Implementation01.01.2006
Holding’s Medium-term Strategy approved by
Board of Directors
• TSO established • Wholesale trading activity unbundled• Paks Nuclear Power Station – ‘flagship’ of
industry
Change from ISO to TSO structureChange from ISO to TSO structure
System operation
transmission assets from MVM Zrt.
grid operation from National Power Line Co. Ltd. (OVIT Rt.)
Owner of MAVIR Zrt. - MVM Zrt. + 1 „golden share” with Ministry of Economics and Transport
Power Plants
Customers
Public Utility Wholesaler
Public Utility Supplier
Transmission network
Distribution network
System Operator
MAVIR
MVM Distr.Cos
Traders
Subject to licence
Small, <50 MW
Public Utility
Eligible
Physical path Commercial path
MAVIR
Transmission Network interconnections
Austria
Ukraine
Slovakia
Croatia
Romania
Serbia and Montenegro
Lenti
BP
Toponár120 kV
120 kV
Hévíz
Oroszlány P.P.
Győr
Siklós
Tisza II.Detk
Göd
Paks Nuclear P.P.
Kisvárda
Sajóivánka
Tiszalök
Dunaújváros
Albertirsa
Sándorfalva
Békéscsaba
Szeged
Debrecen
Szolnok
Felsőzsolca
Sajószöged
Litér
Mátra P.P.
MartonvásárDunamenti P.P.
BPZugló
Ócsa
On 220 kV
750 kV750 kV
400 kV400 kV
220 kV220 kV
planned, or planned, or under considerationunder consideration
Slovenia
Pécs
Szombathely
Levice
GabčikovoWienWien
Neusiedl
Mukachevo
Zahidno-
Ukrainska
Arad
Subotica
Donji Miholjac
Nedeljance
Zerjavinec
Cirkovce
Rimavska Sobota / Moldava
Oradea
Nadab
Arad
Ernestinovo
Südburgenland
Pod Biskupice
Albertfalva
after 2010after 2010after 2010after 2010
after 2010after 2010after 2010after 2010
2006, under 2006, under constructionconstruction2006, under 2006, under constructionconstruction
after 2010after 2010after 2010after 2010
about 2010about 2010about 2010about 2010
after 2010after 2010after 2010after 2010
2008200820082008
about 2010-2012about 2010-2012about 2010-2012about 2010-2012
until 2010,until 2010,at latestat latest
until 2010,until 2010,at latestat latest
Main Characteristics of the Hungarian Power SystemImport – Export Trade
Physical Import and Export in 2005
8806 / 0 GWh
809 / 856 GWh
4814 / 26 GWh
0 / 6689 GWh
Austria
Slovakia
Croatia
Ukraine
Serbia
Romania
16 / 1693 GWh
1190 / 146 GWh
Total Import: 15 635 GWh
Total Export: 9 410 GWh
Import Balance: 6 225 GWh
Challenges for TSO
• cross-border capacity – to participate in CEE regional co-ordination from 01.01.2007
• ITC (Inter-TSO Compensation) – to become part of the system on 01.01.2007
• regional market for ancilliary services (primary, secondary, tertiary reserves)
• inadequate information – transparency is needed
Beneficial effects of Restructuring
• new resources available• cost effectiveness• efficiency improvement
New Potentials
• better utilisation of advantageous geographical location
• closer relationship with neighbouring countries
TradingRequirements
• technical connection of grids (UCTE extension)
• harmonised electricity markets
• gradual integration of electricity markets
Relationships on mutual interest
• infrastructure – interconnections (e.g. Békéscsaba-Oradea)
• resources to satisfy competitive (single European) market needs
• developing regional markets
Regional marketRequirements
• more intensive co-operation of market-players• mutual and joint investments• strategic partnerships• etc.
MVM Group
• optimising Group structure – holding - synergy at Group level
• competitiveness in Hungary
in the region
in Europe
Structure of MVM Group
Generation
(PA Rt., Tatabánya Erőmű Kft., MIFÜ Kft., GTER Kft.)
TSO
(MAVIR ZRt., OVIT ZRt., Transmission
Network Directorate)
Engineering and technical services
(ERBE Energetika Kft., Villkesz Kft.)
Competitive market trading
MVM Partner Rt., selling directly to
consumers
Public service obligations
(wholesale)
MVM Zrt.
(Strategic holding)
Foreign portfolio elements
MVM-ADWEST GmbH.,
other foreign investments
Thank you for your attention!
Recommended