- K O S O V A N T R A N S M I S S I O N S Y S T E M & M A R K E T O P E R A T O R - O P E R A T O R I I S I S T E M I T, T R A N S M I S I O N I T & T R E G U T T Ë K O S O V Ë S -
Kosovo- International investors’ conference New Kosovo Power Plant
KOSTT JSC Functioning Developments Perspective Fadil Ismajli Chief Executive Officer
Prishtina 20 January 2010
Legal & Regulatory Framework in Kosova
Primary Legislation in Energy Sector in Kosovo (June 04) - Law on Energy - Law on Electricity - Law on Energy Regulator Nomination
July 04 Establishment of Energy Regulatory Office
Dec 04 Establishment of Ministry of Energy & Mining
July 06 Establishment of ITSMO
Licensing Economic regulation of the
Designing sectors’
Operation of the electricity
energy sector
developments strategies and
system and electricity
policies
market 2
KOSTT and its functions •
KOSTT JSC is responsible for: – Bulk transmission of electricity on HV network and other ancillary services (… secondary regulation, etc.) – Maintenance & development of TS – Operation of Kosovo electricity system – Balancing (demand = supply) – Operation of electricity market – Congestion management (allocation of interconnections)
3
License obligation -development of rules, codes, etc.•
Market Rules – OP for implementation of rules
•
Grid Code & Metering Code
•
Electrical Standards Code & Technical Equipment Code
•
Distribution Code (in cooperation with DSO)
•
Technical performance indicators
•
Commercial Agreements
•
Long-term Power Balance (& PB on annual basis)
•
Business Plan of KOSTT (2007-2012)
•
Connection Charging Methodology
•
Transmission Network Development Plan
•
Other documents under preparation/under approval 4
Access to the Transmission Network •
KOSTT will offer its transmission capacities for all users EC Directive → Law on Electricity → TSO License – Cost reflective and regulated tariffs & charges • Transmission Use of System Charges (EROs Tariff Methodology) Generation component in the Tariff methodology for Transmission Use of Charge (ToUS) equal to zero (G=0) • Physical connection to the transmission network (KOSTTs Charging Methodology): Deep connection approach • Cross border related mechanisms (CB principles & rules)
– Parties’ access is granted following the fulfillment of technical & financial criteria – Transparency in Third Party Access (TPA) ensured by the Grid Code and other technical codes 5
Transmission network development •
Investment plan – approved by ERO (regulator)
•
Significant projects, which will accommodate system users’ needs
Results → Increase of transmission capacity (53%) → Improve the security of the network → Increase interconnection capacities for regional market → Enabling higher level of cross-border flows over KOSTT’s system → To meet future generation capacities and supply in Kosovo → Improve the quality of supply & system operations capabilities 6
Perspective for investments •
Well developed legal framework (all in compliance with EU legal framework)
•
Strong and autonomous agencies (Regulators, Antitrust, etc.)
•
Very well developed electricity transmission infrastructure - regulated and easy access to the network
No requirements for generation developer to invest in interconnections Establishment of the appropriate SCADA system Establishment of the tools for monitoring and settling all power transactions in the market (software platform reflecting the market) •
Well operational Transmission, System and Market obligations with motivated and skilled staff 7
Historic Electricity Consumption & Peak Load 5000 4500
GWh
4000 3500 3000
stan Co n
In d ust
t ly
ry
Ho
W
d hol e s u
ar e eas ) r c h In erage g i H av % 7 (
2500 2000 1500 1000 500
Year
0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Similar reflections on the peak load (MW)
1000 900
MW
892
800
693
700
In 10 years = double
400
537 504
621
624
603 500
604
525
970
808
755
733
780
690
600 500
692
914
653 656
617
550
300 200 100
Year
0
8
Energy sector developments •
Continuous need for power import of neighboring countries like Macedonia, Albania, Montenegro, etc.
•
Privatization of distribution and supply of electricity
•
Emerging regional market – wider market, more possibilities – Development of regional bodies for facilitation of electricity market and trades – Development of electricity trading mechanism Regional and European integration
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Kosovo- International investors’ conference Kosova e Re Power Plant 20 - 21 January 2010
Thank You
www.kostt.com KOSTT - Transmission, System and Market Operator j.s.c. Iljaz Kodra nn 10000 Prishtina, Kosova 10