Access to the power grid for the third parties produced electricity in Latvia

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Access to the power grid for the third parties
produced electricity in Latvia
Baltic Electricity Market Mini-Forum
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• Joint Stock Company
• Registered in
  14.03.1996.
• Started its operation in 01.05.1996.
• Shareholders
• The Riga City Council 49
• The State owned JSC Privatization Agency
  48,995
• The State owned JSC Latvenergo 0,005
• Dalkia City Heat 2

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Financial year from October 1 to September 30
Turnower 72 millions LVL (103 millions
EUR) Equity capital 47 millions LVL (67 millions
EUR) The number of employees 1223 persons Inter
alia Persons employed in the basic
production 833 persons Persons employed in the
technical maintenance of the internal heating
and hot water systems of buildings 376
persons
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Riga City District heating area
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Share of heat energy used in Riga 76 Inter alia
For residents 76 For other consumers
24 Production of heat energy 4 millions
MWh Inter alia Purchased heat energy 70 Produce
d in own heat sources 30 District heating
plants 5 Gas boiler houses 30
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Powerplants of JSC Rigas Siltums
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CHP Imanta 48 MWel
405 MW th Start of commercial operation of plant
16 June 2006.
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CHP Viestura pr 20 b
0.5 MW el 6.9 MW th In commercial
operation from October 2003.
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CHP Daugavgriva 0,5 MWel 31.8
MWth Commercial operation started October 2004.
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Power production plans in JSC Rigas Siltums CHPs

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Access to the electricity market

• Electricity market legislation
• Energy Law
• regulations of the Cabinet of Ministers for
  surplus electricity buying from cogeneration
  plants
• Electricity market Law is in force starting from
  November 2006 and is based on regulations of the
  Cabinet of Ministers for electricity sales
• Grid Code, has been accepted by Regulatory board
  in 2000, but it is under revision right now.
• Regulations of the Cabinet of Ministers defining
  requirements for licencing.

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Access to the electricity market

• In compliance to the Electricity market Law a
  cogeneration plant as an independent producer and
  participant of the electricity market has two
  choices
• To sell surplus electricity in a free market to
  any qualified consumer or a system operator at
  the market price or agreed price
• To obtain rights to sell electricity within the
  framework of the mandatory procurement to the
  public trader according to the procedure
  stipulated by the Law on Electricity market and
  Regulations of the Cabinet of Ministers.

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Access to the electricity market

• The possibility of selling electricity on the
  free market is not used now, although all
  consumers except households have became qualified
  electricity consumers and approximately 50
  companies have recieved licences for generation
  of electricity, because
• The rates of transmission and distribution
  services are too high
• The rates set by the currently dominating public
  trader monopoly Latvenergo are sufficiently low
  for independent producers to be able to compete
  with them on the free market.

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Access to the electricity market

• JSC RIGAS SILTUMS as a company whose core
  activity is district heating supply utilises the
  rights provided for cogeneration plants to sell
  within the framework of the mandatory procurement
  for the sale of the surplus electricity
• Selling to the system operator (Latvenergo) at
  the price set by the Regulator until now
• Now receiving the confirmation of the generated
  electricity origin according to the stipulated
  procedure and receiving the rights to sell to a
  Public trader at the price set in compliance to
  the procedure set by the Cabinet of Ministers.

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Current terms of the trade for electricity

• The electricity generated in small scale power
  plants with the capacity not exceeding 4MWel (DHP
  Daugavgriva) 0,5MWel and Viestura 20b
  0,5MWel) is sold to the public trader at the
  price set according to the procedure defined in
  the Regulations of the Cabinet of Ministers
• Earlier calculating with a coefficient taking
  the average electricity sales rate published by
  the Regulator calculating according to the
  statistics data
• Currently calculating according to the formula
  and coefficients based upon the prices of natural
  gas.

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The current terms of sale of electricity

• The surplus electricity generated in DHP Imanta
  cogeneration unit (48MWel) is sold to the public
  trader (Latvenergo) at the rate approved by the
  Regulator.
• The rate consists of two following parts
• Energy component (LVL/ MWh)
• Capacity component (LVL/ MW per year).

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The current terms of sale of electricity

• The contract provides for the procedure of sale
  applying the sales schedules per days for the
  next month, hourly schedule for the next week and
  hourly schedule for the next day.
• Besides that, if the hourly generation does not
  comply with the scheduled amount the coefficients
  for the payment for the balancing energy are
  applied (difference between the actual hourly
  generation and planned energy).

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Prospects for future
DHP Ziepniekkalns biofuel fired cogeneration
unit with electrical capacity - 4MW
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Prospects for future

• DHP Vecmilgravis cogeneration unit with an
  electrical capacity - 2-5MW

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Prospects for future

• BH Gobas 33a cogeneration unit with max
  electrical capacity - 1MW