Development of the transmission system

Structural changes in the environment pose further challenges which could be taken into account in future plans for the development of transmission infrastructure. They are related, among other things, to:

• the growing decentralisation of the generation sector,
• an increase in the number of renewable sources and continuous development technologies in this area,
• offshore wind power plans,
• the Nuclear Power Programme,
• the gradual decommissioning of a part of conventional generation assets,
• an increase in the use of electricity in the transport and heat sectors,
• the progressing digitalisation.

What is also an important issue is an increased significance of cross-border interconnections and intra-country connections which allow electricity to be transmitted between potential new generation centres and consumption or storage locations. The inclusion of those elements requires a further development of the backbone transmission network based on 400 kV, supported by a 220 kV network.

After the drafting and approval of PRSP 2018-2027, new legislation entered into force and draft new legislation was presented at both the EU and national level, which have a significant impact on the entire energy sector, i.e.:

• Regulations and Directives (EU) of the European Parliament and of the Council under the Clean Energy Package for All Europeans, which entered into force as of 4 July 2019 and, in principle, have applied since 1 January 2020.
• Key national sectoral documents setting the directions of changes in the Polish Power System:
  • Draft Energy Policy of Poland until 2040 of 8 November 2019.
  • Draft National Energy and Climate Plan for 2021-2030 of 4 January 2019.

PRSP 2021-2030 takes into account the development directions of the energy sector in Poland looking to 2040, set by the Draft Energy Policy of Poland until 2040, one of nine strategies arising from the national development management system, and the Draft National Energy and Climate Plan (NECP) prepared pursuant to Regulation (EU) 2018/1999 of the European Parliament and of the Council.

The Transmission Network Development Plan (PRSP) sets forth the transmission network development projects which, when completed, are expected to meet long-term national capacity and energy demand. The main factors affecting the direction of transmission network development include growth of electricity demand, development of generating sources and the need to expand cross-border interconnections.

Compared to the previous edition of PRSP, the analytical process for the identification of required infrastructural needs has also changed significantly. An improved methodology for the representation of the power system and its processes was developed and implemented. It took into account, among other things, market analyses with the use of the European market model, which resulted in a forecast of cross-border exchange between Poland and the neighbouring countries. In the tools and methods used, time granularity was increased significantly, the stochastic nature of processes in the PPS was taken into account, as well as the impact of weather conditions on the operation of the power system. Particular emphasis was placed on the integrity and cohesion of the values, databases and assumptions used.

The domestic generating sector is undergoing transformation and a future energy mix for Poland has not been defined by the time this document is prepared. The experience so far shows that under the existing legal and regulatory framework generating undertakings find it difficult to find an economic justification for the construction of new generating capacities. For this reason, in December 2017, the capacity market mechanism was introduced in Poland, which will enable investors to take decisions on the construction of new generating capacities in the country. It must be emphasised, however, that in 2017-2019 a new coal-fired unit was commissioned at the Kozienice Power Plant as well as a new combined cycle gas turbine (CCGT) unit in Płock and two coal-fired units at the Opole Power Plant, which has improved the resources of the Polish generating sector by approx. 3,240 MW.

In preparing PRSP 2021-2030, the legal requirements were taken into consideration arising from:

• the National Spatial Development Concept,
• Voivodeship Spatial Development Plans,
• Poland’s Energy Policy,
• ENTSO-E Ten Year Network Development Plan (TYNDP) 2018,
• implementation of connection agreements and defined conditions for connection to the transmission network,
• fulfilment of other commitments, including arrangements with DSOs,
• EU regulations.

The National Spatial Development Concept (NSDC) in force was adopted by Resolution of the Council of Ministers of 13 December 2011 and by the Sejm of the Republic of Poland at a session held on 15 June 2012. The NSDC is the foremost national strategic document on spatial development of the country. It provides a framework for other strategic documents and plays a coordinating role with regard to proposed national and regional strategies, plans and programmes for social and economic development.

In practice, this means that the NSDC is binding upon public administration bodies and imposes the obligation to:

• take into account in the land use studies for communes the principles laid down in the NSDC,
• take the NSDC provisions into account in the Voivodeship Spatial Development Plans (VSDPs).

With regard to power infrastructure, the role of the NSDC is to provide conditions to ensure energy security by enabling the diversification of sources, indicating directions and corridors in which transmission and distribution networks will be developed, as well as the potential locations of new generating capacity. The NSDC identifies the space necessary for the development of transmission networks and the rules for the delimitation of space necessary for the utilisation of the potential of regional and local renewables, including the diversification of energy sources. The guaranteed capability of future exploitation of strategic deposits was also taken into account. The directions of investment measures were indicated in the NSDC without directly prejudging any locations, expenditure structure or financial inputs.

The NSDC currently in force signals the need to develop the national and cross-border power transmission network. Investments included in the NSDC require confirmation in development analyses performed at PSE S.A. based on the most up-to-date assumptions concerning proposed changes in the PPS.

However, it should be borne in mind that currently the document defining the basic considerations as well as current development objectives and directions for the country, including the spatial dimension, is the Strategy for Responsible Development to 2020 (with prospects to 2030) adopted by the Council of Ministers in 2017.

From the point of view of the national transmission network expansion process, the voivodeship spatial development plans (VSDPs) are the basic planning documents prepared by regional (voivodeship) governments. The plans define, in particular, the infrastructural links, including the directions of cross-border links and the geographical distribution of public utility projects of supra-local significance.

PSE’s cooperation with regional governments with regard to development plan consistency with the planning documents prepared by the governments, arises directly from the provisions of the Energy Law. Under the Law, our company consults the development plan with the interested parties, posting the draft plan on its website page and setting a deadline for the submission of comments. Regional government bodies participate in the consultations.

PSE also keeps correspondence with regional government bodies, participating this way in the Voivodeship Spatial Development Plan preparation procedure.

Along with the possible adoption of PEP2040, “Energy Policy for Poland until 2030” issued in 2009 and the “Energy Security and Environment - 2020 Perspective” Strategy of 2014 will be repealed. The main considerations for PRSP 2021-2030 under the draft PEP2040 provide for network expansion which allows to:

• evacuate power from the existing generating sources,
• connect new capacity, including nuclear units and onshore and offshore wind farms at a level that allows the required RES share to be achieved in the energy balance of the country,
• improve the reliability of power supply to consumers,
• create secure conditions for operation of intermittent sources in coordination with other PPS elements,
• provide capacity for power exchange with adjacent systems,
• increase the energy efficiency of electricity transmission.

Every other year ENTSO-E publishes a Community-wide ten-year network development plan. The current Community-wide Network Development Plan was published in November 2018. The main objective of the investments included in TYNDP is to achieve the European climate targets by 2050 in a cost-effective manner, maintain operational security of the power system, taking into account the economic, political and social needs under conditions of uncertainty of future infrastructure development. The development needs in the European power system, identified in the course of analyses conducted in the TYNDP 2018 creation process arise, among other things, from a dynamic development of renewable energy sources (mainly wind), energy storage technologies, electromobility, heat pumps, and the need to reduce CO₂ emissions.

TYNDP 2018 provides for six clusters of projects concerning the development of the national transmission network and cross-border interconnections.

As at 2 December 2019, PSE had connection agreements signed for new generating units with a total capacity of 14,774.975 MW, including 10,785 MW for conventional generating units and the remaining capacity for RES (4,717.975 MW). PSE also has concluded connection agreements for distribution systems with a total capacity of 149.5 MW and power plant auxiliary transformers with a total capacity of 331.7 MW.

Our company has issued connection conditions for:

• RES with a total capacity of 5,163 MW,
• conventional energy sources with a total capacity of 2,754 MW,
• a distribution system with a capacity of 30 MW,
• power plant auxiliary transformers with a total capacity of 95 MW,
• energy storage facilities with a total capacity of 312 MW.

The 400 and 220 kV national transmission network together with a large part of the 110 kV distribution network operates in the multiple-feed meshed network configuration. One of the key aspects in planning the development of transmission infrastructure is to ensure the cohesive and coordinated development of the entire meshed network both at the EHV network level and the 110 kV network level . This approach makes it possible to ensure long-term operational security of the PPS and optimal, in technical and economic terms, dimensioning of needs for network expansion in different areas. This issue is provided for in the applicable laws and regulations, including the Energy Law (Article 9c(2)(5)) and the Transmission Network Code (Conditions for the network use, operation, maintenance and development planning - Section 3).

As a result of integrated planning of the development of the EHV and 110 kV closed network, in order to improve the reliability of power supply to different DSO areas, the TSO and DSOs have agreed and concluded or are in the course of concluding respective agreements addressing the need to strengthen the existing and construction of new connections of the 400 and 220 kV transmission network connections with the 110 kV network.

Integrated planning requires multi-variant analyses of an iterative nature for the entire meshed network, taking into account changing system conditions. In the run-up to the drafting of PRSP 2021-2030, analyses were completed concerning the EHV and 110 kV meshed network operation concept in the operating areas of TAURON Dystrybucja S.A., PGE Dystrybucja S.A. and ENERGA Operator S.A. At the same time, analyses for the areas of ENEA Operator Sp. z o.o. and Innogy Stoen Operator Sp. z o.o. were also in progress.

Article 16(8) of Regulation (EU) 2019/943 of the European Parliament and of the Council imposes the obligation on TSOs to make available to market participants, from 1 January 2020, cross-zonal capacity of not less than 70 percent of the transmission capacity for the border concerned (Coordinated Net Transmission Capacity, CNTC approach) or a critical network element (Flow-Based Allocation, FBA approach) determined respecting operational security limits. Analyses conducted by the PSE have shown that the provision of transmission capacity at the required level will require measures to eliminate related congestions. In implementing the provisions of the Action Plan (prepared by the Government pursuant to Article 15 of Regulation 943), PRSP 2021-2030 takes into account relevant network investments aimed to eliminate barriers related to cross-border exchange in the above-mentioned context.

In order to ensure more efficient implementation of projects in 2019, PSE cyclically updated the Investment Portfolio forming one of the basic tools used for investment project management. The projects included in the Investment Portfolio are grouped, categorised, prioritised and sequenced for implementation taking into account specific system conditions related to the possibility of required outages of transmission network elements.

The Portfolio is a set of network infrastructure investment projects grouped into investment programmes. In special cases, elements other than network infrastructure are allowed to participate in the programme.

All investment projects included in the Network Investment Portfolio are grouped into investment programmes depending on:

• strategic significance – strategic programmes,
• project location and interrelations – area programmes,
• the nature of work supporting the implementation of other investment projects (example: investor deliveries, legal and regulatory issues).

The Network Investment Portfolio includes six strategic programmes and three area programmes.

Programme 1.
Power evacuation from Kozienice Power Plant including the improvement of power supply conditions in north-eastern Poland 12 projects, PLN 574.6 m of total contracted budget.

Programme 2.
Power evacuation from Turów Power Plant including the improvement of power supply conditions in south-western Poland 16 projects, PLN 711.5 m of total contracted budget.

Programme 3.
Power evacuation from Dolna Odra Power Plant and RES including the improvement of power supply conditions in north-eastern Poland: 19 projects, PLN 1,110.2 m of total contracted budget.

Programme 4.
Power evacuation from RES including the improvement of power supply conditions in northern Poland: 22 projects, PLN 2 116 m of total contracted budget.

Programme 5.
Power evacuation from Bełchatów Power Plant including the improvement of power supply conditions in central Poland: 9 projects, PLN 133 m of total contracted budget.

Programme 9.
Strategic programme “Construction of Submarine Interconnectors and Energy Storage Facilities”: 2 projects, no investment contracted.

Programme 6.
Area Programme North: 26 projects, PLN 1,283.5 m of total contracted budget.

Programme 7.
Regional Programme South: 32 projects, PLN 1,021.9 m of total contracted budget.

Programme 8.
Program Obszarowy – Zakończenie formalne realizacji inwestycji: 12 projektów, 2 419,3 mln zł łącznego zakontraktowanego budżetu.

Programme 10.
Regional Programme South: 32 projects, PLN 1,021.9 m of total contracted budget.

In 2019, the company continued the implementation of projects based on a new investment implementation model which ensures transparency, flexibility, clear rules and standards, easier risk monitoring and ability to address them at an early stage, as well as more efficient supervision and cooperation with contractors.

The investment implementation model means significant benefits for PSE and its stakeholders, which include:

• For construction contractors:
  • introduction of non-price criteria in tendering procedures,
  • appropriate risk distribution (to avoid transferring all risk to contractors),
  • lending flexibility to contractual provisions and the capability to make modifications during the term of the agreement.
• For local communities and local governments:
  • transparent process of public consultations,
  • direct contact with PSE, i.e. the investor, at each project implementation stage including the easement acquisition stage.

In the course of further improvement of the project management model, network investments in progress were selected in our company at the end of 2018, representing key projects in terms of transmission system operation.

The projects require priority treatment in terms of granting outage permissions for PPS elements, allocation and priority of availability of resources, and they are subject to special monitoring, reporting and escalation of identified project risks..

We have adopted and are implementing strategic and area programmes so as to ensure the effective achievement of strategic objectives based on sustainable development of the national transmission system. In doing so, we take into account the current conditions – especially system and formal/legal conditions of project implementation.

Formalities and legal issues related to line construction projects take 80 percent of the contract time, whereas the line construction phase itself accounts for no more than 20 percent.


GRI 103-3