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.

Strengthening innovation and implementing new technologies

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As a company of strategi significance for the economic development of Poland, PSE cares for the stability of the operational security of the power system. The development of new technologies has a significant impact on security and therefore our company carries out many actions aimed to make an optimum use of new technologies in the power sector.
The following are of great significance for the implementation of new technologies:
  • cooperation with scientific research institutes, central and local government units, foreign organisations as well as domestic and foreign energy enterprises,
  • initiating, promoting and implementing new technical and organisational solutions, testing and supporting new technologies,
  • leveraging domestic, European and international research programmes.
In accordance with the R&D Plan, PSE conducted 35 projects in 2019.

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Progress status of R&D projects in 2019

Total number of projects
Continued projects
New project, launched in 2019
Key projects in the field of innovation, research and technical development
  • Building the Fundamental Market Model (FMM) combining the FB/ATC MC and LMP market models, a network model and a remedial actions model for the European synchronous area

The objective of the FMM project is to build an electricity market model simulator covering selected European countries of our region. The fundamental model of the European power system in the nodal design (i.e. at least the 220 kV and 400 kV network for a significant part of Europe) and the generating units model is detailed insofar as necessary for the resolution of the Optimal Power Flow and Unit Commitment problems. The tool will improve the quality of the PPS operation planning and management while meeting the security criteria and minimising the costs of energy supply to consumers by implementing planning tools and operational management of the PPS based on the full network model and locational marginal pricing of electricity.
  • EU-SysFlex research project co-financed under the EU programme "Horizon 2020"

The objective of the project is to develop a catalogue of ancillary services which will allow for secure management of the power system operation with a high share of RES and a high proportion of distribute generation as well as simulation of system operation in the above-mentioned states with the use of the PPS Simulator.

Under the project, in 2019:
  • a catalogue of flexibility-related market products was prepared,
  • formal requirements were analysed with regard to information exchange in the power sector,
  • a data exchange IT platform was developed for flexibility services management,
  • work was continued on the development of the P Simulator.

The project is co-financed by the European Union under the Horizon 2020 programme. In 2019, PSE received the second tranche of funding in the amount of EUR 132,750.
  • OneNet research project co-financed under the EU programme "Horizon 2020"

In the latter part of 2019, PSE S.A. joined a group of European companies aiming to set up a consortium for the implementation a Horizon 2020 research project titled “TSO – DSO – consumer: large-scale demonstrations of innovative grid services through demand response, storage-scale (RES) generation”.

The objective of the project is to define, test and demonstrate in the power system environment the functioning of integrated, IT system-based markets and platforms which the TSO and DSOs form together for a defined set of ancillary services, where ancillary services can be purchased from system providers, aggregators and end users. An assessment of benefits for customers, including consumers participating in flexibility markets, will also be carried out under the project.
  • Demonstration project for the implementation of the PPS operation security support system based on the Special Protection Scheme (SPS) and battery electricity storage

The objective of the project is to ensure the optimum curtailment of wind farm generation by the TSO in the event of failure of coordinated critical network elements of a coordinated network (with the use of energy storage facilities) when high wind generation occurs. The monitoring of the SPS operation started on 1 October 2019 in order to draw experience from its operation.

The objectives of the project included confirmation of the feasibility of using hybrid battery energy storage to provide ancillary services, eliminate short-term generation fluctuations of wind farms, as well as price arbitrage.

The project is implemented in cooperation with the Japanese government agency New Energy and Industrial Technology Development Organization (NEDO).
  • Substantive support to analyses of European electricity market integration processes

The objective of the project is to provide substantive support to PSE in developing regional methodologies required by network codes, related to the European electricity market integration process.

Analytical and visualisation tools are prepared under this project, including:
  • database and IT tools for the aggregation and visualisation of data from the Flow-Based Core testing process,
  • modules the analysis and aggregation of data on commercial flows, decomposition, cost sharing and mapping, and input files for the Wizualizator tool prepared on their basis,
  • a prototype tool for the coordination of phase shifter settings OpTap 2.0 together with the user and administrator manuals and the Wizualizator tool complete with documentation.
  • Support for the ENTSO-E Market Design 2030 project

The purpose of the work was to simulate and compare the functioning of the nodal and zonal market designs in Europe. Work under the project focused on quantitative analyses, calculations and acquisition of results which can be used for the description and illustration of different electricity market organisation arrangements in Europe.

Under the project, verification of the quality of simulation input data was first performed (data made available by ENTSO-E), and then calculations were made with the use of the PLEXOS program, based on internal data, models and resources available within ENTSO-E.

Two options of electricity market design were compares, i.e. the nodal market and the zonal market.

The measures taken allowed solutions and modifications to be applied as proposed by ENTSO-E. As a result of the work and calculations performed, the suitability of the nodal model was confirmed for the presentation of physical features of network flows and constraints in power systems. Proposals for new solutions are a step towards improvement of the existing zonal model.
  • Development of a model for new data acquisition from generating units for the purposes of modelling with the use of simulation tools.

The work was aimed at the development of a new system for the collection of the parameters of generating units necessary to perform power system operational security analysis, including functions verifying their correctness on the basis of IEC/IEEE standards.

In the course of the work, new forms were developed for the acquisition of generating units’ data concerning, e.g. the parameters of generators, unit transformers, voltage controllers, stabilisers, turbines and limiters. The competed work makes it possible to acquire information of appropriate quality and ensures the verification and correctness of information entered by default statement of admissible ranges for particular model parameters or relationships with other parameters./div>
  • Development of a standard range of voltage control tests and stabilisers of system generating units

The work was aimed at developing a standardised method and scope of verification of generating unit parameters by means of on-site tests. Tests developed by the Institute of Power Engineering make it possible to identify parameters and structures of voltage control systems and stabilisers of generating unit systems, and enable the correctness of settings to be assessed. Parameters acquired this way and verified by tests are a basis to update the dynamic model of the PPS. The completed work makes it possible to verify parameters and structures of voltage control systems and stabilisers of generating unit systems in terms of optimisation of the control functions performed and ensuring the suppression of inter-generator and inter-system oscillations.
  • Selection and adaptation of sensors for the inspection of phase and earth conductors to existing and new-build EHV power lines

The purpose of the work was to define a recommendation for purchased sensors for ultrasonic detection of anomalies in the internal structure of conductors and sensors for the detection of anomalies in conductor diameter, and to define recommendations for the installation of designated sensors.

The work resulted in the identification of the MRT (Magnetic Rope Testing) diagnostic method as an effective non-destructive method is adaptable and allows further research to be conducted on the steel core discontinuity in ACSR conductors.
  • Market study in the operation areas of PSE and 50Hertz Transmission in the medium and long-term horizon

The objective of the project was to present analyses for different market model scenarios reflecting long-term market trends – to 2025 and 2030 – as reference to the ENTSO-E TYNDP 2016, with a special focus on Poland and Germany (long-term horizon). In the medium term, the objective was to facilitate the coordination of operational processes of PSE and 50-Hertz. Special focus was focused on the coordination of the operation of phase shifters in the region (MIK/PL, HRA/CZ, ROE/DE, VIE/DE) including a cost sharing proposal.
  • Analysis of dynamic properties of Power Guardian/SmartValve devices and their interaction with the transmission network

Ensuring uninterrupted power supply to customers requires a reliable and secure operation of the PPS, irrespective e.g. of repair work in progress. To this end, detailed analyses of the PPS operating conditions are performed, which allows potential hazards to be detected even before such danger materialises. One of the verified aspects of the PPS operation is the identification of the risk of transmission line overload in emergency states during the repair of other, neighbouring assets. Such risk is usually mitigated mainly by the appropriate selection of the topology of the PPS assets. However, in order to increase regulatory capabilities, a decision was taken to look for non-standard technical solutions for transmission line load shedding in the PPS. Innovative devices Power Guardian and SmartValve were identified as one of potential solutions. The Power Guardian and SmartValve devices can be treated as miniature single phase shifters. The devices make it possible to regulate the level of load on network assets, including load shedding, which prevents overloads on those assets. They are a novelty globally and their potential application in the PPS will be one of the first installations on the transmission network.

As part of preparatory activities, comparative analyses were performed of the dynamic properties of the Power Guardian and SmartValve devices. This facilitated the conduct of the decision-making process, in which SmartValve was recommended for detailed simulation testing. The simulation tests performed were aimed at the identification of expected changes in the operating conditions of the transmission network after the installation of the SmartValve and focused on an analysis of dynamic states associated with normal and non-standard network operating conditions for different operating scenarios of the PPS and those devices. Multi-variant analyses made it possible to define application capabilities of SmartValve and to precisely specify the set of recommendations based on which project work can be continued, ultimately leading to the installation of the devices. Such activities are an important component of a comprehensive assessment necessary to take a business decision to use the SmartValve in the PPS.

The application of innovative SmartValve devices in the transmission network should contribute to increasing the operational security and flexibility of the PPS. The device allow, among other things, the existing capabilities to be expanded:
  • control of power flows in the PPS (by reducing or increasing the load on network assets nearby the SmartValve installation site – a feature of particular significance in the situation of the increasing share of renewable energy sources being observed in the PPS);
  • the determination of the fault current level in the network (by influencing the resultant impedance value of branches linking network nodes);
  • local emergency load shedding of overloaded network assets (by reducing the load on such assets – a feature of particular significance in fault states during network repairs);
  • network load symmetrisation (through separate control of the level of load on network assets in each phase);
  • quick reduction of power swings accompanying dynamic states under non-standard PPS operation conditions (through quick control of the asset load level, opposite to the direction of swing – a particularly important feature in the situation of forecasted decreasing share of large-scale classical generating sources in the PPS).
Capital expenditure on research and development
ZOwing to dynamic changes in the area of technology and power systems, the need to secure certainty of power supply and to ensure the appropriate quality of electricity supplied, PSE needs close and extensive R&D cooperation with scientific and academic communities.
The cooperation consists in knowledge and experience exchange, but it also the implementation of specific R&D projects related to financial expenditure. The conduct of research, in particular the implementation of new technical solutions, involves expenditure on the upgrading of transmission infrastructure and broad-based ICT infrastructure.
Each year, our company earmarks PLN 5 to 10 million for research projects with the use of the R&D budget.
Tab. Estimated value of research and development projects submitted for the R&D plan
In-house indicator
Item Budget of R&D projects Expenditure on R&D projects (in PLN '000s)
Research Development Total
1. 2017 2,390.0 3,092.6 5,482.6
2. 2018 2,565.1 6,420.0 8,985.1
3. 2019 2,279.7 8,290.2 10,569.9
  Total 7,234.8 17,802.8 25,037.6

Key figures



total cost incurred by PSE
in 2017-2019 for R&D projects



for research



for development work