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MARCH 2009 VOLUME 1, ISSUE 4

Global Transmission Report


Information and analysis on the global electricity transmission industry Focus on UHV AC
China shows the way by energising 1,000 kV transmission line

Brazils Transmission Plans


USD1.25 billion to be invested over the next five years

hina has energised its first 1,000 kV ultra high voltage alter nating current (UHV AC) transmission line, which has an electricity transfer capacity of 5,000 MW from the northern to the eastern and central parts of the country. The Jindognan-Nanyang-Jingmen UHV AC transmission project began commercial operation in January 2009. The 650 km long line has two segments: a 360 km line from Jindognan in the northern province of Shaanxi to Nanyang, and a 290 km line from Nanyang to Jingmen in the central province of Hubei. The project includes a 3.7 km line crossing the Yellow river and a 2.9 km line crossing the Hanjiang river. The UHV AC has been built by the countrys largest transmission utility, State Grid Corporation of China (SGCC), at an estimated cost of CNY5.7 billion. The project, which began in 2006, took 28 months to complete and about 168 hours of test runs to be capable of commercial (continued on page 2)

razil is the emerging economy to watch in the coming years. The country may not have been able to completely sidestep the global financial crisis, yet, with a committed investment programme in the infrastructure sectors, it is better positioned than many emerging economies to weather the storm. The Brazilian government had launched the Growth Acceleration Programme in January 2007 to fund the infrastructure sectors, including housing, education, public health, transportation and energy projects, and allocated BRL475 billion (USD190 billion), to be invested up to 2010. In response to the global economic turmoil, this amount was increased by about 34 per cent to BRL636 billion (USD254 billion) in January this year, to be spent by 2010. While most of the big infrastructure projects are being funded from federal resources, foreign investors have snapped many opportunities, especially in the power sector. (continued on page 4)

Renewable Targets for 2020


The UK needs GBP4.7 billion for grid reinforcement

INSIDE THIS ISSUE


Features Focus on UHV AC .............................................................................. 1 Brazils Transmission Plans ............................................................... 1 Renewable Targets for 2020 ............................................................... 1 News North America ..................................................................................... 8 Latin America .................................................................................... 12 Asia Pacific ......................................................................................... 15 Europe ................................................................................................. 18 Middle East & Africa ........................................................................ 22 TSO Focus American Electric Power ................................................................. 24 Policy Review Smart Grid .......................................................................................... 27 Spotlight Mediterranean Electricity Ring ........................................................ 28 Data & Statistics The Electricity Sector in Norway .................................................... 32 Norway's Existing International Electricity Interconnections ... 33 Statnett's Planned Transmission Projects ....................................... 34 Deal Watch ............................................................................................. 35 Project Update ....................................................................................... 36 Company News ..................................................................................... 42 Tenders & Contracts ............................................................................. 45

he UK government seems to be taking steps to meet its ambitious 2020 renewable energy targets. In the recent months, it has not only announced measures to boost renewable generation, it is also striving to ensure that the necessary grid infrastructure is in place to move renewable-based power. At present, only 1.5-2 per cent of the UKs overall energy comes from renewable sources. Taking this up to 15 per cent by 2020 presents an immense and expensive challenge. The government is trying to ascertain the investment needs, especially for grid reinforcement, to make it happen. In a latest study, the electricity grid makeover cost to accommodate low-carbon generation has been assessed at GBP4.7 billion over the next 10 years. Last year, the UK government and the energy regulator Ofgem had asked transmission companies to identify the network reinforcements needed to support the 2020 targets. Based on the inputs, the Electricity Networks Strategy Group (ENSG) estimated the renewable-related transmission investment needs. (continued on page 6)
www.globaltransmission.info

Features

Focus on UHV AC (Contd...)


operation. China launched a UHV grid development strategy in 2004 and proposed a countrywide power grid with 1,000 kV AC and 800 kV direct current (DC) transmission lines as the backbone. China, however, is not the first country to build UHV AC transmission systems. Since the late 70s, several countries considered constructing high voltage transmission lines for efficient power transfer. Among these, Russia and Japan are the only two major countries to have actually implemented the technology. In 1985, Russia energised a 500 km section of the 900 km transmission line at 1,100 kV between Ekibashtuz and Kokchetva. Currently, this line operates at 550 kV. In Japan, UHV AC studies were initiated in 1973 as a way to deal with the problems in expanding the 550 kV network. Construction of 1,100 kV lines was taken up by the Tokyo Electric Power Company (TEPCO). By 1999, TEPCO completed two such projects one connecting a nuclear power station on the Sea of Japan to the metropolitan region (north-south route) and the other linking the power sources on the Pacific Ocean (east-west route). These transmission lines are now operated at 550 kV and will be upgraded to 1,100 kV by 2010. Of late, there has been a keen interest in using UHV AC transmission in regions with high electricity demand and where the supply sources are far away from the demand centres. In India, an indigenous effort is underway to develop a transmission system based on 1,200 kV AC. The initiative is spearheaded by the countrys central transmission utility, Power Grid Corporation of India Limited (PGCIL). As the first step, a test station is being set up in the state of Madhya Pradesh. The facility is likely to be commissioned by mid 2009. Amongst other countries, Brazil has been actively considering the UHV option for its estimated 192 GW of hydro power potential. It is planning to construct 2,700 km of UHV transmission lines with a transfer capacity of 12-15 GW. Subject to the load capability of the system, the expected UHV voltage could be 1,250 kV.

UHV AC technology offers many benefits. To begin with, a large quantity of power can be transferred over long distances at a very low current value, which means lower transmission line losses. Transmission line losses can be reduced to about 25 per cent and land requirements rationalised by 50-66 per cent as compared to standard extra high voltage (EHV) lines. Second, transmission utilities can deliver a high amount of power without having to install multiple transmission lines and equipment. This lowers operational costs. The cost per unit transmission capacity of UHV AC lines is expected to be 73 per cent that of 500 kV AC lines. In addition, in high voltage lines, utilities look for stabilisation of the power system to withstand large generation and transmission outages. The commercial application of such systems is, however, based on whether the increased transfer capacity can outweigh the cost of execution. Various studies have shown that UHV AC systems cannot be seen as a simple extension of the existing, lower voltage levels. Estimates show that the power transfer capacity of a 1,500 kV line is 4.2 times more than a 765 kV line, whereas its cost is greater by 3.5 times. These are only indicative estimates as the cost-benefit comparison for a specific utility is always determined by factors specific to the project. A competing option in the high voltage segment is DC systems. UHV DC offers almost similar advantages for long distance transmission. However, AC technologies have more flexibility in operations as key equipment and components such as transformers have achieved significant technological maturity. Industry experience also shows that AC transmission lines can easily connect loads and generation points along the route. While DC lines do offer a competitive option, the cost of building tapping stations has often been a deterrent. Overall, the choice between AC and DC is based on the individual characteristics of the project being considered. Also, as Chinas planned UHV network shows, UHV AC and UHV DC can be used together to derive the best of both technologies. In its pilot UHV AC project, China has made several breakthroughs in core technologies and equipment production to transmit power economically through the worlds most complex UHV lines. SGCC formulated its own specifications for rated voltages through extensive grid studies and investigations of voltage coordination. The major breakthroughs include voltage standard, electromagnetism environment, over-voltage and insulation coordination, reactive voltage control and lightningproof technology. As a result, China could domestically produce 90 per cent of the equipment needed for the project and now has intellectual property rights over UHV transmission lines. The UHV transformer was developed indigenously by China. The transmission system uses 1,000 MVA/1,000 kV single-phase autotransformers. Shunt reactors have been used for compensating the large charging reactive power of the transmission line. The 960/720/600 MVAR shunt reactors and neutral grounding reactors have been installed because the long length of the transmission line imposes significant concerns of temporary over-voltages. With the use of the fixed shunt reactor and neutral-point reactor, secondary arc currents and recovery voltages are limited to a fairly low value. The high insulation level of the UHV transmission line lowers the possibility of back flashover, caused by lightning strokes, to ground wires or tower tops. SGCC estimates that the lightning outage rate of the UHV line could be lower than that of a 500 kV

Main rated values for UHV lines, based on SGCCs specifications


Rated voltage Nominal operating voltage Rated lightning impulse withstand voltage to earth Rated short-duration power frequency withstand voltage to earth Rated short-duration power frequency across the isolating distance Rated lightning impulse withstand voltage across the isolating distance Rated switching impulse withstand voltage to earth Rated switching impulse withstand voltage across the isolating distance Rated frequency Rated normal current for feeder circuits Rated normal current for main bus bar circuits Rated short time withstand current Rated peak withstand current
Source: Conference proceedings from GridTech 2009, India

1,100 kV 1,000 kV 2,400 kV 1,100 kV 1,100+635 kV 2,400+900 kV 1,800 kV 1,675+900 kV 50 Hz 4,000 A 8,000 A 50 kA, 3s 125 kA

Global Transmission Report | March 2009

Features Insulation level of UHV AC equipment (kV)


Equipment Lightning impulse withstand voltage (Peak) 2,250 2,400 2,400 2,400+900 Switching AC impulse (RMS) voltage (PeaK) 1,800 1,100 (5 min) 1,800 1,100 (1 min) 1,800 1,100 (1 min) 1,675+900 1,100+635 (1 min)

Electromagnetic indices of the UHV AC project


Environmental Controlled influence factor value Electric field strength 4 7 10 100 55 Remark Inhabited houses nearby Highway cross-over Other areas -

Transformer and reactor Circuit breaker and disconnector CVT, TA Clearance between open contacts of circuit breaker

Magnetic induction intensity Radio interference

Audible noise

CVT: Capacitor Voltage Transformer; TA: Transformer Ampere; RMS: root-mean-square. Source: SGCC

0.5 Mhz, 20 metres away from the projection of the outer phases in fair days Environmental protection requirements

Source: SGCC

line. The project makes use of a large cross-section and multiple conductor bundles, with an increased distance of the conductor to ground, to maintain the electromagnetic environment identical to that of 750 kV and 500 kV AC projects. The gas-insulated switchgear (GIS) for this system has been designed by ABB and the Chinese GIS supplier Xian Shiky. SGCCs experience highlights the importance of having technical standards in UHV AC technology. The lack of standardisation of UHV equipment directly affects the technoeconomic parameters of the project as utilities have to engage in elaborate research to achieve feasible solutions. For the transmission industry as a whole, technology standardisation helps achieve efficiency in the long run. Studies conducted by the International Electrotechnical Commission and CIGRE have

revealed several phenomena which are different for UHV systems as compared to EHV systems. Many standard values differ from those currently stipulated for lower rated voltages. Thus, there is a need to develop international standards to ensure the safe and efficient use of this technology. Encouraged by the progress in UHV AC transmission system development, China has announced the setting up of three new UHV AC systems for the national grid. Two of these lines will transmit electricity to Shanghai from power plants in the Anhui province and the Inner Mongolia Autonomous Region. The third line will link the northern Shaanxi province and Changsha city in Hunan. These lines are a part of the overall CNY100 billion investments planned for high voltage transmission networks by China.

Chinas Proposed UHV AC Power Grid by 2010

Source: SGCC Global Transmission Report | March 2009 3

Features

Brazils Transmission Plans (Contd...)


Brazils electricity transmission sector, in particular, has been a stand-out success. The government has chosen to link the countrys vast hydroelectric potential to the grid rather than build several generation projects to support the economic growth. Transmission infrastructure continues to be one of the priority sectors for the government. This is evident from the latest Transmission Expansion Programme (PET) prepared by the federal power research company, Empresa de Pesquisa Energetica (EPE), associated with the Ministry of Mines and Energy. Every year, the EPE publishes the PET, which outlines the transmission projects that are to be undertaken in the next five years. The 2009-13 plan, released in February 2009, envisions an investment of BRL3 billion (USD1.25 billion) to build 2,501 km of transmission lines and 22 substations. Some of these projects may be funded with loans from the Brazilian development bank, BNDES, or may land up on the balance sheets of federal electricity utilities. But the government expects that a large number will go to private investors. Many of the transmission lines will auctioned soon. Brazils transmission network comprises over 87,000 circuit km of lines with a voltage rating of 230 kV and more in the national grid, Sistema Interligado Nacional (SIN), which links five regions: south, southeast, centre-west, north, and northeast. SIN covers about 98 per cent of the electricity market. The rest is in small isolated systems located mainly in the Amazon region. Of the total BRL3 billion investment, about one-third (BRL1.027 billion) will go to the centre-west region where over 1,015 km of transmission lines will be built. The southeast region will receive BRL998 million, the northeast BRL516.5 million, the north BRL206.5 million, and the south region BRL245 million.

The project involves the construction of seven lines with a total length of 2,357 km along with two substations and six converter stations at an estimated cost of BRL7.21 billion. The five-year plan also envisages an investment of BRL442 million to build five substations (between 345 kV and 500 kV rating) in the state of Sao Paulo. This will be completed by 2011 to improve reliability as well as security of supply in this major demand centre. In addition, over the period 2009-13, five transmission lines and three substations will be built in the state of Gois at an investment of BRL576 million. The state of Espirito Santo will expand the Mesquita-Viana and Mascarenhas-Linhares transmission lines that will require an investment of BRL297 million. The Minas Gerais state will get three new substations at an estimated investment of BRL245 million. Another BRL243.9 million will be spent on four new substations for the cities of Fortaleza, Natal and Salvador. A robust transmission system is key to sustained economic growth. EPE estimates that demand for electricity in Brazil will grow at an average 4.9 per cent over the next 10 years. It has also released a 10-year plan (PDE 2008-17) which envisages an investment of BRL181 billion for the electricity sector over this period. Of the total, BRL142 billion will be invested in generation and the remaining BRL39 billion in transmission projects. The installed capacity is forecast to increase from 99,742 MW to 154,797 MW by 2017, which represents an increase of 55 per cent. About 36,387 km of transmission lines will be built during this period at an estimated investment of BRL25 billion. The remaining BRL14 billion will be spent on increasing the transformation capacity by 71,537 MVA to 259,944 MVA. About one-fourth (or BRL10 billion) of the investment will go into two big transmission projects the Tucuru-Manaus (1,829 km) line, and the Madeira lines (2,375 km). Most of the planned transmission lines, especially those connecting the north and southeast regions, will be at a voltage level of 500 kV or 600 kV. The 600 kV system, the kind used by the Madeira lines, will increase from 1,612 km to 10,962 km. The 500 kV system, which will be used for the Tucuru-Manaus line, will be extended from 29,262 km to 47,592 km by 2017. The EPE estimates that by 2017, Brazil will have 122,782 km of transmission lines, a 42 per cent increase over the 2007 transmission line length.

Region-wise investments 2009-13 (BRL million)


Region Centre-west Southeast Northeast North South Total
Source: EPE (PDE 2008-17)

Line length (km) 1,015 419 418 495 154 2,501

Investment (BRL million) 1,027.23 998.42 516.48 260.38 244.79 3,047.30

Expected addition to transmission line network 2008-17 (km)


750 kV 600 kV 500 kV 440 kV 345 kV 230 kV Existing 2007 Expected 2008-17 Estimated 2017 2,698 0 2,698 1,612 29,262 9,350 18,330 10,962 47,592 6,791 17 6,808 9,218 625 9,843 Total 36,814 86,395 8,066 36,387 44,880 122,782

Rondnia, Acre and Mato Grosso are on the top of the list of states that will receive more funds, precisely because they are on the route of the line that will connect the Rio Madeira hydroelectric complex to Sao Paulo. These states will attract an investment of BRL1 billion. The projects in these states, called the pre-Madeira lines, are scheduled to be in service in 2011, much before the two proposed hydro power plants (the 3.3 GW Jirau and the 3.15 GW Santo Antonio) on Madeira river begin generation in 2012-13. Power regulator Aneel is working on holding the auction for these lines as soon as March-April 2009. The Madeira transmission lines were auctioned by Aneel in November 2008.
4

Source: EPE (PDE 2008-17)

Expected addition to transformation capacity 2008-17 (MVA)


750 kV 600 kV 500 kV 440 kV 345 kV 230 kV Existing 2007 Expected 2008-17 Estimated 2017 21,000 0 21,000 0 35,938 5,300 9,014 21,105 Total 71,357 0 70,826 17,652 29,885 49,224 188,587 0 106,764 22,952 38,899 70,329 259,944

Source: EPE (PDE 2008-17)

Global Transmission Report | March 2009

Features Major transmission line projects planned for 2009-13 in Brazil

Project

State

Voltage (kV)

Line length (km)

Expected completion

Estimated investment (BRL million)

Rio Verde Norte-Trindade, (double circuit) JaurCuiab, (single circuit) Santa Cruz AngraGraja Foz do IguauCascavel Oeste (single circuit) Pirapora 2Montes Claros 2 Mesquita-Viana, (single circuit) ImperatrizEstreito ItacaiunasIntegradora Trindade-Xavantes, (double circuit) Trindade-Carajs, (single circuit) PirineusXavantes II, (single circuit) Serra da Mesa-Niquelndia, (single circuit) NiquelndiaBarro Ao, (single circuit) NobresCuiab (single circuit) Nova MutumNobres (single circuit) MascarenhasLinhares 2, (single circuit) Baguari-Valadares, (single circuit) TransamaznicaTapajs IntegradoraXinguara BanabuiMossor EunpolisTeixeira de Freitas II Foz do ChapecGuarita Foz do ChapecXanxer Campo BomTaquara Pau FerroSanta Rita
Source: EPE (PET 2009-13)

Goias Mato Grosso Rio de Janeiro Parana Minas Gerais Minas Gerais/ES Maranhao Para Goias Goias Goias Goias Goias Mato Grosso Mato Grosso Espirito Santo Minas Gerais Para Para Ceara/Rio Grande do Norte Bahia Rio Grande do Sul Rio Grande do Sul Rio Grande do Sul Pernambuco/Paraiba

500 500 500 500 345 500 500 500 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230 230

200 335 19 125 148 270 123 165 33 22 40 105 87 115 100 99 29 210 70 177 152 70 68 29 100

June 2010 December 2010 May 2008 December 2008 August 2012 June 2011 December 2010 2011 June 2010 June 2010 June 2012 June 2010 June 2010 2010 2010 June 2011 June 2011 2011 2011 Immediately December 2011 January 2009 January 2009 2013 December 2009

433.261 319.220 17.525 183.354 68.170 244.759 102.550 226.771 37.655 15.402 14.696 46.830 31.583 37.909 33.824 52.175 13.925 60.056 22.979 23.230 45.000 25.655 54.137 14.197 35.445

Global Transmission Report | March 2009

Features

Renewable Targets for 2020 (Contd...)


The proposed network reinforcements, costing GBP4.7 billion, will accommodate a further 45 GW of generation by 2020. Of this, 34 GW could be a combination of onshore and offshore wind generation, and 3.3 GW from two new nuclear installations. Of the 45 GW, Scotland alone is expected to contribute between 6.6 GW and 11.4 GW of renewable capacity. Another 21-24 GW would come from offshore wind farms in England and Wales. The aim is to achieve a total renewable electricity contribution of 147 TWh in the UK by 2020. The government study also points to potential savings of about GBP850 million in offshore networks if the onshore networks are built on time.

England. The cost of the reinforcement project is estimated at GBP760 million. In the second phase, upgrades estimated at GBP450 million will be carried out in North Scotland. Also planned is construction of the Eastern subsea HVDC link, a 1.8 GW line between Peterhead and Hawthorne Pit, at an estimated investment of GBP700 million.

North and Central Wales


National Grid operates the power grids in England and Wales. It is expected that up to 4 GW of offshore wind-based capacity in the southern Irish Sea may connect with the Wales grid. In addition, some nuclear capacity might come online in Wylfa. System upgrades in North Wales are estimated to cost GBP350 million, and are expected to be complete by 2017. In Central Wales, the majority of wind resources have no immediate connection to the main interconnected transmission system. New transmission assets including overhead lines and cable sections need to be built to connect new generation facilities to the transmission network. As there are a number of small to medium wind farms, the current proposal is to create a hub substation to which all such generating stations will connect. A single transmission route will then be used to connect to the main network. The locations of the substation and the transmission connection point are being selected. The cost of these projects, which are due for completion by 2015, is estimated to be GBP225 million. The study by the government also revealed that by facilitating connections at Wylfa rather than a more remote site, potential savings of about GBP500 million can be achieved in offshore network costs in Wales.

Expected fuel mix in the UK in 2020

To arrive at the investment estimates, ENSG studied the transmission projects that have been authorised or are planned to be in place in 2015 and 2020. Such transmission reinforcements include the BeaulyDenny rebuild; increasing the transmission capacity between Scotland and England; and setting up additional lines around North-West and North-East England. Here are some of the key region-wise plans

English East Coast: Humber and East Anglia


About 4-8 GW of offshore wind is expected to be connected in the Humber region by 2020. The study proposes to optimise both onshore and offshore transmission networks by integrating the design of these networks and achieve significant cost savings (potentially GBP200GBP300 million). This can be done by connecting some of the wind farms in this region via direct tee connections to an onshore HVDC link connecting the Humber area to East Anglia. The onshore works are estimated to cost GBP510 million and be complete by 2017.

Scotland
Scotland has two transmission system operators (TSOs), Scottish Power Transmission Limited (SPTL) for southern Scotland and Scottish Hydro-Electric Transmission Limited (SHETL) for northern Scotland. These TSOs have planned several system upgrades for their respective licence areas and are aiming at enhancing electricity trade with England. The first stage of upgrades in Scotland will be required to reinforce the North-West Scotland link and enhance the transmission capacity to south towards the Central Belt. A key project in this phase is the 275 kV DounreayBeaulyKintore (DBK) upgrade. The total cost of the DBK reinforcement is estimated at GBP180 million. In addition, incremental upgrades which include reconductoring and re-insulation work on the existing tower routes, development of new and existing substations, and installation of series compensation are planned in Scotland at an estimated to cost GBP625 million. This phase also involves construction of the Western subsea high voltage direct current (HVDC) link, a 1.8 GW line between Hunterston and Deeside. This would provide additional capacity across the circuits between Scotland and England and across Upper North
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The proposed network reinforcements, costing GBP4.7 billion, will accommodate a further 45 GW of generation by 2020. Of this, 34 GW could be a combination of onshore and offshore wind generation, and 3.3 GW from two new nuclear installations.
In addition, it is expected that 3-4 GW of offshore wind generation capacity will be developed in waters directly east of East Anglia. Some nuclear capacity is also expected to be connected. Reinforcement of the network is required for offshore wind generation and/or nuclear replanting. The cost of the onshore works is estimated to be GBP400 million. The projects are slated for completion in 2017.

Global Transmission Report | March 2009

Features London
Additional transmission capacity is required in the London area due to several factors: the need for new low-carbon generation, a potential increase in power transfer with mainland Europe, and future increase in demand for power due to electrification of the transport system. Thus, there is a need for grid reinforcement. The proposed projects include upgradation of a 275 kV overhead line, from Waltham Cross to Hackney, to 400 kV. The cost of these works is estimated to be GBP190 million, with a target completion date of 2015. is that the UK government has a very short time in which to persuade the TSOs and other investors to make these considerable investments. The government needs to work to eliminate policy and procedural delays in approving the proposed projects. Already, China has dislodged the UK from the top five attractive destinations for investments in renewable energy, rising from sixth to joint fourth (with Spain), behind the US, Germany and India, in an Ernst & Young Attractiveness Index. Extended decision making processes mean a long period of consultation and review before any of the proposals is implemented. The government therefore needs to expedite planning and decision making if the UKs position is not to decline further. There are also several technical and supply chain challenges to overcome. The network solutions proposed by the TSOs incorporate technologies such as HVDC and series compensation that have not been used in the UKs energy system. Supply chain issues could also impose constraints, resulting in delays in procurement and project development. Add to that the limited availability of skilled personnel in this emerging industry and the impact of the global financial crisis on the grid operators ability to raise funds. The UK government thus needs to take a holistic approach towards developing a robust grid to accommodate renewables and maintain the countrys attractiveness as a destination for investment in green energy.

South West
The South West is characterised by large volumes of localised generation, high demand levels and a limited export capacity. The need for additional transmission capacity is driven by the potential for large volumes of new gas-fired generation and possible nuclear replanting. To meet the demand, a new 50 km long, 400 kV circuit between Hinkley Point and Seabank has been proposed. There are also plans to reconductor the existing circuits. The works are estimated to cost GBP340 million and be complete in 2017. Though the capital expenditure needs for the grid reinforcement projects might have been assessed, the challenge

Estimated transmission reinforcement costs and benefits


Region ReinforCement Cost (GBP million) Generation Capacity Potential (MW) Wind Scotland Stage 1 (2015) North of Scotland Incremental upgrades Western HVDC link Scotland Stage 2 (2018) North of Scotland Eastern HVDC link Wales North Wales (2017) Central Wales (2015) English East Coast Humber East Anglia London South West Total
Source: ENSG

Potential Savings Net cost (GBP million) (GBP million)

Nuclear 0

Total 8 NA 1,565

180 625 760 450 700 350 225 510 400 190 340 4,730

NA

1,150

4-6

0-3.3

4-9.3

500

75

7-11

0-3.3

7-14.3

350

560

London South West

1-2 2-3 26-34

0 3.3-3.3 3.3-9.9

1-2 5.3-6.3 29.3-44.9

850

190 340 3,880

Global Transmission Report | March 2009

News

NORTH AMERICA
US eastern region interconnection plans to carry wind energy to cost up to USD80 billion
The Joint Coordinated System Plan (JCSP 2008), a transmission and generation system expansion analysis of the majority of the Eastern Interconnection, estimates the region will need up to USD80 billion in new transmission infrastructure to obtain 20 per cent of the regions electricity from wind generation by 2024. The report presents a preliminary analysis by a group of grid operators and utilities and examines two scenarios for transmission and generation possibilities between 2008 and 2024. The first, a reference scenario, assumes business as usual with respect to wind development, with approximately 5 per cent of the regions energy coming from wind. The second is a 20 per cent wind energy scenario based on the US Department of Energys Eastern Wind Integration and Transmission Study. The first scenario requires the addition of approximately 10,000 miles (16,000 km) of new extra-high voltage transmission lines at a cost of approximately USD50 billion, in addition to nearly USD700 billion in generation capital costs by 2024. In the second scenario, about 15,000 miles (24,000 km) of new transmission lines will have to be built at an estimated cost of USD80 billion. Another USD1.1 trillion will have to be spent in generation capital expenditure by 2024. The study represents the collaborative efforts of Midwest ISO, Southwest Power Pool, PJM Interconnection, the Tennessee Valley Authority, Mid-Continent Area Power Pool, and participants within the SERC Reliability Corporation. As previously stated, this is only the initial phase of the analysis. A follow-up will be initiated in the first quarter of 2009 to investigate additional scenarios and perform a detailed reliability assessment.

Transmission Expansion Plan 2008 (STEP). The 2008 STEP includes several recommendations that could enhance and improve the electricity grid of the eight states that make up its service region. The 2008 STEP outlines the need for transmission upgrades that would require an investment of USD2.7 billion over the next 10 years. Part of this amount would have to be used for constructing 1,753 miles (2,821.18 km) of new transmission lines and installing 80 new or upgraded transformers. The board of directors asked for a commitment of USD285 million within the next four years that would be used for reliability projects and enhancements. One-third of this amount would be used for new transmission lines. The STEP also includes the 120-mile (193.12 km), 345 kV transmission line between Woodward County and Oklahoma City in Oklahoma.

ITC proposes a USD12 billion renewable energy transmission project in Midwest US


ITC Holdings Corporation (ITC) is planning to construct a 3,000 mile (4,828 km). 765 kV extra-high voltage transmission network across the states of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana. Called the Green Power Express, this project is being touted as the worlds biggest clean energy-related transmission project to tap 12,000 MW of power in remote areas of Midwest US. The proposed project is estimated to cost up to USD12 billion. To recover project costs, the newly created ITC limited partnership Green Power Express LP will file an application with the Federal Energy Regulatory Commission (FERC) for approval of a revenue requirement formula and incentives for construction of the project. ITC has been working on this project over the last year and has been in discussions with wind developers in the region for a realistic estimate of the timeframe and location of new wind development plans. This project is part of the companys larger vision for a highvoltage power transmission backbone for the region.

TANC completes study on its Northern California project


The Transmission Agency of Northern California (TANC) comprising 15 local governmental utilities has completed a state-federal collaborative effort to examine regional transmission impacts of its planned TANC Transmission Project (TTP). The study concludes that the addition of the TTP would benefit the reliability of the northern California transmission grid and could allow for the integration of at least 1,600 MW of new renewable generation capacity. The TTP will involve building and upgrading roughly 600 miles (960 km) of 230 kV and 500 kV transmission lines and associated facilities in northern California. A sub-regional planning group was formed to assess the impact of this proposal. The group included about 40 participants representing various state utilities, generation developers and government agencies situated throughout western US. With the completion of this analysis, TANC will start the final route planning of the TTP. In January 2009, the Western Area Power Administration (WAPA), an agency of the US Department of Energy (DOE), had announced that it intends to prepare a joint environmental impact statement/environmental impact report (EIS/EIR) for the TTP project.

USDA extends USD356 million for rural electric infrastructure


The United States Department of Agriculture (USDA) will offer USD356 million in loans to rural utilities and cooperatives in ten states (more in Deal Watch).

DoE to award USD4.3 billion to smart grid projects in two months


The Department of Energy (DoE) has two months to award USD4.3 billion from the countrys economic stimulus plan through a competitive mechanism to projects that aim to upgrade the electricity grid. The DoE can use these funds to finance up to 50 per cent of any two-year smart grid project. The economic stimulus programme sets aside USD100 million for training workers for operating the smart-grid. Another USD80 million will be used for resource assessment of the sector. The National Institute of Standards and Technology will get USD10 million to

Southwest Pool Board approves USD2.7 billion transmission upgrades


The board of directors of the Southwest Power Pool Incorporated (SPP), which is the electricity grid monitor for southwestern US, has approved the SPP

Global Transmission Report | March 2009

News
create a smart grid interoperability framework.

Vermont regulator approves transmission projects in the state


The Vermont Public Service Board (PSB) has approved a series of transmission upgrades to improve electricity reliability in Vermont. The PSB approved construction of a 345 kV transmission line between Vernon and Coolidge substation in Cavendish. The board also approved a new substation in Vernon and an expansion of the Coolidge substation. These components are collectively known as the Coolidge Connector. The board also gave the green signal to a new Newfane substation and an approximately one-mile 345 kV loop between Newfane and the planned 345 kV Vernon-to-Cavendish line. The combined projects are known as the Southern Loop Project. The project is being jointly promoted by the Central Vermont Public Service Company (CVPS) and Vermont Electric Power Company (VELCO). VELCO and CVPS filed a petition with the PSB in 2007. In approving the projects, the board rejected recent criticism, much of it claiming the project was not needed.

Idaho Power considering alternate routes for 500 kV power line


Idaho Power is considering alternative routes for its proposed Boardman to Hemingway 500 kV transmission project after landowners along the preferred route opposed the line. The 300-mile (480 km) power line will run from northeast Oregon to a proposed substation in Owyhee County in southwest Idaho. The project consists of six geographic segments. The company is working with the US Bureau of Land Management, the US Forest Service and the Oregon Department of Energy on selecting the route for the power line. Construction on the project is tentatively scheduled to begin in 2011 and finish in 2013.

West Virginia PSC allows Allegheny to build 500 kV transmission line in phases
The Trans-Allegheny Interstate Line Company (TrAILCo), a subsidiary of Allegheny Energy, has announced that the Public Service Commission (PSC) of West Virginia has ruled in its favour by allowing it to build its proposed 500 kV TrAIL transmission project in segments. TrAIL is a proposed inter-state transmission line passing through three states Virginia, West Virginia and Pennsylvania. The PSC will allow TrAILCo to build its transmission line in segments upon filing verifications that necessary permits and approvals have been obtained for a specific segment before start of construction on that segment. The PSCs initial order would have prevented TrAILCo from beginning construction on any West Virginia segment until a hearing was held to determine if all pre-construction permits and approvals had been obtained and all pre-construction conditions had been met for the entire length of the transmission line in the state. The PSC also did away with the need for a Static VAR Compensator (SVC) for the Meadow Brook substation which would cost TrAILCo more than USD58 million.

Pepco seeks regulatory approval for MAPP project


Pepco Holdings Incorporated has filed an application with the Maryland Public Service Commission for approval to construct the Mid-Atlantic Power Pathway (MAPP). The company had also recently filed a joint federal-state permit application with the Department of Environment, Maryland, and the US Army Corps of Engineers. In 2007, Pepco received an approval from PJM Interconnection (the regional grid operator) which stated that the project was the most effective way of handling short-term and long-term power reliability issues of the MidAtlantic region. The MAPP is a 230-mile (370 km), 500 kV transmission line that will connect Possum Point in northern Virginia to Salem in New Jersey. Pepco intends to start construction in 2009 and complete the project in 2013.

Final EIS issued for Dane County transmission line project


ThePublic Service Commission (PSC) of Wisconsin and the Department of Natural Resources have issued the final Environmental Impact Statement (EIS) for a proposed 345 kV transmission line from Rockdale to West Middleton. The American Transmission Company (ATC) had filed an application with the PSC for permission to build between 32 and 55 miles (51 to 88 km) of new transmission line in Dane County in 2007. The EIS examines four proposed routes for the line in terms of their environmental and social impacts. The company has begun the process of public hearings on the project. Based on public input, the PSC is likely to decide on the project by July 2009. The proposed transmission line will cost between USD214 million and USD244 million depending upon the route finally selected. The anticipated inservice date for the project is June 2013.

Environmentalists ask Virginia High Court to reconsider TrAIL


Meanwhile, the TrAIL project faces stiff opposition in another state. The Piedmont Environmental Council has petitioned the highest court in Virginia for a review of the 500 kV transmission line across northern Virginia that TrAILCo proposes to build in partnership with Dominion Power by 2011. The Council is of the opinion that summer electricity demand, which was 5 per cent lower in 2008, indicates a larger trend of decline in the region which would make the transmission line unnecessary. The Virginia State Corporate Commission (SCC) had approved construction of two segments of the project through northern Virginia in October 2008.

USD246 million transmission line for Northwest grid


Bonneville Power Administration (BPA) has pushed forward its proposed USD246 million transmission line between its McNary substation and its John Day substation because of USD3.25 billion of additional borrowing authority from the US Treasury that has been extended as part of the American Recovery and Reinvestment Act. The project aims to improve reliability

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of the Northwest grid. The proposed line will carry 870 MW of power including more than 700 MW of wind power. The environmental review for the proposed transmission project is complete. Construction is expected to begin in spring 2009 and the project is scheduled for completion in 2012. BPA has three other planned transmission projects. The four projects together will add 225 miles (360 km) of transmission lines and carry 3,700 MW of power including 2,700 MW of renewable power. to the proposal before service can begin, which is expected before the end of the first quarter 2009. northeastern Wyoming and southeastern Montana.

NV Energy to expedite transmission line, postpones thermal plant


NV Energy Incorporated has postponed construction of its coal-fired power plant in eastern Nevada. The company has decided to take up the project only when capturing and storing greenhouse gasses become commercially feasible. The company, however, plans to go ahead with its proposed 250-mile (402 km) transmission line that will connect north and south Nevada. The proposed transmission line, part of the companys original plan for the Ely Energy Center coal plant in White Pine County, is now being designed to transport power from renewable sources in the state. The company will file an application for approval from the Public Utilities Commission of Nevada. It has requested the PUC to evaluate the transmission line separate from the coal power plant so that the line can be completed by 2012.

US Geothermal signs transmission line deal


US Geothermal, a developer of renewable energy resources, has signed an interconnection agreement for the Neal hot springs project in eastern Oregon with the Idaho Power Company (IPC). The agreement entails design and construction of a transmission line and substation from the Neal hot springs project site to IPCs grid. The new 10-mile (16 km) line is being designed for 36 MW transmission capacity. A recent study by IPC estimates construction costs of the new connection at USD3.2 million. The Neal hot springs project is expected to be complete by 2011. IPC is responsible for the design, engineering, right-of-way acquisition, and construction of the new line and its associated facilities. US Geothermal is completing a feasibility study and preparing project loan and technical documents to obtain financing for development and construction of the project. The power is expected to be sold under a long-term agreement currently under negotiations.

FERC approves WestConnect project


The Federal Energy Regulatory Commission (FERC) has given its final approval for a participation agreement and regional tariffs that will implement a two-year regional transmission pricing initiative aimed at encouraging more efficient use of the grid and reducing customer costs. The FERC had approved the general parameters of the programme in September 2008. Under the programme, eligible customers can contract for hourly nonfirm transmission services, on a nondiscriminatory basis, over the systems of two or more WestConnect participants. Taking coordinated services under the proposal would be an alternative to the pancaked point-to-point transmission service now offered under each members Open Access Transmission Tariffs. For providing these services, participants will be allocated a pro rata share of revenues based on the ratio of the ceiling rate of each transmission provider involved to the sum of those ceiling rates, provided that none of the transmission providers collect more than their ceiling rates. All rates are those on the Open Access Sametime Information System (OASIS). Nine members of the WestConnect transmission group will participate in the experiment; six of them are FERCjurisdictional: Arizona Public Service Company, El Paso Electric Company, NV Energy, Public Service Company of Colorado, Public Service Company of New Mexico and Tucson Electric Power Company. The non-jurisdictional participants are Southwest Transmission Co-operative, Tri-State Generation & Transmission Association and Western Area Power Administration. WestConnect participants must file minor modifications to their tariffs and
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Puget Holdings completes merger with Puget Energy


Puget Holdings, a group of infrastructure-focused investors, has completed the USD7.4 billion merger transaction with Puget Energy and its wholly owned utility subsidiary, Puget Sound Energy (more in Deal Watch).

Sargent & Lundy to provide engineering services for the Susquehanna-Roseland project
Sargent & Lundy has signed a contract with PPL Electric Utilities to provide design and engineering services for its segment of the Susquehanna-Roseland transmission project (more in Company News).

Black Hills receives FERC approval for change in transmission rates


Black Hills Corporations utility subsidiary Black Hills Power has announced that the FERC has approved its request for formula-based transmission rates. This will result in an increase in the utilitys transmission revenue from USD5.6 million to USD9.4 million from January 1, 2009. Under the formula approved by the FERC, transmission rates will be based on a return on equity of 10.8 per cent and a capital structure consisting of 57 per cent equity and 43 per cent debt. The new approach will allow Black Hill to use an annual true-up calculation rather than having to file separate rate cases each time it makes transmission investments. The utility serves 65,400 customers in western South Dakota,

Siemens installs SCADA/EMS for Arizona utility


Siemens Energy has installed its Spectrum Power 3 SCADA/EMS system for Arizona Public Service (more in Company News).

NYRI asks FERC to rule on its project by March 2009


New York Regional Interconnect (NYRI) has asked the Federal Energy Regulatory Commission (FERC) to reconsider a rule approved last fall that would make it difficult for NYRI to recover investment costs of its proposed transmission line

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project from utility customers. NYRI announced that it has asked the FERC to reconsider the rule by next month. The company believes that the project may fall through if the rule is not repealed. The rule was proposed by the New York ISO. The proposed transmission project is a USD2 billion, 190 mile (306 km) transmission line from Utica to Orange County being built to transmit electricity from upstate New York to southeastern parts of the state. NYRI has already approached the Public Service Commission for approval which is expected by August 2009. capable of carrying 3,000 MW of electricity and aims to serve markets in southern Nevada, Arizona and California. The regulatory commission for the first time approved a model that permits half of the capacity of the lines to be reserved by an anchor customer, instead of having an open season for all of a lines capacity. outlooks recognise the generally supportive nature of the Federal Energy Regulatory Commission (FERC) regulation that has been designed to encourage investment in transmission infrastructure. The affirmations consider the benefits provided by ITCs formulaic forward-looking rate setting and true-up process. The affirmations consider the economic slowdown currently impacting ITCs service territories and recognises the capital-intensive nature of ITCs business operations, and its need to periodically access capital markets. Given the lower risk nature of ITCs federally regulated, infrastructure investment model, Moodys believes the company should continue to be able to access capital markets. Moodys last rating actions on ITC and its subsidiaries occurred on January 11, 2008 when the outlooks were revised to positive from stable, and on January 15, 2008 when a rating and outlook was assigned to ITC Midwest.

Work delayed on MATL transmission project


Construction work on a 346 km-long power line proposed to transmit wind generated electricity between central Montana and Alberta, has been delayed by at least five months because of appeals in the US and Canada. The 230 kV line is being built by Montana Alberta Tie Limited (MATL), a subsidiary of Tonbridge Power. Construction has been reportedly pushed back from March to the fall of 2009. The line would carry up to 300 MW of power in each direction between Great Falls in Montana and Lethbridge in Alberta. The project has received all regulatory clearances from the Canadian and US authorities. But some Canadian landowners have objected to the locations of the poles along the proposed route. These landowners have appealed a construction permit issued by the Alberta Energy and Utilities Board. They also want MATL to prove that the project is in public interest. The proposed transmission line has also faced opposition in Montana, where landowners are appealing to the states Board of Environmental Review.

Power grid expansion in northern Maine put on hold


The state regulators of the north-eastern state of Maine in the US have reportedly dismissed the USD625 million power grid expansion project called Maine Power Connection (MPC), thus putting the project on hold. The MPC is linked to a wind energy project in the region. The 345 kV project was to eventually link Maine with the New England region. The Maine Public Utilities Commission (PUC) has issued an order dismissing the transmission project after Aroostook Wind Energy (AWE) discovered unanticipated technical hurdles in its proposed wind power plant. AWE also said the economics have changed since the project was first proposed. The two developers for the MPC project Central Maine Power and Maine Public Service Company had last week asked the PUC to delay its decision on the project.

Taihan Electric Wire wins contract in the US


Korean cable manufacturer Taihan Electric Wire has won a bid to supply power cables and other related materials to National Grid US (more in Company News).

Quanta Services and Northeast Utilities expand contract


Quanta Services has announced the addition of USD200 million in services and an extension of two years to its existing multi-year contract with Northeast Utilities (more in Company News).

TransCanada receives FERC approval for transmission lines to carry wind


TransCanada Corporation has received the Federal Energy Regulatory Commissions approval of its rate plan for two proposed power transmission lines that would primarily carry wind power from Montana and Wyoming to the southwestern US. The two projects are a 1,000 mile (1,600 km) line known as Chinook that would run from Montana to Nevada and a 1,100 mile (1,760 km) line, known as Zephyr, stretching from Wyoming to Nevada. Each of these lines will have a voltage rating of 500 kV and will be

AREVA T&D takes over US maintenance firm


AREVA T&D has acquired RB Watkins of the US (more in Company News).

Moodys affirms ratings of ITC and subsidiaries; outlook positive


Moodys Investors Service affirmed its ratings of ITC Holdings Corporation at Baa3. It has also secured the ratings of ITCs subsidiaries: ITC Transmission at A3; Michigan Electric Transmission Company at A3, and ITC Midwest at A3. The outlook for each remains positive. The ratings affirmations and positive

Inadequate transmission capacity to carry wind and solar power in US, says new report
The US has inadequate transmission capacity to carry the electricity that wind and solar power projects could produce, according to a report released jointly by two renewable-energy groups Solar Energy Industries Association and American Wind Energy Association (AWEA). The release of the paper comes at a critical time. President Obama and the US

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Congress have made strong commitments to renewable energy as a driver for job creation and economic growth, but the countrys renewable energy resources cannot reach their full potential without increased investment in transmission infrastructure. The report also urges greater federal authority over siting transmission lines that could carry power across state lines. Most state regulators have little authority or incentive to require ratepayers in their state to help pay for an intestate network. Currently a patchwork of rules gives many state regulators primary authority to determine what electricity projects are built and how they are financed. These state regulators, however, often only consider the benefits of projects for residents of their states, the report said. The report titled Green Power Superhighways: Building a Path to Americas Clean Energy Future, details current inadequacies of the US electric transmission infrastructure and offers policy solutions to address them. In January 2009, EPE had presented its draft energy plan which spelt out an addition of over 36,000 km of new transmission lines during the 10-year period 2008-17. Most of the new transmission lines will be of the 600 kV and 500 kV rating, especially between the north and southeast regions. EPE forecasts that Brazil will have 122,782 km of transmission lines by 2017, a 42 per cent increase over the 86,395 km network built up to 2007. Investments in the new lines will reach BRL24.9 billion with BRL14.2 billion going to substations, including those built in border areas. (BRL1 = USD0.443) include eight transmission lines and six substations in the states of Bahia, Goias, Sao Paulo, Minas Gerais, Rio Grande do Sul, Alagoas and Rondonia. Aneel, Brazils power sector regulator, will be in charge of arranging tenders for these projects. The eight transmission lines are: 230 kV double-circuit Eunapolis-Teixeira de Freitas II in Bahia; 230 kV double-circuit Serra da Mesa-Niquelandia in Goias; 230 kV double-circuit Niquelandia-Barro Alto in Goias; 230 kV Trindade-Xavantes in Goias; 230 kV Trindade-Carajas in Goias; 500 kV Rio Verde Norte-Trindade in Goias; 230 kV Paulo Afonso III-Zebu in Alagoas; and 230 kV Porto Velho-Abuna in Rondonia. The substations include: 500 kV Trinidade in Goias; 440 kV Jandira in Sao Paulo; 440 kV Salto in Sao Paulo; 245 kV Santos Dumont in Minas Gerais; 345 kV Padre Fialho in Minas Gerais; and 230 kV Caxias 6 in Rio Grande do Sul.

Brazilian power sector to receive BRL181 billion investment in 2008-17


Meanwhile, the Brazilian electricity sector will receive BRL181 billion for investment in the ten-year period 2008 to 2017, according to the Energy Sector Expansion Plan (PDE) of EPE, the governments energy research company. Of the total, BRL142 billion will be allocated for energy generation and BRL39 billion for transmission. In the transmission sector, the construction of transmission lines will account for BRL 25 billion, while the construction of substations will be allocated BRL14 billion. A total of 36,387 km of transmission line will be built and 71,537 MVA of transformer capacity will be added during this period. The bulk of the investments in energy generation will be focused on projects where concessions have already been awarded. Investments in power generation projects will result in additional installed capacity of 54,000 MW during this period. EPE developed the plan based on an estimated average power demand growth in the country of 5.4 per cent annually during this period. Part of the funds will come from the Governments Growth Acceleration Programme PAC. The energy sector will get BRL295 billion from PAC by 2010. (BRL1 = USD0.443)

BNDES to fund Jirau hydro plant and transmission line


Brazils national development bank BNDES has approved BRL7.2 billion in financing for the 3.3 GW Jirau hydro plant in the Amazon Valley (more in Deal Watch).

LATIN AMERICA
Brazil to invest BRL3 billion in new transmission infrastructure during 2009-13
Brazil is expected to see an investment of over BRL3 billion in power transmission projects until 2013. About 2,500 km of lines and 22 substations are expected to be built over this period. This was stated in the Transmission Expansion Project (PET), prepared by the federal energy research company EPE. The auction for the new projects will begin in 2009. According to EPE, the Midwest region will get a greater part of the investment of about BRL1.027 billion, followed by the southeast with BRL998 million. The northeast will receive about BRL516 million, the northern region about BRL260 million and southern region about BRL245 million. Investments to link Acre, Mato Grosso and Rondonia states will total BRL1 billion in the next five years. Sao Paulo state will receive BRL442 million in investments for the construction of five substations. Five new transmission lines and three substations are scheduled to be built in Goias at an estimated BRL576 million.

Brazils Chesf to invest BRL1 billion in 2009


Chesf, a subsidiary of Brazils federal energy holding company Eletrobras, has announced its 2009 investment plan. In 2009, it plans to invest BRL1 billion, of which BRL279 million will be invested in generation, BRL622 million in transmission and BRL99 million in infrastructure. Some of Chesf s major projects targeted for 2009 include two substations for the Suape port complex in Parnambuco state at an estimated cost of BRL140 million. Another BRL600 million will be invested in the 3.3 GW Jirau hydro power project and a transmission line linking the project to the Sao Paulo state. Chesf is building these two projects in partnership with other companies. Chesf has 20 per cent equity stake in the ESBR consortium that won the auction to build and operate Jirau. In addition, the Madeira Transmissao consortium, in which Chesf has a 24.5 per cent stake, won the contract in November 2009 to build and operate the second 600 kV,

Brazil includes 14 transmission projects under privatisation programme


The government of Brazil has included 14 transmission projects in its National Privatisation Programme (PND). Projects

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2,375 km Coletora Porto VelhoAraraquara 2 transmission line to cross Rondonia, Mato Grosso, Goias, Minas Gerais and Sao Paulo states. (BRL1 = USD0.443) Programme (PND). In the central-western Goias state, transmission lines Serra da MesaNiquelandia, Niquelandia-Barro Alto,Trindade-Xavantes, TrindadeCarajas and Rio Verde Norte-Trindade, and the Trindade substation may be auctioned after the decree. In Brazils northeast, the transmission line Eunapolis-Teixeira de Freitas II in Bahia state and the Paulo Afonso III-Zebu line in Alagoas state will be auctioned. In Sao Paulo, the substations Jandira and Salto will be offered. In Minas Gerais state two more substations will be auctioned Padre Fialho and Santos Dumont. The substation Caxias 6 in Rio Grande do Sul will also be included in the list. Minas Gerais state. Furnas won the concession in October 2008. Part of the investment will be covered by a loan from the Brazilian National Social and Economic Development Bank (BNDES). Construction is scheduled to start end-2009 with the operation start-up scheduled for October 2011. (BRL1 = USD0.443)

Concessions for Rio Madeira transmission lines signed in Brazil


The concession contracts for the transmission lines to connect the hydro power plants on the Madeira river in Brazil, have been signed. The transmission lines have a combined length of 2,375 km and are expected to attract BRL7.2 billion in investment. Under the concession contracts, the lines should start operating between 36 and 50 months after the signing of the agreement. The concessions were offered in a government auction in endNovember 2008. Rio Madeira, comprising the 3,150 MW Santo Antonio and the 3,300 MW Jirau hydro power plants, is considered of utmost importance for electricity supply in the country after 2012. (BRL1 = USD0.443)

Brazils CTEEP gets installation licence for Mogi Mirim III-Jaguariuna transmission line
Sao Paulos environment secretariat has issued a 10-year installation licence for the Mogi Mirim III-Jaguariuna transmission line to be built by Companhia de Transmissao de Energia Eletrica Paulista(CTEEP). The proposed 138 kV line will cross Sao Paulos municipalities of Mogi Mirim, Santo Antonio de Posse, Holambra and Jaguariuna.

Brazils Eletrobras plans BRL7.8 billion investment for 2009


Brazilian federal power utility Eletrobras has announced its 2009 investment plan. The plan envisions an investment of BRL7.8 billion for 2009 with BRL6 billion assigned for generation and transmission and BRL1.8 billion for distribution projects for north Brazil. The 2009 investment target of BRL7.8 billion is double that of the BRL3.9 billion plan for 2008. Projects expected to receive funding this year are the 3.3 GW Jirau hydro plant, the 3.15 GW Santo Antonio hydro plant, the 1.35GW Angra III nuclear plant and the transmission lines linking these projects to the power grid. (BRL1 = USD0.443)

Chiles HidroAysen to open process for transmission line sharing


The HidroAysen joint venture developing the USD3.2 billion hydro power project in southern Chiles Aysen region will begin accepting letters of interest from other generators that want to use the 2,000 km transmission line that will link the project to the countrys central power grid. Transmission firm Transelec is developing the line separately from the generation project. It has reportedly defined most of the path for the line. Transelec has said it could submit the environment impact statement (EIS) for the line this year. HidroAysen, a 50:50 joint venture between the Chilean generators Endesa and Colbun, had previously said that the HVDC line would not be opened up to third parties. However, it was forced to change its stance by Chilean antitrust regulators.

Ternas Brazilian unit books BRL188 million net profit in 2008


Terna Participacoes, the Brazilian unit of Italian power grid operator Terna, booked a net profit of BRL188 million in 2008. Profits are 26.4 per cent lower than in 2007, mainly due to the higher charges for financing the acquisition of ETEO, finalised in May 2008. The net financial debt of Terna Participacoes has jumped to BRL1.37 billion from BRL 914 million. Net sales amounted to BRL625 million, up from BRL509 million in 2007. Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased to BRL531 million, against BRL442 million in 2007. (BRL1 = USD0.443)

Brazils Furnas to start work on two transmission lines


Brazils environmental council Consema has awarded a preliminary license to the federal utility Furnas Centrais Eletricasfor the 50-km, 345 kV Tijuco Preto-Itapeti-Nordeste transmission line in Sao Paulo state. This new project, which is part of the Federal Growth Acceleration Programme (PAC), is expected to attract investments of BRL75.4 million. The company now needs to procure an installation license from the Energy Ministry before it can start construction. Meanwhile, Furnas plans to invest BRL90 million in the construction of the Bom Despacho 3-Ouro Preto 2 transmission line, located in southeastern

Brazil proposes tender for transmission projects


The Brazilian National Privatisation Council (CND) has proposed an international tender for new transmission lines and electricity substations. The tender depends on a presidential decree, which will rule the inclusion of these projects in the National Privatisation

Fitch upbeat on Chilean power companies


Fitch has assigned an AA- rating to a series of bonds issued by Chilean power group Endesa Chile and BBB- to transmission company Transelecs IDRs. The outlooks are stable.

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Endesa Chile ratings reflect its geographic diversity, exposure to dry spells and growing demand. Fitch stated that the companys controversial 2.75GW HidroAysen project with Colbun eventually could impact its rating when it publishes project investment and financing details. Meanwhile, Transelec enjoys a low business-risk profile and adequate liquidity. Fitch expects the transmission company to fund its USD1.10 billion, five-year investment programme with a 50:50 combination of capital and new debt. five-month feasibility study for a transmission line through the Arequipa and Moquegua regions. The planned USD22 million, 220 kV, 100 km transmission line will connect the Montalvo substation to the Tia Maria substation and will be used to develop mining operations in the region. of 2010.

Mexican CFEs tenders attract many bidders


Twelve firms have purchased bidding rules for the Mexican state power company CFEs international tender for the construction of 400 kV transmission lines in the states of Campeche, Tabasco and Yucatan. The firms are: ABB Mexico; Iberdrola Ingenieria y Construccion (Iberinco);Techint; Elecnor; Abengoa Mxico; Control y Montajes Industrailes (CYMI); Proyectos y Desarrollos de Infraestructura; Prolec GE Internacional; Edemtec; Grupo Tres R Termotecnico;Cobra InstalacionesMexico; andSiemens Innovaciones. The project innvolves construction of 179 km of 400 kV transmission lines along with two substations (440 kV and 230 kV) and six feeders. Construction is scheduled to begin on April 20 and the project is expected to be completed within two years. CFEs other tender for transmission line construction in the states of Chiapas and Veracruz has attracted ten firms so far. The first project meeting has been held. Firms that bought bidding rules are: Grupo Tres R Termotecnica; ABB Mexico;Iberdrola Ingenieria y Construccion (Iberinco) Mexico; Abengoa Mexico; Edemtec; Siemens Innovaciones; Prolec GE International; Control y Montajes Industriales; Elecnor; andCobra InstalacionesMexico. This tender includes construction of nine transmission lines at the 400 kV, 230 kV and 115 kV levels with a total line length of 196 km. Works also include construction of six substations (400 kV, 230 kV and 115 kV) and 25 feeders. Bids are due on April 1. Construction is scheduled to be completed in two years.

Peru to soon launch tender for Ica transmission line


Perus Energy and Mines Ministry will issue a call for bids in the next few days for the Sur Medio transmission grid reinforcement project in Ica region. The project entails the construction of a 220 kV Independencia-Ica line, which will run 55 km parallel to the existing line. The project also involves expansion of substations in Ica and Independencia. The project will be carried out under public-private partnership.

CAF, EPR sign USD16.7 million loan contract for SIEPAC project
EPR has signed a USD16.7 million loan with the Andean Development Corporation (CAF) for its SIEPAC project (more in Deal Watch).

Guatemalas CNEE to start bidding procedure for transmission lines


Guatemala power sector regulator CNEE plans to start the bidding procedure for 1,374 km of transmission lines and substations which are part of the countrys 2008-18 power sector expansion plan. The project calls for an investment of USD422 million, with another USD82.1 million set aside for the Mexico interconnection line and SIEPAC grid. The project will include 144 km of lines for Metropacifico, 44 km for Hidraulico, 585 km for Atlantico, 55 km for Oriental and 146 km for Occidental.

Columbias government to start construction of Narino and Cauca transmission project in March 2009
Colombias Energy and Mining Ministry will start construction on the transmission project to interconnect nine municipalities in the departments of Narino and Cauca in March. This will be the largest project handled by the federal government in recent years. It will be undertaken by ISA (the state transmission company) at an estimated cost of COP210 billion. The project, which is scheduled to be completed in 2011, will connect Popayan with Guapi, Timbiqui, Lopez de Micay, Iscuande, Olaya Herrera, El Charco, La Tola, Francisco Pizarro and Mosquera. (COP1 = USD0.0003854)

Peru announces new regulations for transmission system


The Energy and Mines Ministry of Peru has announced new regulations to attract investments for SCT, the complementary transmission system of the country. The state will now sign long-term concession agreements (up to 30 years, excluding construction) to build and operate infrastructure under SCT. MEM or investment promotion agency Proinversion will lead the bidding process.

Mexico signs agreement with California on green electricity trade


Meanwhile, CFE has signed an agreement with the Los Angeles Department of Water & Power to sell electricity generated from renewable energy sources to the Southern California city. The electricity will be generated at the Cerro Prieto geothermal power plant in Mexicali, the capital of Baja California state. CFE expects electricity exports, including those to the US, Guatemala and Belize, to total USD100 million by the end

Mexico-Guatemala interconnection to be complete by end 2009


CFE has announced that the MexicoGuatemala interconnection will now be completed by the end of 2009. The interconnector was earlier scheduled to be energised sometime in April 2009. CFE announced that the delay is because of problems in getting right-of-

Abengoa receives concession for feasibility study for Peruvian link


Spains Abengoa has received a temporary concession from the Energy and Mines Ministry of Peru to conduct a
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way for the Guatemalan segment of the line. The project will now be completed as soon as that is done. The Mexican segment of the line between Tapachula Potencia substation and the border is complete.

Ten Chinese regions announce grid investment plans


In more news from China, eight Chinese regions have revealed their power grid investment plans for the year 2009. Northern Chinas Inner Mongolia Autonomous Region plans to invest about CNY10 billion in both 2009 and 2010. Northeastern Chinas Liaoning Province will invest about CNY20 billion in its local power grid in 2009. Three other provinces Fujian, Gansu and Guizhou will invest CNY12 billion, CNY10 billion and CNY10.4 billion respectively on power grid upgrades in 2009. Jiangxi province and Shenzen province are planning to invest CNY5.92 billion and CNY7.29 billion respectively. Chinas Shanxi government will invest CNY22 billion in the power sector during 2009 which includes CNY12 billion in power generation and CNY10 billion for power grid construction. Liaoning Provincial Power Supply Company has decided to spend CNY20 billion in power grid construction during 2009. The amount will be spent on building about 109 projects which are 66 kV and above, 7,000 km of AC power lines and several high-voltage transformers. The company also plans to begin construction on the second 500 kV double-circuit power transmission line between Dalian and Central Liaoning, which will be part of a 500 kV ring in Central-South Liaoning. Following suit, Xinjiang region in China, a fast-growing wind and thermal power generation base, plans to invest CNY11.5 billion in power grid construction in 2009. Included in the plan is a 750 kV project to be completed by 2010. The power supply company of Xinjiang also plans to strengthen the 220 kV power grids and rural power grids. Construction is scheduled to begin this year on 70 power grid projects of 110 kV and above and 1,830 km of power lines. In addition, 1,711 km lines will start operations. (CNY1 = USD0.146)

ultra-high voltage (UHV) transmission lines by 2012.

power

ASIA PACIFIC
Chinas power investments likely to hit CNY650 billion in 2009
China Electricity Council (CEC) predicts that Chinas power industry will see an investment of about CNY650 billion during 2009 as a result of the governments CNY4 trillion economic stimulus package. About CNY300 billion is expected to be spent on power generation and CNY350 billion on grid construction. About CNY576.3 billion was invested in Chinas electricity sector in 2008, which comprised CNY287.9 billion on power generation and CNY288.5 billion on the power grid. This was the first time in the history of Chinas electric power sector that investment in power grid construction surpassed that in power generation. (CNY1 = USD0.146)

By 2012, the length of UHV lines are expected to be 17,600 km, three times the current length in use and under construction by the grid. The company plans to invest about CNY100 billion over the next three or four years on UHV lines. In January, the company began operations of Chinas first UHV line spanning 640 km from northern Shanxi province to central Hubei province. The company has reportedly begun construction of two more UHV directcurrent lines, linking Sichuan in southwestern China to Jiangsu and Shanghai in the east, with each line extending over 2,000 km and costing CNY40 billion in total. (CYN1 = USD0.146)

Chinas electricity consumption growth falls to 8-year low


China has announced massive grid expansion plans, but it also has been affected by the global economic slowdown. According to the China Electricity Council (CEC), the global financial crisis has led to plummeting power demand in China as enterprises have scaled back output and electricity consumption. Power consumption grew 5.23 per cent in 2008, 9.57 percentage points lower than the previous year and the slowest in eight years, according to the CEC. Annual power consumption is likely grow at only 5 per cent in 2009. Electricity consumption is likely to resume growth in the third quarter of 2009, fueled by recovery in the export-oriented eastern and the southern coastal areas.

State Grid Corporation of China to invest CNY31 billion in 2009


TheStateGridCorpofChina(SGCC)will invest CNY31.3 billion on power grid upgradation in 2009, a 30 per cent increase over 2008. Of the CNY31.3 billion, CNY13.9 billion will be spent on construction of 750 kV power grids in Northwest China which will help connect major power grids in that region with local grids in the Xinjiang Uygur and Tibet autonomous regions. Construction of 11,015 km of 110 kV and above transmission lines will also begin, while 8,843 km of power lines will begin operations within the year. During the year, construction and upgradation of rural and urban power grids will also be under taken by the company. The company plans to complete 27 substations of 750 kV capacity in northwest China by the end of 2010. (CNY1 = USD0.146)

Hainan to Guangdong undersea cable project to start operations in June 2009


The undersea cable project to connect the power grid of Hainan to the China Southern Power Grids (CSPG) mainland power grid in Guangdong province is scheduled to begin operations in June 2009. The submarine cable is 34 km in length and runs under the Qiongzhou Strait. The project was started in February 2007. Hainan Power Grid (HNPG), a subsidiary of CSPG, has invested CNY1.83 billion in the project, which is

Chinas State Grid plans to triple UHV lines by 2012


In a new development, Chinas biggest power grid operator, the State Grid Corporation of China (SGCC), has announced that it is targeting to triple its

Global Transmission Report | March 2009

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75 per cent of the total cost. The final phase of construction will begin in March and be complete by June 2009. (CNY1 = USD0.146) South Asia. Known as Central Asia South Asia 1000 (CASA 1000), the transmission project has been conceptualised by the World Bank and aims to carry over 1,000 MW of electricity from Tajikistan and the Kyrgyz Republic to Pakistan and Afghanistan. The 500 kV line is estimated at 750 km in length. It is expected to cost over USD610 million and is scheduled to be complete in 2012.

Indias KEC International wins orders worth INR3.65 billion


KEC International Limited has won orders worth INR3.65 billion from three state-level power companies in the country (more in Company News).

Yunnan-Guangdong HVDC line to begin operations this year


China Southern Power Grid Corporation (CSG) is expected to energise a new ultra high voltage (UHV) direct current (DC) power line linking Yunnan and Guangdong provinces this year. The 800 kV power line will transmit electricity generated at hydro power plants in northwestern Yunnan to help meet the growing power demand in Guangdong. CSG started construction on the project in 2006 and has already built converter stations in Yunnans Chuxiong City and Guangzhou City in Guangdong. CSG is planning to build an additional UHV DC power line from Yunnan to Guangdong and another from Yunnan to the Guangxi Zhuang Autonomous Region.

KEC wins two orders from Indias PGCIL


Meanwhile, KEC has won two more orders worth INR2.27 billion from Power Grid Corporation of India Limited (more in Company News).

Indias government against service tax waiver on transmission


The Power Ministry in India has turned down the power sectors request for a service tax waiver on wheeling or transmission of power. This move could jeopardise PGCILs plans to lay a national transmission grid by 2012, as well as other transmission projects, either in the form of a joint venture or through private participation. PGCIL had planned to invest INR550 billion in these transmission projects. The imposition of a tax on electric utilities is also expected to slow down electricity reforms which have yet to take place in many state electricity boards. Currently, wheeling of power is not a taxable service under the Service Tax Act. Legally, these taxes are levied only on outsourced activities. All transmission companies including PGCIL run the systems on their own (not through outsourcing), and levy transmission charges accordingly. However, the demand for the levying a service tax on transmission is being made by the Revenue Department and service tax authorities by interpreting the activity as a business auxiliary service or business support service. Indian tax authorities recently issued a service tax notice to PGCIL for over INR4.13 billion for the period May 2006 to September 2008. (INR1 = USD0.019)

Indias PGCIL may form joint-venture with Kalpataru Power Transmission


Power Grid Corporation of India Limited (PGCIL) is reportedly in talks with Kalpataru Power Transmission Limited, one of Indias leading transmission line and substation construction companies, to form a joint venture for securing overseas contracts. PGCIL is also in talks with Jyoti Structures Limited for the proposed joint venture. Through the joint ventures, PGCIL wants to establish a foreign presence and enter the markets in Africa, Central Asia, and West Asia.

PGCIL board approves investments worth INR114 billion


The board of Power Grid Corporation of India Limited has approved investments worth over INR111.3 billion for an interregional transmission project the Northeast to North/West interconnector project. The board also gave the approval for investments worth over INR2.76 billion for implementation of a transmission system associated with Korba III 500 MW generation project in Chhattisgarh and an unspecified amount for another project in southern India. (INR1 = USD0.019)

Indias JSW Energy to enter electricity transmission sector


JSW Energy, the power arm of the JSW Group, is targeting a transmission line network of over 1,000 circuit km in the next three years(more in Company News).

AREVA T&D to partner BGR Energy


BGR Energy has selected AREVA T&D as the preferred partner for supply of a gas insulated substation (more in Company News).

AREVA T&D awarded EUR60 million HVDC contract in China


AREVA T&D has signed a contract worth around EUR60 million (more in Company News).

Philippines Samar transmission project to be pushed ahead


The new private operator of the Philippine power grid National Grid Corporation of the Philippines (NGCP) has reportedly committed to implement the long-delayed 65 km, 138 kV WrightCalbayog transmission line project in Samar Island in the eastern Visayas region. The project also involves construction of a new substation at Calbayog and expansion of the Wright substation. The

World Bank favours PGCIL for the Central Asia regional power project
The World Bank has reportedly given its approval for Power Grid Corporation of India Limiteds (PGCIL) participation in a regional transmission project in Central/

Areva T&D India bags order from Lanco Infratech


Areva T&D India Limited has bagged its first ever private order from Lanco Infratech Limited for supplying equipment for a 765 kV substation in Uttar Pradesh (more in Company News).

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project will improve reliability of power supply to Samar. The project was originally estimated to cost over PHP866 billion. The National Economic and Development Authority (NEDA) of the Philippines expects power rates in the area to remain the same after implementation of the project. Project costs can be recovered in the next 10 years. (PHP1 = USD 0.02)

Malaysias Tenaga to invite bids for undersea power cable


Malaysias Tenaga Nasional Bhd plans to fast-track its 700 km undersea power cable project and invite construction tenders by end-2009. The project aims to transport electricity from Sarawak on Borneo Island to peninsular Malaysia. The project, estimated to cost MYR15 billion, is linked to the MYR6 billion, 2,400 MW Bakun hydro-power project in Sarawak. The project would be operational by 2015 if construction begins by next year. (MYR1 = USD0.28)

outlook for the sector continues to be negative, as it has been for the last few years. Regulatory decisions made in 2008 were broadly negative. A number of regulatory decisions announced in 2008 will lead to tariff adjustments which are unfavourable to some regulated entities, resulting in deterioration of their credit metrics. In the long term, however, the credit rating for the sector outlook is more positive, with the Commerce Amendment Act leading to more transparency and certainty of earnings.

Philippines new private operator granted permission for transmission line upgrade
Meanwhile, the Energy Regulatory Commission (ERC) of the Philippines has given approval to the newly instated private transmission grid operator National Grid Corporation of the Philippines (NGCP) to carry out PHP700 million transmission line upgradation projects in the Visayas. These will be among the first of NGCPs projects after it took over operations and maintenance of TransCo in January 2009. The ERC has allowed NGCP to construct the 69 kV Sta. RitaQuinapundan transmission line estimated to cost PHP449.94 million. This project is expected to be completed next year and will loop with the existing 69 kV Wright-Taft-BoronganQuinapundan line that supplies power to the eastern part of Samar. The ERC has also allowed NGCP to implement the Sibalom-Culasi transmission project worth PHP260.895 million. The project aims to loop with the existing 69 kV line from Panitan to Culasi Load-end substation line and with the line from the Sta. Barbara to Sibalom Load-end substation. The ERC, however, pointed out that these two projects will not be automatically included in the maximum allowable revenue for NGCP for the current regulatory period. (PHP1 = USD0.02)

New Zealands Transpower to invest NZD50 million in power grid upgradation


Meanwhile, New Zealands power network operator Transpower has announced a NZD50 million upgrade programme to maintain and strengthen the countrys national grid. The programme is expected to bring forward required maintenance work planned for the next ten years. Work will focus on tower maintenance, civil works and substation maintenance. The work will be carried out predominantly in rural areas of New Zealand. The work will be undertaken as part of Transpowers maintenance capital, which is subject to oversight by the Commerce Commission. The maintenance work is separate from Transpower s capital expenditure programme. Contracts for the upgradation work are expected to be offered beginning April 2009. (NZD1 = USD0.52)

Fitch views Australian utility sector as stable


Fitch Ratings has said that the credit outlook for the Australian utility sector in 2009 is broadly stable but negative influences are growing. The agency has released a report Australian Power & Utilities 2009: The Haves and the Havenots which notes a number of negative factors likely to affect the power and utilities sector in 2009. These include: continued high wholesale electricity prices which benefit generators but place pressure on retail margins; the Australian Energy Regulators (AER) negative draftweighted average cost of capital (WACC) review for electricity distribution and transmission companies; high capex requirements in regulated businesses; the potential material effect on coal-fired generation from the governments Carbon Pollution Reduction Scheme; and the ongoing restriction of capital markets. Highly geared regulated businesses in the sector may come under pressure as a result of continuing high capital requirements and on the back of a negative outcome from the AERs WACC review, notes Fitch. The market will be watching the AER closely, with the hope for some upside in the final determination.

New Zealand to approve Wairakei Ring grid investment


Meanwhile, New Zealands Electricity Commission (EC) is expected to approve Transpowers NZD141 million proposal to construct a new double-circuit 220 kV line in the central part of North Island. In the next few years, a number of geothermal power stations are expected to come up in the area of Lake Taupo, and the proposed transmission project will help evacuate power from these stations into the national grid. Transpower had submitted the proposal to the EC in December 2008 and hopes to complete the project by mid2013.
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Siemens energises substation in the Philippines


Siemens has energised the 300MVA power transformer and substation equipment in a new 230 kV substation in Amadeo, Cavite in the Philippines (more in Company News).

Negative outlook for New Zealands power sector


At the same time, Fitch Ratings has warned that the credit quality of New Zealands power and utility sector will be harmed in 2009 because of price controls, sizeable capital expenditure on transmission projects and tighter economic conditions. Fitchs credit

Global Transmission Report | March 2009

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(NZD1 = USD0.52) and the UK added 836 MW to reach 3,241 MW. Austria and Greece have a little under 1,000 MW. Poland now has 472 MW, Hungary doubled its capacity to 127 MW and Bulgaria tripled it to 158 MW. Outside the EU, Turkey tripled its wind energy capacity from 147 MW to 433 MW. (EUR1 = USD1.26) Its preliminary 2008 EBITDA was EUR985 million. Revenue increased by 3 per cent to EUR1.39 billion. Net debt at the end of December 2008 was EUR3.37 billion, higher than the EUR3.10 billion figure recorded three months earlier. Terna intends to invest EUR3.4 billion under its 2009-13 business plan. The business blueprint includes a margin target for EBITDA of 77 per cent at the end of the plan period and a growth in revenues of around 5 per cent per year. Ternas regulated asset base (RAB) is expected to rise to about EUR10 billion at the end of the plan period, from EUR6.3 billion, due to investments and the acquisition of Enels high-voltage network. The company hopes the purchase of the Enel high-voltage network will be completed by summer 2009. The grid operator has also reached an agreement with its controlling shareholder, Cassa Depositi e Prestiti SpA (CDP), for a loan of up to EUR500 million. The loan, which will be at the Euribor rate plus CDPs borrowing costs plus a further 70 basis points, will be for a tenyear investment programme. (EUR1 = USD1.26)

Koreas KEPCO selects local company to install undersea cables


The state-run Korea Electric Power Corporation (KEPCO) has picked a local cable company LS Cable to install new undersea power cables (more in Company News).

EUR400 million EIB loan for Frances RTE


The European Investment Bank (EIB) has announced it will lend EUR400 million to RTE, the French power grid operator (more in Deal Watch).

Tajikistan asks Chinas TBEA to hasten construction on south-north power grid


Tajikistans President has asked Chinese firm TBEA to hasten construction work on the 350 km, 500 kV transmission line which will link the power systems of the southern and northern regions of Tajikistan. The south-north power grid project was started in September 2006 and was scheduled to be completed by 2010. However, TBEA has been asked to complete the project by end-2009. Once completed, the south-north power grid will be able to transmit up to 8 billion kWh of electrical power per year.

Italian joint venture to set up two electricity interconnectors with Slovenia


Three Italian energy companies Enel, Acegas-Aps and Tei, have established a joint venture to set up two electricity interconnectors with Slovenia. The three partners will have equal equity stakes in the joint venture company called Adria Link. The new company will build two underground transmission lines with a net transfer capacity of about 250 MW. The lines will connect Zaule substation in the Italian province of Trieste with Dekani station in Slovenia; and Redipuglia station in the Italian province of Gorizia with Vrtojba station in Slovenia. The Adria Link project will entail an estimated investment of about EUR31 million. The underground lines have already received necessary permits from the Slovenia Energy Ministry. On the Italian front, procedures for issuing construction and operation permits are reportedly at an advanced stage. Enel is Italys largest electricity utility. Acegas-Aps is a local utility operator in Italys north-east region. Tei is an electricity generation and trading company. (EUR1 = USD1.26)

EUROPE
Wind accounts for 43 per cent of new EU power installation in 2008
According to the European Wind Energy Association (EWEA), over two-fifths of all new power generation capacity in the European Union (EU) was from wind in 2008. A total of 19,651 MW of new generation capacity was constructed in the EU in 2008. Of this, 8,484 MW (43%) was contributed by wind power; 6,932 MW (35%) came from gas-fired plants; 2,495 MW (13%) from oil; 762 MW (4%) from coal and the remaining 473 MW (2%) from hydro power. About 357 MW of offshore wind capacity was added in 2008 to reach a total of 1,471 MW. Nearly 2.3 per cent of the total installed EU capacity is now accounted for by offshore wind plants. At the end of 2008, 64,949 MW of wind power was in operation, representing an increase of 15 per cent over 2007. Germany currently leads in windbased capacity with 1,665 MW, followed by Spain with 1,609 MW. In 2008, Italy added 1,010 MW to reach 3,736 MW. France added 950 MW to reach 3,404 MW

Terna assesses interconnection feasibility with Balkans and Tunisia


Meanwhile, Terna is studying crossborder transmission projects to provide interconnection between Italy and the Balkans and Tunisia. Terna is also making progress on other interconnectors. It conducted feasibility studies for interconnection with Montenegro in May 2008 and signed an accord with Montenegros EPCG utility in October 2008. The implementation agreement with Montenegro was signed in December 2008. Terna has also completed the feasibility study for Croatian interconnection. The regulatory, technical and economic analyses are under process. It is also considering participating in the construction of a submarine line with Albania. The operator has already activated 16 lines with EU countries on Italys northern borders, four with France, nine with Switzerland, two with Slovenia and one with Austria.

Italys Terna announces 2008 results and 2009-13 plans


Italian power grid operator Terna SpA has announced a marginal increase of only 1 per cent year-on-year in its preliminary 2008 earnings before interest, taxes, depreciation and amortisation (EBITDA).

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Global Transmission Report | March 2009

News Italys Enel to cooperate with Albania on power projects


Italys biggest power company Enel SpA has set up Enel Albania Sh.p.k. in partnership with the Confederation of Albanian Industries (Konfindustria) to build an 800 MW coal fired power plant. The partnership will also construct a 400 kV aerial transmission line to link up the power plant to the Albanian grid and a 500 kV line undersea line to connect to the Italian grid. Enel has said that it would cooperate with qualified Albanian firms to develop these projects.

RWE to reorganise its ultra-high voltage grid


RWE AG, one of the four transmission system owners in Germany, plans to separate the operations of its transmission grid into a separate company. A new company, called RWE Transportnetz Strom, will be the independent transmission operator (ITO) of RWEs power grid. The required changes for this restructuring will be made in the first half of 2009. RWE Transportnetz Strom will continue to be located in Dortmund.

Spains REE to invest EUR4 billion in 200913


Spanish grid operator REE plans to invest EUR4 billion between 2009 and 2013, which it says will primarily be spent on developing and strengthening Spains high voltage network. The company said it would also aim to boost interconnection capacity with France and Portugal, fund new links with the Balearics and look to further integrate nascent renewable generation into the grid. REE posted a 17.7 per cent increase in year-on-year net income for 2008, up to EUR286 million. This was achieved driven primarily by new assets, which had been brought onstream in 2007. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 6.8 per cent to EUR771.6 million. In 2008, REE invested EUR635.1 million, of which EUR613.7 million was channelled into improving grid infrastructure. (EUR1 = USD1.26)

New TSO centre for integrated grid information begins operations


Coreso (Coordination of Electricity System Operators), a new regional coordination centre set up by French grid operator RTE and its Belgian counterpart Elia, has begun operations in Brussels. British TSO National Grid and German TSO Vattengall Europe Transmission are expected to soon join the new entity. Coreso will provide grid forecasts and support real-time monitoring of electricity flows on the grids of the Central Western European region.During its first phase, the centrewill providenational control centres every afternoon with integrated forecastsforthenextday.FromJuly2009, the new body will provide real-time information 24 hours a day. The cost of the centre is estimated at EUR1 million, with annual operational costs of around EUR4 million. (EUR1 = USD1.26)

TenneT proposes a 380 kV transmission line


The Dutch TSO TenneT is currently working with the government authorities on a project called 380 kV South-West transmission line. The project involves the construction of a new 380 kV interconnection between Borssele substation and the national grid in the south-west of the Netherlands. The company has presented the initial memorandum for the projects Environmental Impact Assessment to municipal and provincial officials. The final version of the memorandum will be submitted to the Minister of Economic Affairs for adoption in mid-March. The memorandum is scheduled for publication in late March, at which time it will also be made available for public inspection.

Swedens Svenska Kraftnat to invest SEK7.78 billion in 2010-12


Swedens transmission system operator, Svenska Kraftnat, is planning to invest around SEK7.78 billion in the countrys national electricity grid in 2010-12, compared to SEK4.57 billion budgeted for the three-year period 2009-2011. The company has also decided to seek the federal governments approval for an increased investment of SEK555 million for 2009. The TSO now wants to invest in SEK1.75 billion in 2009 instead of the SEK1.2 billion approved by the Parliament in December 2008. The investment plan acknowledges the direct current connection to the Baltic countries as a priority project. The EU Commission has also prioritised the development of this project on its agenda. However, what is holding up the project is a decision on where the cable should land on the Baltic side in Lithuania or Latvia. (SEK1 = USD0.11)

Italys Industry Ministry approves SicilyCalabria transmission line


Italys Industry Ministry has approved construction of a 43 km transmission line linking the island of Sicily with Calabria. The Environment Ministry and the Sicily and Calabria regions have also given approval. Italian power grid company Terna SpA will start construction of the transmission line in June 2009. The line will link Villafranca with Scilla, and is part of the yet-to-be approved SorgenteRizziconi interconnector between Sicily and Calabria. This project aims to boost links between the island and the mainland. The European Commission has earmarked EUR100 million for the project. (EUR1 = USD1.26)

German Chancellor favours private power grid operator


Germanys Chancellor Angela Merkel has said she favours the creation of a private German power grid operator. The Environment Ministry has demanded that the state maintain at least a 25 per cent stake in the grid operator. Two of the four German high-voltage grids are for sale: Swedish utility Vattenfall is in the process of selling its transmission grid in eastern Germany while E.ON, the countrys largest utility, has to sell its grid in central Germany within two years.

Belgian Elia System announces 2008 financial results


Belgian electricity grid operator Elia System Operator SA has announced its 2008 financial results. Its net profit was
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EUR103.1 million, a 32.9 per cent increase over 2007; and total revenues were EUR757.3 million, a 3.5 per cent increase over 2007. The companys operating profit was EUR237.9 million in 2008, a 10.8 per cent increase over 2007. (EUR1 = USD1.26) The increase is part of the ongoing revision of its 2009-14 investment plan for electricity transmission and natural gas transportation, storage and regasification. Earlier, the investment plan stood at a total of around EUR1.76 billion with EUR313 million for 2009. Meanwhile, RENs net profits are around EUR135.7 million for 2009, a 7 per cent decline from the previous year. Its revenue is estimated to be 15 per cent lower at EUR 472.4 million. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) are projected to rise by 1 per cent to EUR315 million. (EUR1 = USD1.26)

Fingrid announces 2008 financial results


Meanwhile, Fingrid has announced its 2008 financial results. It earned revenues of EUR382 million in 2008, up from EUR335 million in 2007. Grid service revenue decreased slightly despite the 4.5 per cent tariff increase at the beginning of the financial year. This was mainly due to the decline in electricity consumption in 2008. Fingrids gross capital expenditure in 2008 was EUR88 million. Its operating profit was EUR83 million during 2008. (EUR1 = USD1.26)

Statnett announces 2008 financial results


Norways Statnett Group has announced its 2008 financial results. Its profit after tax was NOK1.517 million for 2008, an increase of NOK866 million over 2007; and revenues were NOK4,256 million, an increase of NOK841 million from 2007. The improved results are due to the sale of a significant share of Nord Pool ASAs activities and higher revenues from power transmission, especially with the operationalisation of the NorNed cable between Norway and the Netherlands. Statnett recorded operating costs of NOK 3,062 million in 2008, an increase of NOK 672 million over 2007. The rise in operating costs was mainly due to increased costs of power transmission losses, and repair works at Statnetts two cable connections across the Oslo Fjord. (NOK1 = USD0.147)

REN affirmed at A+/A-1, outlook stable


Standard & Poors has affirmed its A+ long-term and A-1 short-term corporate ratings on REN. The outlook is stable. The affirmation reflects Standard & Poors expectations that REN will continue to restructure its capital and successfully refinance its short-term debt. The ratings reflect the groups strong and predictable cash flows generated by its regulated operations. However, these strengths are partially offset by a weak debt maturity profile and modest debt protection measures. The groups liquidity is weak, and refinancing risk in the last quarter of 2009 is a concern, despite lengthening of the debt maturity profile that resulted from the long-term funding obtained in the last quarter of 2008 (EUR500 million in bonds maturing in 2013 and EUR250 million from the European Investment Bank).

AREVA T&D chosen to deliver smarter grid management solution to Frances RTE
French Transmission System Operator RTE has chosen AREVA T&D to deliver a smarter grid management solution (more in Company News).

Swiss NOK unbundles power grid business


Swiss power company Nordostschweizerische Kraftwerke (NOK) part of the AXPO Group has established a new grid subsidiary. The move is in response to the liberalisation of the countrys power market this year. According to the new rules, power producers are required to unbundle their network business. The setting up of a separate entity is the first step in a process that will see all existing grid subsidiaries merge with the national transmission system operator (TSO), Swissgrid, by the start of 2013. Its major shareholders are power companies Atel, BKW, CKW, EGL, EOS, EWZ, NOK and RE.

Austrias Verbund announces 2008 financial results


Austrias Verbund has announced its 2008 financial results. Its sales increased by 23.2 per cent year-on-year to EUR3.75 billion. Its profits stood at EUR686.60 million, a 18.6 per cent increase. According to Verbund, the average contract price amounted to EUR63.34 per MWh in 2008 compared to EUR53.15 per MWh the previous year. The EBIT margin increased from 30.2 per cent to 30.4 per cent. Operating cash flow increased from EUR807.6 million to EUR934.2 million. The main reason for its improved performance despite the global economic scenario was higher power prices in European electricity markets. (EUR1 = USD1.26)

Finlands TSO plans 400 kV switching substation for off-shore power


Finnish electricity transmission system operator Fingrid plans to set up a new 400 kV switching substation in the area of Yli-Ii and Yli-Olhava for electricity from off-shore power units. According to Fingrid, companies planning large wind farms should commit to building of a joint electricity transmission system in the Bothnian Bay area in Finland. By 2020, Fingrid plans to add another 2,000 MW of decentralised wind power capacity to the national grid. Currently, the Finnish national grid can accommodate around 1,000 MW of wind power production in the Bothnian Bay area.

AREVA T&D takes over UK maintenance firm


AREVA T&D has taken over Powermann, a Dorset-based maintenance firm (more in Company News).

Portugals REN to increase investment by 60 per cent


Portuguese electricity grid operator REN plans to increase investment this year by around 60 per cent to EUR500 million.
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Vattenfall eyes Scottish & Southern Energy


Scottish and Southern Energy (SSE), the UKs second biggest power firm, is reportedly being seen as a potential

Global Transmission Report | March 2009

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takeover target by Swedish power giant Vattenfall. SSE and Stockholm-based Vattenfall are reported to be involved in USD16.2 billion takeover talks. The talks are believed to be at an early stage, however, and any takeover is understood to depend on the outcome of an auction of Dutch energy firm Nuon. Vattenfall is currently bidding for Nuon and the SSE talks are understood to be a fall-back position if the bid is unsuccessful. Vattenfall is believed to have a large cash fund for acquisitions and seeking to move into the UK market for some time. SSE is involved in generation, transmission and distribution of energy. It owns around 10,500 MW of electricity generation capacity, including its share of joint ventures and associates. This makes it the second largest electricity generator across the UK and Ireland. It supplies electricity and gas to some 9 million customers within the UK. In addition, SSE is responsible for around 127,000 km of transmission and distribution lines in the UK. sensible solution in the long run. The execution of the three projects would mean a great leap forward in the establishment of a shared electricity grid in the area of the Baltic Sea, said Fingrid. The schedule for new interconnectors will be finalised by end-May 2009.

FGC begins construction of substation, power line in Dagestan


Trunk Power Grids of the South, a subsidiary of Russias FGC, has started constructing the 330-kV Artem substation and a 330-kV transmission line in the constituent republic of Dagestan. Investments in the project are projected to exceed RUB8 billion. Construction is expected to finish by the end of 2010. The 275-km Mozdok-Artem power transmission line will link the new substation with the 330 kV Mozdok substation in the constituent republic of North Ossetia-Alania. (RUB1 = USD0.028)

Russian grid companies unlikely to shift to RAB this year, need state aid
Russias power grid companies, including the Federal Grid Company (FGC), do not expect to switch this year to a new pricing system needed to boost profits. At least some regions would have to delay the shift to regulated asset base (RAB) pricing until 2010. As part of Russias electricity sector reforms, all regional grid companies were to move by the end of 2010 to the new pricing system. The rollover to the new regime is being delayed due to the ongoing global economic crisis. With the delay in the shift to the new pricing regime, the grid companies are also looking for more state funding. In most cases, this should come in the form of loans. FGC still expects to stay out of the red this year but will need to borrow RUB1520 billion, partly in the form of bonds. The company is targeting a net profit of RUB5 billion in 2009 but is yet to release the financial results for 2008. It plans to issue infrastructure bonds to raise money for its funding plans. (RUB1 = USD0.028)

Russias IES-EnergoStroy Engineering to construct 220 kV line for FGC


Russias IES-EnergoStroyEngineering, a joint stock company, has been selected by the Federal Grid Company (FGC) as general contractor for constructing a 345 km, 220 kV double-circuit line from the 220 kV Priangarskaya substation to the 220/110 kV Razdolinskaya substation. The project includes reconstruction of the Razdolinskaya substation in the Boguchansk region of Krasnoyarskiy Krai. It will help transmit power from the 3,000 MW Boguchanskaya hydro power plant. The project is scheduled to be completed by December 30, 2010.

Finland-Estonia and Lithuania-Poland are preferred links for Baltic region


The transmission system operators (TSO) of the Baltic Sea area countries, including Poland, Sweden and Finland, believe that building two interconnectors Estlink 2 between Finland-Estonia and LithuaniaPoland is the preferred solution for developing a shared electricity network in the region. The conclusion stemmed from a common transmission grid plan, reviewing the linking of the Baltic countries to electricity markets in the Nordic countries and Continental Europe. According to the Finnish grid operator, analysis was done for several alternative scenarios, each describing a possible supply and consumption situation in the Baltic Sea region in 2025. The construction of only the LithuaniaPoland link was rated the second-best scenario. The construction of both the Lithuania-Poland and Sweden-Baltic countries interconnections was deemed the third most viable option, while the construction of all three interconnections came in fourth. However, Fingrid feels that constructing all three proposed interconnections would the most

Russias IDGC Northwest to invest RUB6.5billion to upgrade 220 kV substation


Russias Inter-regional Distribution Grid Company (IDGC) Northwest, which operates power transmission networks in northwest Russia, plans to invest RUB6.5 billion by 2010 to upgrade the 220 kV Chesmenskaya substation in St. Petersburg. After upgradation, the substations installed capacity is expected to increase to 643 MVA from the existing 518 MVA. (RUB1 = USD 0.027)

FGC to complete Northern Transit project by 2012


Transmission Grids of North-West, a branch of Russias national power grid operator Federal Grid Company (FGC), plans to complete its Northern Transit project by 2012. The RUR17.4 billion project involves connecting power grid facilities of the Kola Peninsula and the Republic of Karelia. The project was launched in 2004. Initial plans envisioned completing the project in 2010, while total investment was estimated at RUR14 billion. However, with the delay in commissioning the project, estimated costs have increased. (RUB1 = USD0.028)

Russia to resume electricity exports to China in 2009


Russian Joint Stock Company Unified Energy System of Russia (RAO UESR) will export over 1 billion kWh of

Global Transmission Report | March 2009

21

News
electricity to China by the end of 2009. The electricity exports to China will begin from March 1, 2009 under contracts previously signed with State Grid Corporation of China (SGCC). China had suspended the electricity imports from Russia in 2007 after the latter asked for higher prices. The Georgia-Turkey interconnection is part of the 500-kV Black Sea Transmission project. This project is aimed at strengthening Georgias internal power grid and enhance trade between Georgia and the countries of the South Caucasus and other countries within the electric transmission network of the Black Sea, including Turkey. The Georgia-Turkey interconnection project involves construction of a new 500/400/220-kV substation in Akhaltsikhe (at the border between Georgia and Turkey) and a 20-km, 400 kV transmission line from Akhaltsikhe to the Turkish border. considerably reduce the cost of power generation. Once the grid is operational, Kuwait and Saudi Arabia would each receive an additional 1,200 MW capacity, the UAE would receive 900 MW, Qatar 750 MW, Bahrain 600 MW and Oman 450 MW.

Russia to export electricity to Turkey for 15 years


Meanwhile, Russia and Turkey are discussing the possibility of signing a long-term contract on electricity exports to Turkey. The value of the contract on power supply from Russia to Turkey for 15 years is estimated at USD60 billion. This was revealed by the Russian Energy Minister in a press conference.

ABB wins USD63 million order to upgrade 15 substations in Saudi Arabia


The Saudi Electricity Company has awarded ABB Group an order worth USD63 million to upgrade 15 power substations in Saudi Arabia (more in Company News).

Black & Veatch wins the contract for environment assessment of Black Sea project
Meanwhile, Black & Veatch has won the tender for assessment of environmental impact of the construction of the Black Sea transmission project in Georgia (more in Company News).

Qatari and Spanish companies set up EPC joint venture


PAT Engineering Enterprises, a Qatarbased company, and VIMAC SA, a Spanish power and energy firm, have signed an agreement to set up a joint venture called the PAT-Vimac Energy Company (more in Company News).

Albania and Kosovo sign agreement for cross-border transmission line


Albanian Power Transmission System Operator (APTSO) and Kosovo Market and Transmission System Operator (KMTSO) have signed an agreement to construct a cross-border transmission project which will enable electricity trade between the two countries. An interconnection agreement has also been reached between the two companies. The project involves construction of a 238 km, 400 kV line. About 153 km of this line will be in Albania and 85 km in Kosovo territory. Construction is due to start in 2009 and is expected to be completed within 20 months. The German development bank KfW will provide financial assistance to the two countries to build the line.

Turkey to begin privatisation of two distribution companies


Turkeys Privatisation Administration (OIB) will begin the tender process for the privatisation of two more electricity distribution grids in the next two weeks. The two grids are the Turkiye Elektrik Dagtm A.S. (TEDA) and Ankara Dogal Elektrik Uretim Ve Ticaret A.S. The privatisation process had stalled due to the global financial turmoil and the resulting absence of interest from investors.

Qatars Kahramaa extends MoU with Japans Chubu


The Qatar General Electricity and Water Corporation (Kahramaa) has renewed its memorandum of understanding (MoU) with Japans Chubu Electric Power Company for technical renovation of its plants and services for another two years. Under the MoU, Chubu will advise Kahramaa on power system technology related to stability and ancillary services, including voltage and reactive power. Chubu will also impart training to Kahramaa staff to bring them to international standards.. Key areas of the MoU focus on integrating regional control of the operations and maintenance of the GCC Inter-Connectivity Grid when it becomes operational shortly. Chubu will help Kahramaa manage transmission control and safety of the grid and offer its expertise for customer services.

EBRD and KfW to fund environmental assessment of Georgia-Turkey line


The Government of Georgia will receive a grant to assess the environmental impact of constructing the 400 kV / 500 kV transmission line connecting the power grids of Georgia and Turkey. The grant will be released by the European Bank for Reconstruction and Development (EBRD) and the development bank of Germany KfW. The grant agreement is expected to be signed over the next two weeks. A consultant will be selected to conduct the environmental assessment.
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MIDDLE AFRICA

EAST

&

GCC power grid to be commissioned by May 2009


Dubai Electricity and Water Authority (DEWA) has announced that the first phase of the GCC power grid will be commissioned by May 2009. The grid which will link Bahrain, Qatar, Saudi Arabia and Kuwait is currently in its first phase and is expected to be fully operational by the end of 2010. This project is expected to

Al Hassan Engineering wins contract in Dubai


Al Hassan Engineering Company (AHEC) has won a contract for civil works linked to the construction of a 400/132 kV substation in Dubai (more in Company News).

Global Transmission Report | March 2009

News Namibia to invest USD910 million in energy sector


Namibia plans to invest about USD910 million in energy projects as, with the expansion in mines, rising demand threatens to outstrip supply. This African country faces a shortfall of power and imports electricity from neighbouring South Africa. The government of Namibia plans to increase power generation capacity, and expand and upgrade the transmission network.

TANESCO seeks USD400 million loan from World Bank


Tanzania Electric Supply Company Limited (TANESCO) has applied for a USD400 million loan to for increasing its transmission system capacity. The capacity expansion will enable it to increase its power supply to Northwest Tanzania and improve sufficiency, security and reliability of grid-based power. The capacity expansion will have two components. Component 1 comprises a USD390 million investment on 400 kV transmission systems. This component will support investments in the backbone transmission line. It has three sub-components The first sub-component is to support construction of the backbone transmission line between Iringa and Shinyanga. This includes construction of a 650-km, HVAC 400 kV transmission line from Iringa via Mtera, Dodoma and Singida to Shinyanga. Investment for this component is estimated at USD370 million. The second sub-component is construction of associated facilities to enable rural electrification along the new transmission line, for which investment is estimated at USD5 million. The third sub-component is construction of optical-fibre composite overhead ground wires (OPGW). This subcomponent supports the installation of OPGW on the proposed line, including an optical terminal and access equipment at Shinyanga. Investment needed is estimated at USD15 million. Component 2 comprises a USD10 million investment on technical assistance to TANESCO. This will have two main segments: one to support implementation of investments in Component 1 and the other as technical assistance to TANESCO for improvements in designing, developing and executing investment projects in the public and private sector.

include construction of a 450 km highvoltage transmission line between Rabai substation near Mombasa and Embakasi substation in Nairobi. The voltage of the transmission line has been upgraded to 400 kV from the original 330 kV and line is being designed as a double-circuit line. It will comprise two parallel lines, 400 kV each, either built on the same tower (double circuit) or on separate but parallel towers (single circuit). A subproject involves construction of a new 24 km Isinya-Embakasi doublecircuit transmission line comprising 19 km of overhead cable and 5 km of underground cable. It includes setting up of transmission line terminating equipment and installation of reactors at Rabai substation and establishing terminating equipment for the new Isinya-Embakasi line at Embakasi substation. Rural electrification is another subproject which involves the setting up of high, medium and low-voltage lines to reduce the losses caused by overloaded 33 kV sub-transmission lines and to supply electricity to new consumers in rural areas. A total of 180 km of 132 kV and 50 km of 33 kV transmissions lines will be constructed, along with the installation of seven 15/20 MVA 132/33 kV substations and ten 33 kV distribution transformers.

Namibia signs loan agreements for Caprivi transmission line


The Namibian power utility Nampower has signed loan agreements worth NAD1.3 billion with three foreign investment institutions (more in Deal Watch).

South Africas Eskom to sell ZAR150 billion in bonds


Eskom, South Africas state-owned power utility, plans to sell ZAR150 billion in bonds to fund power sector investment and an expansion plan (more in Deal Watch).

ABB wins USD53 million contract in South Africa


ABB has received a USD53 million contract from Eskom, the South African state-owned power utility (more in Company News).

Uganda issues general procurement notice for 132 kV transmission lines projects
Uganda Electricity Transmission Company Limited (UETCL) has announced a general procurement notice for two transmission lines projects. The first project includes construction of a 160 km, 132 kV transmission line between Mbarara and Nkenda, expansion of the Mbarara North and Nkenda substations and a new fort portal 132/33kV substation. The second project involves construction of the 260 km, 132 kV TororoLira transmission line. These projects will expand the national transmission grid to enable UETCL to transmit electricity from the upcoming 85 MW Mputa plant. The African Development Bank (AfDB) is part-funding construction of these two lines.
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Tanzania to build new 400 kV line to mining areas


Tanzanias state power utility Tanzania Electric Supply Company (Tanesco) is planning to build a 400 kV transmission line to cater to the countrys gold mining regions. The new power line is expected to serve the northwestern mining centres of Buzwagi, Kabanga and Tuliwaka in the country. Currently, most gold mines in Tanzania rely on their own thermal plants for electricity supply. The proposed line would help ensure reliable power supply and shield gold mines from volatile global fuel prices.

Kenya seeks funds for transmission projects


Kenya has applied for funds from European lending agencies such as Agence Francaise de Development (AFD), the European Investment Bank (EIB) and African Development Bank (AfDB) for transmission projects. These

Global Transmission Report | March 2009

TSO Focus

American Electric Power


Betting big on EHV transmission

Power. The 90 mile (144 km) long line crosses the utilitys Virginia and West Virginia service areas. Continuing on this strategy, AEP has envisaged capital investments of USD400-USD600 million annually in the transmission business in its service areas. The company spent an estimated USD620 million on transmission in 2008. Given the current global financial situation, AEP has scaled down its capital expenditure plan for 2009 for various businesses but, for transmission, it has increased the investment by USD56 million to USD532 million. Clearly, transmission is AEPs key focus area. In this article, we take a look at AEPs major transmission plans and proposals. In its pursuit to build the transmission superhighway, AEP has announced several regional EHV (765 kV) initiatives. In the eastern region, AEP will develop over 1,200 miles (1,920 km) of transmission lines in the PJM and Midwest Independent System Operator (MISO) regions. This is estimated to cost over USD6.1 billion. In the Southwest, AEP is working on a USD1 billion project to build nearly 400 miles (640 km) of EHV lines in the Southwest Power Pool (SPP) region. In Texas, the company is involved with transmission projects worth over USD2.5 billion. In the Upper Midwest, AEP has announced over 1,000 miles (1,600 km) of potential 765 kV transmission development, which is estimated to cost between USD5 billion and USD10 billion. The company has formed joint venture (JV) partnerships for some of its plans.

he playing field has tilted towards clean energy in the US with the launch of President Barack Obamas stimulus package. Wind has taken the centre stage and transmission companies in the country are gearing up to put wind power on the wires. The largest transmission system owner in the US, American Electric Power (AEP), has plans to expand its transmission network to connect more wind farms with the grid. This might seem ironic given that AEP is the biggest burner of coal in the US utility sector. But with utilities under pressure to reduce carbon emissions, AEP has redefined its business strategy to decrease its carbon footprint. The company has, in fact, signed on as a corporate sponsor for The Pickens Plan proposed by oil and gas industry veteran T. Boone Pickens which advocates an increase in renewable energy and investing in the infrastructure needed to carry that energy. Headquartered in Columbus, Ohio, AEP is the largest investor-owned integrated utility in the US. It owns the biggest transmission network in the country, with nearly 39,000 circuit miles (63,000 circuit km) of lines of which about 2,116 circuit miles (3,386 circuit km) are extra high voltage (EHV) lines of 765 kV rating. The company owns about 38,000 MW of generating capacity. It operates in 11 states through seven regional utility divisions and serves more than 5 million people, and owns 212,781 miles (340,450 km) of overhead and underground distribution lines. AEPs transmission system, directly or indirectly, serves about 10 per cent of the electricity demand in the Eastern Interconnection the transmission system that covers 38 eastern and central states and eastern Canada. The system also caters to about 11 per cent of the electricity demand in the region under the Electric Reliability Council of Texas (ERCOT).

I-765 kV and PATH projects in eastern US


AEPs proposed 765 kV interstate project (I-765 kV) is among its most ambitious plans. The transmission line will stretch from West Virginia to New Jersey, covering about 550 miles (880 km). The project aims to increase west-east transfer capability by about 5,000 MW and reduce transmission line losses by approximately 280 MW. The estimated USD3 billion project will be developed by the AEP Transmission Company and is expected to be complete by 2015. AEP has made regulatory filings with the Federal Energy Regulatory Commission (FERC) for rate incentives. It also plans to make filings with the Department of Energy seeking National Interest Electric Transmission Corridor (NIETC) designation for the project, and with PJM to include the project in its Regional Transmission Expansion Plan. A major component of AEPs I-765 kV plan is the PotomacAppalachian Transmission Highline (PATH) project. This is a JV with Allegheny Energy. The project involves construction of 277 miles (443 km) of 765 kV lines from AEPs John Amos substation near St. Albans in West Virginia, through a new midpoint substation, to a new substation near Kemptown, Maryland. The project is scheduled for completion by 2013. PATH has already been granted an incentive return on equity (RoE) of 14.3 per cent by the FERC. Getting the West Virginia regulators approval for the project is the next big step for AEP.

Operational Structure of AEP


Regional utility division AEP Ohio Electricity utility subsidiary Columbus Southern Power Ohio Power Wheeling Power Texas Central Company Texas North Company Appalachian Power Kingsport Power Indiana Michigan Power Kentucky Power Public Service Company of Oklahoma Southwestern Electric Power Company

AEP Texas Appalachian Power Indiana Michigan Power Kentucky Power Public Service Company of Oklahoma Southwestern Electric Power Company Source: AEP

Michigan EHV project


Transmission network expansion has been AEPs area of focus for some time now. The company has a vision to create an interstate transmission superhighway of EHV lines. AEP began its EHV drive in June 2006 with the commissioning of its first 765 kV project. The USD306 million Wyoming Jackson Ferry project was built by one of its utility companies Appalachian
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AEP has joined hands with ITC Transmission, a subsidiary of ITC Holdings Corporation, to extend AEPs 765 kV system through the state of Michigan and link it to the Midwest. The plan proposes that the existing 765 kV transmission system that extends into the southwest corner of the Lower

Global Transmission Report | March 2009

TSO Focus
Peninsula of Michigan be extended east across Michigan and south down to the existing 765 kV infrastructure in Ohio. The extension would consist of three segments, comprising about 700 miles (1,120 km) of transmission infrastructure 420 miles (672 km) in Michigan and 280 miles (450 km) in northern Ohio. The estimated cost of the project is USD2.6 billion. The entire project is expected to take approximately eight years to build. However, AEP has to study its relationship with ITC carefully as ITC has similar EHV plans in the SPP region. Another risk to this plan is how the costs of the project will be distributed between the MISO and PJM regions. worth USD789 million under the Texas Competitive Renewable Energy Zone (CREZ) plan. CREZ involves construction of approximately 2,400 miles (3,840 km) of 345 kV transmission lines and associated substations at an overall estimated investment of USD4.9 billion. Besides the CREZ transmission project, ETT is in the process of building a 138 kV transmission line, in collaboration with CPS Energy, to connect stations located in the Uvalde and Castroville areas in Texas. The line is expected to be commissioned by 2011. ETT plans to invest in additional ERCOT transmission projects over the next several years. Future projects will be evaluated on a case by case basis.

EHV plans in the Upper Midwest


AEP recently announced a proposal to build 765 kV EHV transmission lines to connect major wind generation projects in the Dakotas and surrounding states to the existing 765 kV network that ends near Chicago. The western terminus of the line would be near a 2,000 MW wind generation project in North Dakota being developed by Hartland Wind Farm LLC. Hartland will collaborate with AEP on the development of the transmission project. AEP proposes to build almost 1,000 miles (1,600 km) of EHV lines in the region over a 10-year period, involving an investment between USD5 billion and USD10 billion. The proposal is in the conceptual stage.

Electric Transmission America


AEP has another 50:50 JV with MEHC, Electric Transmission America (ETA), to build and own electric transmission assets and invest in high voltage transmission projects outside the ERCOT region. ETAs current projects include Prairie Wind Transmission and Tallgrass Transmission. The Prairie Wind Transmission project, a partnership with Westar Energy, consists of building about 230 miles (368 km) of 765 kV transmission lines in Kansas. The project, in which AEP has 25 per cent stake, is estimated to be completed by 2013. It is expected to serve as a first step towards developing a transmission superhighway in the Midwest and enable the state of Kansas to export renewable energy by tapping some of the best wind resources in the country. This project is a part of Kansas V Plan for which ITC Great Plains is also competing. Tallgrass Transmission is a JV with OGE Energy Corporation to build and own new transmission assets in Oklahoma. The initial projects will include 765 kV lines from Woodward to Guymon in the Oklahoma Panhandle (120 miles/192 km) and from Woodward to the Kansas border (50 miles/80 km). This is estimated to cost about USD500 million. The project is the second segment of the SPP 765 kV Overlay Plan of 170 miles (272 km) to promote wind development in the western half of Oklahoma. AEP is holding discussions with several potential partners on further EHV development in Texas, Kansas, Oklahoma, New Jersey, Pennsylvania, Maryland, Arkansas, and Missouri. AEP has placed big stakes on transmission, especially to integrate generation from renewable sources into the grid. However, the challenge is to make it all happen. A key issue is choosing the right partners as some of the potential partners have competing projects. As most of its projects are interstate, AEP faces the biggest issue of dividing costs among the beneficiary states. Moreover, AEPs transmission plans are dependent on yetto-be-determined regulatory events and outcomes. If the current clean energy-related legislative initiatives in the US are instituted, they will have long-term positive implications for the transmission sector. Transmission could then be AEPs frontline business rather than a mere support activity.

AEP has announced several regional EHV (765 kV) initiatives. In the eastern region, AEP will develop over 1,200 miles (1,920 km) of transmission lines in the PJM and MISO areas. In the Southwest, AEP is working on a USD1 billion project to build nearly 400 miles (640 km) of EHV lines. In Texas, the company is involved with transmission projects worth over USD2.5 billion. In the Upper Midwest, AEP has announced over 1,000 miles (1,600 km) of potential 765 kV transmission development.
Pioneer Energy
In August 2008, AEP formed a 50:50 JV company with Duke Energy to build and own new electric transmission assets. AEP and Duke are proposing to build 240 miles (384 km) of 765 kV EHV transmission lines and related facilities in Indiana at an estimated investment of USD1 billion. The project will link the Greentown and Rockport substations in the state and is expected to be commissioned by 2014-15. The JV will operate as a transmission utility and be subject to the rules and regulations of the FERC, the state of Indiana, PJM and MISO.

Key Financials (USD million) Electric Transmission Texas


Electric Transmission Texas (ETT) is a JV between AEP and the MidAmerican Energy Holdings, a Berkshire Hathaway company. ETT proposes to build transmission projects within the ERCOT region. In January 2009, ETT was awarded transmission projects Revenues Total assets Net income
Source: AEP

2004 14,245 34,636 1,089

2005 12,111 36,172 814

2006 12,622 37,987 1,002

2007 13,380 40,366 1,089

2008 14,600 1,380

Global Transmission Report | March 2009

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TSO Focus Transmission line length, by state and voltage level (circuit miles, as on December 31, 2007)
State 765kV 500kV 345kV 230kV 161kV 138kV 115kV Arkansas 0 0 28 0 228 168 42 Indiana 600 0 1,380 0 0 1,426 0 Kentucky 258 0 8 0 46 320 0 Louisiana 0 0 105 0 0 248 0 Michigan 16 0 234 0 0 239 0 Ohio 509 0 1,793 0 0 3,358 0 Oklahoma 0 0 625 34 8 2,174 10 Tennessee 0 0 0 91 0 154 0 Texas 0 0 1,345 0 0 4,793 14 West Virginia 384 17 323 0 0 1,602 0 Virginia 349 96 69 15 0 1,720 0 Total 2,116 113 5,910 140 282 16,202 66
Note: 1 mile = approximately 1.6 km Source: AEP

88 kV 69 kV 0 461 0 412 0 544 0 233 0 299 0 2,636 0 812 0 3 0 5,151 23 457 0 709 23 11,717

46 kV 0 0 55 0 0 0 0 0 0 739 48 842

40 kV 34.5kV 0 0 0 591 0 3 0 0 0 148 59 365 0 0 0 27 0 0 0 89 0 141 59 1,364

23 kV 0 0 0 0 0 225 0 0 0 0 0 225

Total 927 4,409 1,234 586 936 8,945 3,663 275 11,303 3,634 3,147 39,059

Transmission line length, by operating company and voltage level (circuit miles, as on December 31, 2007)
Operating Company APCo CSP I&M KGPCo KPCo OPCo PSO SWEPCo TCC TNC WPCo Total 765 kV 500kV 734 0 615 0 258 509 0 0 0 0 0 2,116 97 0 0 0 0 0 0 0 0 0 16 113 345kV 230kV 161kV 383 884 1,614 0 8 909 579 660 641 223 9 5,910 106 0 0 0 0 0 34 0 0 0 0 140 0 0 0 0 46 0 8 228 0 0 0 282 138kV 115kV 88 kV 3,302 893 1,665 0 320 2,464 2,149 1,195 2,453 1,586 175 16,202 0 0 0 0 0 0 10 42 0 14 0 66 23 0 0 0 0 0 0 0 0 0 0 23 69 kV 1,079 467 711 3 544 2,169 812 1,405 1,740 2,699 88 11,717 46 kV 40 kV 34.5kV 23 kV 787 0 0 0 55 0 0 0 0 0 0 842 0 59 0 0 0 0 0 0 0 0 0 59 230 0 739 27 3 365 0 0 0 0 0 1,364 0 113 0 0 0 112 0 0 0 0 0 225 Total 6,741 2,416 5,344 30 1,234 6,528 3,592 3,530 4,834 4,522 288 390,59

APCo: Appalachian Power Company; CSP: Columbus Southern Power Company; I&M: Indiana Michigan Power Company; KGPCo: Kingsport Power Company; KPCo: Kentucky Power Company; OPCo: Ohio Power Company; PSO: Public Service Company of Oklahoma; SWEPCo: Southwestern Electric Power Company; TCC: Texas Central Company; TNC: Texas North Company; WPCo: Wheeling Power Company; Note: 1 mile = about 1.6 km Source: AEP

Current JV Transmission Initiatives


Project ETT Location Texas (ERCOT region) Ohio/ West Virginia Oklahoma Kansas Indiana Estimated date of completion 2017 Ownership MEHC (50 per cent) AEP (50 per cent) Allegheny Energy (50 per cent) AEP (50 per cent) OGE Energy (50 per cent ) ETA (50 per cent )** Westar Energy (50 per cent ) ETA (50 per cent )** Duke Energy (50 per cent ) AEP (50 per cent ) Estimated cost (USD million) 1,300 Approved RoE (%) 9.96

PATH

2013

1,800*

14.30

Tallgrass Prairie Wind Pioneer

2013 2013 2015

500 600 1,000

12.80 12.80 ***

*AEPs estimated share of the project cost is about USD600 million. **ETA is a 50:50 joint venture between AEP and MEHC. It will be utilised as a vehicle to invest in selected transmission projects outside of ERCOT. AEP owns 25 per cent of Tallgrass and Prairie Wind through its ownership in ETA. ***Seeking rate approval from the FERC. Source: AEP

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Global Transmission Report | March 2009

Policy Review

Smart Grid
Getting off the ground

ast month, about USD4.5 billion of funding was made avail able in the US as part of the economic stimulus package to accelerate the development of a smart grid. A smart grid is capable of moving power more efficiently from generation stations through the delivery system to electricity consumers and eventually the individual appliances. It can not only increase reliability, security and optimise the entire electricity system, it can enable the integration of dynamic forecasting, energy storage, clean distributed generation and energy efficiency technologies, including plug-in hybrid vehicles. Since 2007, several groups within the US have been working on making the smart grid a reality. This includes several demonstration projects, with one of the first large scale projects underway in Boulder, a 100,000-person university city in the state of Colorado. In the first phase of the city smart grid programme, Colorados largest electric utility, Xcel Energy, has installed about 14,000 smart meters in Boulder. It has also upgraded two substations and five feeders. The smart meters are capable of two-way communication and internet access so that customers can actively control how and when to use electricity. By June 2009, the citys 45,000 meters are expected to be capable of two-way communication and internet access. The next phase of the project involves upgrades to two more substations, 20,000 feeders, expanded deployment of in-home automation devices, and web portal access to all customers. Later, the smart grid, including plug-in hybrid vehicles, solar and wind cogeneration sources, will be integrated with the Boulder grid. By early next year, Boulder is expected to be the first city in the world to have a complete end-to-end smart grid.

sagometers and wireless mesh sensors, can use radio frequency identification (RFID) technology to provide utilities with realtime information on the status of specific lines. These sensors can detect problems on the grid as they develop and relay the information back to the utility so that action can be taken to avoid a massive blackout. For the regulators, this would ensure that the investments in smart grid trials are borne by the utilities as the latter would be the initial beneficiaries, and not lead to an increase in consumer bills. This will be critical to establishing the credibility of the programme amongst consumers and ensuring their buy-in to the smart grid. If the costs of expensive and not completed tested devices are passed on to consumers, it would lead to a considerable increase in bills. However, there are fears that such an either-or approach will not effectively demonstrate the true benefit of an end-to-end smart grid. Also important to the commercial success of a smart grid is the ability of the various devices in the system to communicate with each other in an efficient and secure manner and become interoperable. Achieving interoperability requires reliable standards along with validated performance. In the US, the National Institute of Standards and Technology (NIST) is leading the effort to develop protocols and model standards for interoperability of smart grid devices and systems. The current electricity grid infrastructure is based on numerous standards. The NIST is working with different stakeholders to assess the applicability of the standards for the smart grid and determine what new standards need to be developed. Due to the complexity of the grid, it is expected that rather than a single standard, a suite of standards will need to be developed for distributed energy resources, demand response devices/appliances, electric vehicles, wide area measurement systems, etc. Further, since the smart grid is itself evolving, the new standards, conformance tests and other efforts to ensure interoperability will also need to evolve. Working in close cooperation with the US Department of Energy (DoE) and its GridWise Architecture Council, NIST has set up expert working groups to cover key areas of the smart grid including transmission and distribution and commercial, industrial and residential buildings. Additional groups and task forces to address higher level and cross-cutting issues in business and policy, cyber security, and smart grid framework/ architecture have been formed as well. NIST is also working on designing the conformity assessment test framework with various laboratories to ensure that the smart grid devices and systems are truly interoperable. Once there is consensus on the standards, the Federal Energy Regulatory Commission will begin the regulatory process for adopting the new standards and protocols. The NIST is also working on cyber security standards to ensure the integrity and availability of the infrastructure, as well as the privacy of smart grid users. A large portion of the USD4.5 billion fund for the smart grid is expected to be used in investment grant programmes and regional demonstration projects. The industry is now awaiting DoEs notices of intent that are expected to provide information on project type, eligibility and the evaluation norms. This is an exciting development not just for the US but for the international electricity sector. The way we look at power delivery today could change completely in the coming few months.
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Smart grid will not only increase reliability, security and optimise the entire electricity system, it can enable the integration of dynamic forecasting, energy storage, clean distributed generation and energy efficiency technologies, including plug-in hybrid vehicles.
Such demonstration projects, covering a significant demographic area with varying income and education levels, are important. The information generated from these will help the regulators understand issues such as impact on price, consumer acceptance of new technology, the investments required and their fair apportionment between the utility and the ratepayers, and the actual potential of the new technology and devices to deliver power safely and reliably to consumers under all conditions. From a regulatory perspective, deployment of select technologies to make the grid more reliable and safe before bringing the customers on board makes more sense. A few of the equipment under demonstration, such as phasor measurement and backscatter sensors on the transmission grid along with video

Global Transmission Report | March 2009

Spotlight

Mediterranean Electricity Ring


Working to build an interconnected system across three continents

In fact, European nations are driving the Euro-Med energy partnership. Over EUR55 million has been allocated under the EC MEDA programme over the past eight years to support the gradual integration of the European and Mediterranean energy markets. The European Investment Bank has lent over EUR2 billion to energy infrastructure projects in the region. The MedRing project is central to the energy exchange plans between Europe and the southern Mediterranean countries. The project will link the power grids from Spain to Morocco, and travel through the North African and Arabian countries up to Turkey. From Turkey, the ring will then link back into the European grid via Greece or Bulgaria. The MedRing is composed of four separate electricity blocks Union for the Co-ordination of Transmission of Electricity (UCTE), South West Mediterranean Block (SWMB), South East Mediterranean Block (SEMB) and Turkey. The UCTE interconnects 26 European countries. The SWMB comprises Morocco, Algeria and Tunisia, whichhave been interconnected and are operated in synchronous mode for a long time. In addition, the SWMB is synchronously connected to the UCTE system via two Morocco-Spain interconnectors. The SEMB comprises Libya, Egypt, Jordan and Syria. In 2005, an attempt to synchronously link the SEMB and SWMB via a 220 kV alternating current (AC) transmission line between Libya and Tunisia failed. The test is proposed to be carried out again in April-May 2009. If successful, the SEMB will be connected to the SWMB and the two blocks will constitute one long synchronous

he Mediterranean region is assuming increasing importance in the energy strategy of the three continents it encircles. It is crossed by key energy routes from non-European countries that have huge energy resources and low demand to European Union countries that have high energy demand but fewer resources. The opening of new routes for electricity exchange across the Mediterranean is now considered essential for energy security in the region. To that end, the Mediterranean countries are working towards establishing an energy corridor known as the Mediterranean Electricity Ring or MedRing. While the project has been under discussion for over a decade, it has made real progress only in the past few years. Divergent interests on both sides of the Mediterranean are backing this project. On the southern shore of the Mediterranean, secure and efficient supply of electricity is seen as a key ingredient for economic growth. In the north, EU countries view North Africa as a critical source of diversification for Europes energy needs, not only in terms of conventional energy sources (gas and oil reserves in Algeria, Egypt and Libya) but also for the development of renewable energy sources (solar and wind power).

MedRing: Planned Projects


Electrical line Euro-Maghreb Interconnections Spain-Algeria Italy-Algeria Italy-Tunisia Libya-Italy ETLAM Project Libya-Egypt (2nd line) Reinforcement of ETLAM project SWMB/Maghreb Interconnections Algeria-Morocco (3rd line) Algeria-Tunisia (5th line) Tunisia-Libya (3rd line) EIJLLST Project Egypt-Jordan (2nd line) Syria-Turkey Turkey-UCTE Turkey-Greece
*Rated voltage level **Year of completion Source: Observatoire Mediterraneen de lEnergie

Capacity (MW)

Length (km)

Line characteristics

Expected year of operation

2,000 500 (1,000) 600 (1,000) 500 or 1,000 500 or 1,000 600 (1,200) 600 (1,200) 600 1,100 350 750

240 265-660 via Sardinia NA 500 NA 250 120 210 20 124 250

500 kV DC undersea cable 400/500 kV DC undersea cable 500 kV DC undersea cable 400 kV DC undersea cable 400/500 kV AC overhead line 400 kV 225 kV AC (400 kV AC*) overhead line 225 kV AC (400 kV*) overhead line 400 kV AC overhead line 500/400 kV DC undersea cable 400 kV AC overhead line 400 kV AC overhead line

2010+ 2010+ 2010+ 2010+ 2012 2015 2006** 2006** 2012 2010+ To be decided 2008**

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Global Transmission Report | March 2009

Spotlight The MedRing

Source: Terna

system, connected to the European UCTE system via Spain. Thereafter, the SEMB system would be connected through Syria to the Turkish grid, which would then be synchronously interconnected to the UCTE. The four interconnected blocks would then form an elliptical ring that would be 4,000 km east to west and 2,000 km north to south. Thus, the closing of the Libya-Tunisia link, the Turkey-Syria link and the interconnection of the Turkish grid with the UCTE system will complete the MedRing. Several feasibility studies have already been conducted on the proposed project. A MedRing feasibility project (2001-03), co-financed by the European Commission, envisaged the closing of the electricity transmission superhighway by 2005-06. It also recommended 10 new AC cross-border lines, mainly at 500/400 kV, around the basin to be built between 2005 and 2010. However, some of these timelines have not been met due to the unsuccessful attempt to complete the Tunisia-Libya interconnection in 2005. If the work could be accelerated, the entire ring could be completed over the next two to three years. Once complete, the MedRing would increase electricity exchange in the region to 75 TWh by 2010 and the expected energy not supplied (EENS) would be reduced by 12 GWh per year, resulting in an estimated USD24 million of savings per year. In light of this, closing the ring is now getting a renewed thrust from the European Commission. The interconnections under the MedRing are part of different projects: the Euro-Maghreb interconnections, the Maghreb interconnection, the Egypt-Tunisia-Libya-Algeria-Morocco (ETLAM) interconnection, the Egypt-Iraq-Jordan-LebanonLibya-Syria-Turkey (EIJLLST) interconnection and the Turkey-

UCTE interconnection. Some of the interconnections form a part of the EuroMed Energy Action Plan 2008-13 launched last year.

Euro-Maghreb interconnections
The first interconnection of the MedRing was achieved in August 1997, when the 700 MW, 400 kV Morocco-Spain submarine AC linkwas completed. Withthis, the -integrated gridsof Morocco, Algeria and Tunisia in the Maghreb region were put into synchronous operation with the UCTE system. In July 2006, a second submarine AC link was put into operation between Spain and Morocco, increasing the capacity to 1,400 MW. The plan is to expand the existing links between the Maghreb region and Europe under the Euro-Maghreb interconnection project. The proposed links under the project include AlgeriaSpain, Algeria-Italy, Tunisia-Italy and Libya-Italy. These are all 400 kV direct current (DC) interconnections. The feasibility studies of all these DC links have been completed and the projects are at various stages of implementation. These HVDC links will be a precursor for Europes plans to import solar power, particularly from the Sahara desert, where solar panels would be capable of providing up to three times more energy than those in Europe. In fact, one of the priorities of the Union for the Mediterranean, formed in July 2008, is to develop the Mediterranean Solar Plan. European renewable energy developers are building large solar thermal plants (50200 MW) in Algeria, Egypt and Morocco. According to the German government, HVDC lines from North Africa could carry 700,000GWhofsolarpowerannuallyby2050.Strengtheningof the Euro-Maghreb links is imperative to realise this plan.

Global Transmission Report | March 2009

29

Spotlight Maghreb and ETLAM interconnections


The Maghreb countries have also been strengthening the electricity interconnections among themselves, mostly at the 400 kV level, to support larger anticipated electricity flows. There are three interconnections between Morocco and Algeria two at 220 kV and one at 400 kV that were put into operation in 2006. Algeria and Tunisia are interconnected through four lines between 90 kV and 220 kV and by one 400 kV line, put into operation in 2006. The 400 kV Algeria-Morocco and Algeria-Tunisia links are currently being operated at 220 kV but are scheduled to operate at 400 kV by 2011. The Libya-Tunisia interconnection was completed in 2003 through two 225 kV lines. As mentioned above, the first synchronisation test was carried out in November 2005 but was unsuccessful. The power-transfer limits of the weak 220 kV network ruined the attempt to link the SWMB to the SEMB because of a mismatch in North Africas AC frequency. A key test of North Africas upgraded transmission infrastructure will take place in April or May 2009 when Libya is scheduled to once again try to connect with Tunisia. Libya is also planning a 400 kV link with Tunisia and to upgrade the link with Egypt to 500 kV (which will form a part of the ETLAM project) by 2012.
Source: Turkish Electricity Transmission Company

Completing the MedRing: 3 Key Links

1. Synchronous parallel operation of Turkish block with UCTE system 2. Closing the Libya-Tunisia links 3. Closing the Turkey-Syria link after detailed analyses

EIJLLST interconnection
The countries in the SEMB represent the next frontier for the MedRing. One of the key electricity infrastructure projects in this region is the EIJLLST project. Some of the interconnections already under operation in this block are the 400 kV Egypt-Jordan link, the 400 kV Jordan-Syria link and the 220 kV Libya-Egypt link. These existing interconnections are being augmented and strengthened under the EIJLLST project, which envisages interconnection between the North African countries of Egypt and Libya, the near-eastern countries of Syria, Jordan, Lebanon, Iraq and Palestine, and Turkey. While Lebanon, Iraq and Palestine are not a part of the MedRing project, the Turkey-Syria interconnection under EIJLLST is a key component of the MedRing. The 124 km, 400 kV Syria-Turkey link was completed in 2003. However, the line is expected to start operations after Turkeys connection to the UCTE system.

Turkish power system to the UCTE is viable through Bulgaria and Greece. Turkey already has two 400 kV interconnections with Bulgaria. One 400 kV link with Greece is under construction. The EUR1.5 million phase one of technical studies to connect Turkey to the UCTE system was completed in April 2007. The EUR2.5 million phase two of studies for the improvement of the frequency control performance is currently underway. As per the timelines finalised for the studies, the trial operation is scheduled for 2010. Until the Turkish system is interconnected with the UCTE, the tie lines with non-UCTE countries would be operated in an isolated mode.

Issues and challenges


The completion of the MedRing presents several technical challenges that are being addressed prior to starting operations. Linking the power grids that have varied operational and technical characteristics is a complex process. The existing mature networks in Europe are highly meshed, consisting of high-voltage lines, with predictable load patterns. In contrast, the grids in the southern Mediterranean region are typically low-voltage grids, serving fewer loads concentrated in highly urbanised areas. Therefore, the capability of the system to react to small and large disturbances needs to be built to ensure the stability of the interconnected network. For reliable and secure operation of such a large system, several measures have to be adopted to avoid the spread of disturbances from the affected areas to the neighbouring ones. Installing devices that have the capability to control specific electrical quantities, such as static Var compensators (SVCs), backto-back or HVDC links, enhance the dynamic security of the system. What is also needed is an independent reliability council in the region to look at two aspects of bulk power system reliability: system adequacy and system security. There are a few potential problem areas: the UCTE-Turkey, Libya-Tunisia and Egypt-Libya interconnections. The opening

Market deregulation is uneven with the incumbent owning and operating the transmission system in most cases. There is no regional electricity market yet. Moreover, the non-consistent approach to internal power sector regulation is a hurdle in the free trade of electricity in the region. Consequently, it is only natural to realise harmonised internal market regulation as the first step towards the establishment of a regional market.
Turkey-UCTE interconnection
Turkey has been pushing for the integration of the Turkish grid with the EU network for a long time in order to get the benefit of synchronous parallel operation. Several studies have been conducted, which reveal that the synchronous connection of the
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Global Transmission Report | March 2009

Spotlight
of the UCTE-Turkey link may cause instability in the southeastern part of the system in case of heavy power import by Turkey. If the test run of the Libya-Tunisia link fails again, the Mediterranean countries will have to opt for HVDC interconnections for completing the ring. In this event, the AC grids on the two sides would not need to be synchronised and could run at different frequencies. However, this would require significant additional investments. For now, the North African countries are more focused on the relatively economical frequency stabilisation that AC offers. Another weakness in the system is the interconnection between Libya and Egypt. Due to technical constraints, the 220 kV line linking the two systems currently has a maximum power exchange capacity of only 180 MW against the design capacity of 600 MW. With a peak load of approximately 20,000 MW, the Egyptian power system is the largest in the southern Mediterranean area, and is therefore subject to higher fluctuations. In a synchronous structure, these fluctuations would be transmitted throughout the system. A back-to-back interconnection, which acts as a filter for normal power frequency fluctuations on either side has been proposed. In addition to the purely technical challenges of synchronising the varied systems and ensuring sufficient interconnection capacities, there is also the issue of how to align the different institutional frameworks in the electricity sectors of the Mediterranean countries. Market deregulation is uneven with the incumbent owning and operating the transmission system in most cases. There is no regional electricity market yet. Moreover, the non-consistent approach to internal power sector regulation is a hurdle in the free trade of electricity in the region. Consequently, it is only natural to realise harmonised internal market regulation as the first step towards the establishment of a regional market. Another concern relates to the doubts that have been rasied on whether the investments made so far have paid off. This is mainly because the volume of energy exchanged on a commercial basis has been small, with two exceptions between Spain and Morocco, and between Egypt and Jordan. Also, commercial exchange within the Maghreb and Mashreq is minimal, consisting mainly of Algeria exporting to Morocco and Tunisia, and Egypt exporting to Libya. An initial analysis highlighted that North-South HVDC links were not profitable due to the huge investment costs and the fact that the North-South energy exchanges were heavily influenced by oil prices. However, given the recent plan of sourcing renewable energy from North Africa, the profitability of these interconnections may be justified in the long run. Going forward, blueprints are being drawn up to extend the Euro-Med interconnected system to the east with a 220 kV EgyptSudan line and to the Middle East by interconnecting Jordan and the western part of Saudi Arabia (which forms part of the Gulf Cooperation Council power grid project, to be put into operation soon). For now, all eyes are set on the second test run of the Libya-Tunisia AC line which will determine the next sequence of events.

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Global Transmission Report | March 2009

31

Data & Statistics

The Electricity Sector in Norway

Installed Capacity (MW)


2003 Hydro Thermal* CHP Gas Wind Total 27,676 305 197 35 100 28,081 2004 27,925 121 49 64 158 28,327 2005 28,268 244 180 64 281 28,793 2006 28,691 244 180 64 333 29,268 2007 29,043 890 191 699 380 30,313

orway is the sixth largest producer of hydro power in the world. Over 98 per cent of the countrys electricity production is based on hydro power, which puts it in a unique position when it comes to renewable energy. It is estimated that renewable sources account for 62 per cent of Norways energy consumption. As of December 2007, Norways total electricity generation was 137 TWh, of which 135 TWh was from hydro power plants. The total installed capacity at the end of 2007 stood at 30,313 MW. Norways electricity sector, though completely deregulated, is dominated by state-owned companies. Many generation and distribution companies are partially or wholly owned by the government. The state-owned Statkraft is the largest power producer and, together with its associates, accounts for half of Norways electricity production. The rest comes from regional generating companies. Small local companies control the electricity distribution market and the respective local electricity grids. Norways national electricity transmission network and international interconnections are owned and operated by the transmission system operator (TSO) Statnett, which is also a stateowned company.

* Includes a small contribution from condensing power CHP: combined heat and power Source: Nordel website

Gross Electricity Generation (GWh)


2003 Hydro Thermal* CHP Gas Wind Total 106,002 900 600 300 220 107,122 2004 109,280 582 207 375 260 110,545 2005 136,465 976 620 356 507 137,948 2006 2007

119,919 135,043 1 123 674 449 673 1,443 713 730 901

Renewable sources account for 62 per cent of Norways energy consumption. As of December 2007, Norways total electricity generation was 137 TWh, of which 135 TWh was from hydro power plants. The total installed capacity at the end of 2007 stood at 30,313 MW.
Statnett, as of 2007, owned and operated over 9,000 km of transmission lines, accounting for over 90 per cent of Norways high-voltage electricity grid (132 kV to 400 kV). In 2008, the companys revenues from the transmission business amounted to NOK3,122 million (about USD460 million). Statnett is a member of Nordel a regional grid operators association comprising the TSOs of the Nordic countries Norway, Sweden, Iceland, Denmark and Finland.

121,715 137,387

* Includes a small contribution from condensing power CHP: combined heat and power Source: Nordel website

Transmission Line Length, by Voltage (as of 2007)


Voltage 400 kV 220/300 kV 110/132/150 kV Total
* Includes AC and DC lines Source: Nordel website

Length (km) 2,431 4,512 2,080 9,023

Peak load (MW)

Statnetts Transmission Lines* (km)

Source: Nordel website

* 110 kV to 400 kV. Source: Nordel website

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Global Transmission Report | March 2009

Data & Statistics

Norways existing international electricity interconnections


Statnett owns and operates several electricity interconnectors between Norway and other Nordic countries (Denmark, Sweden and Finland). It also has one interconnection with Russia. Last year, the company put the NorNed cable the 700 MW HVDC interconnector with the Netherlands in operation. At 580 km, this is the longest undersea electricity cable in the world, connecting the Nordic regional electricity market to mainland Europe. So far, the flow of electricity on the NorNed transmission link has been from Norway to the Netherlands.

Interconnection

Voltage Rating (kV)

Maximum Transmission Capacity (MW) From To

Length (km)

DenmarkNorway Tjele-Kristiansand (Skagerrak 1,2,3) FinlandNorway Ivalo-Varangerbotn NorwaySweden Sildvik-Tornehamn Ofoten-Ritsem Rssga-Ajaure Nea-Jrpstrmmen Lutufallet-Hljes Eidskog-Charlottenberg Hasle-Borgvik Halden-Skogsster NorwayRussia Kirkenes-Boris Gleb Norway Netherlands Feda-Eemshaven
Source: Nordel website

250/350

1,000

1,000

240

220

100

100

228

132 400 220 275 132 132 400 400

1,000

1,300

39 58 117 100

40 100 2,200

20 100 2,150

18 13 106 135

154

100

100

10

450

700

700

580

Electricity exchange in the Nordic region in 2007 (GWh)


Norway is a net exporter of electricity. It exported over 15,000 GWh of power in 2007, with a large portion (over 70 per cent) going to Sweden, and imported over 5,000 GWh. Thus, net exports amounted to over 10,000 GWh in 2007. From Denmark Denmark Finland Norway Sweden Others* Total NA 3,974 5,039 1,465 10,478 Finland NA 202 4,213 12,092 16,507 To Norway 1,159 110 NA 3,826 190 5,285 Sweden 2,462 3,690 11,144 NA 1,166 18,462 Others* 7,807 21 4,069 NA 11,897 Total 11,428 3,821 15,320 17,147 14,913

NA: not applicable * Includes Russia, Germany, Poland and Estonia. Of these, Norway has electricity trade with only Russia Source: Nordel website

Global Transmission Report | March 2009

33

Data & Statistics

Statnetts planned transmission projects


There are several plans to upgrade and expand the Norwegian transmission grid. Most of the proposed lines are of 420 kV voltage rating. Also on the cards are new cross-border interconnectors. Statnett is also undertaking expansion and upgradation of several substations to handle additional loads. One of its plans involves expanding the transformer substation at stfold and Buskerud at a budget of about NOK750 million. These projects are expected to be completed between 2009 and 2011. In 2008, Statnett invested NOK2.6 billion in its power grid, compared to NOK2.98 billion in 2007. The following are some of Statnetts major transmission line proposals

Planned Norwegian grid projects


Project Length (km) Voltage rating (kV) Statnetts estimated investment (NOK million) 900 500 550 2,500 Status

SkareheiaHolen VarangerbotnSkogfoss and end in 2013 SimaSamnanger line in May 2008 rskogFardal

100 130 90 300

420 132 420 420

Expected to be in operation by autumn 2009 Construction is expected to begin in 2010 Statnett received the licence to build this Statnett has applied for a licence to build this line. A decision is expected in the first half of 2009. Statnett applied for a licence to build this line in 2007 Statnett expects to submit an application for a licence during spring 2009 Statnett announced its plans for this line in December 2008 Statnett notified the authorities in February 2008. It has decided to apply for a licence for parts of the project by spring 2009.

NamsosRoan BalsfjordHammerfest

82 350

420 420

500 2,300

OfotenBalsfjord RoanTrollheim

157 165*

420 420 1,700

Planned cross-border interconnections Nea (Norway) to J rpstrmmen (Sweden) 100 (25 km in Norway, 75 km in Sweden)

420

400

The 420 kV line of 750 MW capacity is under construction and will replace the existing 300 kV line. The Swedish TSO Svenska Kraftnat will set up the 75 km connection in Sweden. The entire line is expected to be completed in 2009. This is a new 600 MW interconnector with Denmark. The total cost is estimated at NOK3 billion, to be equally shared between Statnett and Energinet.dk, the Danish TSO. Statnett sent the notification to the authorities in December 2008. The cable could be ready in 2014. The interconnector will have a capacity of 1,200 MW. It could be ready by 2015.

Skagerrak 4: Tjele (Denmark) to Kristiansand (Norway)

130 (undersea cable length)

400

1,500

SouthWest Link (NorwaySweden)

700

420

NA

* Includes an additional 8 km long undersea cable that crosses the Trondheim fjord NA: not available (NOK1 = USD0.146) Source: Nordel, Statnett and GTR Analysis

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Global Transmission Report | March 2009

Deal Watch

NORTH AMERICA
USDA extends USD356 million for rural electric infrastructure
The United States Department of Agriculture (USDA) will offer USD356 million in loans to rural utilities and cooperatives in ten states to upgrade 3,830 miles (6,128 km) of transmission and distribution lines. The funding will be extended to 16 utilities through the USDA Rural Development Electric Program. The Central Alabama Electric Cooperative will receive USD22.2 million in loans to build or improve 159 miles (256 km) of distribution lines. The Victory Electric Cooperative Association will receive a USD54.7 million loan for construction and upgradation of 98 miles (158 km) of distribution lines and for acquiring 678 miles (1,091 km) of distribution and transmission lines.The Western Farmers Electric Cooperative will get a USD103.3 million loan to finance transmission projects.

granted by the bank for a single project. In December 2008, BNDES authorised BRL6.1 billion in funding for the second hydro plant the 3.15 GW Santo Antonio project. (BRL1 = USD0.427)

CAF, EPR sign USD16.7 million loan contract for SIEPAC project
EPR has signed a USD16.7 million loan with the Andean Development Corporation (CAF) for its SIEPAC interconnection project in Central America. CAF approved the financing in December . The USD405 million, 1,786 km, 230 kV line will connect six Central American countries Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The project also entails interconnections between Guatemala and Mexico, and Panama and Colombia. It will also facilitate Central Americas interconnection with Mexico and Colombia.

Puget Holdings completes merger with Puget Energy


Puget Holdings, a group of infrastructure-focused investors, has completed the USD7.4 billion merger transaction with Puget Energy and its wholly owned utility subsidiary, Puget Sound Energy (PSE), acquiring all of the issued and outstanding common shares of Puget Energy at USD30 a share. Puget Energy is a regulated utility providing electric and natural gas services to the Sound region of western Washington. The deal was valued at a total of USD7.4 billion, including USD3.2 billion in equity, USD1.6 billion in leveraged financing and USD2.6 billion in assumed debt. The buying consortium includes Macquarie Infrastructure Partners, the Canada Pension Plan Investment Board, British Columbia Investment Management Corporation, Alberta Investment Management, Macquarie-FSS Infrastructure Trust and Macquarie Bank Limited. After the deal, Standard & Poors has raised PSEs corporate credit rating to BBB from BBB- and its secured bond rating to Afrom BBB+. The proposed merger transaction was announced in October 2007, approved by shareholders and the FERC in April 2008, and the UTC in December 2008.

EUROPE
EUR400 million EIB loan for Frances RTE
The European Investment Bank (EIB) has announced it will lend EUR400 million to RTE, the French power grid operator. The money will be used for upgrading and expanding the French power grid over the period 2009-12. The loan will be directed toward 31 projects with a total cost of EUR1 billion under RTEs investment programme of EUR5 billion. These projects involve the installation of over 150 km of new transmission lines and upgrading of 700 km of 400 kV, 225 kV and 90 kV lines. The projects aim to enhance the security of supply, especially in the Provence-Alpes-Cote dAzur region, and to increase transmission capacity with Belgium and Italy. The programme also includes constructing a 3,200 km optical fibre grid, creating a centre for administration and supervising the remote control network using RTEs fibre optic infrastructure. (EUR1 = USD1.29)

LATIN AMERICA
BNDES to fund Jirau hydro plant and transmission line
Brazils national development bank BNDES has approved BRL7.2 billion in financing for the 3.3 GW Jirau hydro plant in the Amazon Valley. Jirau is one of two mega-hydro projects on the Madeira river in Rondonia state that will be connected to the national grid. The loan will go to the Energia Sustentavel do Brasil (ESBR) consortium, formerly known as Enersus, and includes support for the transmission system that will link the plant to the city of Porto Velho. Multinational energy group GDF Suez has a 50.1 per cent stake in ESBR and engineering firm Camargo Correa holds 9.9 per cent. Brazils federal power holding company Eletrobras subsidiaries Eletrosul and Chesf hold 20 per cent each. The financing, which will cover 68.5 per cent of the required investment for the Jirau project, is one of the largest loans ever

MIDDLE EAST & AFRICA


Namibia signs loan agreements for Caprivi transmission line
The Namibian power utility Nampower has signed loan agreements worth NAD1.3 billion with three foreign investment institutions to complete the construction of the 951 km long 400 kV Caprivi transmission line from Katima Mulilo to central Namibia. The European Investment Bank (EIB), Agence Francaise de Developpement (AFD) and Germanys Kreditanstalt fur Wiederaufbau (KfW) jointly contributed just over NADS1.3 billion. The Development Bank of Namibia (DBN) has provided NAD60 million to the project. In addition, the Africa Infrastructure Trust Fund has provided NAD190 million in grant to pay for interest subsidy. The estimated cost of the project is NAD3.3 billion. Phase one of the project, which began last year, is scheduled for completion by the end of 2009. (NAD1 = USD0.1)
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Global Transmission Report | March 2009

Project Update

NORTH AMERICA
Interior to Lower Mainland (ILM) Transmission Project, Canada
Developer: BC Transmission Corporation (BCTC) Project detail and status: BCTC has plans to build a 500 kV transmission line from Nicola substation near Merritt to the Meridian substation in Coquitlam. The ILM project is the largest expansion to BCs transmission system in 30 years. The total length of the line will be 240 km and for the most part it will run parallel to an existing 500 kV line. The BC Utilities Commission (BCUC) has already approved the project. The Commission approved the project at the estimated cost of CAD602 million and has provided a ceiling of CAD725 million to allow for increased costs over the multi-year construction phase of the project. BCTC is expected to file the updated cost report about a year after completion of the environmental assessment process. Before construction can begin, the project needs an Environmental Assessment Certificate from the BC Environmental Assessment Office (EAO), for which BCTC has already filed an application. BCTC anticipates receiving EAO approval by summer of 2009, with an expected in-service date for the project of fall 2014. In January 2009, BCTC held open houses on the project. In February 2009, BCTC floated an international tender inviting bids for the design and construction of the line.

be delayed. In February 2009, it was reported that construction work on the project has been delayed by at least five months because of appeals in the US and Canada. Some Canadian landowners have objected to the locations of the poles along the proposed route. These landowners have appealed a construction permit issued by the Alberta Energy and Utilities Board. They also want MATL to prove that the project is in public interest. The proposed transmission line has also faced opposition in Montana, where landowners are appealing to the states Board of Environmental Review. Once operational, the project would be capable of transporting 300 MW of electricity in either direction. The company has already signed several transmission rights agreements for capacity to be made available on the line. SNC Lavalin is the prime contractor for the project.

Boardman to Hemingway (B2H) Transmission Project, US


Developer: Idaho Power Project detail and status: The 298 mile (475 km), 500 kV power line will connect an existing power plant near Boardman in northeast Oregon with the planned Hemingway substation (owned by PacifiCorp) near Murphy in southwest Idaho. The line will cross Morrow, Umatilla, Union, Baker and Malheur counties in Oregon, and Payette, Canyon and Owyhee counties in Idaho. A new substation will be built at Sand Hollow in Idaho as part of this project. Idaho Power had submitted its notice of intent to Oregon Department of Energy in August 2008. The line comprises six segments: Boardman to WallowaWhitman National Forest (98 miles); Wallowa-Whitman National Forest (7 miles); Wallowa Whitman National Forest-Baker (55 miles); Baker to North Ontario (54 miles); North Ontario to South Hollow (31 miles); South Hollow to Hemingway (53 miles). The line is planned to have up to 1,500 MW of electricity transfer capability. In February 2009, Idaho Power announced that it is considering alternative routes for the project after landowners along the preferred route opposed the construction of the line. The company is working with the US Bureau of Land Management, the US Forest Service and the Oregon Department of Energy on selecting the alternative route. The company expects to finish all permit and engineering activities by 2011. Construction on the project is tentatively scheduled to begin in mid-2011 and finish in 2013.

Montana-Alberta Tie Line (MATL), Canada/US


Developer: Montana Alberta Tie Limited, wholly owned subsidiary of Tonbridge Power Project detail and status: The MATL project is a 214-mile (344 km), 230 kV alternating current (AC) line that will interconnect Canadian and US electricity markets. It will be the first-ever merchant power transmission line between the two countries and will link Lethbridge in Alberta on the Canadian side to Great Falls in Montana on the US side. In November 2008, the project received the final approval the US Presidential Permit. It has already received approval from the Alberta Energy and Utilities Board (AEUB). In October 2008, the company submitted its final environment impact statement (EIS) to the US Department of Energy (DoE). Subsequent to this, the Montana Department of Environmental Quality (DEQ) and the US DoE released a summary of the final EIS. Later in the month, the Montana DEQ issued its permit for construction of the line in the state. With the US Presidential Permit, developers can begin construction. The project is estimated to cost USD140 million. Tonbridge has entered into a mandate letter and term sheet for a proposed USD90 million construction and term-loan facility for the project. The company has also signed a USD9 million network upgrade facility to upgrade the related Great Falls substation. The two credit facilities will be disbursed by a New York-based financial institution and are subject to credit approval and satisfactory completion of due diligence. MATL has also inked an arrangement for revenue prepayment worth USD35 million with one of its customers NaturEner, a Spanish wind-energy developer with projects in Montana. The line was expected to be operational in 2009 but now would
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Green Power Express, US


Developer: ITC Holdings Corporation Project detail and status: ITC Holdings has announced plans to construct a 3,000 mile (4,828 km), 765 kV extra-high voltage transmission network across the states of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana. Called the Green Power Express, the project will tap 12,000 MW of power in the remote areas of Midwest US. The proposed project is estimated to cost between USD10 billion and USD12 billion. ITC has formed a new company called Green Power Express LP to develop the project. In February 2009, Green Power Express filed an application with the FERC for approval of a forward-looking formula rate

Global Transmission Report | March 2009

Project Update
and incentives for the construction of the project. June 2009. The authority expects to complete construction in late 2012.

Maine Power Connection Project, US


Developers: Maine Public Service Company (MPS) and Central Maine Power Company (CMP) Project detail and status: This is a joint 200 mile (322 km), 345 kV transmission line project being carried out by two Maine electric utilities, MPS and CMP. It is aimed to provide customers in northern Maine with access to competitive electric power markets and support the development of proposed wind generation projects in Aroostook County, Maine. Once completed, CMP will own 70 per cent of the project while MPS will own the remaining 30 per cent. The estimated cost of the project is USD625 million. The entire project is divided into three phases. The first phase of the project comprises evaluating a transmission interconnection capable of handling current customer load and existing generation in the MPS service territory. It includes route analysis from Houlton to Haynesville, also known as the Bridal Path. The second phase is studying an interconnection capable of handling up to 800 MW of new wind generation in the MPS service area. This phase also extends interconnection points from Limestone to CMPs transmission system near Detroit. Finally, CMP and MPS will evaluate the feasibility of a third 345 kV interconnection from northern Maine to eastern Canada. In November 2008, the FERC approved transmission rate incentives for the project. The commission has authorised a 150 basis point return on equity (RoE) adder and guaranteed recovery of prudently incurred costs if the project is abandoned due to factors beyond the developers control. However, the FERC conditioned its approval on ISO-New England including the project in its regional system plan as a market efficiency transmission upgrade (METU). The developers subsequently submitted their application to the Maine Public Utilities Commission (MPUC). However, in January 2009, the developers requested for a deferral of any action from the MPUC on their project. Due to certain external changes, the two utilities wish to reconsider the project plan. Following this, in February 2009, the project was put on hold. The project was originally expected to become operational by the end of 2012.

Mid-Atlantic Power Pathway (MAPP), US


Developer: Pepco Holdings, Incorporated (PHI) Project detail and status: The Mid-Atlantic Power Pathway is a 230 mile (370 km), 500 kV transmission line that will originate in northern Virginia, cross southern Maryland and the Delmarva Peninsula and link with the power grid in southern New Jersey. The project, identified in the PJM Regional Transmission Expansion Plan (TEP) as a baseline project, has been approved by the PJM Board. In November 2008, the project was granted transmission rate incentives by the Federal Energy Regulatory Commission (FERC). In its August 2008 filing with the regulator, the developer had requested full recovery of construction work-in-progress at the rate base; an incentive return on equity (RoE) increase of 1.5 per cent, resulting in a 12.8 per cent RoE for the project; and recovery of prudently incurred costs in the event that the project is not completed for reasons beyond the companys control. The commission has approved all these requests. In December 2008, PJM called for a change in the project. The regional transmission organisation (RTO) now wants the developers to use high voltage direct current (HVDC) technology for the portion of the project that stretches under Chesapeake Bay from Calvert Cliffs in Maryland to the Vienna substation in Maryland and then to the Indian River substation in Delaware. In January 2009, the project developers held community information meetings in various counties to apprise the residents of the changes in the project. The cost of the upgraded line is estimated at USD1.425 billion. It is expected to be complete by 2013. Based on the changes, PHI filed an application with the Maryland Public Service Commission for approval to construct the project in February 2009. The company had also recently filed a joint federal-state permit application with the Department of Environment, Maryland, and the US Army Corps of Engineers. PHI is also considering building two 230 kV support power lines in southern New Jersey and the Delmarva Peninsula to connect with the 500 kV line. These lines are being evaluated by PJM, the mid-Atlantic RTO. If approved, the lines would add USD150 million to the project cost and be in service in 2014.

McNary-John Day Transmission Line Project, US


Developer: Bonneville Power Authority (BPA) Project detail and status: In February 2009, BPA decided to revive an old transmission project the 500 kV McNary-John Day Transmission Line Project. The line will start at BPAs McNary substation in Oregon and cross the Columbia River and end at BPAs John Day substation in Washington. The total length of the line will be 79 miles (126 km). The proposed line will carry 870 MW of power including more than 700 MW of wind power. BPA had prepared an environmental impact statement (EIS) for the project in 2002. However, due to changing energy market conditions, the project was put on hold. In 2008, after reviewing a request for more transmission lines in the area, BPA decided to revive the project. The 2002 EIS is still valid. BPA is starting preliminary work immediately and will begin construction in

New York Regional Interconnection (NYRI) Project, US


Developer: NYRI Incorporated (a consortium of investors including Borealis Infrastructure Management and American Consumer Industries) Project detail and status: NYRI is a proposed 190 mile (306 km) HVDC transmission line that will connect the National Grids substation in Marcy, Oneida County to Central Hudson Gas & Electric Corporations substation in New Windsor, Orange County. In August 2008, NYRIs application for the line was deemed complete by the New York Public Service Commission (PSC), after having been rejected twice as incomplete. In September 2008, the FERC approved an additional 2.75 per cent ROE for the company on top of a reasonable base rate, conditional on the state PSC approving the project.
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Global Transmission Report | March 2009

Project Update
Over the past two months, the PSC has held several public information forums and public statement hearings on the project. In December 2008, the staff of the Department of New York PSC recommended that the project follow the existing Marcy South power line route rather than the one proposed by the developers. The department has stated that the original proposal to run the line southward through local communities including South Utica, Sauquoit, Clayville, Cassville and Waterville is not the best option. In January 2009, another group from the staff of the PSC said that the state regulator should altogether deny the application of NYRI. The staff told the PSC that the line is not needed at this time. The testimony is the position of the staff and not the PSC itself. But their opinion carries weight. It has also been reported that the regional independent operator NYISO has not determined there is a need for the NYRI project. The ultimate decision, however, rests with the New York PSC, not the staff. In February 2009, NYRI asked the FERC to reconsider a rule approved last fall that would make it difficult for NYRI to recover investment costs of its proposed transmission line project from utility customers. The company believes that the project may fall through if the rule is not repealed. The rule was proposed by the New York ISO. The company estimates that the line will cost USD2 billion and if the PSC gives its approval it could be in service by 2012. kV Vernon to Cavendish line. VELCO and CVPS had jointly filed a petition with the Vermont Public Service Board (PSB) in 2007. In February 2009, the PSB approved the construction of the project. In doing so, the board rejected recent criticism claiming that the project was not needed. The project is estimated to cost between USD265 million and USD329 million.

Susquehanna-Roseland Transmission Line Project, US


Developers: Public Service Electric and Gas Company (PSE&G) and PPL Utilities Project detail and status: The project is a proposed 130 mile (209 km), 500 kV transmission line running from the Berwick area in Pennsylvania to the Roseland area in New Jersey. The line will connect PSE&Gs switching facilities in Roseland, New Jersey with PPLs Susquehanna switching station near Berwick, Pennsylvania. The two utilities will construct the segments passing through their respective territories. In addition to its portion of the line, PSE&G will build two substations one in Jefferson Township, Morris County and the other in the Roseland area. PPL will also expand one substation at Lackawanna. Among three possible routes for the project, the developers have chosen the so-called route B. In Pennsylvania, the line will run from Berwick, past Wilkes-Barre and Scranton, then east to Hawley and southeast to Bushkill where it crosses the Delaware River. In New Jersey, the line will cross 15 municipalities. The project is reportedly facing severe opposition from affected landowners. The estimated cost of PSE&Gs portion of the line is USD600650 million. The Pennsylvania portion is estimated to cost USD300-350 million. The FERC had granted incentive rates to the two utilities for this project in April 2008. In January 2009, PSE&G and PPL filed for approval for their segments with their respective public utility commissions. In February 2009, Sargent & Lundy signed a contract with PPL Electric Utilities to provide design and engineering services for PPLs segment of the project. Construction on the line would start in late 2009, with completion slated for 2012.

Rockdale-West Middleton Project, US


Developer: American Transmission Company (ATC) Project detail and status: The project involves constructing 3555 miles (56-88 km) of a new 345 kV line to connect Rockdale substation in Christiana with West Middleton substation in Middleton, Dane County. ATC had filed an application with the Public Service Commission (PSC) of Wisconsin for permission to build the line in 2007. In February 2009, the PSC and the Department of Natural Resources issued the final EIS for the project. The EIS examines four proposed routes for the line in terms of their environmental and social impacts. The project has attracted a lot of controversy, including whether the line is needed or not, which route to use, and whether to build part of the line underground. ATC has begun the process of public hearings on the project. Based on public input, the PSC is likely to decide on the project by July 2009. If the project is approved by the PSC, construction of the power line will start in 2010, and the line will be energised by June 2013. ATC estimates that the project will cost between USD214 million and USD244 million, depending upon the final route.

TANC Transmission Program, US


Developer: Transmission Agency of Northern California (TANC) Project detail and status: TANC, which is a California-based joint power agency consisting of 15 local governmental utilities, plans to build 600 miles (966 km) of high-voltage transmission facilities to enable transport of renewable energy in the state of California. The plan includes construction of 500 kV and 230 kV transmission lines and substations. TANC has entered into an agreement with the Western Area Power Area Administration (Western) as its federal partner for the project. In February 2009, TANC completed the project study which concludes that the addition of the project would benefit the reliability of the northern California transmission grid and could allow for the integration of at least 1,600 MW of new renewable generation capacity. With the completion of this analysis, TANC will start the final route planning of the TTP. In January 2009, Western announced that it intends to prepare a joint EIS/ environmental impact report (EIS/EIR) for the transmission project. The project is scheduled for environmental studies,

Southern Loop-Coolidge Connector Project, US


Developers: Central Vermont Public Service Company (CVPS) and Vermont Electric Power Company (VELCO) Project detail and status: The project has two distinct components: the Coolidge Connector and the Southern Loop. The former includes a 51 mile (82 km) 345 kV transmission line between the Vernon and Coolidge substations in Cavendish, a new 345/115 kV substation in Vernon and expansion of the Coolidge substation. The Southern Loop is a one mile long 345 kV loop between a new 345/115/46 kV substation at Newfane and the planned 345
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Global Transmission Report | March 2009

Project Update
permitting and public consultation during 2009-11. Construction is slated for 2012-13. The project will be in service in early 2013.

Zephyr and Power Transmission Line Projects, US


Developer: TransCanada Corporation Project detail and status: TransCanada has plans for two 500 kV high voltage direct current (HVDC) transmission lines to serve growing loads in southwestern US. The first is the 1,100 mile (1,760 km) long Zephyr line between Wyoming and Nevada. The second is the 1,000 mile (1,600 km) long Chinook transmission line stretching between Montana and Nevada. Each project is estimated to cost USD3 billion and is capable of carrying up to 3,000 MW of renewable energy. Both the lines are being developed as merchant transmission projects. The lines are being constructed by Zephyr Power Transmission LLC and Chinook Power Transmission LLC wholly owned subsidiaries of Northern Lights Incorporated, which, in turn, is a subsidiary of TransCanada. In February 2009, FERC approved the applications for authorisation to charge negotiated rates for transmission rights on the lines. These will use what FERC calls an anchor customer model, in which the company will contract with a wind generation company for half of the capacity on each line. The new approval shows signs of greater flexibility in the FERC policy. TransCanada plans to launch open season for the two projects in 2009. For the Chinook project, the company expects to announce a partnership with a large wind power generator by April 2009, to use about half of the transmission lines capacity. The developer hopes to complete the siting and permitting process between 2009 and 2011. Construction is scheduled to begin in 2012 and the in-service date for the projects is late-2014.

Trans Allegheny Interstate Line (TrAIL), US


Developer: Allegheny Energy Project detail and status: The project is being developed by Alleghenys wholly owned subsidiary Trans-Allegheny Interstate Line Company (TrAILCo). This 500 kV transmission line was originally proposed to run 240 miles (386 km) across three states Pennsylvania, West Virginia and Virginia. However, after facing severe opposition in Pennsylvania, in September the developers announced a rerouting of the project. In August 2008, two administrative law judges of the Pennsylvania Public Utility Commission (PUC) recommended that the agency deny a request to build the line. Allegheny then announced it would abandon the 36-mile (58 km) stretch passing through the state, but would build a critical 1.2 mile (about 2 km) stretch and a new substation in Greene County in the state. In October 2008, the Virginia State Corporation Commission (SCC) gave its approval to the segment of the line running 28 miles (45 km) through the state. West Virginias Public Service Commission has already approved its segment of the line. In November 2009, the project received approval from the Pennsylvania PUC for construction of the 1.2-mile (about 2 km) segment. TrAILCo intends to enter into a collaborative process to identify potential alternatives to resolve local reliability issues anticipated to occur in Washington County. The Commission also approved a related settlement agreement between TrAILCo and Greene County that proposed the collaborative process. Even after getting the PUC approval, the project seems to have got caught in controversy. In January 2009, an environmental group in Pennsylvania filed an appeal with the state PUCs decision allowing Allegheny Energy to construct a 1.5 mile (about 2 km) section. In February 2009, the West Virginia PSC allowed Allegheny to build line passing through the state in segments. The PSCs initial order would have prevented TrAILCo from beginning construction on any West Virginia segment until a hearing was held to determine if all pre-construction permits and approvals had been obtained for the entire length of the line in the state. The PSC also did away with the need for a Static VAR Compensator (SVC) for the Meadow Brook substation which would cost TrAILCo more than USD58 million. The TrAIL project also includes construction of three new 138 kV lines in southwestern Pennsylvania, each five miles in length. The project would connect Dominion Virginia Powers substation in Loudon, Virginia. Dominion will also own, construct and operate part of TrAIL in Loudon County. Its line will be 65 miles (105 km) and is estimated to cost USD243 million. The Virginia SCC has also approved Dominions portion of the project. The original project cost has been estimated at USD1.2 billion. Developers are working on the funding. In August 2008, they closed a USD550 million senior secured credit - a USD530 million term-loan and a USD20 million revolving facility - with a sevenyear maturity. Both parts have an initial borrowing rate equal to the London Interbank Offered Rate (LIBOR) plus 1.875 per cent. The FERC has allowed Allegheny a 12.7 per cent RoE for this project. Kenny Construction Company will contract out the works related with the project. The overall project has a targeted completion date of 2011.

LATIN AMERICA
Coletora Porto Velho-Araraquara 1 Transmission Line, Brazil
Developer: Madeira Transmissao Project detail and status: This is the first Madeira line, connecting the hydroelectric power complex on the Madeira river with Sao Paulo. It will be a 600 kV, 2,375 km long line cutting across the states of Rondonia, Mato Grosso, Goias, Minas Gerais and Sao Paulo. The project is expected to begin in 2012. The Madeira Transmissao consortium won the contract to build and operate the line in November 2008. The consortium offered BRL176 million in annual revenue. The consortium is composed of Eletrobras subsidiaries, Furnas and Chesf, with 24.5 per cent equity stake each, and CTEEP with 51 per cent stake. The consortium plans to invest BRL2 billion in the projects. The concession contract for the project was signed in February 2009. The Brazilian development bank, BNDES, has agreed to partly fund the project.

Coletora Porto Velho-Araraquara 2 Transmission Line, Brazil


Developer: Integracao Norte Brasil Project detail and status: This is the second Madeira line, connecting the hydroelectric power complex on Madeira river with Sao Paulo. It will be a 600 kV, 2,375 km long line cutting across the states of Rondonia, Mato Grosso, Goias, Minas Gerais and Sao Paulo. The project is expected to begin operations in 2012.
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Global Transmission Report | March 2009

Project Update
The Integracao Norte Brasil consortium comprises Eletronorte (24.5 per cent), Eletrosul (24.5 per cent), Abengoa (25.5 per cent) and Andrade Gutierrez (25.5 per cent). The first two are subsidiaries of the federal power company Eletrobras. Abengoa is a Spanish engineering and construction company. Andrade is also an engineering firm. The consortium won the concession in November 2008 by agreeing to receive revenue of BRL174 million a year. The concession contract for the project was signed in February 2009. The Brazilian development bank, BNDES, has agreed to partly fund the project. February 2009, the CFE announced that the interconnector is now likely to be energised by end 2009. The Panama-Colombia interconnector is estimated to entail an investment of over USD207 million. This is a planned 614 km HVDC undersea cable (274 km in Panama and 340 km in Colombia) and is targeted for completion in 2012. The IDB is financing the technical, economic and financing feasibility studies for this line. Panamas ETESA and Colombias ISA have formed a joint venture, Intercolpa, to develop this interconnector.

SIEPAC Project, Central America and Latin America


Developer: Empresa Propietaria de la Red (EPR) Project detail and status: In December 2001, seven Central American countries signed the Plan Puebla-Panama agreement (now called Proyecto Mesoamericano) as an effort to integrate their electricity markets and transmission grids. Plan Puebla-Panama entails creation of a regional wholesale electricity market called the Mercado Electrico Regional (MER); construction of the Sistema de Interconexion Electrica de los Paises America Central (SIEPAC) a 230 kV, 1,796 km long transmission line linking Panama, Costa Rica, Honduras, Nicaragua, and El Salvador. The project also entails construction of interconnectors between Mexico and Guatemala on one side and Panama and Colombia on the other side. The first phase of the plan is the completion of the SIEPAC. The member countries have created an independent company, Empresa Propietaria de la Red (EPR), to achieve this goal. Apart from the state-run utilities of the member countries, the ISA Group of Colombia, Endesa of Spain and Mexicos CFE have taken a 11.1 per cent equity stake each in the project. EPR estimate the cost of the SIEPAC line to be USD405 million. Apart from the contribution from shareholders, the InterAmerican Development Bank (IDB) has financed the project through USD240 million in loans for the six participating countries. The Central American Bank for Economic Integration (CABEI) has provided a loan of USD100 million. In December 2008, the Andean Development Corporation (CAF) agreed to provide USD16.7 million for the SIEPAC project. The loan agreement was signed in February 2009. Construction on some parts of the SIEPAC project started in 2006. The Mexico-based engineering firm, Techint SA, part of the Techint Group, has the contract (worth USD108 million) for Part I of the project covering Guatemala, Honduras and El Salvador. The contract for Part II (worth USD115 million), which covers Nicaragua, Costa Rica and Panama, has been awarded to a consortium led by the Spanish engineering firm Abengoa. The Canadian firm Dessau-Soprin is the overall project supervisor. The SIEPAC project is scheduled to be completed in 2010-11. The costs for the Guatemala-Mexico and Panama-Colombia interconnectors are separate from the SIEPACs cost of USD405 million. The former is estimated to cost over USD55 million, of which the IDB has provided USD38 million through a loan to Guatemala. The 400 kV line will connect Tapachula in Mexico to Los Brillantes in Retalhuleu in Guatemala. The total length of the interconnector is 103 km, of which 71 km is on Guatemalas territory. Once complete, it will enable Guatemala to purchase 200 MW of electricity from Mexico. The interconnector will connect with other Central American countries in the future. In
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ASIA PACIFIC
Sarawak Undersea Cable Project, Malaysia
Developers: Tenaga Nasional Bhd Project detail and status: Plans to construct an undersea cable to link Sarawak on Borneo island with Peninsular Malaysia began as early as the 1990s but were scrapped after the 1997 Asian financial crisis. The plans are tied to the Bakun hydroelectric plant in Sarawak, which is under construction and nearing completion. The cable was planned to transmit electricity from the project to Peninsular Malaysia at Yong Peng in the state of Johor. The undersea cable plans have been revived since Tenaga and Sarawak Energy, a regional utility, took over the operations of the Bakun project in January 2009 from Sime Darby Bhds. The cable is expected to export approximately 1,600 MW to the peninsula via a high voltage direct current system. In February 2009, Tenaga announced its intention to call for tenders for construction of the cable by the end of this year. The submarine cable will span a distance of 670 km and is estimated to cost up to MYR15 billion. In addition, the on-land portion of Bakuns transmission system will stretch some 730 km in east Malaysia and 300 km in Peninsular Malaysia. The project can start operations in 2015 given that construction starts next year. Tenaga is expected to form a joint venture with Sarawak Energy to develop the undersea cable. The on-land transmission systems for Peninsular Malaysia and Sarawak will be developed by Tenaga and Sarawak Energy.

Wairakei Ring Transmission Project, New Zealand


Developers: Transpower Project detail and status: Transpower had submitted a proposal to New Zealands Electricity Commission (EC) in December 2008 to develop a 220 kV double-circuit line from Wairakei to Whakamaru. The project could cost up to NZD141 million. In February, it was reported that the EC would soon approve the project. The proposed transmission project will help evacuate power from new geothermal power projects into the national grid. Transpower hopes to complete the project by mid-2013.

EUROPE
Tirana-Prishtina Transmission Line Project, Albania/Kosovo
Developers: Albanian Transmission System Operator (ATSO) and Kosovo Market and Transmission System Operator (KOSTT)

Global Transmission Report | March 2009

Project Update
Project detail and status: The proposed 238 km, 400 kV transmission line project will interconnect Tirana in Albania with Prishtina in Kosovo. Feasibility and environmental studies for the project were conducted by CESI of Italy with World Bank funding in 2005. This study was later updated by DECON of Germany (now called MVV decon) with KfW funding in April 2008. The project is estimated to cost EUR60 million. In October 2008, KfW agreed to contribute part of the EUR35 million which Albania will need for the construction of its section of the transmission line. KfW has also agreed to extend a EUR12 million soft loan for the construction of the 85 km long Kosovo section of the power line. The Kosovo section is estimated to cost EUR25 million. In February 2009, an interconnection agreement was signed between the two countries. The grid operators of the two countries will construct the portions of the line passing through their respective countries. Construction is expected to begin in 2009 and will take about 20 months for completion.

MIDDLE EAST & AFRICA


Caprivi Interconnector Project, Namibia/Zambia
Developer: NamPower Project detail and status: Namibias state-owned electricity provider, NamPower, is constructing the Caprivi interconnector with Zambia. The Caprivi link project is to be carried out in two stages. The first stage includes the construction of a 970 km, 350 kV HVDC bipolar line with converter stations and the associated AC substation extensions at the Zambezi and Gerus. This phase will have an initial transfer capacity of about 300 MW. The second stage will involve the construction of a 285 km, 400 kV AC transmission line and associated substation extensions at the Auas and Gerus. This will add some 300 MW of transfer capacity, but will only be implemented if required. ABB is responsible for system engineering including design, supply and installation of the two converter stations and earth electrodes. The estimated cost of the project is NAD3.3 billion. In February 2009, NamPower signed loan agreements worth NAD1.3 billion with three foreign investment institutions to complete the construction of the project. The European Investment Bank (EIB), Agence Franaise de Dveloppement (AFD) and Germanys Kreditanstalt fr Wiederaufbau jointly contributed just over NAD1.3 billion. The Development Bank of Namibia has provided NAD60 million for the project. In addition, the Africa Infrastructure Trust Fund has provided NAD190 million in grant to pay for interest subsidy. Phase one of the project is scheduled for completion by the end of 2009.

Black Sea Power Transmission Project, Georgia


Developer: Ministry of Energy, Georgia Project detail and status: This is a 500 kV HVDC project aimed at stabilising Georgias electric transmission network and facilitating electric energy trade between Georgia, other south Caucasus countries, and Turkey. The project comprises six specific elements: a 500/400/220 kV substation at Akhalsikhe near the Georgian-Turkish border; a 1,000 MW back-to-back 500/400 kV HVDC unit at Akhalsikhe; a 20 km, 400 kV overhead transmission line from Akhalsikhe to the Turkish border; a190 km, 500 kV overhead transmission line from the existing Gardabani substation to Akhalsikhe; a 500 kV overhead transmission line between the existing Zestaponi substation and Akhalsikhe; and extension of the Gardabani and Zestaponi substations. The estimated project cost is EUR220 million. German development bank KfW, European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) will provide soft loans for the project as well as with the funds allocated by the Government of Georgia. In February 2009, Black & Veatch won the tender for assessment of environmental impact.

Iringa-Shinyanga Transmission Project, Tanzania


Developer: Tanzania Electric Supply Company (TANESCO) Project detail and status: The project entails a USD370 million investment for a 650 km long, 400 kV HVAC transmission line from Iringa via Mtera, Dodoma and Singida to Shinyanga. In February 2009, TANESCO announced that it plans to partly fund the project through a USD400 million loan from the World Bank, for improving its transmission and distribution network. Fichtner prepared the feasibility study of the project.

Adria Link Project, Italy/Slovenia


Developers: Enel, Acegas-Aps and Tei Project detail and status: Three Italian energy companies Enel, Acegas-Aps and Tei, have established a joint venture to set up two electricity interconnectors with Slovenia. The three partners will have equal equity stakes in the joint venture company called Adria Link. The new company will build two underground transmission lines with a net transfer capacity of about 250 MW. The memorandum of understanding (MoU) for the project was signed in February 2009. The two proposed lines will connect Zaule substation in the Italian province of Trieste with Dekani station in Slovenia; and Redipuglia station in the Italian province of Gorizia with Vrtojba station in Slovenia. The Adria Link Project will entail an estimated investment of EUR31 million. The underground lines have already received the necessary permits from the Slovenia Energy Ministry. On the Italian front, procedures for issuing construction and operation permits are reportedly at an advanced stage.

Mombasa-Nairobi Transmission Line, Kenya


Developer: Kenya Power and Lighting Company (KPLC) Project detail and status: KPLC plans to build a 400 kV, 450 km long transmission line between Mombasa and Nairobi. The line will originate at the Rabai substation near Mombasa and end at the Embakasi substation in Nairobi. The project is estimated to cost USD220 million and will facilitate transmission of up to 600 MW of power from Mombasa to Nairobi. The project also involves construction of a new 24 km IsinyaEmbakasi double-circuit transmission line comprising 19 km of overhead cable and 5 km of underground cable. KPLC has applied for funds from AFD, the European Investment Bank (EIB) and the African Development Bank (AfDB) for the line. AFD has pledged EUR60 million, EIB has pledged EUR50 million and AfDB has pledged EUR30 million for the project. In February 2009, it was reported that KPLC is in the process of tying up funds with various agencies.
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Global Transmission Report | March 2009

Company News

NORTH AMERICA
AREVA T&D takes over US maintenance firm
AREVA T&D has acquired RB Watkins of the US. The acquisition is expected to enhance AREVA T&Ds service business unit capability to install, maintain and repair power transformers in the US. The company has not disclosed the value of the deal.

Grid US under a USD35 million long-term contract. The equipment will be supplied on a turnkey basis to National Grids 69 kV to 345 kV projects in New York and New England. The contract is valid until 2014 and is part of National Grids USD600 million power grid-enhancement project.

Siemens Energy and Fluor Corporation sign long-term cooperation agreement


Siemens Energy has signed an agreement with Fluor Corporation of the US that makes Siemens the preferred supplier for Fluors global projects business. The monetary value of this longterm contract was not revealed. Siemens will now be involved in projects right from the development stage and Fluor will have access to technology from Siemens oil and gas, power transmission and power distribution divisions. The agreement is expected to minimise risk for both companies and help optimise utilisation of resources by pooling them.

Sargent & Lundy to provide engineering services for the Susquehanna-Roseland project
Sargent & Lundy has signed a contract with PPL Electric Utilities to provide design and engineering services for its segment of the Susquehanna-Roseland transmission project. The proposed 130-mile (209 km), 500 kV SusquehannaRoseland transmission line project will connect PSE&Gs switching facilities in Roseland, New Jersey with PPLs Susquehanna switching station near Berwick, Pennsylvania. The PJM Interconnection, which oversees reliability planning for the regional power grid in the Mid-Atlantic region, identified the need for the new line. It directed PPL to build the Pennsylvania segment and PSE&G to build the New Jersey segment of the line. PPL submitted its application for the project to the Pennsylvania Public Utility Commission in January 2009. The entire project is expected to go online in mid-2012.

ASIA PACIFIC
Siemens energises substation in the Philippines
Siemens has energised the 300MVA power transformer and substation equipment in a new 230 kV substation in Amadeo, Cavite in the Philippines. The substation is owned by the Manila Electric Company (Meralco). Siemens provided the design, installation, factory-testing and commissioning of the transformer and major substation equipment. Meralco also awarded Siemens two additional supply contracts of 115 kV, 83MVA transformers for its substations in Central Business Park and Fort Bonifacio Global City.

Siemens installs SCADA/EMS for Arizona utility


Siemens Energy has installed its Spectrum Power 3 SCADA/EMS system for Arizona Public Service (APS). This was a joint partnership project where APS co-developed some required functionalities. The new system combines APS existing functions with advanced transmission network applications and an operator training simulator. The system will allow APS to monitor and manage their electric grid in real time.

AREVA T&D awarded EUR60 million HVDC contract in China


AREVA T&D has signed a contract worth around EUR60 million to supply H400 high-voltage direct current (HVDC) thyristor valves for two major transmission projects to be built between Ningdong and Shangdong and the Three Gorges Dam and Shanghai. The projects are due for completion by the end of 2010 and will be operated by the State Grid Corporation of China (SGCC). AREVA will execute the contract in partnership with China Electric Power Research Institute (CEPRI). (EUR1 = USD1.29)

Quanta Services and Northeast Utilities expand contract


Quanta Services, a specialised contracting services company, has announced the addition of USD200 million in services and an extension of two years to its existing multi-year contract with Northeast Utilities (NU). Quanta is providing transmission infrastructure services for NUs transmission build-out programme until 2015 under this contract. The anticipated value of the original contract, signed in December 2007, was USD750 million and it was valid from 2008 to 2013. With this recent expansion, the anticipated value of the contract is now USD950 million up to 2015. Under the new eightyear contract, Quanta will continue to provide labour, equipment and general project management for NUs transmission projects throughout the New England region.

Areva T&D India bags order from Lanco Infratech


Areva T&D India Limited has bagged its first ever private order from Lanco Infratech Limited for supplying equipment for a 765 kV substation in Uttar Pradesh. Areva T&D India will produce all major equipment like circuit breakers, instrument transformers and automation at its India plants. It will also supply equipment for the 765 kV substation switchyard which will connect the Anpara C 1,200 MW thermal power plant in Uttar Pradesh to the Northern Grid.

Taihan Electric Wire wins contract in the US


Korean cable manufacturer Taihan Electric Wire has won a bid to supply power cables and other related materials to National

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Global Transmission Report | March 2009

Company News
The project is expected to be fully commissioned by April 2010. AREVA will supply a 420 kV and 230 kV GIS package for the project.

Indias KEC International wins orders worth INR3.65 billion


KEC International Limited, one of the biggest transmission line construction and equipment manufacturers in India, has won orders worth INR3.65 billion from three state-level power companies in the country. The company won an order worth INR2.55 billion for rural electrification from West Bengal State Electricity Distribution Company and another for INR670 million from Power Grid Corporation Limited. It also received an order of INR430 million for a turnkey transmission project from the Transmission Corporation of Andhra Pradesh Limited. (INR1 = USD0.019)

Koreas KEPCO selects local company to install undersea cables


The state-run Korea Electric Power Corporation (KEPCO) has picked a local cable company LS Cable to install new undersea power cables linking the mainland to Jeju island. LS Cable was selected over two foreign companies that had competed for the project. It agreed to install the cables for USD237.2 million. Frances Nexans, Japanese PJS and LS submitted proposals for the project in November 2008. The work involves installing three 250 kV direct-current cables and one alternating-current cable from Jindo in South Jeolla Province to the resort island of Jeju off the southern coast of South Korea. The cables will span 122 km, of which 105 km will run under the sea. The project is expected to be complete in three years.

KEC wins two orders from Indias PGCIL


Later in the month, KEC won two more orders worth INR2.27 billion from Power Grid Corporation of India Limited (PGCIL). The first order requires KEC to supply and construct a 135 km, 765 kV transmission line between Nandanwadi in Madhya Pradesh and Wardha in Maharashtra. The second order is for construction of a transmission line connecting Jattikalan in Haryana with Moga in Punjab. The projects are expected to be completed by May 2011. (INR1 = USD0.019)

EUROPE
AREVA T&D takes over UK maintenance firm
AREVA T&D has taken over Powermann, a Dorset-based maintenance firm, to add to its services business unit and to increase its customer base and presence in the UK. AREVA did not disclose the value of the deal. Powermann is engaged in maintaining, installing and testing of high-voltage power equipment.

Indias JSW Energy to enter electricity transmission sector


JSW Energy, the power arm of the JSW Group, is targeting a transmission line network of over 1,000 circuit km in the next three years. The company is expected to spend close to INR20 billion in the next three years and plans to bid for all major tenders for 400 kV and 765 kV transmission lines, to achieve this target. Jaigad PowerTransco Limited (JPTL), a joint venture between JSW Energy and Maharashtras transmission company Mahatransco, was recently awarded a licence for a 400 kV transmission system in the state. JPTL was formed primarily to evacuate power from the 1,200 MW Jaigad power project being developed by JSW Energy. The licence authorises JPTL to establish, operate and transmit electricity from its proposed 400 kV transmission evacuation system in Maharashtra. In a press statement, the company said that the licence is the first of its kind issued under the Electricity Act, 2003 to a private company under the public-private partnership model. The licence is valid for 25 years. (INR1 = USD0.019)

AREVA T&D chosen to deliver smarter grid management solution to Frances RTE
French Transmission System Operator RTE has chosen AREVA T&D to deliver a smarter grid management solution to monitor, estimate and forecast wind generation to be connected to the grid. AREVAs system will be able to connect around 1,000 wind farms and support the development of renewable energy generation. This collaboration between AREVA and RTE is aimed at optimisation and increase of capability of the French grid to incorporate renewable energy sources. The solution is based on AREVAs e-terra product range, which is in operation on wind farm supervision systems in the US, Portugal, Spain and Denmark.

Black & Veatch wins the contract for environment assessment of Black Sea project
Black & Veatch has won the tender for assessment of environmental impact of the construction of the Black Sea transmission project in Georgia. The impact study will be funded by the grants sanctioned by the European Bank for Reconstruction and Development (EBRD). The 500 kV project aims at stable operation of the electric transmission network of Georgia and assist in trade between Georgia and the South Caucasus countries and Turkey. The project also involves construction of a 400/500 kV transmission line between Georgia and Turkey.

AREVA T&D to partner BGR Energy


BGR Energy has selected AREVA T&D as the preferred partner for supply of a gas insulated substation (GIS) package for the Mettur thermal power project in the southern state of Tamil Nadu in India. The project belongs to the state-run power utility, Tamil Nadu Electricity Board.

Global Transmission Report | March 2009

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Company News
Of the total 18 companies which participated in the first stage of the tender, six companies were selected for participation in the second stage. Apart from Black & Veatch Royal Haskoning, Environ UK Limited, Fichtner Gmbh, Louis Berger SAS and Geographic Limited, and Mott MacDonald were in the running for the contract. The company will sign relevant agreements with the Energy Ministry of Georgia soon. The total cost of the project is estimated at EUR220 million. The project will be funded with credit provided by KfW, EBRD and the European Investment Bank (EIB) as well as with the funds allocated by the Government of Georgia. (EUR1 = USD1.26) Dubais transmission and distribution network. AHEC is part of the Al Hassan Group, which has companies in Oman and the UAE operating in contracting, trading and manufacturing.

ABB wins USD63 million order to upgrade 15 substations in Saudi Arabia


The Saudi Electricity Company has awarded ABB Group an order worth USD63 million to upgrade 15 power substations in the eastern and central provinces of Saudi Arabia. The substations cover voltage levels from 13.8 kV to 230 kV. The project is scheduled for completion by 2011. As part of the contract, ABB will provide turnkey solutions including design, engineering, supply, installation, testing and commissioning. ABB will also supply power transformers, medium-voltage switchgear, protection and control equipment, and Supervisory Control and Data Acquisition (SCADA) solutions.

ABB to build GIS substations for CE Electric UK


ABB has been awarded a USD28 million turnkey project by distribution company CE Electric UK, a subsidiary of MidAmerican Energy Holdings, to design and build a new indoor gas-insulated switchgear (GIS) substation in West Yorkshire. The company will replace the existing outdoor air-insulated switchgear (AIS) substation that is nearing the end of its service life with the GIS. The project is part of ABBs long-term contract with CE for the turnkey design and construction of new and replacement substations across the north of England. ABB will be responsible for the design, construction, supply and installation of the new substation. The product supply will include 16 bays of ABBs ELK 132 kV GIS equipment, 132 kV XLPE (cross-linked polyethylene) cables to transfer power to the substation, and protection equipment and low-voltage AC/DC supplies. ABB will also modify the terminal towers for overhead lines and the existing sealing end platforms to adapt them to the new installation.

ABB wins USD53 million contract in South Africa


ABB has received a USD53 million contract from Eskom, the South African state-owned power utility. Under the contract, ABB is required to design, manufacture, install and commission capacitor banks to strengthen the transmission network in the Western Cape region. The works are expected to be complete by 2010. ABB will supply six 765 kV capacitor banks for the Alpha, Beta, Mercury and Perseus substations. The project will use ABBs Flexible Alternating Current Transmission System (FACTS) and Mach2 technologies for better management and utilisation of the transmission infrastructure

Indias L&T wins contracts in UAE

MIDDLE EAST & AFRICA


Qatari and Spanish companies set up EPC joint venture
PAT Engineering Enterprises, a Qatar-based company, and VIMAC SA, a Spanish power and energy firm, have signed an agreement to set up a joint venture called the PAT-Vimac Energy Company, which will focus on the engineering, procurement and construction (EPC) business in the energy sector. PAT and VIMAC are both EPC contractors. Their new joint venture will be located in Doha and will operate in the energy, power generation, and power transmission and distribution segments.

The Al Ain Distribution Company (AADC) has awarded Indias Larsen and Toubro (L&T) an engineering procurement and construction (EPC) contract worth USD164 for construction of seven electrical substations, associated cabling and an overhead transmission line in Al Ain city in Abu Dhabi. L&T will design and set up the 33/11kV primary substations to the specifications of the international consultant PB Power. The order is expected to be completed within 24 months. Each substation consists of 33 kV gas-insulated switchgear (GIS), 11 kV air-insulated switchgear (AIS), 15/20 MVA 33/11 kV transformers, substation control and monitoring system, a protection and telecommunication system, a DC system and auxiliaries. L&T has also received another EPC order for augmentation and expansion of a 33 kV power transmission network. This order valued at USD67 million is from Abu Dhabi Distribution Company. Works includes design, supply and construction of 300 km of 33 kV transmission network in the western region of Abu Dhabi. The order is expected to be completed within 22 months.

Al Hassan Engineering wins contract in Dubai


Al Hassan Engineering Company (AHEC) has won a contract for civil works linked to the construction of a 400/132 kV substation in Dubai. The contact valued at USD26 million has been awarded by Siemens which is the turnkey contractor for the Dubai Electricity and Water Authoritys (DEWA) project aimed at expanding
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Global Transmission Report | March 2009

Tenders & Contracts

NORTH AMERICA
Supply of 550 kV and 230 kV disconnect switches
Country: Canada Organisation: BC Transmission Corporation Description/Scope of work: International competitive bids are invited for the supply of four 550 kV and two 230 kV disconnect switches. Closing date: March 17, 2009 Contact: Bennett, Bonni, Suite 1100, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49260, Vancouver, British Columbia, V7X 1V5 Canada Phone: +1 604 699 7569 Fax: +1 604 699 7580 Email:bonni.bennett@bctc.com

Closing date: March 20, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx

Construction of transmission lines


Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: CFE invites international competitive bids for the construction of nine transmission lines of 400 kV, 230 kV and 115 kV ratings with a total length of 196 km for the states of Chiapas and Veracruz. The tender includes six substations with ratings of 400 kV, 230 kV and 115 kV along with 25 feeders. Closing date: April 1, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx

Supply of composite/polymer insulator assemblies


Country: Canada Organisation: BC Hydro and Power Authority Description/Scope of work: International competitive bids are invited for the design, testing and delivery of 230 kV composite/ polymer insulator assemblies for the Okanagan Transmission Reinforcement Project. BC Hydro has floated this tender on behalf of FortisBC. Closing date: March 25, 2009 Contact: 14th Floor, 333 Dunsmuir Street, Vancouver, British Columbia V6B 5R3 Canada Phone: +1 604 623 4346 Fax: +1 604 623 3920 Email:bidstation@bchydro.com

Construction of substation and sub-transmission line


Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: CFE invites international competitive bids for the construction and installation of a 115 kV substation and a 115 kV sub-transmission line in the state of Chihuahua. Closing date: April 9, 2009 Contact: CFE, Department of Projects and Construction, Zahina Street, C.P. 32695, Juarez, Chihuahua, Mexico Phone: +52 614 311849

Construction of a 230 kV transmission line

LATIN AMERICA
Construction of transmission lines in Neuvo Leon
Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: International competitive bids invited for the construction of seven transmission lines in the state of Neuvo Leon, of 400 kV and 115 kV rating, with a total length of 179 km. The tender includes three substations with a total capacity of 500 MVA and 12 feeders. Closing date: March 11, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx

Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: CFE invites international competitive bids for the construction of a 230 kV transmission line with a total length of 109 km running across the states of Baja California and Sonora. The tender includes two substations with ratings of 230 kV and 34.5 kV along with five feeders. Closing date: April 28, 2009 Contact: CFE, Rio Rodano 14, Col. Cuauhtemoc 06598 Mexico, D.F., Mexico Email: servicioalcliente@cfe.gob.mx

Transmission projects in Oaxaca, Puebla and Veracruz


Organisation: Comisin Federal de Electricidad (CFE) Country: Mexico Description/Scope of work: CFE has floated a tender for transmission projects in the states of Oaxaca, Puebla and Veracruz. Works include construction of 11 transmission lines at 400 kV and 115 kV voltage levels along with 18 feeders. Construction is expected to begin in July 2009. Closing date: May 13, 2009 Contact: CFE, Paseo de la Reforma No. 164, Mezzanine 2 Colonia Juyrez, C.P. 06600, Cuauhtemoc, Distrito Federal, Mexico Phone: +52 311849 Fax: +52 294400 (Ext. 3278)

Construction of transmission lines and substations


Country: Mexico Organisation: Comisin Federal de Electricidad (CFE) Description/Scope of work: CFE invites international competitive bids for the construction of transmission lines for the state of Aguascalientes. Works include the construction of three 115 kV transmission lines with a total length of 55.9 km, along with two substations of 400 kV and 115 kV and seven feeders. Construction is scheduled to begin in May and in expected to be complete in another 510 days from then.

Global Transmission Report | March 2009

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Tenders & Contracts Construction of 230 kV transmission line and substation


Country: Nicaragua Organisation: Empresa Nacional de Transmisin Elctrica (Enatrel) Description/Scope of work: International competitive bids are invited for the design, supply, civil works and electromechanical assembly of a 230 kV transmission line and the Masaya Sandino substation. The tender is part of the national transmission reinforcements for the SIEPAC integration project, being financed by the Inter-American Development Bank (IDB). Closing date: March 20, 2009 Contact: Enatrel, Interseccion Pista Juan Pablo II Avenida Bolivar-Managua, Managua, Nicaragua Organisation: Rajasthan Rajya Vidyut Prasaran Nigam Limited Description/Scope of work: International competitive bids are invited for upgrading 400 kV and 220 kV transmission systems through private sector participation on a build, own and operate model. The tender includes three transmission projects: the 400 kV Bikaner-Deedwana-Ajmer line (with a 400 kV/220 kV substation at Deedwana); the 400 kV Hindaun-Alwar line (with a 400 kV/220 KV substation at Alwar; and the 220 kV SikarNawalgarh-Jhunjhuru line (with a 220 kV/132 kV substation at Nawalgarh). Closing date: April 3, 2009 Contact: Superintendent Engineer (NPP), Vidyut Bhawan, Janapath, Jaipur, 302005 Rajasthan, India Phone: +91 141 2740827 Fax: +91 141 2740794 Website:http://www.rajenergy.com

Construction of a 230 kV transmission line


Country: Panama Organisation: Empresa de Transmisin Elctrica, S.A. Description/Scope of work: International competitive bids are invited for the construction of the 230 kV Nanci Mata transmission line. Closing date: April 2, 2009 Contact: Diego Villarreal, Empresa de Transmisin Elctrica, Plaza Sun Tower, Tercer Piso, Panama City, Panama Phone: +507 501 3962 Fax: +507 501 3502 Email:dvillarreal@etesa.com.pa

EPC contract for a 765 kV transmission line


Country: India Organisation: Uttar Pradesh Power Transmission Corporation Limited Description/Scope of work: UPPTCL invites interested companies to bid for the engineering procurement and construction (EPC) contract for works on a turnkey basis for a 765 kV transmission system in the northern state of Uttar Pradesh in India. Works include execution of: 185 km long 756 kV line Anpara D-Jhusi; 10 km long Anpara C to Anpara D; Shifting of 10 km long Anpara B-Anpara C line; and construction of the 225 km long 756 kV Jhusi-Unnao transmission line. Closing date: April 8, 2009 Contact: Superintending Engineer, Office of the Superintending Engineer, Electricity 765 & 400 kV Trnasmission Design Circle, 10th Floor, Shakti Bhawan Extension, 14-Ashok Marg, Lucknow Uttar Pradesh 226001, India Website: http://www.upptcl.org

ASIA PACIFIC
Expansion of a 132 kV substation
Country: Australia Organisation: Transgrid Description/Scope of work: International competitive bids are invited for the expansion of the Cowra substation. Works include the installation of two 132/66/11 kV, 60 MVA transformers, and two 11kV/415V 200 kA auxiliary transformers. Closing date: March 10, 2009 Contact: Mr Richard Glover, Transgrid, Metropolitan Area Centre, 200 Old Wallgrove Road, Eastern Creek, NSW 2776 Phone: +61 2 92843286 Email:richard.glover@transgrid.com.au

Construction of bays for 400 kV substation


Country: India Organisation: Power Transmission Corporation of Uttarakhand Limited Description/Scope of work: International competitive bids are invited for the construction and completion of two bays for the 400 kV Kashipur substation. The contractor selected will have to design, supply, install, test and commission the works on a turnkey basis. The project is part of the Uttarakhand Power Sector Investment Programme (Project 4) and is being financed by a loan from the Asian Development Bank. Closing Date: April 17, 2009 Contact: General Manager (C&P)/Dy. General Manager (C&PI), 132 kV S/S Majra Campus, Near ISBT, Dehradun, Uttarakhand, India Phone: +91 135 2644153/2641127/2641277 Email:gmcandp.ptcul@gmail.com Website:http://www.ptcul.org

Fault rating upgrade of a 330/132 kV substation


Country: Australia Organisation: Transgrid Description/Scope of work: International competitive bids are invited for civil and electrical works for the fault rating upgrade of a 330/132 kV substation. Closing date: March 10, 2009 Contact: Mr Richard Glover, Transgrid, Metropolitan Area Centre, 200 Old Wallgrove Road, Eastern Creek, NSW 2776 Phone: +61 2 92843286 Email:richard.glover@transgrid.com.au

Construction of a 132/33 kV substation Private participation in transmission systems


Country: India
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Country: India Organisation: Orissa Power Transmission Corporation (OPTC)

Global Transmission Report | March 2009

Tenders & Contracts


Description/Scope of work: OPTC, a state-level transmission utility in the eastern state of Orissa in India, has invited tenders for construction, testing and commissioning of a 132/33 kV substation at Udala, along with associated 132 kV transmission lines; two 160 MVA 220/132/33 kV substations along with an associated 220 kV line; two 40 MVA 132/33 substation lines at Lapanga; and two 40 MVA 220/33 kV substation at Gopinathpur, on a turnkey basis. Closing date: April 30, 2009 Contact: OPTCL, 2nd Floor, Bidyut Bhawan, Janapath, Bhubaneswar-751012, Orissa 50732 Kuala Lumpur, Malaysia Phone: +603 2296 5566 Fax: +603 2283 6397 Email:contactus@tnb.com.my Website:http://www.tnb.com.my

Construction and commissioning of substation


Country: Malaysia Organisation: Sabah Electricity SDN. BHD (SESB) Description/Scope of work: International competitive bids are invited for the design, manufacture, supply and commissioning of the proposed 132/11 kV Matunggong substation. Closing date: April 1, 2009 Contact: Wisma SESB, Jalan Tunku Abdul Rahman, 88673 Kota Kinabalu, Sabah Malaysia Phone: +60 88 282699 Fax: +60 88 223320

Construction of two 220 kV transmission lines


Country: India Organisation: Power Transmission Corporation of Uttarakhand Limited (PTCUL) Description/Scope of work: PTCUL invites international competitive bids for the design, supply, installation, testing and commissioning of two 220 kV double-circuit transmission line projects the 12.2 km Lata Tapovan-Joshimath line and the 20.3 km Joshimath-Pipalkoti line. Both the projects have to be implemented on a turnkey basis. The tender is part of the Uttarakhand Power Sector Investment Programme being financed by the Asian Development Bank. A pre-bid conference will be held on February 25, 2009. Closing date: March 23, 2009 Contact: PTCUL, Head Quarter Building, 132 kV Substation Campus, Majra, Dehradun, Uttarakhand, India 248001 Phone: +91 135 264 1127/4153 Email: ee_cp1@ptcul.org

Supply of shunt capacitor tuning reactors


Country: Malaysia Organisation: Tenaga Nasional Berhad Description/Scope of work: International competitive bids are invited for the supply of 12 units of 132 kV 60 MVAR and 12 units of 30 MVAR shunt capacitor tuning reactors. Closing date: April 6, 2009 Contact: 129, Jalan Bangsar, P.O. Box 11003, 50732 Kuala Lumpur, Malaysia Phone: +60 3 2296 5566 Fax: +60 3 2283 6397 Email:contactus@tnb.com.my Website:http://www.tnb.com.my

Supply of 132/11 kV transformers


Country: Malaysia Organisation: Tenaga Nasional Berhad Description/Scope of work: International competitive bids are invited for the supply, installation and commissioning of 132/11 kV, 30 MVA and 132/11 kV 15 MVA power transformers for the PMU Bukit Kapar, Bukit Sentosa, Perak Carbide and Pekan substations. Closing date: March 12, 2009 Contact: Office of the Chief Engineer (Procurement & Contract), Asset Development Department, Transmission Division, 129 Jalan Bangsar, P.O. Box 11003 50732 Kuala Lumpur, Malaysia Phone: +603 2296 5566 Fax: +603 2283 6397 Email:contactus@tnb.com.my Website:http://www.tnb.com.my

Supply and installation of power cables


Country: Singapore Organisation: Singapore Power Limited Description/Scope of work: International competitive bids are invited for the supply and installation of power cables, auxiliary cables and accessories at the 230/66 kV Ayer Rajah substation. Closing date: March 20, 2009 Contact: Tender/Quotation Counter, 111 Somerset Road, 08-02 Singapore Power Building, Pin/Zip: 238164, Singapore Phone: +65 6823 8888 Fax: +65 6823 8188 Email:corpcomms@singaporepower.com.sg Website:http://www.singaporepower.com.sg

Supply and installation of 230 kV switchgear


Country: Singapore Organisation: Singapore Power Limited Description/Scope of work: International competitive bids are invited for the supply and installation of 230 kV switchgear for the 230 kV Marina South substation. Closing date: March 27, 2009 Contact: Tender/Quotation Counter, 111 Somerset Road, 08-02 Singapore Power Building, Singapore 238164 Phone: +65 6823 8888 Fax: +65 6823 8188 Email:corpcomms@singaporepower.com.sg Website:http://www.singaporepower.com.sg

Supply of ancillary equipment and associated civil works for substations


Country: Malaysia Organisation: Tenaga Nasional Berhad Description/Scope of work: International competitive bids are invited for the supply, installation and commissioning of protection relays, ancillary equipment and associated civil works for the Tebrau, Kota Tinggi and Ulu Tiram substations. Closing date: March 17, 2009 Contact: 129, Jalan Bangsar, P.O. Box 11003,

Global Transmission Report | March 2009

47

Tenders & Contracts Supply of power cables, auxiliary cables and accessories
Country: Singapore Organisation: Singapore Power Limited Description/Scope of work: International competitive bids are invited for the supply and installation of 230 kV power cables, auxiliary cables and accessories. Closing date: April 17, 2009 Contact: Tender/Quotation Counter, 111 Somerset Road, #08-02 Singapore Power Building, Pin/Zip 238164, Singapore Phone: +65 6823 8888 Fax: +65 6823 8188 Email:corpcomms@singaporepower.com.sg Website:www.singaporepower.com.sg Closing date: March 24, 2009 Contact: Foreign Relation Department, 393, Trung Nu Vuong Street, Danang City, Vietnam Phone: +84 511 2210377 Fax: +84 511 3625071 Email:frdpc3@gmail.com

Supply of equipment for a 110 kV substation and branch lines


Country: Vietnam Organisation: Power Company No.3 of Vietnam Electricity Description/Scope of work: International competitive bids are invited for the supply of materials and equipment for the 110 kV Nam Chu Lai substation and branch lines. The tender is part of the Second Transmission and Distribution package being financed by the World Bank. Closing date: April 1, 2009 Contact: Foreign Relation Department, 393 Trung Nu Vuong Street, Danang City, Vietnam Phone: +84 511 2210377/2210520 Fax: +84 511 3625071

Construction of 500 kV substation and associated transmission system


Country: Thailand Organisation: Electricity Generating Authority of Thailand Description/Scope of work: International competitive bids are invited for the construction of the 500 kV Pluak Daeng substation and an associated transmission system. Closing date: April 28, 2009 Contact: Room No. 506, 5th Floor, Building TOR 101, Transmission System Planning and Project Division, Bangkruai, Nonthaburi 11130 Thailand Phone: +66 2436 1422 Fax: +66 2433 6317, +66 2433 5523, +66 2434 4064

EUROPE
Supply of a 66/22 kV power transformer
Country: Spain Organisation: Endesa Distribucin, S.A. Description/Scope of work: International competitive bids are invited for the supply, testing and assembly of a 66/22 kV power transformer substation. Closing date: March 16, 2009 Contact: Srta. Diana Martin Munoz, Aprovisionamientos, Avenida Paralel 51, E-08004 Barcelona, Spain Phone: +34 9121310000 Email:diana.martin@endesa.es

Construction of a 230/115 kV switchyard


Country: Thailand Organisation: Electricity Generating Authority of Thailand Description/Scope of work: International competitive bids are invited for the construction of a 230/115 kV switchyard as part of the Nava Nakhon Substation Transmission System Expansion Project No. 11. Closing date: May 19, 2009 Contact: Room No. 506, 5th Floor, Building TOR 101, Transmission System Planning and Project Division, Bangkruai, Nonthaburi 11130 Thailand Phone: +66 2436 1422 Fax: +66 2433 6317, +66 2433 5523, +66 2434 4064 Website:www.egat.co.th/en/

MIDDLE EAST & AFRICA


Construction of 132 kV transmission line
Country: Jordan Organisation: National Electric Power Company (NEPCO) Description/Scope of work: Tenders are invited for turnkey supply and construction of double and quadruple circuits of a new 132 kV overhead transmission line. The contractor will also need to maintain the project for 12 months from the date of completion. Closing date: March 15, 2009 Contact: Purchasing Department, NEPCO, AL-Swefeah, Zahran Street, 7th Circle, Jordan Phone: +962 6 585 8615 Email: info@nepco.com.jo Website: http://www.nepco.com.jo/

Equipment for rural T&D project


Country: Vietnam Organisation: Power Company No. 3 (PC3) of Vietnam Electricity Description/Scope of work: International competitive bids are invited for the supply of material and equipment for three transmission and distribution (T&D) projects: the Son Hoa, Chu Prong, Duy Xuyen 110 kV substations and branch lines; the Hoa Binh Krong Ana 110 kV line; and the Krong Ana 110 kV substation. Equipment includes steel towers, auxiliary transformers, switchgears, conductors, underground cables, insulators and accessories. It also includes supply of optical ground wire and telecommunication equipment and installation services. The tender is part of the rural T&D project being funded by the World Bank.
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Construction of transmission line


Country: Kuwait Organisation: Kuwait Electricity and Water Ministry

Global Transmission Report | March 2009

Tenders & Contracts


Description/Scope of work: International competitive bids are invited for the construction of a transmission line linking the gas turbines at the Shuaiba North power plant with the national control centre at Jabiriya. Closing date: March 22, 2009 Contact: Kuwait Electricity and Water Ministry Building, South Al Sourra Street, Ministries Area, P.O. Box 12, Safat 13001, Kuwait Contact: EEPCO, Corporate Procurement & Accounting Team, Head Office, De Gaulle Square, P.O. Box 1233, Addis Ababa, Ethiopia Phone: +251 11 156 0027 Fax: +251 11 155 0822

Construction of a 66/22 kV substation


Country: Mauritius Organisation: Central Electricity Board (CEB) Description/Scope of work: CEB invites international competitive bids for the construction of a 66/22 kV substation at La Tour Koenig. Bidding documents can be obtained from the consultant, Ong Seng Goburdhun & Partners. Closing date: March 11, 2009 Contact: Mr S.K. Thannoo, Chairman, Central Procurement Board, 1st Floor, Social Security House, Julius Nyerere Avenue (Ex-Moka Road), Rose Hill, Mauritius

Construction of a 132/33 kV grid substation


Country: Oman Organisation: Oman Electricity Transmission Company Description/Scope of work: International competitive bids are invited for the construction of a 132/33 kV grid substation in the Nakhal area. Closing date: April 20, 2009 Contact: Tender Board, P.O. Box 787, Al-Khuwair 133, Oman Phone: +968 24 602073/602556 Fax: +968 24 602063

Expansion of a 225 kV substation


Country: Morocco Organisation: Office National de lElectricit (ONE) Description/Scope of work: ONE invites international competitive bids for conducting studies, supply of materials, assembly of electrical equipment and civil engineering services for the extension of the 225 kV substations at Oualili and El Ouali. Closing date: March 25, 2009 Contact: M. Brika, ONE, Rue Othman Ben Affan, Casablanca, Morocco Phone: +212 022 66 87 55 Fax: +212 022 43 31 45

Engineering services for transmission project


Country: Qatar Organisation: Qatar General Electricity and Water Corporation (Kahramaa) Description/Scope of work: International tenders invited for providing engineering consultancy services for substation, cables and overhead lines for the Qatar Power Transmission System Expansion (Phase 9) project. The project includes construction of 51 substations; three underground substations; about 375 circuit km of cable (of 400 kV, 220 kV, 132 kV and 66 kV); and 160 km of overhead lines. Closing date: March 22, 2009 Contact: Kahramaa, Dafna Area, Corniche Street 61, Near Qatar International Exhibition Centre, Qatar Phone: +974 484 54 64, +974 484 55 55, +974 484 54 84 Fax: +974 484 54 96 Website: http://www.kahramaa.com.qa

Upgradation of 132/22 kV substation


Country: South Africa Organisation: Mbombela Local Municipality Description/Scope of work: International competitive bids are invited for the upgradation of the 132/22 kV Rocky Drift substation. Works include the supply, delivery, installation, testing and commissioning of a 132/22 kV 20 MVA transformer and primary and secondary plant equipment for 132 kV and 22 kV substations. Closing date: March 27, 2009 Contact: Mr. Christopher Nkambule, Counter Number 09, Ground Floor, Nelspruit Civic Centre, 1 Nel Street, Nelspruit 1200, South Africa Phone: +27 0137592358 Fax: +27 0137592070

Supply of equipment for 230 kV substations


Country: Ethiopia Organisation: The Ethiopian Electric Power Corporation Description/Scope of work: International competitive bids are invited for the design, manufacture, testing and supply of electromechanical equipment for the 230 kV Metu and Gamgella substations. Closing date: March 31, 2009 Contact: Foreign Purchase Division, Head Office, De Gaule Square, P.O. Box 1233, Addis Ababa, Ethiopia Phone: +251 11 156 0027 Fax: +251 11 155 08 22

Construction of a 220 kV line


Country: Namibia Organisation: Namibia Power Corporation (NamPower) Description/Scope of work: Nampower has issued an international tender for the construction of the 145 km long 220 kV Omburu-Khan-Valencia transmission line on a turnkey basis. The line will supply power to the Valencia uranium mine. Closing date: April 17, 2009 Contact: Mr. Mwale Sampati, NamPower Centre, No 15 Luther Street, Windhoek, Namibia Phone: +264 61 205 2206 Fax: +264 61 205 2397

Construction of a 230 kV transmission line


Country: Ethiopia Organisation: Ethiopian Electric Power Corporation (EEPCO) Description/Scope of work: International competitive bids are invited for the design, manufacture, testing, supply, delivery, installation, testing and commissioning of the 315 km long double-circuit 230 kV Koka-Dire Dawa transmission line. Closing date: April 13, 2009

Global Transmission Report | March 2009

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Global Transmission Report


Information and analysis on the global electricity transmission industry
The mission of Global Transmission is simple and modest to provide you with comprehensive and up-to-date information and analysis on the global electricity transmission industry. Global Transmission will keep you informed on all the key developments, trends and issues. It will track major projects, contracts and investments. It will profile leading transmission system operators. It will report on regulatory initiatives and examine their implementation. It will provide the latest data and statistics. It will also feature the views and perspectives of top industry experts and players. Our service package consists of three elements Global Transmission Report (a monthly newsletter), Global Transmission Weekly (a weekly update) and www.globaltransmission.info (an information-packed website). Global Transmission Weekly, published every Monday, provides you with a summary of key developments in the transmission sector from across the world, events that took place during the previous week. The Global Transmission Report, a monthly newsletter, has ten distinct sections: Features: Analytical, insightful and topical write-ups on major trends and developments News: Latest news and developments from across the world, with sub-sections on North America, Latin America, Asia-Pacific, Europe and Middle East & Africa TSO Focus: Profile of a leading TSO operator, covering its history, present status and future plans Policy Review: An examination of recent policy and regulatory initiatives Spotlight: A detailed look at a specific topic or area of interest Data & Statistics: Tables and charts with relevant and latest information Deal Watch: Reports on major debt, equity and M&A deals Project Update: Current status of key projects Company News: News on transmission equipment and service providers Tenders & Contracts: Key information on open tenders and contracts

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