The European Network of Transmission System Operators

1. The European Network of Transmission System Operators Stockholm 14th of September 2009 Teun van Biert - Convener of the North Sea Regional Group

2. ENTSO-E activities related to off-shore wind energy development Introduction of ENTSO-E `Third Energy package Offshore grids in the North Sea European Network of Transmission System Operators for Electricity – ENTSO-E

4. Assembly Board Secretariat Legal & Regulatory Group Expert Groups Working Groups Regional Groups System Development Committee • European Planning Standards • Network Modeling and Data • 10 Year Network Develop. Plan • Research and Development • S. Adequacy & Market Develop. • Asset Implem. & Management • EWIS Project • North Sea • Baltic Sea • Continental CE • Continental CS • Continental SE • Continental SW Voluntary Regional Groups System Operations Committee • European Operational Standards • Critical Systems Protection • Northern Europe • Isolated Systems • Continental Europe • Nordic • Baltic • Great Britain • Ireland - N. Ireland Market Committee • Market Integration • Ancillary Services • Market Information ( incl. SG EDI) • Economic Framework • RES

5. ENTSO-E & the 3rd Energy Package: keeping pace and anticipating European TSOs welcome the 25th June adoption of the 3rd Energy Packageby the Council of the EU: The Package tasks ENTSO-E with developing network codes and network plans ENTSO-E’s pan-European 10-Year Network Development Plan needs to reflect Europe’s energy policy objectives, such as the future development of wind and other renewable energy sources Network Codes with binding rules for TSOs and grid users will be crucial for maintaining system reliability and a well functional electricity market ENTSO-E is ahead of the 3rd package’s entry into force (foreseen early 2011 with the new regulatory agency ACER becoming operational) August 28, 2014 5

6. TSO challenges in line with European 2020 targets and 3rd Energy package Maintain security of supply Generation adequacy Long-term Support the market penetration of renewable energies Support the Internal Electricity Market within Europe

7. The idea of building an offshore grid meets the fundamental ENTSO-E objectives ”reliable, sustainable, connected” Security of supply / safety of energy supply Connecting complementary power sources Market integration Integration of RES in market Strengthening European market integration CO2 reduction More flexibility Smoothing wind power variations by large scale integration

8. ENTSO-EMain Issues • System Development: • Onshore grid and offshore grid development have to be coordinated in time, design and adequacy of power and transmission needs • Overall system security has to be ensured • Clarity of siting and timing of wind power plants is an essential prerequisite • Market: • Clear agreements on trading and balancing facilities are necessary • national targets/ european trade • Regulatory compatibility/clarity needed concerning: • RE subsidies allowing efficient use of capacity • Concept of prioritised grid access for sustainable generation

9. Other Issues • Technology: • Technical feasibility of multiterminal HVDC technology and capacity is not proven today • Power control & protection schemes, DC breakers have to be developed • No efficient grid without standardisation • Regulation: • Interconnectors‘ national regulatory framework are not compatible • responsibilities to build, own, operate, maintain offshore grid differ • Allocation of costs varies under current national regulatory frameworks • Proactive development on an uncertain future => risks of stranded costs ? • Finance • Incentive mechanisms for TSO to build the offshore grid ? • What is the business case? • Supply Chain • Manufacturers need plans (TYNDP) to invest in manufacturing facilities

10. ENTSO-E contributions ENTSO-E organisation allows to contribute to above issues ENTSO-E internally coordinates TSO activities to Develop regional and pan-european vision of grid development Analyse adjustments of current market rules and regulation to apply to offshore Contribute to technical and market investigations through R&D projects Contribute to standardisation (through network codes and plans delivery) => ENTSO-E will investigate the benefits and risks related to offshore grids

11. ENTSO-E first inputs TYNDP / System Adequacy plans Develop a 20/20/20 scenario consistent generation (timing and siting) and exchange scenarios have to be built and agreed by stakeholders before grid planning political input needed to choose the appropriate scenario political support needed (national authorities, PLEF…) EWIS : the starting point and overall basis for further investigations of wind integration; this study should be continued/finetuned Pilot code on wind generator connection conditions Overview of policies on RES support

12. CONCLUSIONS ENTSO-E supports the idea of offshore grids System development is taking into account forecasted WPP as inputs for the TYNDP (through North Sea and Baltic Sea regional groups). But... consistent generation and exchange scenarios have to be built and agreed by stakeholders before grid planning.

13. Thank you for your attention !