Bosnia and Herzegovina

1
Bosnia and Herzegovina

• And
• The Regional Electricity Market

2
Contents

• Bosnia and Herzegovina Liberalisation
• Bosnia and Herzegovina Market Design
• Southeast Europe Regional Market
• Regional Market Sarajevo
• Bosnia and Herzegovina Proposal

3
BiH LiberalisationCurrent Organizations

• Three Vertically Integrated Power Utilities
  (Production, Transmission and Distribution)
  
• ZEKC (Joint Power Coordination Centre)
• Business Association of three Power Utilities
• Role coordinate operation of the high voltage
  power network in BiH
  

4
(No Transcript)
5
BiH Liberalisation The Law

• Act on Transmission of Electric Power, Regulator
  and System Operator of Bosnia and Herzegovina
  (Adopted in April, 2002, Official Gazette No.
  7/02). Authorises establishment of
• Independent System Operator (ISO)
• Single Transmission Company (STC)
• State Electricity Regulatory Commission (SERC)

6
BiH Liberalisation Current Projects

• Current Project in BiH POWER III World Bank
  Project (USD 250 MM)
  
• Primary sub-projects
• Reconstruction of substations.
• Reconstruction of transmission lines.
• SCADA/EMS and Telecomm. System BiH.
• Environmental Projects.
• Projects related to production and distribution.

7
BiH Liberalisation Market Restructuring Projects

• Establishment of Single Transmission Company
  (CIDA, SEETEC)
  
• ZEKC ISO Transformation Project (DFID, KEMA)
• Market Rules and Market Design Project (CIDA,
  SEETEC)
  
• State Electricity Regulatory Commission (USAID,
  Pierce Atwood)

8
BiH Liberalisation The Future

• Resynchronisation of UCTE Zones I and II (related
  to implementation of POWER III Project).
  
• Continuing process of reform and restructuring of
  the power sector.
  
• Market opening.
• Privatisation.

9
BiH Liberalisation Utility Unbundling and
Regulator

• Three power utilities unbundling
• Transmission divisions merge into STC
• Several DISCOs
• Several GENCOs
• ZEKC ISO
• SERC

10
BiH Liberalisation Time Frame

• Reconstruction of substations and transmission
  lines by mid-2004.
  
• Resynchronisation related to a.m. Power III
  sub-projects.
  
• SCADA/EMS and telecommunication system by end of
  2006.
  
• Unbundling of utilities by mid 2003.
• ISO, STC, SERC by end of 2003.
• Grid Code finalized by end of 2003 (already
  drafted).

11
Time Frame Contd

• ISO Law, STC Law
• Currently being drafted.
• Expected to be passed by BiH Parliamentary
  Assembly by end of 2003.
  
• Market Rules available by mid 2004.
• Balancing market opens mid 2005.
• Exchange opening undecided.

12
BiH Market Design

• Future BiH market based on bilateral contracts.
• Focus on physical wholesale transactions.
• No separate market operator foreseen for initial
  phase.
  
• ISO to initially operate Balancing Market.

13
Regional Market Definition

• What is the Regional Market?
• Implementation of EC Directives at the national
  level and participation in the Internal European
  Market, and
  
• Possible implementation of a regional electricity
  market within the Internal European Market.

14
Regional Market Functions

• What operational and market functions could the
  countries of the region combine?
  
• Coordination of system operation.
• Regional market for ancillary services, including
  balancing market.
  
• Power Exchange.
• Congestion management (e.g., auctions, market
  splitting).
  
• Common transmission plan.
• Common indicative generation plan for private
  investors.

15
Regional Market Challenges

• SEE countries at different stages of
  liberalisation.
  
• Detailed specifications of the regional market
  functions possible after
  
• Pace of reform increases in countries.
• Liberalisation processes are equalized.
• Legislative and regulatory issues must be
  harmonized at the regional level.

16
Regional Market Organisation

• Regional market functions could be operated from
  one or more locations.
  
• E.g., Power Exchange in coordination with
  technical and commercial Coordination Centre.
  
• International staff from participating
  countries.
  
• Technical pre-conditions met.
• SECI Teleinformation Project
• Various national projects, etc.

17
Regional Market Sarajevo

• Bosnia and Herzegovina should be the location of
  the future regional functions.
  
• Reliability assured by
• Rehabilitation of the existing transmission and
  interconnection links scheduled to be complete.
  
• The reconnection of UCTE Zones I and II with a
  vital supraregional grid components inside BiH .

18
Regional Market SarajevoAdvantages

• Installation of a state-of-the-art SCADA/ EMS
  system with telecommunication support assures
  adequate technological support.
  
• Completely rehabilitated and upgraded
  transmission system will assure sufficient
  capacity for transit of energy between buyers and
  sellers within and outside of the region.

19
Regional Market SarajevoAdvantages

• Principles of the Stability Pact and the MOU
  declaration of intention to establish a Southeast
  Europe competitive regional electricity market
  indicate that BiH is the right location for the
  regional market.

20
Regional Market BiH Proposal

• Create separate regional coordinating entities
  for the following functions
  
• Technical aspects of system operation (UCTE).
• System security.
• Real time operation.

21
Regional Market BiH Proposal

• Commercial aspects of system operation (ETSO)
• Coordination of scheduling
• Regional market for ancillary services (including
  the balancing market).
  
• Allocation of cross-border capacities.

22
Regional Market BiH Proposal

• Regional Power Exchange.
• Regional development studies.
• Common transmission plan.
• Indicative generation plans.

23
Thanks

• For Your Attention!