Impact on the economy and the market

PSE’s priority is to ensure the current and long-term operational security of the power system in Poland. The company’s tasks include maintenance and development of the transmission network, management of the Polish Power System, including network balancing, as well as cooperation with other TSOs.

Ensuring the operational security of the system significantly contributes to Poland’s economic growth, which is reflected in increased income and life qualify of Poles. Such impact of PSE on economic growth is possible owing to the company’s cooperation with numerous enterprises.

As a contributor of taxes and other levies, we have a positive impact on the local, regional and national budgets, enabling many significant projects to be financed.

Impact on the economy and the market

Stable operation of the Polish Power System

We are a guarantor of security and stability of the Polish Power System – today and in the future. We take care of the security of future generations.

Being aware of the condition of national infrastructure, challenges and trends that affect the development of the system, we undertake new build and upgrade projects in order to ensure its stability and security.

Our activities help to improve the operation of the PPS and to optimise energy costs incurred by consumers.

We do business locally, purchasing from local Polish suppliers, and thus have a positive influence on the development of the Polish economy.

Through the services provided, PSE supports the development of industry in Poland – creating infrastructure and providing facilities for business development.

46,799 MW
Installed capacity w the PPS in 2019
46,991 MW
Maximum capacity in the PPS in 2019.
26,504 MW
Maximum power demand in the PPS in 2019.
158,767 GWh
National gross electricity production in 2019, which represents a decrease of 3.9 percent compared with 2018.
169,391 GWh
National consumption of electricity in 2019, which represents a decrease of 0.9 percent compared with 2018.
141,297.33 GWh
Total electricity consumption by final consumers connected to the PPS.
97,228.13 GWh
Quantity of electricity supplied from the transmission network to domestic transmission service customers in 2019.
99.99 percent
Electricity supply continuity index in 2019. The level of this index confirms the certainty of power supply to all our transmission service customers.

601.26 MWh
ENS (Energy Not Supplied by the system).
111.50 minutes
AIT (Average Interruption Time in the system). Low levels of both ratios in 2019 testify to a high level of operational reliability of the transmission system and the certainty of supply to consumers connected to our network.
1.38 percent
Transmission loss rate. In 2019 it was the lowest ever.
99.77 percent
Availability index for transmission facilities (DYSU) in 2019. It reached a high value at reference value of ≥ 97.5 percent.
PLN 1,5 bln
Capital expenditure in 2019.
164
Number of network infrastructure investment implemented in 2019.
PLN 14 bn
Capital expenditure planned for 2021-2030
according to PRSP.

Management of the power system in Poland

Ensuring common access to electricity requires an efficiently operating system for its seamless generation, conversion, transmission and distribution. All equipment connected to the system, including consumers’ facilities, forms the Polish Power System.

The power system is a special type of critical infrastructure, as it determines the security of society, economy and the state. The system is centrally controlled. Operation of the Polish Power System is the responsibility of the National Power Dispatch Centre, i.e. PSE dispatching service.

How does the power system work?

GRI 103-1

The Polish Power System (PPS) consists of three subsystems responsible for specific functions.

Electricity generation ─ electric energy production by generating sources in the power system – power plants, CHP plants and distributed sources.
Electricity transmission ─ performed over the transmission network in order to deliver electric energy to distribution networks or transmission-connected consumers. Electricity transmission is performed by the transmission system operator whose functions are performed by PSE.
Electricity distribution ─ delivery of electric energy over distribution networks to institutional and individual distribution-connected consumers. Electricity distribution is performed by distribution system operators.

Cross-border interconnections

The Polish Power System operates:

synchronously with the ENTSO-E Continental Europe countries (formerly UCTE),
with dedicated generating units of the Dobrotvir power plant in the Ukrainian system,
non-synchronously with the Swedish system via the DC submarine cable,
non-synchronously with the Lithuanian system via the back-to-back DC link.

Synchronous interconnections

Western border (Poland-Germany)

Krajnik-Vierraden 400 kV double-circuit line – the line in an interim configuration (1 line circuit and 2 serially-connected phase shifters on the German side),
Mikułowa-Hagenwerder double-circuit 400 kV line with a phase shifter in Mikułowa.

Southern border (Poland-Czech Republic)

Wielopole/Dobrzeń-Nosovice/Albrechtice double-circuit 400 kV line,
Kopanina/Bujaków-Liskovec double-circuit 220 kV line.

Southern border (Poland-Slovakia)

Krosno Iskrzynia-Lemesny double-circuit 400 kV line.

Asynchronous interconnections

Northern border (Poland-Sweden)

DC Słupsk Wierzbięcino-Storno cable 450 kV line with a capacity of 600 MW.

Eastern border (Poland-Lithuania)

Double-circuit 400 kV line interconnected with the Lithuanian system via the back-to-back DC link with a capacity of 500 MW.

Other interconnections

Eastern border (Poland-Ukraine)

Zamość-Dobrotvir single-circuit 220 kV line operating in coordination with dedicated generating units on the Ukrainian side (the interconnection allows only electricity import to Poland),
Rzeszów-Chmielnicka single-circuit 750 kV line – shut down.

Sweden

Northern border (Poland-Sweden)

DC Słupsk Wierzbięcino-Storno cable 450 kV line with a capacity of 600 MW.

Germany

Western border (Poland-Germany)

Krajnik-Vierraden 400 kV double-circuit line – the line in an interim configuration (1 line circuit and 2 serially-connected phase shifters on the German side),

Mikułowa-Hagenwerder double-circuit 400 kV line with a phase shifter in Mikułowa.

Czech Republic

Southern border (Poland-Czech Republic)

Wielopole/Dobrzeń-Nosovice/Albrechtice double-circuit 400 kV line,

Kopanina/Bujaków-Liskovec double-circuit 220 kV line.

Slovakia

Southern border (Poland-Slovakia)

Krosno Iskrzynia-Lemesny double-circuit 400 kV line.

Ukraine

Eastern border (Poland-Ukraine)

Zamość-Dobrotvir single-circuit 220 kV line operating in coordination with dedicated generating units on the Ukrainian side (the interconnection allows only electricity import to Poland),

Rzeszów-Chmielnicka single-circuit 750 kV line – shut down.

Lithuania

Eastern border (Poland-Lithuania)

Double-circuit 400 kV line interconnected with the Lithuanian system via the back-to-back DC link with a capacity of 500 MW.

Russia

750kV

450 kV DC

400kV

220kV

Back-to-back DC tie

Phase shifter

Line being upgraded from 220 kV to 400 kV

Cross-border interconnection being upgraded

Radial line

Fig. Cross-border interconnections

GRI 103-2

Transmission system management in the PPS

Transmission network operation management takes into account the needs of electricity consumers throughout the country.

Day-to-day power network security is ensured by hierarchically organised TSO and DSO dispatch services as well as generators' and consumers' O&M services.

The Polish Power System is organised into the following hierarchy of dispatch services:

National Power Dispatch Centre (Krajowa Dyspozycja Mocy – KDM) – manages the operation of the 750, 400, 220 kV transmission network as well as selected 110 kV lines of system-wide significance.
Area Power Dispatch Centre (Obszarowa Dyspozycja Mocy – ODM) – manages the operation of the 750, 400, 220 and 110 kV transmission network and switching operations.
Central Power Dispatch Centres, Branch Power Dispatch Centres (CDM, OCD) – manage the operation of the 110 kV distribution network and switching operations in the 110 kV and lower-voltage distribution network.

The TSO dispatch services cooperate directly with the DSO dispatch services (Central Power Dispatch Centres, Branch Power Dispatch Centres), and O&M personnel of enterprises dealing with electricity generation (Duty Power Plant Operation Engineer – Dyżurny Inżynier Ruchu Elektrowni – DIRE). The cooperation is based on the Instruction of Transmission System Operation and Maintenance (Transmission Network Code).

Fig. Organisation of dispatch services in Poland

The TSO's cooperation with transmission system operators of the neighbouring countries in network operation management is based on the rules described in the ENTSO-E/UCTE network codes and conditions laid down in bilateral agreements.

Balancing power demand in the power system

GRI 103-2

Economic development of the country is associated with an increase of electricity demand. This makes it necessary to have appropriate generating and transmission capacity to ensure the security of supply.

In order to ensure generating capacity necessary to meet demand, we perform, as transmission system operator, the coordination planning process for different time horizons. The process covers annual, monthly and daily coordination plans.

The schedule of planning activities and the scope of forecasted and published data are set forth in the Transmission Network Code.

Coordination plans are intended to ensure the maintenance of surplus capacity levels required in a given period, available in excess of forecasted demand. This can be achieved through coordination of plans of generating unit repairs and outages of meshed network elements, taking into account plant and network constraints and planned cross-border exchange constraints.

In order to ensure the continuity of electricity supply and balance the system even in unfavourable conditions, in periods of peak electricity demand we use:

available capacity of generating units which are not centrally dispatched,
additional capacity in power plants operating in overload, i.e. at a capacity higher than nominal (providing ancillary services),
intervention power supply from pumped storage plants which allow power demand to be balanced (as part of ancillary services) within a short period (2-4 hours),
dispatch electricity exchange with the neighbouring TSOs,
cold intervention reserve,
demand-side response (DRS) services.

Activities promoting reliable operation of the transmission system

GRI 103-2 GRI 103-3

In order to ensure the secure and cost-effective operation of the system, in particular to ensure the required reliability/quality parameters of power system operation, PSE purchases ancillary services.

Ancillary services:

Regulation ancillary services (RAS):
- operating capacity reserve,
- share in primary control,
- share in secondary control,
- underload or overload operation,
- participation in automatic voltage and reactive power control.
The Generating Unit activation service (hereinafter: “activation service”).
Regulation ancillary services involving the intervention reserve:
- contingency operation,
- intervention cold reserve,
- demand-side response service.

nJWCD reliability-must-run service (RMR service).
Polish Power System restoration service.

Ancillary services and the generating unit activation service

Are provided by units dispatched by the TSO. TSOs conclude RAS agreements and activation service contracts with all generators operating Centrally Dispatched Generating Units. In 2019, PSE concluded 10 agreements for the provision of RAS services including activation services.

Regulation ancillary services involving the intervention reserve

Are activated on instructions from the TSO and are used to intervene to maintain the capacity balance throughout the PPS or – having regard to the network operation conditions – in its selected areas, in order to ensure operational security of the PPS.

In 2019, PSE concluded 2 contracts for the provision of contingency operation service, 2 contracts for the provision of the intervention cold reserve service, and 48 contracts for the provision of the DSR service.

nJWCD reliability-must-run services

Are one of the tools used by the TSO to ensure the secure operation of the PPS and the active power and reactive power generation volume at individual “network nodes” (nodes or areas containing specific nodes). In 2019, PSE had reliability-must-run contracts concluded with 7 generators.

The Polish Power System restoration services

Consist in ensuring readiness to start-up a power plant without external power supply and continuous operation in islanding mode and readiness to execute the TSO’s instructions to start-up additional power plants and to expand the island. The services are purchased by the TSO in the event of a large system-wide failure resulting in a blackout throughout the PPS or in its substantial part. In 2019, PSE had PPS restoration service contracts concluded with 4 generators.

Key system operation reliability indicators

GRI 103-3

System reliability indicators

Indicators that characterise the continuity of supply and duration of outages ( ENS and AIT ) have been calculated for a group of points of supply comprising final consumers and distribution system operators who have one transmission network supply point. Outage of a point of supply of those customers results in interruption of electricity supply from the transmission network.

To determine the reliability of network operation in accordance with the applicable laws and regulations, the ENS and AIT indicators are calculated for emergency outages.

In-house indicator ENS In-house indicator AIT

ENS, AIT indicators for emergency outages*

Unit

ENS

MWh

AIT

minutes

439.34

0.00

125.22

0.00

81.47

0.00

20.72

0.00

*The values of the ENS and AIT indicators presented in the table have been calculated for unscheduled (emergency) outages and do not include scheduled outages.

In 2019, one emergency outage resulting a lack of power supply to a customer. The outage lasted approx. 36 hours and it was due to tripping of the 110 kV line from which the customer receiving power from the transmission network was supplied. The direct cause of the outage was an earth fault due to contact with a tree in the line right of way.

In 2018, no incidents were reported, leading to interruptions of power supply to consumers at transmission network supply points, referred to above.

In 2017, one emergency outage occurred, which resulted in a 3-hour interruption of power supply to one of consumers fed from the transmission network. The outage was caused by an emergency manual disconnection of feeder lines. The reason for the power cut was an unauthorised person having climbed a 220 kV power line tower. The shutting down of other equipment, lines and transformers connected with the incident site was dictated by safety concerns.

Low levels of the ENS and AIT indicators testify to a high level of operational reliability of the transmission network managed by PSE and the certainty of supply to consumers connected to the network.

In-house indicator ENS In-house indicator AIT

ENS and AIT indicators for all outages (planned and emergency)*

Unit

ENS

MWh

AIT

minutes

601.26

264.24

671.64

425.10

111.50

45.77

111.15

84.44

*The ENS and AIT values have been calculated for emergency and scheduled outages resulting from necessary scheduled repair and maintenance work on transmission network elements supplying power to consumers.

The ENS and AIT values remaining at a steady low level has a positive effect on the confidence of consumers connected to the transmission network. The reduction of the number and duration of planned interruptions in electricity supply to consumers is attributable, among other things, to the implementation of a system optimising the schedule of repair and maintenance work on transmission network elements supplying power to consumers. Scheduled outages are performed by PSE at times agreed with consumers, usually in periods of no power consumption declared by consumers. Thanks to this, during outage periods, consumers adjust their demand or use other methods of electricity supply (e.g. from the DSO’s network).

In-house indicator

Electricity supply continuity index (WCD)

In order to determine the continuity of electricity supply, the WCD index is calculated.

Maintaining the supply continuity indexes at a high level results from the transmission assets maintenance and repair policy adopted by the TSO.

The quantity of electrical energy not supplied to transmission service customers in a year has been calculated taking into account both scheduled and unscheduled cuts in electricity supply to consumers. The indicator of total quantity of electrical energy supplied from the transmission network during a year used in the calculation represents the volume of electricity taken from the transmission network at all supply sites by final consumers and distribution system operators connected to the transmission network.

The values of the WCD index in 2016-2019 are shown in the table below.

Electricity supply continuity index (WCD)*

2019

2018

2017

2016

Electricity supply
continuity index (in %)

99.9994

99.9997

99.9993

99.9995

*The supply continuity index represents the certainty of power supply to all consumers connected to the transmission network.

Maintaining the supply continuity indexes at a high level results from the transmission assets maintenance and repair policy adopted by the TSO.

GRI 103-2 GRI 103-3

Measures taken by PSE in order to maintain continuity of electricity supply to consumers:

Development of long- and short-term network operation coordination plans. Time schedules of both maintenance work and repair work on network elements and generating units in a manner that ensures the maintenance of surplus power levels required in a given period, available in excess of forecasted demand, as well as compliance with the required secure network operation criteria, including the reliability criterion (n-1).
Development and implementation of a single maintenance model that allows the state of repair of equipment and its operational environment to be evaluated in a cyclic, standardised and measurable manner. Owing to those activities, the most depreciated and oldest grid assets – the potential source of emergency and fault conditions – are preventively replaced.
Implementation of the maintenance personnel development programme. It supports the continuous competence improvement of the company's own maintenance personnel, including field personnel.
Undertaking investment activities. Optimises the loading of transmission lines and eliminates overloads of transmission system elements.
Systematic standardisation of network equipment and creation of storage facilities. Supports quick and cost-effective necessary replacements.
Close cooperation and making arrangements with transmission service customers at each stage, i.e. from planning to execution.

Electrical energy losses in the transmission process

GRI EU12

Electric energy losses in the transmission process, showing loss causes

2019

2018

2017

2016

Technical losses (in MWh)

1,476,221

1,611,270

1,669,042

1,684,995

Non-technical losses in MWh
(e.g. illegal consumption of electricity)

0

Transmission losses as percentage of total energy fed into the system (G.10.7 official data)*

1.38

1.48

1.60

1.62

*The value does not include energy consumed by substation auxiliaries.

In September 2019, the decision was taken to implement a new model of electricity purchase to offset losses in the transmission network. The existing form, including the acquisition of electricity through an annual auction, was replaced by cyclic purchase of electricity in the energy exchange market.

The main objectives of the change implemented were to:

obtain an average exchange price (treated as a competitive market average) of electricity purchase to cover transmission losses,
eliminate the risk of electricity purchase related to the purchase of a large volume of electricity in one or several moments in a year, e.g. through tendering procedures,
rationalise the form of electricity purchase to cover transmission losses by switching from a one-off decision within an annual auction to:
- multiple purchase spread over time,
- the purchase of small volumes of electricity on the exchange market, according to strictly defined rules,
improve the accuracy of the electivity volume planned to be purchased:
- performing long, medium and short-term forecasts,
- updating the electricity volumes planned to be purchased on the short-term market (e.g. a day ahead of real-time operation),
- reducing the volume of deviations in the Balancing Market,
practically eliminate the possibility of the purchase electricity to cover transmission losses influencing the market price of electricity by purchasing very small one-off volumes of electricity while meeting very strict requirements in terms of pricing and liquidity of the exchange market.

The purchase of electricity on the exchange to cover electricity losses in the transmission network has been performed since 13 November 2019 through the Brokerage House of Bank Ochrony Środowiska S.A.