1. Proposal for establishment of the Regional Electricity Coordinating Center (RECC) Initiated and supported by Electric power utilities of Serbia, Montenegro, Macedonia and Republic of Srpska Proposal for establishment of the Regional Electricity Coordinating Center (RECC) Initiated and supported by Electric power utilities of Serbia, Montenegro, Macedonia and Republic of Srpska

2. EKC – Electricity Coordinating Center EKC was founded by: EKC was founded by: EPS (Serbia, FRY) EPS (Serbia, FRY) EPCG (Montenegro, FRY) EPCG (Montenegro, FRY) ESM (FYR Macedonia) ESM (FYR Macedonia) 1997: 1997: ERS (R. of Srpska, BiH) joined EKC ERS (R. of Srpska, BiH) joined EKC October 1993: October 1993:

3. Background…Background…

4. SFRY: UCTE member since 1974. SFRY: UCTE member since 1974. Regional part of UC(P)TE map 1990:

5. Blue: UC(P)TE Sept’91-Ernestinovo (CRO) Sept’91-Ernestinovo (CRO) June ’92-Mostar (BiH) June ’92-Mostar (BiH) Sync. operation: FRY, FYROM, GR, AL Sync. operation: FRY, FYROM, GR, AL April ‘94: Romania April ‘94: Romania April ‘96: Bulgaria April ‘96: Bulgaria Present 2 nd UCTE synchronous zone Present 2 nd UCTE synchronous zone CENTREL  UCTE CENTREL  UCTE

6. UCTE 2 nd synchronous zone: Control blocks

7. Second UCTE synchronous zone during ’96 – ‘99 Gradual improvement of the individual power system performance Gradual improvement of the individual power system performance Increase of cooperation level within the zone Increase of cooperation level within the zone Establishment of the TEMPORARY “internal rules” based on UCTE documents Establishment of the TEMPORARY “internal rules” based on UCTE documents Development of the communication and data exchange procedures Development of the communication and data exchange procedures Gradual improvement of the individual power system performance Gradual improvement of the individual power system performance Increase of cooperation level within the zone Increase of cooperation level within the zone Establishment of the TEMPORARY “internal rules” based on UCTE documents Establishment of the TEMPORARY “internal rules” based on UCTE documents Development of the communication and data exchange procedures Development of the communication and data exchange procedures

8. Second UCTE synchronous zone during ’99 – ’00 (1) Serious disturbance of the operational conditions due to the war activities in FRY:  Network capacity reduction due to the damages on the transmission facilities in Serbia  Control facility reduced  Serious load-generation unbalance  Communications facilities reliability at very low level Serious disturbance of the operational conditions due to the war activities in FRY:  Network capacity reduction due to the damages on the transmission facilities in Serbia  Control facility reduced  Serious load-generation unbalance  Communications facilities reliability at very low level

9. Second UCTE synchronous zone during ’99 – ’00 (2) Extensive coordination prevented serious disturbances and damages:  Importance of real-time monitoring of the Interconnection  Established procedures for “switching” coordination  Improved data exchange in case of disturbance  Development of the procedures for power system restoration Extensive coordination prevented serious disturbances and damages:  Importance of real-time monitoring of the Interconnection  Established procedures for “switching” coordination  Improved data exchange in case of disturbance  Development of the procedures for power system restoration

10. Second UCTE synchronous zone during ’00 – ’02 (1) Bu-Ro final test and EKC role in it: Monitoring Monitoring Data collection, calculation and reporting Data collection, calculation and reporting Assistance via improved overall Interconnection performance Assistance via improved overall Interconnection performance Significant investments in monitoring facilities Significant investments in monitoring facilities Bu-Ro final test and EKC role in it: Monitoring Monitoring Data collection, calculation and reporting Data collection, calculation and reporting Assistance via improved overall Interconnection performance Assistance via improved overall Interconnection performance Significant investments in monitoring facilities Significant investments in monitoring facilities

11. Second UCTE synchronous zone during ’00 – ’02 (2) Major improvements in data collection, analysis and reporting: Daily detailed operational reports Daily detailed operational reports Periodical control block and regional reports Periodical control block and regional reports UCTE reports UCTE reports Web-site and publications Web-site and publications Major improvements in data collection, analysis and reporting: Daily detailed operational reports Daily detailed operational reports Periodical control block and regional reports Periodical control block and regional reports UCTE reports UCTE reports Web-site and publications Web-site and publications

12. Regional activities currently performed by EKC : - Real-time monitoring and global security check - Real-time monitoring and global security check -Data collection, analysis and reporting on primary and secondary control quality -Data collection, analysis and reporting on primary and secondary control quality -Data collection and harmonization of the exchange programs -Data collection and harmonization of the exchange programs Accounting of the inadvertent deviations and compensation programs Accounting of the inadvertent deviations and compensation programs Synchronous time correction scheme Synchronous time correction scheme Harmonization and coordination of the maintenance programs Harmonization and coordination of the maintenance programs Data collection and reporting on disturbances Data collection and reporting on disturbances System restoration coordination System restoration coordination Analysis, studies and projects for the regional power sector Analysis, studies and projects for the regional power sector Preparation and publishing of the periodical reports Preparation and publishing of the periodical reports Regional activities currently performed by EKC : - Real-time monitoring and global security check - Real-time monitoring and global security check -Data collection, analysis and reporting on primary and secondary control quality -Data collection, analysis and reporting on primary and secondary control quality -Data collection and harmonization of the exchange programs -Data collection and harmonization of the exchange programs Accounting of the inadvertent deviations and compensation programs Accounting of the inadvertent deviations and compensation programs Synchronous time correction scheme Synchronous time correction scheme Harmonization and coordination of the maintenance programs Harmonization and coordination of the maintenance programs Data collection and reporting on disturbances Data collection and reporting on disturbances System restoration coordination System restoration coordination Analysis, studies and projects for the regional power sector Analysis, studies and projects for the regional power sector Preparation and publishing of the periodical reports Preparation and publishing of the periodical reports

13. Studies of regional importance performed by EKC (1):  Reconnection of the UCPTE Network and Parallel operation of the Bulgarian and Romanian networks with UCPTE (with PPC, ENEL), 1996  Upgrading at 400 kV of the existing 150 kV electricity interconnection Greece - ex Yugoslavia, (interconnection line Amynteo-Bitola)(with PPC, NEK, ESM), 1998  New interconnection Greece - Bulgaria, (interconnection line Filippi - Plovdiv or Filippi - Maritsa East 3) (with PPC, NEK, ESM), 1998  Effects of connecting power systems of Republika Srpska and Serbia with new 400kV power line Ugljevik - S. Mitrovica, 1998

14. Studies of regional importance performed by EKC (2):  Feasibility and Evaluation Study of Electricity Interconnection of Turkey with Balkan Pool and UCTE (with PPC, NEK, TEAS), 2001  Report of Ad hoc working group "Interface Supervision": Load-flow calculation for Reconnection of 1 st and 2 nd UCTE zones, 2001  Project SECI - Regional Transmission Planning Project (with EIHP, NEK, EPBiH), 2002  Report of UCTE Executive Team "North-South Re- Synchronization” (with MVM), 2003 (in progress) … AND MANY OTHERS

15. Present…Present…

16. Southeast Europe is currently under the processes of:  Power sector restructuring  Existing power sector infrastructure reconstruction and upgrading upgrading  Activities towards electricity market liberalization  Preparation for the reconnection to the UCTE main grid Southeast Europe is currently under the processes of:  Power sector restructuring  Existing power sector infrastructure reconstruction and upgrading upgrading  Activities towards electricity market liberalization  Preparation for the reconnection to the UCTE main grid

17.  Different level of achievements  Different models applied  Lack of cooperation and exchange of experiences  Absence of common regional strategy: (regional optimum ≠ ∑ individual optimums) (regional optimum ≠ ∑ individual optimums)  Negligence towards security issues  Different level of achievements  Different models applied  Lack of cooperation and exchange of experiences  Absence of common regional strategy: (regional optimum ≠ ∑ individual optimums) (regional optimum ≠ ∑ individual optimums)  Negligence towards security issues Power sector restructuring - OBSTACLES:

18.  Lack of the “free market” psychology  Single interest vs. global benefits  Important role of SETSO, CEER, UCTE  EC leading role as the only way towards final goal  Harmonization and close cooperation essential  Lack of the “free market” psychology  Single interest vs. global benefits  Important role of SETSO, CEER, UCTE  EC leading role as the only way towards final goal  Harmonization and close cooperation essential Activities towards electricity market liberalization:

19.  Transmission facilities rehabilitation and strengthening  E.T. – DVG study update  E.T. – Main Coordinator nomination  EKC – Regional coordination initiative  Transmission facilities rehabilitation and strengthening  E.T. – DVG study update  E.T. – Main Coordinator nomination  EKC – Regional coordination initiative Preparation for the reconnection to the UCTE main grid:

20. Based on our experience in performing regional coordination, EKC position is:  UCTE Second synchronous zone REQUIRES certain level of coordination after the reconnection, too  Strategy for the regional coordination must be developed NOW, because power system operation is REAL-TIME process.  Each recognized activity should be performed by most experienced, efficient, cost effective and reliable party for each separate activity.  SERVICE PROVIDING relationship should be the basis Based on our experience in performing regional coordination, EKC position is:  UCTE Second synchronous zone REQUIRES certain level of coordination after the reconnection, too  Strategy for the regional coordination must be developed NOW, because power system operation is REAL-TIME process.  Each recognized activity should be performed by most experienced, efficient, cost effective and reliable party for each separate activity.  SERVICE PROVIDING relationship should be the basis

21. Future…Future…

22. UCTE coordination structure after the reconnection UCTE “South” UCTE “North”

23. Coordination is required as a minimum in the following areas: -Common operational database administration -Common operational database administration Power system real-time monitoring Power system real-time monitoring Switching coordination and maintenance harmonization Switching coordination and maintenance harmonization Power system security assessment Power system security assessment Congestion Forecast and Congestion Management Congestion Forecast and Congestion Management Market related issues Market related issues Telecommunication infrastructure supervision Telecommunication infrastructure supervision Reports and publications Reports and publications Coordination is required as a minimum in the following areas: -Common operational database administration -Common operational database administration Power system real-time monitoring Power system real-time monitoring Switching coordination and maintenance harmonization Switching coordination and maintenance harmonization Power system security assessment Power system security assessment Congestion Forecast and Congestion Management Congestion Forecast and Congestion Management Market related issues Market related issues Telecommunication infrastructure supervision Telecommunication infrastructure supervision Reports and publications Reports and publications

24. The most critical REAL-TIME activities: Power system real-time monitoring Power system real-time monitoring Switching coordination Switching coordination Power system security assessment Power system security assessment Congestion Forecast and Congestion Management Congestion Forecast and Congestion Management AREA DEVELOPMENT, LEVEL OF RESTRUCTURING, NETWORK TOPOLOGY AND CONTROL FACILITIES ARE NOT AT THE REQUIRED LEVEL TO MAINTAIN PERMANENT STABILITY AND SECURITY OF THE INTERCONNECTED POWER SYSTEMS OPERATION The most critical REAL-TIME activities: Power system real-time monitoring Power system real-time monitoring Switching coordination Switching coordination Power system security assessment Power system security assessment Congestion Forecast and Congestion Management Congestion Forecast and Congestion Management AREA DEVELOPMENT, LEVEL OF RESTRUCTURING, NETWORK TOPOLOGY AND CONTROL FACILITIES ARE NOT AT THE REQUIRED LEVEL TO MAINTAIN PERMANENT STABILITY AND SECURITY OF THE INTERCONNECTED POWER SYSTEMS OPERATION

25. EKC founders regional coordination initiative – creation of the Regional Electricity Coordination Center  No additional investments  Maximal efficiency  Existing logistic infrastructure  Experienced and highly professional staff  References from the previous period EKC founders regional coordination initiative – creation of the Regional Electricity Coordination Center  No additional investments  Maximal efficiency  Existing logistic infrastructure  Experienced and highly professional staff  References from the previous period

26. PROPOSED TECHNICAL/OPERATIONAL REGIONAL COORDINATION CENTER IS:  not entity above TSO’s, but pure service provider  open access structure for membership  compatible with other “regional” coordination entities in other fields of interest  reliable, flexible and transparent  cost efficient PROPOSED TECHNICAL/OPERATIONAL REGIONAL COORDINATION CENTER IS:  not entity above TSO’s, but pure service provider  open access structure for membership  compatible with other “regional” coordination entities in other fields of interest  reliable, flexible and transparent  cost efficient