Elektrotehniski vestnik 73(1): 64-70, 2006 Electrotechnical Review: Ljubljana, Slovenija New perspectives for power transmission in the European liberalized electricity market and possible role of four-phase systems Sergio Fontanot, Stefano Quaia Department of Electrical Engineering, Electronics and Computer Science, University of Trieste, Via A. Valerio 10, 34127 Trieste (Italy). E-mail: sergiofontanot@inwind.it, quaias@deei.units.it Abstract. Production outsourcing and transmission privatization are emerging trends in the European liberalized electricity market. Transmission privatization can be a valuable opportunity of expansion for power system operators, but also an economically convenient choice for large industrial customers, that can avoid the pay-tolls due to the public transmission grids by directly connecting their production plants to the drawing power plants through non-institutional lines (the so-called merchant lines). In this new scenario, the four-phase AC transmission can be an interesting alternative to the three-phase AC and DC power transmission. This paper discusses the main features of the four-phase connection and the role it could play in the European electricity market. Key words: power transmission, merchant lines, direct lines, four-phase transmission. 1 Introduction The original function of the national transmission grids was to collect the power produced in large power plants and carry it to the electrical stations located throughout the country to allow the subsequent supply of electricity to end users through high-voltage (around 100 kV), medium voltage and low-voltage distribution lines. In Europe, transmission grids of neighbouring developed countries were connected in parallel for the first time in 1960 (Fig. 1). During the period 1960-1987 the goal of the interconnection of the national grids was to guarantee reciprocal reserve and assistance in the event of large perturbations. During the period 1970-1997, as local oppositions (mainly related to the so-called nimby syndrome) to the construction of new power plants were growing, the European transmission grid supported also long-term contracts guaranteeing power among large electrical companies. An example is the contract drawn up by ENEL and EDF with which France bound itself to sell energy to Italy, whose situation was aggravated by abolishing nuclear plants as decided through the national referendum in 1987. After starting the European open electricity market, deadlined for 1999 by the EC directive 92/96, the activity of producing electric energy has become fully free and competitive, and so has its sale to "eligible" customers. In this new scenario the transmission grids, properly regulated and controlled by operators, which can also be owners (Transmission System Operator - Received 4. June, 2005 Review 13. January, 2006 TSO) or not (Independent System Operator - ISO), assume also a new function, that might be regarded as the main one, of primary systems to transfer electric energy. Energy is either directly purchased/sold, in agreement with bilateral contracts, or indirectly, through national stock markets, between producers and eligible customers, both of them wherever placed within the Community. Not all of the EC member countries can meet their power demand with their home production. Figure 2 shows that Italy, in particular, is at present the most import-dependent country in the EC. Since in the future the nimby syndrome will probably spread everywhere throughout the Community, the countries that will not develop a sufficient home production of electric energy (either conventional, nuclear, or renewable) will have to outsource production. This will be done by building new power plants or purchasing existing ones in more "compliant" countries, like large power companies have already been doing for some years in Eastern Europe, i.e. Bulgaria, Romania, Slovakia, Poland, Ukraine, Russia, etc. Probably, this process will boost transmission privatization, which might allow avoiding control of the TSOs and the relevant pay tolls. In this fast-evolving scenario it is possible to guess the development of new generation transmission lines built over relatively long distances by privates or by power system operators, and characterised by: - low construction cost/MW, - low operating cost, - easy technical integration with the national grids, - high reliability (remember the recent blackouts in Europe and North America), and - low environmental impact. « Figure 1. Interconnected power systems in Europe (UCTE). 66,0 W 2,9 rn .ii1 °'3 IW ' ' 1—1 ■ ' (W ' lTTj ' (W 1 •7 4 "3|° (SSitj .16,2 ' 85*,) ' 1—J -¡,E (14,7*] i r................... E F B ML □ A OH I SLO SR Figure 2. 2004 import/export balance. Figures are in TWh. In round brackets: per cent value referred to the requirements of each country. 2 Merchant lines 2.1 Regulation The term "merchant lines" (or "direct lines") is used to indicate non-institutional interconnections, which can be built and owned by privates or power system operators. The EC directive 92/96 defines "direct line" a line complementary to the interconnected grid (article 2, paragraph 12). Article 21 includes instructions for the member countries to formulate proper criteria for the construction of direct lines. The EC regulation 1228/03 states that the direct lines are exempted from the dispositions of the EC directive 92/96 that guarantee the access to the network (third party access). This means that the direct lines can be partly "reserved" or, in other words, their owners can enjoy a "priority access". The new EC directive 54/03, which replaced the EC 92/96, did not modify the aspects concerning the merchant (or direct) lines. The EC directive 92/96 has been differently put into practice by the member countries. Italy, the maximum importing country, is for instance very interested in the development of interconnections with the neighbouring countries and in new perspectives of power transmission in Europe. Its position might considerably affect the future trends. In full agreement with the concepts of the EC directive 92/96, the Italian law 79/99 (called the Bersani law) defines the direct line as an "electric line connecting a production centre with a load centre independently on the transmission and distribution system". It also specifies that it is the ISO's duty to set technical rules for designing, building and operating direct lines, with the aim to properly connect them to the national transmission grid. In the Italian regulation, there are some distinctions made between the merchant lines realised by power system operators and those realised by privates. For power system operators that construct new lines or expand the existing ones in agreement with the development plan of the national transmission grid scheduled by the ISO, the deliberation 151/02 of the Italian regulatory agency (AEEG) states that the right of priority access is granted case by case, for the period of ten years, for the maximum capacity of 800 MW and up to 80% of the overall transmission capacity. As foreseen by the law 290/03 (called Marzano law), the priority access for the privates is granted by the Ministry of Productive Activities, in agreement with the regulatory agency, for the period between 10 and 20 years and for the maximum transmission capacity between 50% and 80%. 2.2 Some remarks 1) The proposed Italian merchant lines fully agree with the laissez-faire policy characterizing the EC energy policy which encourages competition and access to foreign markets by means of an easier access of operators to power transmission infrastructures. 2) The merchant lines are by all means a complementary tool that involves both opportunities and risks. The former are contribution to import development, access to markets with a lower power price, access to non-nimby areas and/or areas provided with valuable resources (for example the Albanian hydro or the gas available in North Africa). The latter are capital-intensive and nimby-subject activity. 3) The investments can be affected by the growth of the home generation capacity or price increase in the drawing markets. 4) New dominating groups could emerge. A recent analysis from October 2004 shows that the merchant projects selected by the Italian ISO were shared out as follows: ENEL Production (Italy): 17%, TERNA (Italy): 7%, EGL (Switzerland): 15%, TIWAG (Austria): 7%, AGSM Verona (Italy): 7%, Burgo paper mills: 4%, other operators: 43%. These data show that the power system operators take the lion's share. 3 Four-phase power transmission The proposal of high-phase transmission in power systems, instead of the usual three-phase (3P), is not novel. Advantages of a higher number of phases are higher transmission capacity, lower phase-to-phase voltage, compact overhead lines, etc. [1-8]. In the past, there have been investigated especially 6P or 12P systems because of their easy integration in the existing 3P nets, which can be done by changing connections of 3P transformers. Disadvantages of the practical realization of systems with a high number of phases are difficult phase-transposition, complex towers structure, etc. Recently, 4P transmission (Fig. 3) has been also investigated [9-13]. Its main features, discussed in the following paragraphs, make it a very interesting alternative to 3P AC and DC transmission for new high-capacity transmission lines. 3.1 Technical integration with three-phase systems UUJOjuuu r