Overview of The Power Systems of The Mediterranean Basin

MED-EMIP This project is funded
by the European Union
Euro-Mediterranean
Energy Market Integration Project
MEDRING UPDATE
VOLUME - I
OVERVIEW OF THE POWER SYSTEMS OF

THE MEDITERRANEAN BASIN
Final Draft, April 2010

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This publication has been produced with the assistance of the European Union.
The content of this publication is the sole responsibility of MED-EMIP and can in no way
be taken to reflect the views of the European Union.
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Table of Contents
GLOSSARY ..................................................................................................................... 1
EXECUTIVE SUMMARY .................................................................................................. 3
1 FOREWORD ........................................................................................................... 10
1.1 Geographic extension of the region under examination and key figures ........... 12
2 PROJECT METHODOLOGY .................................................................................. 17
3 TASK 1: BACKGROUND AND PREVIOUS FINDINGS .......................................... 21
3.1 Background ...................................................................................................... 21

3.2 Outcomes of previous studies........................................................................... 23
4 TASK 2: OVERVIEW OF THE SOUTHERN AND EASTERN MEDITERRANEAN
PART OF THE RING ...................................................................................................... 29
4.1 Consumption, installed capacity and production ............................................... 31

4.1.1 East Mediterranean Countries - EMC ........................................................ 32
4.1.2 South Mediterranean countries - SMC ....................................................... 36
4.2 Past patterns of electricity consumption and electricity intensity ....................... 40
4.3 Summer and winter peak loads ........................................................................ 42
4.4 Expected trends in the future ............................................................................ 45
4.5 Generation evolution and adequacy ................................................................. 50
4.5.1 East Mediterranean countries .................................................................... 52
4.5.2 South Mediterranean countries .................................................................. 56
4.6 Net transfer capacities, energy exchanges and energy balances ..................... 62
4.7 Cross-border lines and projects in the SEMC ................................................... 71
4.7.1 Existing cross-border lines in the SEMC .................................................... 71
4.7.2 New interconnection projects in the SEMC ................................................ 76
4.8 System performance in the SEMC .................................................................... 78
4.8.1 System frequency ...................................................................................... 78
4.8.2 Unsupplied energy..................................................................................... 80
4.8.3 Reserve margin and self-sufficiency .......................................................... 81
4.9 Present structures of electricity sector .............................................................. 87
4.9.1 East Mediterranean Countries ................................................................... 87
4.9.2 South Mediterranean Countries ................................................................. 90
4.10 The electricity sector in Israel ........................................................................... 93
4.10.1 Generation, installed capacity, consumption, demand and electricity
intensity: present status and past evolution ............................................................. 93
4.10.2 Expected trends in the future: consumption and generation forecast ......... 94
4.10.3 Operating policy and continuity of supply ................................................. 100
4.10.4 Prices, tariffs and power market .............................................................. 103
4.11 References of SEMC System Operators ........................................................ 105
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5 TASK 3: OVERVIEW OF THE PRESENT STATUS OF THE ELECTRICITY

SECTOR IN THE NORTHERN MEDITERRANEAN COUNTRIES ............................... 106
5.1 Consumption, installed capacity and production ............................................. 107

5.1.1 North West Mediterranean countries ....................................................... 108
5.1.2 South East Europe .................................................................................. 111
5.1.3 Turkey ..................................................................................................... 112
5.1.4 Comparison of generation and consumption in the North Mediterranean
countries ................................................................................................................ 113
5.2 Past patterns of electricity consumption, electricity and carbon intensity ........ 114
5.3 Summer and winter peak loads ...................................................................... 118
5.4 Expected trends in the future .......................................................................... 121
5.5 Generation evolution and adequacy ............................................................... 124
5.5.1 ENTSO-E countries ................................................................................. 127
5.5.2 Non ENTSO-E countries.......................................................................... 130
5.6 Net transfer capacities, energy exchanges and energy balances ................... 132
5.7 Existing bottlenecks and cross-border projects ............................................... 137
5.7.1 North-Western Mediterranean countries .................................................. 142
5.7.2 South East Europe .................................................................................. 147
5.7.3 Turkey ..................................................................................................... 149
5.7.4 Interconnections across the Mediterranean Sea ...................................... 151
5.8 System performances in the Northern Mediterranean countries and common
standards adopted in the Central-Western European Pool ........................................ 156
5.8.1 Operation ................................................................................................ 157
5.8.2 Planning .................................................................................................. 167
5.9 Power Markets - Status and roles of System Operators.................................. 169
5.9.1 EU countries ............................................................................................ 169
5.9.2 Western Balkan Countries ....................................................................... 177
5.9.3 Turkey ..................................................................................................... 178
5.10 References of NMC System Operators ........................................................... 179
6 TASK 4: SYNTHESIS OF THE OVERVIEW.......................................................... 180
6.1 Key drivers towards new interconnections ...................................................... 194

6.2 Interconnection projects in the Mediterranean Region .................................... 196
6.2.1 Interconnection projects in the NMC ........................................................ 196
6.2.2 Interconnection projects in the SEMC ...................................................... 200
6.2.3 South-North HVDC submarine links across the Mediterranean Sea ........ 202
7 REFERENCES ...................................................................................................... 205
ANNEX-1. TECHNICAL PAPERS FIRST MEDRING STUDY ................................... 207

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GLOSSARY
AC: Alternating Current

AIT: Average Interruption Time
ARM: Adequacy Reference Margin
AUPTDE: Arab Union of Producers, Transporters and Distributors of Electricity.
Changed name to Arab Union of Electricity (AUE) in 2010
BiH: Bosnia and Herzegovina

CAGR: Compound Annual Growth Rate
CC: Combined Cycle
CCGT: Combined Cycle Gas Turbine
DC: Direct Current

DSM: Demand Side Management, refers to measures that allow dynamic control of
electricity demand
EBRD: European Bank for Reconstruction and Development
ECSEE Energy Community of South-East Europe, includes all the EU Member
States, the Western Balkan countries and a number of observers (Norway,
Moldova, Ukraine, Turkey and Georgia)
EHV: Extra High Voltage
EMC: Eastern Mediterranean Countries, composed of Syria, Lebanon, Palestinian
Territories, and Jordan. Israel is not included in the EMC group when
discussing the power systems.
ENS: Energy Not Supplied
ENTSO-E: European Network of Transmission System Operator of Electricity
ENTSO-E/SCR: ENTSO-E Synchronous Continental Region, which refers to the
synchronous pool previously coordinated by UCTE
FYROM: Former Yugoslav Republic of Macedonia
GDP: Gross Domestic Product
GT: Gas Turbine
HPP: Hydro Power Plant
HRSG: Heat Recovery Steam Generator
HV: High Voltage
HVDC: High Voltage Direct Current
IEM: Internal Electricity Market
IPP: Independent Power Producer
LFC: Load Frequency Control
LNG: Liquefied Natural Gas
MPC: Mediterranean Partner Countries
MSP: Mediterranean Solar Plan
NG: Natural Gas
MEDRING Update: Volume I Overview of Power Systems Page 1/207

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NGC: Net Generation Capacity, NGC is the maximum electrical net active power
which can be produced continuously throughout a long period of operation in
normal conditions. The NGC of a country is the sum of the individual NGC of
all power stations connected to either the transmission grid or to the
distribution grid.
NMC: Northern Mediterranean Countries, composed of: Spain, Portugal, France,
Italy, Slovenia, Croatia, Bosnia-Herzegovina, Montenegro, Serbia, the
Former Yugoslav Republic of Macedonia (FYROM), Albania, Greece,
Bulgaria, and Turkey
NPP: Nuclear Power Plant
NTC: Net Transfer Capacity
NWM: North West Mediterranean region, composed of Portugal, Spain, France and
Italy
OHL: Overhead Line
PT: Palestinian Territories
OSPP: Oil Shale fired Power Plant
PNA: Palestinian National Authority
PST: Phase Shifter Transformer
RC: Remaining Capacity, calculated as the difference between available
generating capacity and load at selected reference operating points under
normal conditions
RES: Renewable Energy Source
SEE: South East Europe region, composed of Slovenia, Croatia, Bosnia &
Herzegovina, Serbia, Montenegro, Albania, Greece, FYROM and Bulgaria
SEMC: Southern and Eastern Mediterranean Countries, composed of: Morocco,
Algeria, Tunisia, Libya, Egypt, Israel, the Palestinian Territories, Jordan,
Syria and Lebanon
SMC: Southern Mediterranean Countries, composed of Egypt, Libya, Tunisia,
Algeria and Morocco
TPA: Third Party Access
TPP: Thermal Power Plant
TSO: Transmission System Operator, owner of the HV electricity transmission
network and responsible for its planning, maintenance and operation
UCTE: Union for Coordination of the Transport of Electricity, merged into ENTSO-E
in 2009
UfM: Union for the Mediterranean
VAR: Volt Ampere Reactive, measure reactive power

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EXECUTIVE SUMMARY
The MEDRING Update report is the basis for a communication and response of the
European Commission related to the second strategic EU energy review of November
2008 proposing: A Mediterranean energy ring now needs to be completed, linking
Europe with the Southern Mediterranean through electricity and gas interconnections. In
particular the Ring is essential to develop the region's vast solar and wind energy
potential.1
1. Scope of Study
The state-of-play is presented in four volumes, reviewing also past studies conducted on
the subject. Serious shortcomings of previously adopted strategies towards the closure of
the Ring are explained and a way forward is proposed. The technical, financial, economic
and social challenges to be faced are significant when establishing a local solar and wind
power industry, with a total potential capacity in the order of 120 - 200 GW in the 10
countries on the eastern and southern shores of the Mediterranean Sea2.
Volume I summarizes the situation of the power systems in the 24 countries covered by
the study.
Volume II presents an overview of the still remaining technical challenges for closing the
Ring and constructing dedicated power line corridors connecting the states of the
southern shores of the Mediterranean Sea with the EU-27 by high voltage direct current
(HVDC) submarine cables in a most direct way.
Volume III discusses the most likely financial implications of two borderline scenarios
resulting from the establishment of a large scale solar and wind power industry in the
Mediterranean partner countries (MPC), satisfying increasing power demand in the region
as well as exploring the opportunity of power export into the EU-27.
Volume IV presents a visualisation of the rather rugged and in parts very deep
Mediterranean seabed, based on 2 million coordinates.
1
http://ec.europa.eu/energy/strategies/2008/2008_11_ser2_en.htm
2
These are from the West to the East: Morocco, Algeria, Tunisia, Libya, Egypt, Jordan, Palestinian
Territory, Israel, Lebanon and Syria.

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2. Important overriding policy issues
Depending on whether electricity is generated in the MPC from RES3 for either export or
domestic consumption, the design of the required transmission infrastructure across and
around the Mediterranean Sea is very different. Most EU-27 states would be capable to
advance their own transition towards a large share of RES based power supply without
resorting to any imports from the MPC.
Therefore, any far-reaching decision to establish power transmission corridors for export
of solar and wind based electricity will be driven mainly by commercial considerations.
Security of supply or the desire to diversify energy supplies may not be the primary
impetus behind such a decision. Technical considerations dictate that power export
corridors should have a minimum capacity of 1 GW, while corridors of 3-5 GW show
better financial performance. It is quite likely that the first interconnector will be a mixed
one exporting solar and fossil fuel based electricity from the South to the North4.
Present efforts and strategies to establish solar power and wind industries in the MPCs
are mostly based on smaller project-by-project tendering. This neither provides enough
capacity to contribute in a significant way to the annual power demand increase in the
region, nor does the capacity suffice to produce excess power for export. The delivery
mechanism and existing framework conditions for RES based electricity production in the
MPC are nowhere close to those in the EU-27.
The latter have firmly established transparent long-term strategies, which are financially
attractive5 to investors. In addition, electricity consumers in the EU-27 generally accept to
pay higher rates in order to promote renewable energy utilization. On a brighter note, the
region is very well endowed with intensive solar radiation6 as well as excellent wind
conditions in some countries. The MPCs are today, tomorrow and forever capable to offer
RE based electricity at competitive prices on Europes markets - even when taking into
account HVDC wheeling charges and transmission losses over 1000-2000 km.
It may take another 60 years before the existing oil and gas industry has been
marginalised, either due to reasons of dwindling supplies or non-competitiveness with
3
Renewable Energy Sources
4
An interconnection between Tunisia and Italy is planned to become operational in 2016; see
Volume II.
5
To what extent economic attractiveness is given is a matter of internalising all external costs and
benefits. As these are very difficult to calculate, one can only speculate rather than predict the
cost.
6
A solar power plant located in one of the MPC would generate between 1.3 and 2 times more
electricity compared to an identical plant located somewhere between Hamburg, Madrid or Rome.
The same applies for areas with highly favorable wind conditions such as in Egypt and Morocco.

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solar and wind based electricity. Revenues generated from the export of RES based
electricity may prove to partially offset lost revenues from the oil and gas sector. This
long-term perspective may replace the oil and gas dependency by a dependency on solar
electricity. As reasoned, the EU-27 is quite able to cover most of their electricity needs in
the future from domestic RES. This would require making use of all available hydro, wind,
biomass and solar resources together with increasing efforts to provide more storage
capacity. Storage is vital for being able to deliver firm power from RES.
3. State of play of closing the Ring
Present and future challenges for the closure of the Mediterranean Energy Ring are
appraised in detail in Volume II of the report. In addition, the issue of installing dedicated
power export corridors across the Mediterranean Sea in order to increase power
exchanges for commercial or energy security reasons is analysed in detail. There has
been very little progress and some failures in the last eight years regarding closure of the
Ring. It is observed that on average the operational reserve margin7 of the MPCs utilities
has significantly dropped over the last five years. There is simply not enough power
capacity available in the region to satisfy domestic demand and engage in large-scale
commercial export of power as well. Morocco depends to a large extent on power
supplies from Spain. Others, such as Syria and Lebanon, resort to scheduled block wise
load shedding, while countries such as Israel and (to a certain extent) Egypt show an
increase in unsupplied energy8. Self-sufficiency of the MPCs has been recently declining
as well.
Most power utilities in the region are therefore more concerned about trying to cope with
runaway demand than building up a solar power industry or looking for additional
commercial exchanges, besides exchanging power for peak load support.
Concerning the state of play of the Ring infrastructure the following may be concluded in
a nutshell:
- The full AC synchronisation and commercial operation between Turkey and ENTSO-
E/SCR will likely take 2 years and commence this year.
- AC synchronisation of the whole Turkish power system with Syria is for the time being
highly unlikely but may be sped up by a Back-to-Back HVDC interconnection or an even
more complete HVDC solution connecting Turkey, Syria, and Mashreq/Maghreb.
7
This indicator expresses the ability of a power system to satisfy peak demand and still have
some reserves left for the case a peak or base load power plant fails.
8
A combination of electricity scheduled for generation but not supplied and the average
interruption time

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- A second attempt to synchronise ENTSO-E/Tunisia/Libya will be undertaken in April

2010.
- Closure of the Ring in AC mode will be complicated requiring sophisticated defence

plans and may not significantly increase the Net Transfer Capacities that may at best
reach 400 MW at 400/500 kV.
- The synchronization will not necessarily solve the dynamic problem. Poor economics
and dynamic problems call for a complete appraisal for closing the ring with the
installation of HVDC devices across selected cut-sets/borders.
- The cross-border transmission lines (except for Spain-Morocco, Jordan-West Bank and
Egypt-Gaza) are only loaded between 0% and 32%. Some exchanges are remunerated
in kind.
- One substantial 1500 km, 500 kV HVDC line between Egypt and Saudi Arabia,
connecting the region to the Middle East, is presently up for tendering.
Merely closing the Ring requires significant modifications in the power systems in the
southern and eastern Mediterranean countries. Yet, the resulting safe transfer capacities
between certain countries (in the order of 400 to 600 MW) are insufficient and prohibit the
export of solar electricity on a larger scale. The proposed 1 GW HVDC interconnector
between Tunisia and Italy planned for 2016 may come up faster than any 1 GW based
enforcement of the Ring in a full AC mode.
4. State of play for changing fuel mix and power generation of the MPC
The vast solar power generation potential in the MPC must be seen in light of a realistic
market development potential.
Efforts towards expanding the MPCs solar and wind based power industry to steadily
increase the share of domestic consumption of RES based electricity are starting from
scratch. The 2010 share of solar and wind based electricity9 generation stands a
minimum of 0% in Lebanon and a maximum of just below 1% for Egypt. There has been
considerable talk and many public announcements of RE capacity addition.
Unfortunately, these are most often not reflected in the official power capacity expansion
plans of the power utilities (covering the next ten years), nor supported by any budget
plan.
9
The report is disregarding installed capacity figures in MW and goes by what really counts to
paint a realistic picture: the GWh generated and supplied.

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As it stands, the 2008 electricity consumption of the MPC of about 350 TWh will roughly
double to 680 TWh in 2020 and further increase to 1200 TWh in 2030 if demand growth
continues at official trend forecasts. MPCs power utilities expect a 2020 fuel mix of the
following characteristics: Gas consumption will double and remain at around 70%;
nuclear power will come up with 3%; coal consumption will increase but by how much is
uncertain since some MPC have not yet decided whether it is advisable to expand gas
based power generation or expand coal base capacity; oil based generation will drop
from 10% to 6%; the RE power contribution will remain below 10% while the share of
hydro power within the RE based electricity mix will be more than halved from presently
94% to about 41%.
One indicator that is too often overlooked causes this seemingly strange development:
The annual percentage growth in electricity consumption. The predicted annual
percentage consumption and peak load growth figures are on average between 4% and
7% for the time period 2010 to 2020. High consumption growth figures will overshadow
most efforts to firmly establish RE power as a significant contribution to the energy mix for
electricity generation. One reason is also the marginal hydropower addition for the next
decade. On paper the MW additions of RE power look impressive. However this addition
is no match for the average yearly electricity demand increase of 5.8%, which cannot
exclusively be explained with the high electricity growth rates of other countries coping
with urbanisation, electrification, and industrialisation and emerging consumerism.
The strategy of announcing ambitious RE power capacity addition programmes without

simultaneously putting in place a very strong and focused demand side management10
plan therefore is very doubtful. In the baseline scenario, despite significant efforts of
adding RE power plant capacity, the percentage RE contribution to the power mix will
steadily decline in the future, unless electricity demand increase is controlled.
5. Electricity rate considerations and the financial impact of going solar
The all important system average rate (SAR)11 of the MPC showed a rather large
bandwidth with rates between 2 /kWh (Egypt) to 7 /kWh (Israel) in 2008. In
comparison, respective figures for the EU-2712 are about 9 /kWh for the industry and
about 16 /kWh for residential consumers. Low tariffs in some MPC hamper the
establishment of a significant solar power industry. Electricity prices are in most cases not
adjusted to even partially reflect annual inflation and changing energy costs for fossil fuel
10
In this context demand side management (DSM) in the power sector refers to all measures that
are either slowing down peak demand growth, promoting more efficient appliances, or introducing
life style changes to reduce unnecessary waste of electricity (energy modesty).
11
The ratio of all revenues from sales of electricity to the total of electricity supplied or billed
12
Rates are approximate because of varying ways to include or exclude differing VAT.

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based power generation. As pointed out in the report, only marginal and uncertain 13
opportunities exist to reduce solar power generation costs. About 1 / kWh can be
attained, if the RE plant qualifies as a CDM project. More significant reductions of 2 - 4
/kWh14 are attainable, if lost opportunity cost for oil and gas fuels for the power plants
are taken into account.
The combination of system average rate with annual demand growth determines the
position and chance of a country with respect to increasing their percentage share of
solar and wind based electricity.
Tunisia, Israel and Lebanon are in a favourable position, while Egypt, Libya and Algeria
have a more challenging task at hand.
Developing of a significant solar and wind power industry is defined in this report by the
following: 30% of the electricity is generated from solar and wind power plants in 2030.
At first glance, assuming such a target may seem too ambitious; especially considering
the fact that power utilities plans the various national solar plans that have been
announced amount to about 5% in the year 2020. The analysis concludes that under
certain circumstances the 30% benchmark is not unrealistic in terms of the resulting
annual incremental costs and total accumulated annual incremental costs over the plans
period of 20 years.
In fact, from the point of view of a decision making body looking back in the year 2030 at
a decision taken 20 years earlier, it could be a success in terms of saving the rate payer
and the society substantial costs. However, as with any plan, certain assumptions must
be met. One of which is the crucial assumption that the fossil fuel based generation costs
should more or less follow the development of future fossil fuel costs and general
inflation15. Furthermore, in the early years16 of the twenty-year plan, a levy (tax) on the
SAR of up to 10% is deemed acceptable for the ratepayer.
However, this levy is gradually marginalised and eventually turns into savings. Another
crucial assumption is that unnecessarily high generation costs promoting the wrong
business model will be avoided. Unlike for fossil fuel based sources, for RES a much
larger share of the life cycle generation costs are attributed to the construction of the
plants as fuel is free of charge. We argue against financing solar power plants through
13
It is presently unclear how the special instrument CDM under the Kyoto protocol will be
continued after 2012.
14
These revenues depend very much on what we consider opportunity costs for gas which
maybe anything between 5 and 12 US$ per Million BTU.
15
In practice this means a fast phase out of the upstream fossil fuel subsidies
16
Five to ten years depending on the case.

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IPP because generation costs of IPP cannot compete17 with generation costs of
government owned power utilities18. The expected higher return and higher risk taking of
an IPP may result in generation cost that are by a factor of 1.5 to 2 higher in the case of
solar and wind power plants.
Generating 400 TWh of electricity, from CSP, PV and wind power, i.e., 30% of the
expected 1200 TWh of consumption in 2030, requires up to 200 GW19 of installed
capacity in 2030. The investment costs may be in the order of magnitude of up to 300
billion spread over 20 years. A much less ambitious target of 10% of solar and wind
power would result in 100 Billion investment costs over 20 years.
6. Technology consideration
The model plan includes three competing technologies, namely concentrating solar power
plants (CSP) of various designs (Trough, linear Fresnel and heliostat), Photovoltaic (PV)
with its two major makes (crystalline and thin film technology) and wind turbines. There is
no real urgency to favour one technology over the other since all three have their
advantages and disadvantages. In a power mix with sufficient system storage capacity20
non-firm or transient RE power fluctuations are easier to handle for power utilities.
However, with respect to costs it is foreseen that neither wind power plants nor CSP
enjoy the same future cost reduction potential compared to PV technologies. In the case
of CSP about 35% of the costs are conventional steam power plant technology. For this
part of a CSP plant, there is expected to be no cost reduction potential at all. Costs have
been going up at a rate of 8% per year for the last eight years. Reductions of wind power
plant costs have been behind expectations as well. PV technologies, on the other hand,
have mostly fulfilled their price reduction expectations over the last 15 years despite
some ups and downs due to market forces and periodic shortages of silicon wafers. The
technology may continue to do so due to increasing automation and mass production of
PV panels and thin film cells.
17
A Government owned utility may avail of less expensive loans. Expected returns on equity are
much lower and coverage of investment risk is of little concern. An IPP may require a return rate of
at least 10% on the loan and expects 25% on equity.
18
This does not imply the government utility is necessarily operating the solar power plant.
19
The required capacity addition depends on the assumed weighted average plant load factor that
could be anything between 20% and 30%.
20
The issue of sufficient storage capacity in the national power systems to partially compensate for
the non-firm RE power is a subject requiring more attention in a time of increasing RE power plant
addition.

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1 FOREWORD
In the year 2000 the MEDRING study was launched. The study was co-financed by the
European Commission in the framework of the MEDA programme and led by a
consortium of partners from Europe and Southern and Eastern Mediterranean Countries
(SEMC). The study aimed at:
analysing in detail the behaviour of the SEMCs electricity system as a whole;

assessing the potential energy exchanges between the countries;
proposing solutions to increase the reliability of the system;
training experts and operators on system management and energy trading.
The basic solution considered as an input to the study consisted of establishing a closed
ring of AC cross-border lines between the SEMC (full AC solution), creating a single
synchronously interconnected system spanning in North-South direction from Jutland in
Denmark to the border between Egypt and Sudan, and in West-East direction from
Morocco to the border between Turkey and Iran.
Experience gained from the interconnection of previously disconnected systems (e.g., the
interconnection of central and western European countries in 1996) showed that detailed
studies should be conducted in advance proposing measures to ensure a safe and
efficient operation of the system. Moreover, it is worth noticing that unlike the western-
central European interconnection, the synchronously interconnected Mediterranean Ring
(referred to as the Ring in the following) was envisioned to be completed as a sequence
of bilateral arrangements. It was, therefore, of paramount importance to undertake a
global study in order to assess the conditions necessary for a safe operation of the Ring.
As matter of fact, the MEDRING study, completed in June 2003, put in evidence a series
of critical operating conditions concerning system stability when opening the Ring or
tripping of large generating units in the SEMC. The Executive Summary of the MEDRING
study clearly pointed out that:
considering the very peculiar structure of the South-Eastern Mediterranean grid, the
dynamic analyses showed that the full benefits might be reduced when contingencies hit
some areas of the system, unless appropriate emergency controls or defence plans are
implemented.,
and concluded that:
a further step should be undertaken soon to achieve the full benefits of the new
investments in the Mediterranean electrical interconnections. This [new] project shall be

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aimed at the detailed definition of the technical means that are necessary for achieving
the maximum potential benefits of the investments realised in new electrical
interconnection links, and for ensuring the required level of network security.
In spite of the recommendations made in the MEDRING study, the progress of

interconnecting the electrical islands around the Mediterranean basin was very low and,
presently, the power systems are still operated in four separate blocs:
ENTSO-E/SCR and Morocco-Algeria-Tunisia;

Turkey;
Libya-Egypt-Jordan-Syria-Lebanon;
Israel and the Palestinian Territories.
Since the completion of the first MEDRING study, two new relevant factors have arisen:
the increase of environmental concerns with the definition of the European targets
of energy efficiency enhancement, reduction of CO2 emissions and higher
penetration of energy from Renewable Energy Sources (RES) by the year 2020.
In this framework a new Directive on the promotion of the use of energy from
renewable sources amending and subsequently repealing Directives 2001/77/EC
and 2003/30/EC21 has been issued (Directive 2009/28/EC) on 23rd April 2009 [4].
The Directive on RES foresees in art. 9 the possibility of joint projects between
Member States and third countries. Hence, it favours the possibility of developing
a substantial amount of RES generation in North Africa and the subsequent
transfer of power to Europe through new South-North Mediterranean electricity
corridors;
the launching of the Union for the Mediterranean (UfM) in July 2008 with a view to
revitalising the existing Euro-Mediterranean Partnership and EU relations with
neighbouring countries from North Africa and the Middle East. As a matter of fact,
the Union for the Mediterranean is seen in official communications as an upgrade
of the Barcelona Process that shall create new dynamism in EU relations with
North Africa and the Middle East. Energy Ministers of EU Member States
recognise that the Mediterranean region is of strategic importance to the
European Union regarding access to resources, especially the EU strategy for
diversifying energy supply. More specifically, among the priority areas of the EU
are the promotion of sustainable development in the Mediterranean region and
initiatives of common interest such as greater integration of the energy markets
by completing the Mediterranean electricity and gas rings.
21
This Directive is commonly referred to as the Directive on RES.

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In the wake of the above initiatives, the Mediterranean Solar Plan (MSP) was launched in
2008 aiming at, inter alia, developing a large amount of solar and wind generation in the
SEMC to supply the increasing demand in these countries and to also export power to
Europe through new high capacity electricity corridors.
The above illustrates a strong political support for the development of new inter-
connections in the Mediterranean basin. In parallel, the perspectives of generation
evolution have remarkably changed and relevant technologies underwent considerable
progress since the first MEDRING study. Therefore, an update of the previous MEDRING
study was necessary.
In addition, several study assumptions underlying the MEDRING Study scenarios (energy
mix, electricity consumption, peak load demand, installed capacity, generation expansion,
crude oil price, etc.) were not reflected in reality and new figures for scenarios beyond
2010 (MEDRING time horizon) are now available for inclusion in the present study.
On the basis of the above considerations, the scope of the MEDRING 2009 UPDATE
study is to:
provide an updated overview of the present status and future perspectives of the
electricity sector in the countries of the Mediterranean Basin;
highlight and reflect the developments since 2002 taking into consideration related
studies and activities that were implemented over this period by various projects;
highlight the possible technical solutions for closing the Mediterranean Electricity
Ring;
highlight the possible technical solutions for South-North electricity corridors for
the export to Europe of bulk quantity of power generated from RES, considering
the constraints on the SEMC grids and the impact on the European grids;
formulate a series of recommendations on how to progress with the closure of the
ring.
The final result shall represent a specific contribution to policy makers in Brussels
(including financial institutions) and to the beneficiary countries.
1.1 Geographic extension of the region under examination and key figures
The Mediterranean Sea surface is about 2.51 million of square kilometres and it stretches
out in longitude over approx. 3700 km. The closure of the Ring, either in AC or DC mode,
will give rise to an interconnected system extending in longitude from 15W (Western
Morocco) to 45E (Eastern Turkey), and in latitude from 57N (Denmark22) to 22N (South
22
But with several further DC submarine interconnections linking the continental European
transmission system with the rest of Scandinavia and Finland (ENTSO-E/NORDEL pool), thus

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Egypt) (see the map in Fig. 1-1). At present, power exchanges are theoretically already
possible from Scandinavia to the Maghreb, but the area from Libya to Turkey is still
separated from the European and Western Maghreb power system.
Our analysis specifically addresses the situation of the power sector of the countries
surrounding the Mediterranean basin, i.e., in clockwise direction: Portugal, Spain, France,
Italy, Slovenia, Croatia, Bosnia-Herzegovina, Montenegro, Serbia, the Former Yugoslav
Republic of Macedonia (FYROM), Albania, Greece, Bulgaria23, Turkey, Syria, Lebanon,
Israel, Palestinian Territories, Jordan, Egypt, Libya, Tunisia, Algeria, and Morocco.
Fig. 1-1 The area of the Mediterranean basin
The above 24 countries have a total population of more than 484 million inhabitants
distributed across the three continents.
The countries of the Mediterranean region show differences among them in terms of
population, per capita GDP, total electricity consumption and electrical consumption per
capita. The countries can be roughly divided in five geographical clusters. The key figures
for each cluster are shown in the tables and figures below:
allowing remarkable power exchanges between Scandinavia and the Continental European pool
(11.5 TWh from North to South and 4.1 TWh from South to North in 2007).
23
The countries of Serbia, FYROM, Bulgaria and Jordan, though not strictly Mediterranean
countries play an essential role in the closure of the MEDRING and the electricity flows. Thus, they
have been taken into account in the analyses. A similar consideration is valid also for Portugal, the
power system of which is closely meshed with Spain.

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NWM The North West Mediterranean area includes Portugal, Spain, France,
Italy, and presents a high electricity consumption and GDP per capita, with a
population of 177 million inhabitants.
Table 1-1 North West Mediterranean area data
North-West Mediterranean Area
Consumption* Population** Cons/capita*** GDP/Capita**
Country
(TWh/yr) (thousands) (kWh/yr/cap) (US$/capita)
Portugal 52.2 10,631 4,908 22,997

Spain 270.9 45,618 5,939 35,331
France 494.5 62,277 7,940 46,016
Italy 337.6 59,336 5,689 38,996
Total 1,155 177,862 6,495 39,558
*Source: ENTSO-E/SCR Statistical Database, 2008.
**Source: IMF (International Monetary Fund), World Economic Outlook Database, April
2009
***Consumption per capita=Total consumption / Total population
SEE The South East Europe area is composed of Slovenia, Croatia, Bosnia &
Herzegovina, Serbia, Montenegro, Albania, Greece, FYROM and Bulgaria. This
area is characterised by an overall population of about 42 million inhabitants and a
relatively low GDP per capita (except for Slovenia and Greece that have a GDP
per capita higher than that of Portugal).
Table 1-2 South East Europe area data
South East Europe Area
Consumption* Population** Cons/Capita*** GDP/Capita**
Country
Slovenia 12.7 2,013 6,302 27,149

Croatia 17.9 4,436 4,026 15,628
Bosnia-Herz. 11.6 3,993 2,899 4,625
Serbia 39.0
7,382 5,902 6,782
Montenegro 4.6
FYROM 8.6 2,055 4,206 4,657
Bulgaria 34.5 7,582 4,544 6,857
Albania 6.3 3,182 1,980 4,074
Greece 56.3 11,172 5,040 32,005
Total 191.4 41,815 4,577 14,937
*Source: ENTSO-E/SCR Statistical Database, 2008
2009
***Consumption per capita=Total consumption / Total population

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Turkey the key data of which are:

Table 1-3 Turkey data
Turkey
Consumption* Population** Cons/Capita*** GDP/Capita**
Country
Turkey 198.1 69,659 2,842 10,472
*Source: TEIAS
2009
***Consumption per capita=Total consumption /Total population
EM The East Mediterranean area is composed of Syria, Lebanon, Israel, the

Palestinian Territories and Jordan. These countries have a number of inhabitants
comparable with that of South East Europe, though with a higher growth rate.
They show a low GDP per capita (except for Israel) if compared with most of the
Mediterranean EU Member States. Total electricity consumption in this area is
about 97.1 TWh, out of which more than 50% is consumed by Israel.
Table 1-4 East Mediterranean Countries data

East Mediterranean Countries Area
Consumption
Population* Cons/Capita GDP/Capita***
Country *
(thousands) (kWh/yr/cap) (US$/capita)
(TWh/yr)
Syria 27.5 19,644 1,400 2,757
Lebanon 9.5 3,799*** 1,158 7,617
Israel 50.1 ** 7,400** 6,770 28,365
Palestinian
3.6 4,590 N.A.
Territories 784
Jordan 11.5 5,852 1,965 3,421
Total 102.3 41,285 2,478 ---
* Source: AUPTDE Statistical Bulletin 2008
** Source: IEC
***Source: IMF (International Monetary Fund), World Economic Outlook Database, April
2009
SM The South Mediterranean area is composed of Egypt, Libya, Tunisia,

Algeria and Morocco. This area is characterised by countries showing large
differences in their population and electricity consumption. Particularly, it is worth
noting that Egypt has a population far exceeding that of the other North African
countries together, but with the lowest per capita GDP in the region. More than
50% of the total consumption of this area (189.5 TWh) is due to Egypt. Libya is

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the richest country in the North Africa region, having the highest per capita GDP.
This is reflected by the highest per capita electricity consumption.
Table 1-5 South Mediterranean Countries data
South Mediterranean Countries Area

Consumption* Population* Cons/Capita GDP/Capita**
Country
(TWh/y) (thousands) (kWh/y/cap) (US$/capita)
Egypt 106.6 76,000 1,403 2,161

Libya 16.8 5,521 3,054 16,115
Tunisia 11.8 10,379 1,137 3,907
Algeria 32.6 34,800 937 4,588
Morocco 21.7 31,170 696 2,748
Total SM 189.5 157,870 1,200 3,415
* Source: AUPTDE Statistical Bulletin 2008

2009

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2 PROJECT METHODOLOGY
Coherent with its scope, the study consists of four volumes:
Volume I summarizes the situation of the power systems in the 24 countries

covered by the study.
Volume II presents an overview of the still remaining technical challenges for

closing the Ring and constructing dedicated power line corridors connecting the
states of the southern shores of the Mediterranean Sea with the EU-27 by high
voltage direct current (HVDC) submarine cables in a most direct way.
Volume III discusses the most likely financial implications of two borderline
scenarios resulting from the establishment of a large scale solar and wind power
industry in the Mediterranean partner countries (MPC), satisfying increasing
power demand in the region as well as exploring the opportunity of power export
into the EU-27.
Volume IV presents a visualisation of the rather rugged and in parts very deep
Mediterranean seabed, based on 2 million coordinates.
Volume I is divided in four separate tasks:
Task 1: Background and previous findings

This preliminary task summarises studies already carried out that deal with the
integration of national power grids and power markets around the Mediterranean
basin. The task aims to put in evidence existing gaps and bottlenecks between the
existing situation and a fully integrated power system.
Task 2: Overview of the Southern and Eastern Mediterranean part of

the ring
This task aims at presenting the past trends, present status and future development
perspectives of the power sector in the SEMC. The countries examined are: Morocco,
Algeria, Tunisia, Libya, Egypt, Israel, the Palestinian Territories, Jordan, Syria, and
Lebanon.
Task 3: Overview of the Northern Mediterranean part of the ring, including

Turkey
In parallel to task 2, an updated view of the present status and future perspectives in
European Countries belonging to the Northern side of the Mediterranean is provided.
The countries included in the analysis are: Portugal, Spain, France, Italy, Slovenia,

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Croatia, Bosnia-Herzegovina, Montenegro, Serbia, FYROM, Albania, Greece,

Bulgaria and Turkey.
The basic objective of this task consists of the description of the situation in the power
sector of the Northern Mediterranean countries, which is quite different from the
SEMC. Moreover, serious differences exist between the Northern Mediterranean
countries themselves: those belonging to the European Union have already fully
opened their internal power markets (see the former Directive 2003/54/EC, repealed
by the Directive 2009/72/EC [1]). Cross-border transactions are also harmonised
according to EC Regulations (see the former Regulation 2003/1228/EC and
subsequent amendments, such as the Commission Decision 2006/770/EC, now
repealed by the new Regulation 714/2009/EC [2]). The Western Balkan countries are
going to harmonise the opening of national power markets and international
exchanges under the umbrella of the Energy Community of South-East Europe
(ECSEE24) Treaty [17]. According to the ECSEE Treaty provision the full opening of
the power market shall be achieved by the year 2015. Hence, in the coming years an
asymmetry in the market rules between EU Member States and the Western Balkan
countries will persist.
As for interconnectivity, all the Northern Mediterranean countries are synchronously

interconnected with the exception of Turkey, which shall commence synchronous
operation with ENTSO-E/SCR soon. All the Northern Mediterranean countries are at
present members of ENTSO-E [5] with the exception of Albania and Turkey (which
already submitted its application to join the association).
Task 4: Synthesis of the overview
This task summarizes the information pertaining to the Northern Mediterranean

countries and the SEMC giving a comprehensive view of the power sector in the
whole Mediterranean region. The main gaps and bottlenecks preventing the
implementation of new interconnections and/or power exchanges are also highlighted.
The output of this task represents the Executive Summary of Volume I of the study.
The final aim of Volume II is the identification of technically feasible solutions for the
closure of the Ring, to be investigated in detail in subsequent targeted studies,
accounting not only for the expected technical performances of the overall interconnected
system, but also the legal and regulatory issues and the fundamentals for the
implementation of power markets on the region (market design) as well as market-
oriented mechanisms for cross-border trade.
24
The ECSEE includes all the EU Member States, the Western Balkan countries and a number of
observers (Norway, Moldova, Ukraine, Turkey and Georgia).

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To achieve this objective, the following two tasks are developed:
Task 5: Closing the Ring / South-North Corridors
In the first MEDRING study a full AC solution for closing the Ring was examined,
since this solution was given as an input. In the light of the technical analyses
performed between 2001 and 2003, the operation of such a ring proved to be quite
complicated as demonstrated in many numerical simulations. Hence, within this task
the following issues are developed:
Recall of the problems detected in the former MEDRING Study when simulating
the closure of the Ring with a full synchronous solution;
Recall the failed attempt of synchronisation between Tunisia and Libya on

21 November 2005;
Highlighting of possible technical solutions for power exchanges with Europe:

a) through Gibraltar and the Bosporus straits
b) through South-North submarine HVDC corridors
c) mixed solution of the above ones.
Proposals of possible solutions for closing the ring underlining pros and cons and
pointing out specific issues to be addressed. The possible solutions to be explored
might be:
- full AC solution;
- mixed AC and DC solution.
For the solutions involving North-South HVDC corridors, after having recalled the
already available feasibility studies (scenarios, assumptions for power/energy
exchanges and results), existing technological limits to be overcome on the
equipment itself (cable rating), on the technology for submarine links (sea depth) and
on the sending and receiving AC grids are discussed.
The output of this task consists of a series of recommendations on the most

appropriate interconnection schemes to be examined in detail later, including the
measures to be undertaken within the national power systems either in terms of
enhancement of transfer capacity or improvement of control system performance. The
recommendations include a road map for progressing the Mediterranean Electricity
Ring and a map of the region illustrating the results and findings such as weak
electricity links, "bottlenecks" and the overall priorities to be pursued with suggestions
for a timeline for implementation.

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Task 6: Summary
This final task summarizes the findings of Volume II of the study. A number of
recommendations are provided with respect to future detailed analyses to be carried
out dealing with:
- Power systems in the SEMC;

- Power systems in Europe;
- Technical solutions for the South-North trans-Mediterranean corridors;
- Cross-border trading: compliance with the EU Directives and Regulations for the
trading of electricity (reciprocity in the market rules).

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3 TASK 1: BACKGROUND AND PREVIOUS FINDINGS
3.1 Background
Cooperation between the EU and its Mediterranean neighbours goes back a long way
and is currently a topic of lively discussion. This cooperation got a firm impetus in 1995
with "The Euro-Mediterranean Partnership" set up in Barcelona in November 1995 ("The
Barcelona Process").
The Euro-Mediterranean partnership signed at the ministerial level in Barcelona consisted

of the EU Member States and 12 partner countries around the Mediterranean: Algeria,
Cyprus(*), Egypt, Israel, Jordan, Lebanon, Malta(*), Morocco, Palestinian Territories, Syria,
Tunisia and Turkey (Libya had observer status), and covered a large range of policy
areas in the Mediterranean basin (Political and Security Dialogue; Economic and
Financial Partnership; Social, Cultural and Human Partnership).
The Euro-Mediterranean Partnership was re-launched as the UfM at the Paris Summit for
the Mediterranean in July 2008, with the new network of relations endorsed at the
Marseille Meeting of the Euro-Mediterranean Ministers of Foreign Affairs in November
2008. The Partnership now includes all 27 Member States of the European Union, along
with 16 partner countries across the Southern Mediterranean and the Middle East.
This re-launching aimed to infuse a new vitality into the Partnership and to raise the
political level of the strategic relationship between the EU and its southern neighbours.
While maintaining the acquisitions of its predecessor, the Barcelona Process, the UfM
offers more balanced governance (e.g., presidency co-chaired by an EU Member State
and a partner of the Southern Mediterranean or the Middle East), increased visibility to its
citizens and a commitment to tangible, regional and trans-national projects.
The Union for the Mediterranean has also identified six priority projects which are at the
heart of the of Partnerships efforts, including projects for:
the de-pollution of the Mediterranean Sea;
the establishment of maritime and land highways;
civil protection initiatives to combat natural and man-made disasters;
the Mediterranean Solar Plan;
the inauguration of the Euro-Mediterranean University in Slovenia; and
the Mediterranean Business Development Initiative focusing on micro, small and
medium-sized enterprises.
(*)
Cyprus and Malta became EU Member States ten years later

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The MEDA Programme is the main financial instrument of the Euro-Med Partnership.
Energy issues have become more important within the new Euro-Med Partnership, with
priorities focusing on security of supply, through better interconnections and increased
regional integration, energy industry competitiveness, environmental protection and
sustainable energy development.
Other priorities address the need to integrate energy markets and the promotion of
energy projects of common interest.
Five projects dealing with energy have been funded and financed within the MEDA
programme:
EAMGM (Euro-Arab Mashreq Gas Market),

Integrated Electricity Market Development,
MED-EMIP Euro-Mediterranean Energy Market Integration Project,
MED-ENEC (energy efficiency in construction),
MED-REG (energy regulators cooperation).
In particular, MED-EMIP is a platform for energy policy dialogue and exchange of

experiences, leading to enhanced Euro-Med cooperation, integration of the energy
markets and improved security and sustainability.
The objectives of the project are the establishment of a regional platform for energy policy
dialogue and exchange of experiences with respect to secure energy supplies, diversified
energy sources, and reduction of the environmental impact of energy-related activities.
It promotes energy sector reform in the Mediterranean Partner Countries (MPC) in order
to shift towards a sustainable and clean energy system. MED-EMIP facilitates achieving
consistency, harmonization and convergence of MPCs national energy policies as well
as institutional and legislative frameworks. In addition, MED-EMIP stimulates technology
transfer and market development.
It provides an internet-based information system including technical and management

tools. Support to each of the MPC is based on the needs established during meetings
with national authorities, in fields such as energy strategy formulation and legislative
advice.

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3.2 Outcomes of previous studies

In addition to the above projects, a series of studies were carried out in the wake of the
Barcelona Process and as a result of a generally improved collaboration in the region.
The most relevant projects and results are summarised hereafter.
MEDRING Project
In the year 2000 the study of the Mediterranean Electric Ring (MEDRING) was launched.
The study, completed in June 2003, was co-financed by the European Commission in the
framework of the MEDA programme and led by a consortium of partners from Europe and
the SEMC.
The main goal of the project was the definition of a framework for a coherent
development of interconnections between the power systems of the Mediterranean
Basin.
The project aimed to:
determine the economically optimal energy exchanges between the countries,

analyse in detail the behaviour of the system as a whole,
propose solutions for improving the reliability of the system,
train experts and operating personnel in operation of the system and the energy
market.
The work schedule of the project was as follows:
definition of medium term (years 2005-2010) scenarios for electricity demand and
generation for each country;
sharing of know-how (methodologies, models, software procedures) useful in
providing a uniform evaluation of the development of power systems in the
involved countries;
identification of the activities necessary to ensure that each of the involved
countries can use independently the above mentioned know-how;
exchange of views and proposals for centrally coordinated operation;
identification of network configurations for the Mediterranean basin capable of
matching the respective electricity demand/generation scenarios;
reliability analysis and load flow calculations, using the network configurations
mentioned above, in order to identify by successive iterations the main
characteristics (necessary reinforcements in terms of new links, reactive
compensation, etc.) of networks which offer appropriate guarantees of adequacy
and economic viability;

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studies on dynamic behaviour to investigate potential limitations with particular

reference to instability and/or overload phenomena. Identification of need for
possible control actions and/or defence plans to avoid such limitations;
definition of operating rules for each utility to prevent spreading of major
disturbances over the whole power ring.
The cost/benefit analysis was focused on the interconnection projects in the southern and
eastern part of the Mediterranean Ring.
The total annual benefit associated with each interconnection project was measured
taking into account the reduction in fuel costs, the reduction in investment costs for
generation capacities and the increase in security of supply, i.e., the reduction of
unsupplied energy.
The following tables (Table 3-1 and Table 3-2) summarise the cost/benefit ratio obtained
by the analysis.
Table 3-1 - Benefit/cost ratio for existing interconnection projects obtained

by the MEDRING project
Total
Annuity Cost
Annual Benefit /
Country Country of the
Project Benefit Cost
1 2 Project
(in Mio Ratio
(in Mio US $)
US $)
Tunisia Libya 220 kV double circuit line
38.3 3.0 12.77
220 kV single circuit line
Syria Turkey 400 kV single circuit line 13.8 8.2 1.68

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Table 3-2 - Benefit/cost ratio for planned interconnection projects obtained by the
MEDRING project
Annuity
Total annual cost
Benefit /
Country Country benefit of the
Project Cost
1 2 (in Mio US project
Ratio
$) (in Mio
US $)
Spain Morocco Additional AC submarine
7.2 7.7 0.94
cable (400 kV)
Morocco Algeria 400 kV double circuit line 10.0 3.0 3.33
Algeria Tunisia 400 kV single circuit line 9.5 1.0 9.72
Tunisia Libya 400 kV single circuit line 4.9 3.0 1.63
Libya Egypt 500 kV single circuit line 12.4 6.5 1.93
Egypt Jordan Additional 400 kV line 6.8 9.2 0.74
Jordan Syria Additional 400 kV single
5.9 2.8 2.13
circuit line
Turkey Greece 400 kV single circuit line 16.4 4.6 3.56
Algeria Spain DC submarine cable 90.0 46.5 1.93
Algeria Italy DC submarine cable 26.2 35.6 0.74
Tunisia Italy DC submarine cable 19.8 33.2 0.60
Libya Italy DC submarine cable 55.3 46.5 1.19
With respect to the studys results, it is important to note that:
considering the very peculiar structure of the South-Eastern Mediterranean grid, the
dynamic analyses showed that the full benefits might be reduced when contingencies hit
some areas of the system, unless appropriate emergency controls or defence plans are
implemented.
One of the projects outcomes was the definition of the power transfer limitations across
borders that are necessary to preserve system integrity in case of disturbances, as well
as how much the cross-border power transfers can be increased by assuming that
suitable emergency controls and/or defence plans are in place.
In any case, the MEDRING study was not in a position to define the detailed measures to
be adopted or how to prevent the possibility of undamped oscillations, a problem that is
causing concern to the UCTE when envisaging the synchronous connection of the entire
region.

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In fact, the definition of the necessary technical measures has to be made in advance and
in agreement with most of the Mediterranean countries, as the MEDRING study proved
that a perturbation in one country can have critical effects in another, if it is not accurately
controlled. Such a spill-over can occur, even if both countries are not in each others
immediate neighbourhood. More details on the dynamic performances of the
Mediterranean Electrical Ring are reported in Volume II.
ELTAM Project
A study on the reinforcement of the interconnection between Egypt, Libya, Tunisia,

Algeria and Morocco (ELTAM) to 400/500 kV was launched in 2002 and completed in
2004.
The aim of this technical study was the definition of the necessary reinforcement of the
networks for maximum power transfer across the interconnection links, taking into
account the neighbouring countries interconnection to guarantee the reliable operation of
the interconnection and establish the quantity, type and location of the reactive power
compensation sets.
The main results of this study are reported in the following documents:
Feasibility study of the interconnection of the electrical networks of EgyptLibya-

Tunisia-Algeria-Morocco on 500/400 kV - Task B1 - Technical Study -
FINAL REPORT
Feasibility study of the interconnection of the electrical supply networks in
500/400 kV of Egypt-Libya-Tunisia-Algeria and Morocco. Dynamic Study
Task B2
Feasibility Study for the Interconnection of Electrical Networks of Egypt, Libya,
Tunisia, Algeria, Morocco on 400/500 kV - Task C Technical Specification
As outcomes of this project, the two 400 kV lines between Algeria Tunisia and Algeria -
Morocco were put in operation in 2006, initially at 220 kV while the completion of all the
following interconnection lines was foreseen by 2012-2015:
Tunisia Libya (Bouchenna- Sud Sarman);

Libya Egypt (Tobruk Saloum - Marsa Matrouh).

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Other studies
TUNISIA-LIBYA INTERCONNECTION (2001-2002)

Transnergie Services, REE, The Tunisia-Libya Interconnection Operational Studies
for the Interconnected Power Systems Operation of the Interconnection, Montral
(Qubec-Canada) and Madrid (Spain), May 2002. This study aimed at defining the
protection schemes at the interconnection lines between the two countries.
Other studies about interconnections and the power sector in the southern and eastern
Mediterranean region are the following ones (an in depth analysis of the critical elements
of these studies is presented in Volume II).
Palestinian Territories
Interconnection of the Electrical Networks of Egypt Gaza & Jordan West Bank
(Feasibility Study Final Report). This study, carried out by Norconsult AS in
2008 and revised in 2009, analyses the energy demand and supply forecast for
Palestinian Territories up to 2030 and the option for integrating Palestinian
Territories with the Mashreq-Libya pool.
Syria
Generation Expansion Planning Power Sector Action Programme (PSAP) for the
Syrian Arab Republic. This study, carried out by SwedPower in 2005, is
composed of three parts25: short-term 2006 2009, medium-term 2010 2025,
and long term 2026 2035. The study was mainly focussed on the medium term.
Power System Studies Power Sector Action Programme (PSAP) for the Syrian
Arab Republic, carried out by SwedPower (2006).
Libya
Demand Forecasting & Generation Expansion Planning until 2025, carried out by
KEPCO Company (Sep.2008).
Transmission Master Plan, carried out by SIEMENS Company.
Tunisia
Expansion Planning Study for Tunisian Electrical Generation System for the
Period 2011-2040, conducted in 2008 and 2009.This study forms part of the work
of the Studies and Planning Commission in the framework of COMELEC (Comit
maghrebin de llectricit), the association having the aim of coordinating the
development of the power sector in the Maghreb region.
25
Peak and energy forecast were mainly taken from the report Electrical Energy Demand and
Load Forecast in Syria for the Period 2003 - 2015, February 2005, prepared by Peter Ellerth,
SwedPower.

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Turkey
Turkey-UCTE interconnection
Two studies were undertaken to investigate the feasibility of a synchronous
interconnection between Turkey and UCTE (now ENTSO-E/SCR). The studies were
launched in June 2002 and dealt with:
- system performances in static conditions; study led by a group of TSOs of south-

eastern Europe;
- system performances in dynamic conditions; study mastered by central UCTE
TSOs under the leadership of RWE (Germany).
The execution of these studies allowed identifying the Net Transfer Capacity (NTC)
from Turkey to UCTE and in the opposite direction as well as the measures to be
implemented on the Turkish power system in order to comply with the operational
rules and performance of UCTE.
National Master Plans

Master Plans have been developed for Jordan, Egypt and Libya. Their common
characteristic is the main focus on the transmission development at the national
level up to the interconnection lines at the borders. Sometimes, these studies lack
a comprehensive view on a regional scale.

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4 TASK 2: OVERVIEW OF THE SOUTHERN AND EASTERN

MEDITERRANEAN PART OF THE RING
The scope of this chapter is to provide a thorough and updated overview of the power
sector in the countries belonging to the southern and eastern Mediterranean side,
namely: Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Palestinian Territories, Jordan,
Syria, and Lebanon.
Information on the Arab Southern and Eastern Mediterranean Countries (SEMC) has
been retrieved by AUPTDE and further elaborated by MED-EMIP European short-term
experts, whilst information on Israel has been obtained by IEC (the Israeli Electricity
Corporation).
It is worth mentioning that the SEMC are still operated in three separated power pools:
the Maghreb pool: Morocco, Algeria and Tunisia, synchronously interconnected

with ENTSO-E/SCR since 1997;
the Mashreq-Libya power pool, including: Libya, Egypt, Jordan, Syria;
the Israeli and Palestinian Territories power pool.
As for Lebanon, the country belongs to the Mashreq-Libya pool, but at present its power
system is still operated in an isolated way with the exception of some loads supplied in
islanded mode from Syria through the two existing tie-lines at 230 kV and 66 kV.
The information is displayed according to the following scheme:
Consumption:
o present level of electricity consumption (par.4.1);
o past patterns of electricity consumption and electricity intensity (par. 4.2);
o peak power demand (par. 4.3);
o expected trends in the future (par. 4.4).
Generation:
o present generation endowment and production with indication of the primary
resources used in the countries on the Southern side of the Mediterranean sea
(par. 4.1);
o generation evolution and system adequacy (par. 4.5).
Cross-border trading among countries

o illustration of the NTC, energy exchanges and energy balances (par. 4.6);
o existing cross-border lines and projects of new interconnections (par. 4.7).

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Overview of:
o Power system performances: operating policy and continuity of supply (par.
4.8);
o Organisation of the power system structure (par. 4.9).
References of System Operators (par. 4.11).
Since the source of information about Israel is different with respect to the other countries,
the presentation of the power sector for Israel is shown in a separate paragraph (par.
4.10).
The final scope of this analysis is the highlighting of possible drivers towards an
enhanced integration among national power systems.

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4.1 Consumption, installed capacity and production
Consumption:
The countries on the southern side of the Mediterranean Sea show heterogeneous
electricity consumption levels: Egypt recorded a total consumption of about 106.1
TWh in 2008, a consumption level which is bigger than that of all the other North
African countries together (91 TWh).
The Eastern Mediterranean countries (Syria, Lebanon, Jordan and Palestinian

Territories) exhibit a relatively low electricity consumption level of 52 TWh in 2008.
This approximately equals the consumption of Israel alone which is 50 TWh.
Israel is characterised by a per capita consumption as high as 6770 kWh/yr, a level

larger than in all the Northern Mediterranean Countries besides France. The other
SEMC are characterised by a per capita consumption below 2000 kWh/yr with the
exception of Libya (3055 kWh/yr). The lowest per capita consumptions are recorded
in Morocco (700 kWh/yr) and the Palestinian Territories (785 kWh/yr).
As for Lebanon, the consumption level is strongly affected by heavy daily load
shedding. On average, there are six hours per day of rotation load shedding. In some
days of the year, characterised by a steady and high demand (high temperature and
humidity), rotational load shedding is applied 24 hours a day.
Installed capacity, generation mix and production:
The generation mix in the SEMC is dominated by fossil fuels. Heavy oil and natural
gas have equal shares in the Eastern Mediterranean countries, while mainly natural
gas is used in the Southern Mediterranean countries. The only two exceptions are
Morocco and Israel, which rely on imported coal for electricity production with a
percentage of 57% and 42%, respectively.
Hydropower capacity and production is significant in Syria (1510 MW installed with a

production 2.9 TWh in 2008), in Morocco (1729 MW and 1.4 TWh in 2008) and,
especially, in Egypt on the Nile river (2842 MW and 15.5 TWh in 2008).
Non-hydro RES generation is concentrated in Egypt (305 MW and 0.8 TWh in 2008),
Tunisia (19 MW and 0.04 TWh) and Morocco (114 MW and 0.3 TWh). RES
generation is almost exclusively from wind. Some PV installations with a capacity of a
few kW exist in Jordan, Morocco, Tunisia and Egypt.
The scope of this paragraph is to give a general view of the consumption, generation
endowment, and production of the SEMC26. This area can be analysed clustering the
countries into three different groups (Fig. 4-1):
26
Unless differently pointed out, the source of the data reported here is AUPTDE

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EMC East Mediterranean Countries area including Syria, Lebanon, Palestinian

Territories and Jordan;
SMC South Mediterranean Countries area including Egypt, Libya, Tunisia,
Algeria and Morocco;
Israel.
Fig. 4-1 Countries considered in the examination of the South and

East Mediterranean area
4.1.1 East Mediterranean Countries - EMC

Table 4-1 depicts the annual consumption level in 2008, the per capita consumption, the
installed capacity and the net generation for the countries in this area.
Fig. 4-2 shows the installed capacities, split among the main primary energy sources and
displays the related yearly electricity production. As for the electricity consumption level in
Lebanon, it is worth noting that the consumption level is strongly affected by heavy daily
load shedding: on average six hours per day of rotation load shedding. In some days of
the year, characterised by a steadily high demand (typically summer days with high
temperature combined with high level of humidity), rotational load shedding is applied 24
hours a day.
The data displayed in Table 4-1 refers to the consumption recorded by the vertically
integrated electricity company EDL of Lebanon and does not take into account isolated
loads supplied by small size gensets, e.g., alternators combined with diesel engines,
during times when the relevant MV feeders are disconnected during the rotation load
shedding. Growth of the electricity consumption in Lebanon is prevented by lack of
generation.

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Power import to Lebanon from Syria is limited by lack of surplus in Syria itself. Whenever
surplus power is available, Syria feeds loads in Lebanon in islanded mode. Owing to the
lack of sufficient generation and the resulting insufficient frequency regulation capacity,
the power system of Lebanon is disconnected from the Mashreq-Libya pool.
Table 4-1 East Mediterranean area: consumption,

installed capacity and generation
East Mediterranean Countries Area

Installed
Consumption Cons/capita
Country capacity Net generation
(TWh/yr) (kWh/yr/cap)
(MW) (TWh)
Syria 27.5 1,400 7,700 39.1
Lebanon 9.5 1,158 2,304 10.6
Palestinian
3.6 784 0.41
Territories 125*
Jordan 11.5 1,965 2,534 13.2
Total 52.1 1,538 12,663 63.3
* In 2006, the Gaza Power Plant was struck damaging all its transformers.The available capacity was
reduced to 75 MW.
Fig. 4-2 Electricity generation East Mediterranean area

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The analysis of installed capacity shows a slight difference in the generation mix between
Syria and the other countries. In fact, while the installed hydro capacity accounts for
19.6% of total generation capacity in Syria, this figure is about 6.4% for Lebanon and
0.5% for Jordan. Nevertheless, the capacity mix is generally strongly dominated by fossil
fuel plants.
Concerning the electricity production, note the large amount of generation based on fossil
fuels (as highlighted in the analysis of the installed capacities), and particularly the large
share of production from steam turbines.

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Type Capacity
(MW) (%)
Fossil fuels 6190 80.4
Steam turbines 3435 44.4
Gas turbines 1170 15.2
Combined Cycle 1600 20.8
Diesel 0 0.0
Hydropower 1510 19.6
Other RES 0 0.0
Others 0 0.0
Total capacity 7806
LEBANON Type Capacity
(MW) (%)
Steam Turbines Fossil fuels 2044 93.6
47,3% Steam turbines 1034 47.3
Gas Turbines
Fossil Fuels
Gas turbines 140 6.4
6,4% Hydro 93,6% 6,4% Combined Cycle 870 39.8
Diesel 0 0
39,8%
Combined Cycles
Hydropower 260 6.4
Other RES 0 0
Others 0 0
Total capacity 2304
JORDAN Type Capacity
(MW) (%)
Steam Turbines
Diesel Gas turbines 861 34.0
0,5% Hydro Fossil 99,3% Combined Cycle 600 23.7
1,7%
34,0% Diesel 43 1.7
23,7% Gas Turbines
Fuels Hydropower 12 0.5
Combined Cycles
Other RES 1.4 0.1
Others 4 0.2
Total capacity 2534
Palestinian Territories Type Capacity
(MW) (%)
ALL FOSSIL FUELS Fossil fuels 125 100
Fig. 4-2 Installed capacity in East Mediterranean area (percentages always refer to total
capacity also in the small pie chart)

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Concerning the fuel consumption for electricity production, natural gas and heavy fuel oil
have approximately equal shares in the region as a whole, with Syria relying
predominantly on heavy oil and Jordan relying mainly on natural gas.
Table 4-2 East Mediterranean area: fuel consumption in electricity sector
East Mediterranean countries area

Fuel consumption in electricity sector in thousand TOE
Country Total Heavy oil Light oil Natural gas
Syria 8,317 5,325 6 2,986

Lebanon N.A. - - -
Palestinian
100 - -
Territories 100
Jordan 3,275 562 16 2,697
Total 11,692 5,887 122 5,683
4.1.2 South Mediterranean countries - SMC

Table 4-3 depicts the yearly electricity consumption in 2008, the per capita consumption,
the installed capacity and the net generation for the countries in this area. Fig. 4-3 and
Fig. 4-4 show the installed capacities, split among the main primary energy sources.
Finally, Fig. 4-5 displays the related annual electricity production.
Table 4-3 South Mediterranean area: consumption, installed capacity and generation
South Mediterranean countries area

Installed
Consumption Cons/capita
Country capacity Net generation
(TWh/yr) (kWh/yr/cap)
(MW) (TWh)
Egypt 106.6 1403 22848 125.1
Libya 16.8 3055 6196 28.7
Tunisia 11.8 1137 3316 13.7
Algeria 32.6 937 8503 40.0
Morocco 21.7 696 5292 20.3
Total 189.5 1200 46148 227.8

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EGYPT Type Capacity

(MW) (%)
Fossil fuels 19701 86,2
50,6% Steam Turbines Steam turbines 11571 50.6
Gas Turbines Gas turbines 916 4.0
12,4% Hydro Fossil 86,2% Fuels
4,0% Combined Cycle 6949 30.4
1,2%
1,33% Diesel Diesel 265 1.2
Renewables
30,4%
Combined Cycles
Hydropower 2842 12.4
Other RES 305 1,3
Others 0 0
Total capacity 22848
LIBYA Type Capacity
(MW) (%)
Steam Turbines Fossil fuels 6196 100
100,0%
33,8% Gas turbines 2094 33.8
Gas Turbines
Fossil
Fuels Combined Cycle 2355 38.0
38,0% Diesel 0 0
Combined Cycles Hydropower
Other RES
Others
Total capacity 6196
TUNISIA Type Capacity
(MW) (%)
Steam Turbines
1,9% Hydro Gas Turbines Gas turbines 1308 39.5
Fossil 97,5%
39,5%
0,6% Combined Cycle 835 25.2
Renewables 25,2% Diesel
Combined Cycles
Hydropower 63 1.9
Other RES 19 0.6
Others
Total capacity 3315
Fig. 4-3 Installed capacity in South Mediterranean area: Egypt, Libya and Tunisia
(percentages always refer to total capacity also in the small pie chart)

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ALGERIA Type Capacity

(MW) (%)
Steam Turbines Fossil fuels 8271 97.3
Gas Turbines
Fossil
97,3% Fuels Gas turbines 4490 52.8
2,7% Hydro
2,5% 825 9.7
Combined Cycle
Diesel
52,8%
9,7% Diesel 217 2.5
Combined Cycles Hydropower 230 2.7
Other RES
Others
Total capacity 8503
MOROCCO Type Capacity
(MW) (%)
45,1% Steam Turbines Steam turbines 2385 45.4
32,7% Gas turbines 615 11.6
Hydro
Fossil 65,2%
Gas Turbines Combined Cycle 380 7.2
1,3% 11,6%
Renewables
7,2% Diesel 69 1.3
Diesel Combined Cycles Hydropower 1729 32.7
2,2%
Other RES 114 2.2
Others
Total capacity 5292
Fig. 4-4 Installed capacity in South Mediterranean area: Algeria and Morocco
(percentages always refer to total capacity also in the small pie chart)
The analysis of installed capacity highlights an important difference between Egypt and
the other countries. The amount of installed capacity in Egypt approximately equals the
installed capacity of all the other four countries together. Egypt and Morocco are the only
two countries with a significant amount of hydropower generation capacities (12.4% for
Egypt and 32.7% for Morocco). This figure is around 1.9% for Tunisia and 2.7% for
Algeria. Libyas installed capacity consists entirely of thermal plants. A small but
significant share of RES is used in Morocco (2.2%), Egypt (1.3%) and Tunisia (0.6%).
Concerning the annual electricity production, Egypt has a significant amount of hydro
generation (15.5 TWh in 2008) followed by Morocco (1.4 TWh in 2008). In 2008, the RES
based electricity generation - excluding large hydro - was 0.8 TWh in Egypt, 0.040 TWh
in Tunisia and 0.3 TWh in Morocco. All the remaining generation was based on fossil
fuels.

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Electricity Generation - 2008

South-Med.
Steam Turbines Gas Turbines Combined Cycle Diesel Hydro Renewables Others
140
120
100
80
TWh
60
40
20
0
Egypt Libya Tunisia Algeria Morocco
Fig. 4-5 Electricity generation South Mediterranean area
Electricity production in this area is completely (Algeria) or predominantly (Egypt) based

on the consumption of natural gas. Libya and Tunisia also show a large prevalence in the
usage of natural gas. On the contrary, Morocco is the only country relying mainly on coal
for electricity generation: 11.7 TWh were generated from coal in 2008, while only 4.1
TWh were generated from heavy fuel oil and 2.9 TWh from natural gas27 in the same
year.
Table 4-4 South Mediterranean area: fuel consumption in electricity sector
South Mediterranean Countries Area

Fuel consumption in Electrical Sector thousands of TOE
Country Total Heavy oil Light oil Natural gas
Egypt 23,562 4,561 108 18,893

Libya 7,583 1,636 3,002 2,945
Tunisia 3,304 164 0.4 3,140
Algeria 11,278 0 128 11,151
Morocco 4,485 1110 2,935 440
Total 50,212 7,471 6,173.4 36,569
27
Source: Morocco Fact Sheet provided by AUPTDE

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4.2 Past patterns of electricity consumption and electricity intensity

In order to analyse the evolution of the electricity sector in the SEMC, reference is made
to the growth of the electricity production in the respective countries. This is a good
estimate for the evolution of electricity consumption, as net cross-border power
exchanges are very limited in the SEMC.
Table 4-5 depicts the past patterns of gross electricity generation along with values for
the growth ratio (expressed as CAGR28) for the EMC area. As can be seen, Jordan and
Syria recorded a growth of about 7-8% while Lebanon recorded a more moderate growth
of about 3.8%, with a decrease of generation in 2006. This decrease was a consequence
mainly of the Lebanon war events. As discussed above, this lack of generation growth
negatively affects consumption growth.
The growth in electricity generation in the Palestinian Territories is due to the very low
absolute amount of energy generated (not shown in the table below): there is only one
power plant in operation sited in the Gaza Strip.
Table 4-5 East Mediterranean area gross electricity generation 2000-2008
CAGR (%)
Syria 7.04
Lebanon 3.87
Palestinian
25.5
Territories
Jordan 8.62
*Figure for the period of 2003 to 2008. The value refers to the power plant generation
located in the Gaza Strip and does not reflect the growth rate of the Palestinian Territories
demand.
28
CAGR: Compound Annual Growth Rate

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Table 4-6 depicts the past patterns of gross electricity generation with values of the
growth ratio (expressed as CAGR) for the SMC area. From the year 2000 on, all the
countries have recorded a steady high growth in their gross generation at rates exceeding
5% per year.
Table 4-6 South Mediterranean area gross electricity generation 2000-2008
CAGR (%)
Egypt 6.90
Libya 8.44
Tunisia 5.06
Algeria 6.04
Morocco N.A.
In Table 4-7 the electricity intensities for the year 2008 (ratio electric consumption over
GDP at current prices) are reported. The table shows the evident difference between the
EMC area plus Egypt, having a large value of electricity intensity, and the other four SMC,
having electricity intensity values in the range 0.2-0.3 kWh/US$. The electricity intensity
of the latter countries (Morocco, Algeria, Tunisia and Libya) is in line with that of the
North-Western Mediterranean countries.
Table 4-7 Electricity intensity 2008
Electricity Intensity (Consumption/GDP) [kWh/US$] 2008

Syria 0.500 Egypt 0.655
(*)
Lebanon 0.324 Libya 0.205
Palestinian Territories --- Tunisia 0.290
Jordan 0.542 Algeria 0.204
Morocco 0.244
(*)
The calculation doesnt take into account the local generation not under the monitoring
system of EDL.

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4.3 Summer and winter peak loads

Table 4-8 and Table 4-10 show peak loads29 while Table 4-9 and Table 4-11 show some
typical winter and summer load curves30. In EMC region peak loads in winter are usually
attained in the period December-January, while in summer during the month of August. It
is remarkable that for Lebanon, the Palestinian Territories and Jordan the peak loads in
summer have values similar to (or a little bit larger than) those recorded in winter.
The yearly load patterns for the SMC region are characterized, in general, by summer
peak loads higher or similar to those in winter. A good example of this pattern is offered
by Egypt and, partially, by Tunisia. Note that in some countries of the Northern side of the
Mediterranean Sea, e.g., in Italy and in Greece, peak loads in summer have values
similar to those recorded in winter, too.
Table 4-8 East Mediterranean area peak loads
East Mediterranean countries

Max loads (MW)
Country Growth 08-07
Date and hour Value
(%)
Syria Dec, 31 18:00 6,707 2.3
Lebanon Aug, 5 21:00 2,186 -3.9
Palestinian Territory --- 806 4.9
Jordan Aug, 19 14:20 2,260 4.6
29
Values are taken from AUPTDE Statistical Bulletin 2008
30
Information taken from the country facts sheets prepared by AUPTDE

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Table 4-9 East Mediterranean area load curves Summer-Winter 2008
SYRIA LEBANON
8000 2500
7000
2000
6000
Load (MW)
Load (MW)
5000 1500
Summer Summer
4000 Winter
Winter 1000
3000
2000 500
1000
0
0
0
00
00
00
00
:0
.0
.0
.0
.0
.0
.0
.0
30
00
30
00
30
10 0
12 0
13 0
15 0
16 0
18 0
19 0
21 0
22 0
0
0
2.
4.
6.
8.
0
.3
.0
.3
.0
.3
.0
.3
.0
.3
:0
00
10
12
14
16
18
20
22
1.
3.
4.
6.
7.
9.
00
Time
Time
SYRIA Date Hour MW LEBANON Date Hour MW

Summer Aug,6 9:00 6270 Summer Aug,5 21:00 2186
Winter Dec,21 6:00 6707 Winter Jan,29 19:00 2080
PNA JORDAN
900 2400
800 2200
700 2000
Load (MW)
600
Load (MW)
1800
500 Summer Summer
1600
400 Winter Winter
1400
300
1200
200
1000
100
800
0
30
00
30
00
30
10 0
12 0
13 0
15 0
16 0
18 0
19 0
21 0
22 0
0
0
0
.3
.0
.3
.0
.3
.0
.3
.0
.3
:0
30
00
30
00
30
10 0
12 0
13 0
15 0
16 0
18 0
19 0
21 0
22 0
0
0
1.
3.
4.
6.
7.
9.
0
.3
.0
.3
.0
.3
.0
.3
.0
.3
:0
00
1.
3.
4.
6.
7.
9.
00
Time
Time
PALESTINIAN
Date Hour MW JORDAN Date Hour MW
TERRITORIES
Summer Aug,13 21:00 806 Summer Aug,19 14:20 2260
Winter Dec,12 6:30 810 Winter Dec,27 17:00 2139
Table 4-10 South Mediterranean Area peak loads
South Mediterranean countries

Max loads (MW)
Country Growth 08-07
Date and hour Value
(%)
Egypt Jun,30 - 21:00 19738 6.7
Libya Jul,13 21:30 4756 7.6
Algeria Dec,16 19:00 6925 8.0
Tunisia Jul,8 13:00 2467 2.1
Morocco Jul,1 8:00 4180 5.0

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Table 4-11 South Mediterranean area load curves Summer-Winter 2008
EGYPT LIBYA
25000 5000
20000 4000
Load (MW)
Load (MW)
15000 3000
Summer Summer
Winter Winter
10000 2000
5000 1000
0 0
0
00
00
00
00
:00
.00
.00
.00
.00
.00
.00
.00
00
00
00
00
:0
.0
.0
.0
.0
.0
.0
.0
2.
4.
6.
8.
2.
4.
6.
8.
00
00
10
12
14
16
18
20
22
10
12
14
16
18
20
22
Time Time
EGYPT Date Hour MW LIBYA Date Hour MW

Summer Aug,20 21:00 19738 Summer Sep,9 19:00 4495
TUNISIA ALGERIA
3000 8000
7000
2500
6000
Load (MW)
2000
Load (MW)
5000
Summer Summer
1500 4000
Winter Winter
3000
1000
2000
500 1000
0 0
00
30
00
30
00
30
10 0
12 0
13 0
15 0
16 0
18 0
19 0
21 0
22 0
0
30
00
30
00
30
10 0
12 0
13 0
15 0
16 0
18 0
19 0
21 0
22 0
0
0
0
.3
.0
.3
.0
.3
.0
.3
.0
.3
0
.3
.0
.3
.0
.3
.0
.3
.0
.3
:0
0.
1.
3.
4.
6.
7.
9.
1.
3.
4.
6.
7.
9.
00
Time
Time
TUNISIA Date Hour MW ALGERIA Date Hour MW

Summer Jul,8 17:30 2226 Summer Aug,11 21:30 6633
MOROCCO
5000
4000
Load (MW)
3000
Summer
Winter
2000
1000
0
0
0
00
00
00
00
:0
.0
.0
.0
.0
.0
.0
.0
2.
4.
6.
8.
00
10
12
14
16
18
20
22
Time
MOROCCO Date Hour MW

Summer July,1 22:00 3916
Winter Dec,1 19:00 3919

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4.4 Expected trends in the future
The SEMC are witnessing high growth rates for both consumption and peak load.
This trend is expected to persist in the future.
Consumption is foreseen to grow at a rate in the range between 4% (Israel and

Lebanon) and slightly below 7% (Libya and Morocco) by AUPTDE. Similar growth
rates are also expected for peak loads.
The consumption and peak load growth expected by AUPDTE seems to be based on
a business as usual scenario. A more moderate consumption growth could be
foreseen or encouraged if energy efficiency measures were adopted. In addition,
introducing appropriate DSM measures favouring the reduction of the demand during
peak hours could smooth the growth of peak loads.
The estimations of the growth of peak demand are based on the AUPTDE country fact
sheets and the data exchanged at the second MEDRING Update coordination meeting
held in Tunis on 14 December 2009. The expected peak load demand for the four
countries of the EMC area is reported in Table 4-12. It can be seen that the peak demand
is forecasted to be steadily high with a CAGR in the range between 3.2 and 6.3%.
Table 4-12 East Mediterranean area peak load forecasts

SYRIA LEBANON PT JORDAN
Demand Growth Demand Growth Demand Growth Demand Growth
Year
(MW) (%) (MW) (%) (MW) (%) (MW) (%)
2010 7670 6.90% 2360 3.87% 884,8 5.06% 2571 6.81%
2011 8200 6.91% 2447 3.69% 931,7 5.30% 2743 6.69%
2012 8775 7.01% 2535 3.60% 973,7 4.51% 2947 7.44%
2013 9400 7.12% 2622 3.43% 1025,1 5.28% 3135 6.38%
2014 10000 6.38% 2710 3.36% 1071,4 4.52% 3338 6.48%
2015 10700 7.00% 2797 3.21% 1122,1 4.73% 3560 6.65%
2016 11235 5.00% 2884 3.11% 1172,4 4.48% 3797 6.66%
2017 11800 5.03% 2972 3.05% 1226,6 4.62% 4014 5.72%
2018 12270 3.98% 3059 2.93% 1279,4 4.30% 4244 5.73%
2019 12760 3.99% 3147 2.88% 1335,3 4.37% 4488 5.75%
2020 13270 4.00% 3234 2.76% 1392,8 4.31% 4743 5.68%
CAGR 5.63% 3.20% 4.64% 6.32%
The peak load demand forecasts for the five countries of the SMC area are reported in
the table below (Table 4-13). It can be seen that in this region the peak demand is also

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forecasted to have a very high growth rate with a CAGR between 5.0% and 6.9% and
small differences between the various countries.
Table 4-13 South Mediterranean area peak load forecasts

EGYPT LIBYA TUNISIA ALGERIA MOROCCO
Demand Growth Demand Growth Demand Growth Demand Growth Demand Growth
Year
(MW) (%) (MW) (%) (MW) (%) (MW) (%) (MW) (%)
2010 22249 5512 2740 8050 4323
2011 23636 6.23% 5861 6.33% 2880 5.11% 8630 7.20% 4551 5.27%
2012 25091 6.16% 6197 5.73% 3070 6.60% 9141 5.92% 4895 7.56%
2013 26610 6.05% 6543 5.58% 3310 7.82% 9658 5.66% 5255 7.35%
2014 28201 5.98% 6892 5.33% 3540 6.95% 10203 5.64% 5626 7.06%
2015 29853 5.86% 7242 5.08% 3830 8.19% 10771 5.57% 6020 7.00%
2016 31583 5.80% 7591 4.82% 4090 6.79% 11328 5.17% 6414 6.54%
2017 33391 5.72% 7941 4.61% 4280 4.65% 11868 4.77% 6875 7.19%
2018 35283 5.67% 8291 4.41% 4450 3.97% 12515 5.45% 7362 7.08%
2019 37257 5.59% 8641 4.22% 4610 3.60% 13212 5.57% 7871 6.91%
2020 39308 5.51% 8990 4.04% 4780 3.69% 13932 5.45% 8399 6.71%
CAGR 5.86% 5.01% 5.72% 5.64% 6.87%
Note that the estimations of consumption and peak load growth rates displayed above
refer to the pre-crisis financial situation of 2008/2009 and may be revised downwards to
account for a possible economic downturn in some countries. However, the effect of the
crisis on these economies is unlikely to be as significant as for the highly industrialised
countries. In any case it is expected that the differences in growth rates between
countries will be maintained in the mid to long term following global economic recovery.
In all the SEMC peak load demand and consumption are forecasted in parallel with the
electricity generation expansion, because development plans refer to a situation of
complete national autonomy, i.e., every country shall cover its own demand with an
adequate reserve margin. Hence, on the basis of the above consideration, the growth
rates of consumption and generation are matched for each country.
Table 4-14 and Fig. 4-15 depict the growth of consumption according to data collected in
the AUPTDE country fact sheets and in the second MEDRING Update coordination
meeting. A high growth rate of electrical consumption has been forecasted for the next
ten years with annual growth ranging from 4.0% for Lebanon to 6.87% for Libya.

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Table 4-14 East Mediterranean area consumption forecasts

Demand Growth Demand Growth Demand Growth Demand Growth
Year
(GWh) (%) (GWh) (%) (GWh) (%) (GWh) (%)
2010 43075 12325 4521 15550
2011 45230 5.0% 12818 4.0% 4819 6.6% 16579 6.6%
2012 47500 5.0% 13330 4.0% 5133 6.5% 17762 7.1%
2013 49875 5.0% 13863 4.0% 5472 6.6% 18888 6.3%
2014 52370 5.0% 14418 4.0% 5794 5.9% 20097 6.4%
2015 55000 5.0% 14995 4.0% 6145 6.1% 21413 6.5%
2016 57200 4.0% 15595 4.0% 6505 5.9% 22841 6.7%
2017 60060 5.0% 16218 4.0% 6884 5.8% 24216 6.0%
2018 65000 8.2% 16867 4.0% 7285 5.8% 25678 6.0%
2019 67600 4.0% 17542 4.0% 7704 5.8% 27235 6.1%
2020 70300 4.0% 18243 4.0% 8135 5.6% 28848 5.9%
CAGR 5.02% 4.00% 6.05% 6.37%
Table 4-15 South Mediterranean area consumption forecasts

Deman Deman Deman Deman Deman
Growt Growt Growt Growt Growt
Year d d d d d
h (%) h (%) h (%) h (%) h (%)
(GWh) (GWh) (GWh) (GWh) (GWh)
2010 121629 49631 12590 46481 26011
2011 129444 6.4% 55875 12.6% 13360 6.1% 50345 8.3% 27402 5.3%
2012 137673 6.4% 61517 10.1% 14150 5.9% 53521 6.3% 29320 7.0%
2013 146326 6.3% 67012 8.9% 15090 6.6% 56705 5.9% 31373 7.0%
2014 155425 6.2% 72076 7.6% 15980 5.9% 60098 6.0% 33569 7.0%
2015 164955 6.1% 79197 9.9% 16940 6.0% 63551 5.7% 35918 7.0%
2016 174975 6.1% 84461 6.6% 17900 5.7% 66738 5.0% 38433 7.0%
2017 185507 6.0% 87935 4.1% 18640 4.1% 69777 4.6% 41123 7.0%
2018 196580 6.0% 91416 4.0% 19390 4.0% 73642 5.5% 44002 7.0%
2019 208216 5.9% 93965 2.8% 20130 3.8% 77800 5.6% 47082 7.0%
2020 220450 5.9% 96452 2.6% 20900 3.8% 82104 5.5% 50377 7.0%
CAGR 6.13% 6.87% 5.20% 5.85% 6.83%

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The growth rate estimates shown in the tables seem to be based on a business as
usual scenario. A more moderate consumption growth could be foreseen or encouraged
if energy efficiency measures were adopted.
The growth of demand peaks could be smoothed by introducing DSM measures

favouring the reduction of consumption during peak hours.
Fig. 4-16 and Fig. 4-17 compare the growth of electricity consumption to the growth of
GDP in the SEMC. As can be seen from the data, both rates are strongly correlated. The
average ratio between the growth of electricity consumption and the growth of GDP for
the EMC is 0.83 for Lebanon, 1.0 for Syria and the Palestinian Territories and 1.09 for
Jordan.
In the SMC area this ratio is equal to 1.11 for Egypt, 1.09 for Libya, 0.98 for Tunisia, 1.36
for Algeria and to 1.24 for Morocco.
Table 4-16 East Mediterranean area consumption growth versus GDP growth

Growth GDP Growth GDP Growth GDP Growth GDP
Year
(%) (%) (%) (%) (%) (%) (%) (%)
2010 4.0% 6.0% 6.10%
2011 5.0% 5.0% 4.0% 4.0% 6.6% 6.0% 6.6% 6.10%
2012 5.0% 5.0% 4.0% 4.5% 6.5% 6.0% 7.1% 6.10%
2013 5.0% 5.0% 4.0% 4.5% 6.6% 6.0% 6.3% 6.10%
2014 5.0% 5.0% 4.0% 5.0% 5.9% 6.0% 6.4% 6.10%
2015 5.0% 5.0% 4.0% 5.0% 6.1% 6.0% 6.5% 6.10%
2016 4.0% 5.0% 4.0% 5.0% 5.9% 6.0% 6.7% 5.60%
2017 5.0% 5.0% 4.0% 5.0% 5.8% 6.0% 6.0% 5.60%
2018 8.2% 5.0% 4.0% 5.0% 5.8% 6.0% 6.0% 5.60%
2019 4.0% 5.0% 4.0% 5.0% 5.8% 6.0% 6.1% 5.70%
2020 4.0% 5.0% 4.0% 5.0% 5.6% 6.0% 5.9% 5.70%
CAGR 5.02% 5.00% 4.00% 4.80% 6.05% 6.00% 6.37% 5.87%

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Table 4-17 South Mediterranean area consumption growth vs. GDP growth

Growth GDP Growth GDP Growth GDP Growth GDP Growth GDP
Year
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2010 5.5% 6.3% 5.5% 4.0% 5.5%
2011 6.4% 5.5% 12.6% 6.3% 6.1% 5.5% 8.3% 4.0% 5.3% 5.5%
2012 6.4% 5.5% 10.1% 6.3% 5.9% 5.5% 6.3% 4.0% 7.0% 5.5%
2013 6.3% 5.5% 8.9% 6.3% 6.6% 5.5% 5.9% 4.0% 7.0% 5.5%
2014 6.2% 5.5% 7.6% 6.3% 5.9% 5.5% 6.0% 4.0% 7.0% 5.5%
2015 6.1% 5.5% 9.9% 6.3% 6.0% 5.5% 5.7% 4.5% 7.0% 5.5%
2016 6.1% 5.5% 6.6% 6.3% 5.7% 5.5% 5.0% 4.5% 7.0% 5.5%
2017 6.0% 5.5% 4.1% 6.3% 4.1% 5.0% 4.6% 4.5% 7.0% 5.5%
2018 6.0% 5.5% 4.0% 6.3% 4.0% 5.0% 5.5% 4.5% 7.0% 5.5%
2019 5.9% 5.5% 2.8% 6.3% 3.8% 5.0% 5.6% 4.5% 7.0% 5.5%
2020 5.9% 5.5% 2.6% 6.3% 3.8% 5.0% 5.5% 4.5% 7.0% 5.5%
CAGR 6.13% 5.50% 6.87% 6.30% 5.20% 5.30% 5.85% 4.30% 6.83% 5.50%

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4.5 Generation evolution and adequacy

Problem statement
Generation adequacy addresses the ability of the generation assets to cover the
expected peak load taking into account uncertainties in the generation availability and
in the load level;
The new generation capacity for the SEMC is classified in two categories: already
approved plans, and planned additional capacity (new power plants proposed by the
electric companies but not yet approved by the national authorities).
Main results
In the SEMC each TSO carries out its own evaluations of the expected generation
evolution exclusively for the power system under its control. In contrast, on the
northern side of the Mediterranean area, the association of European TSOs
(ENTSO-E) conducted the first joint study in 2008. Its results were issued in July
2008 in a joint power system adequacy report.
According to AUPTDE, the total generation capacity will have grown by a factor of
about 1.75 in 2018 with respect to the 2009 level.
East Mediterranean Area

The countries of the region have adopted different strategies for the generation
expansion.
The generation expansion plan of Syria is based on gas-fuelled plants (Combined
Cycle or GT) with the presence of new hydropower at the end of 2020.
Jordans plan is based on the immediate re-conversion of existing GT units to Heat
Recovery Steam Generators and to new CC Units. For the future, oil shale power
plants are planned, together with wind farms. For the year 2020 a nuclear power plant
is also envisaged.
The generation expansion plans of Lebanon are based on heavy fuel oil or coal (with
the exception of two LNG plants).
The Palestinian Territories plans the construction of a new CC unit and also a solar
unit (70 MW) by the year 2013.
Taking as a horizon the year 2018, the total approved additional capacity will be as
high as 4.4 GW, of which 3.3 GW will be in Syria and 1.0 GW in Jordan. This value is
to be compared to the actual installed capacity in 2008, which is 12.9 GW. Considering
the year 2020 as horizon, the planned additional capacity should add another 10.4 GW
of which 3.6 GW are in Syria, 2.2 GW are in Lebanon and 3.7 GW are in Jordan.
Israel has adopted a multi-scenario generation expansion plan related to various
assumptions regarding the GDP growth rate and weather conditions. Scenarios are
worked out for the next 10 years. Up to 2020 new generation will be based mainly on
coal (2x630MW) and gas (2.64.3 GW depending on the scenario). A RES scenario

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has also been worked out foreseeing by 2020 the installation of 920 MW of wind farms
and 2710 MW of solar plants.
South Mediterranean Area:
New generation capacity in Libya, Algeria and Tunisia is based on natural gas, in
Morocco on oil and coal and in Egypt on natural gas and light fuel oil.
Considering as horizon the year 2018 (that is the horizon year in AUPTDE forecasts),
the total additional approved capacity of the five countries will reach 45.0 GW, of which
24.3 GW are in Egypt, 10.4 GW are in Algeria, 4.7 GW are in Libya, 3.8 GW are in
Morocco and 1.9 GW are in Tunisia.
The impressive growth in new generation is evident if compared to the total installed
capacity in the five countries, which in 2008 was 46.2 GW.
The planned additional capacity should add, by the end of 2020, another 54.7 GW, of
which 31.8 GW are in Egypt (6.4 GW wind, 0.26 GW solar) and 12.0 GW are in Libya.
The nuclear option is envisaged in Egypt (1000 MW) for the year 2020. Morocco is
also considering the possibility of installing a nuclear unit (950 MW) in 2020.
The expected electricity production in the next 10 years for the SEMC is reported in Table
4-18 and Table 4-19. Data is taken from the AUPTDE Statistical Bulletin 2008.
Note that on the northern side of the Mediterranean area, the association of European
TSOs (ENTSO-E) conducted the first joint system adequacy study in 2008. Its results
were issued in July 2008 in a joint power system adequacy report [10]. In the SEMC each
TSO carries out its own evaluations of the expected generation evolution exclusively for
the power system under its control.
In the following an overview of the new capacity for each country is presented. A
distinction is made between already approved new capacity and planned new capacity.
Table 4-18 East Mediterranean area electricity forecast
East Mediterranean countries generated energy forecast - GWh

Country 2009 2013 2018
Syria 45,195 59,716 80,018
Lebanon ----- ---- ----
Palestinian Territories 4,072 5,054 6,657
Jordan 14,775 19,098 25,888

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Table 4-19 South Mediterranean area electricity forecast
South Mediterranean Countries generated energy forecast - GWh

Country 2009 2013 2018
Egypt 132,157 170,647
Libya 32,934 55,420 77,017
Tunisia 14,180 18,730 25,930
Algeria 43,024 58,194 77,278
Morocco 24,693 31,373 44,002
4.5.1 East Mediterranean countries

Syria
The approved and planned generation capacity expansion is reported in Fig. 4-6. As
shown by the table, at the end of 2013 the already approved additional generation
capacity amounts to 3,250 MW (2,550 MW of which are natural-gas fired CC units). At the
end of 2020, considering the new planned capacities, the electrical generation capacity
will amount to 6,850 MW. The bar diagrams in Fig. 4-6 show the scheduled
commissioning of new generation units over the next 10 years.
SYRIA - APPROVED GENERATION EXPANSIONS SYRIA - PLANNED GENERATION EXPANSIONS
Combined Cycle Gas Turbines Thermal Hydro Combined Cycle Gas Turbines Thermal Hydro
1600 1600
1200 1200
MW
MW
800 800
400 400
0 0
2009 2010 2011 2012 2013 2011 2012 2013 2014 2015 2016 2017 2018 2019
Time Time
Fig. 4-6 Syria: approved and planned generation expansion till 2020
Lebanon
For Lebanon there are no firmly approved projects for new capacity. Data regarding
planned units is reported in Fig. 4-7. The total planned additional capacity amounts to
2160 MW by 2020. Almost all the new power plants will be fuelled by heavy fuel oil except
two gas turbines that will be fuelled by LNG.

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LEBANON - PLANNED GENERATION

EXPANSIONS
Combined Cycle Gas Turbines Thermal Hydro
800
No approved power plants 600
MW
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time
* All gas turbines in the table will be fuelled by heavy fuel oil except for the gas turbines planned
for 2014 and 2015, that will be fuelled by LNG.
Fig. 4-7 Lebanon: approved and planned generation expansion till 2020
The PNA approved a new power plant consisting of a 70 MW CC unit to be
commissioned in 2013. The planned generation expansion includes CC units with a
capacity of about 900 MW until 2020. In addition, a solar power plant (CSP and PV) with
a capacity of 70 -100 MW is planned to be erected by 2013.
PNA - APPROVED GENERATION EXPANSIONS PNA - PLANNED GENERATION EXPANSIONS
Combined Cycle Gas Turbines Thermal Hydro Combined Cycle Gas Turbines Thermal
Hydro Solar
500
400 500
300 400
MW
300
MW
200
200
100 100
0 0
2009 2010 2011 2012 2013 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time Time
Fig. 4-8 PNA: approved and planned generation expansion till 2020
Jordan
Jordans approved new generation capacity includes two new Heat Recovery Steam
Generator (HRSG) units. These will be obtained by converting existing GT units to CC.
The planned capacity expansion includes Oil Shale fired Power Plants (OSPP) as well as
the addition of wind turbines and, for the year 2020, a nuclear plant.

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JORDAN - APPROVED GENERATION JORDAN - PLANNED GENERATION EXPANSIONS

EXPANSIONS
Combined Cycle Gas Turbine Ste am Turbine
Combined Cycle HRSG Thermal Hydro Wind OSPP Wind Nucle ar
1500 1500
1250 1250
1000 1000
MW
MW
750 750
500 500
250 250
0 0
2009 2010 2011 2012 2013 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time Time
Fig. 4-9 Jordan: approved and planned generation expansion till 2020
Summary of East Mediterranean area

As reported in the tables below (Table 4-20, Table 4-21), which summarise the data
presented above, the EMC have adopted different strategies for their generation capacity
expansion. The expansion plan of Syria is based on gas-fuelled plants (CC or GT) with
the presence of hydro power at the end of 2020. Jordan plans the immediate re-
conversion of existing GT units to HRSG, combined with the installation of new CC units.
In the long term, OSPP plants are planned, together with wind farms and, in 2020, a
nuclear power plants is envisaged.
Table 4-20 East Mediterranean area approved additional capacities
EAST MEDITERRANEAN AREA APPROVED ADDITIONAL CAPACITIES

Syria Lebanon Palestinian Terr. * Jordan
Year
Type Fuel MW Type Fuel MW Type Fuel MW Type Fuel MW
2009 CC NG 250 HRSG 132
GAS NG 300 HRSG 100
2010
CC NG 450
CC NG 380
2011
CC NG 450 CC NG 390
2012 THE HFO 400
CC NG 750
CC NG 750 CC* NG 70
2013
Legend: THE = Thermal unit; Dies = Diesel; GT = Gas turbine; ST =Steam turbine;
CC = Combined cycle; Hyd = Hydro; HFO =Heavy fuel oil; NG = Natural gas;
OSPP = Oil shale fired power plant; NUPP = Nuclear power plant
*Located in Gaza Strip

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Table 4-21 East Mediterranean area planned additional capacities
EAST MEDITERRANEAN AREA PLANNED ADDITIONAL CAPACITIES

Palestinian
Syria Lebanon Jordan
Year Territories *
2011 Dies HFO 150 Wind 40
Dies HFO 150 GT D.O 120
2012 GT HFO 150 Wind 70-
100
THE HFO 500 GT HFO 150 CC NG 350 ST HFO 300
2013 Hyd. 59 Solar 70-
100
2014 THE D/NG 150 GT LNG 150 GT D.O 280
CC NG 450 GT LNG 150 OSPP OilS 300
2015
Wind 200
2016 CC NG 450 ST** COAL 150 CC NG 175 OSPP OilS 300
ST COAL 300 CC* NG 140
2017 GAS NG 300 ST COAL 300 OSPP OilS 300
2018 GT HFO 150 GT D.O 160
2019 CC NG 750 GT HFO 150 ST HFO 300
Hyd 1000 ST** 150 CC NG 100 NPP 1000
2020
CC* NG 140 Wind 300
Legend: THE = Thermal Unit; Dies = Diesel; GT = Gas Turbine; ST =Steam Turbine;
CC = Combined Cycle; Hyd = Hydro; HFO =Heavy Fuel Oil; NG = Natural Gas;
OSPP = Oil Shale fired power plant; NPP = Nuclear P.P; D/NG = Diesel / Natural Gas
OilS = fuel Oil Shale; D.O. = Diesel Oil
*Located in Gaza Strip
Lebanon will base its capacity expansion on heavy fuel oil or coal fired facilities with the
exception of two LNG plants. The Palestinian Territories plan is based CC units
supplemented by a solar installation.
Taking the year 2018 as a horizon, the total approved additional capacity will be as high
as 4.4 GW, out of which 3.3 GW will be located in Syria and 1.0 GW in Jordan. The
above value is to be compared to the actual installed capacity in 2008, which amounts to
12.9 GW.
Considering the year 2020 as the temporal horizon, the planned additional capacities
should add another 10.4 GW, of which 3.6 GW will be located in Syria, 2.2 GW in

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Lebanon and 3.7 GW in Jordan. The nuclear option (1000 MW) is envisaged in Jordan for
the year 2020.
4.5.2 South Mediterranean countries

Egypt
The approved and planned generation capacity expansions are reported in the bar
diagrams below (Fig. 4-10). At the end of 2018 the added generation capacity already
approved will amount to approximately 24.7 MW (mainly composed of CC units) and, at
the end of 2020, including the planned capacities, another 31.8 GW will be added.
EGYPT - APPROVED GENERATION EXPANSIONS EGYPT - PLANNED GENERATION EXPANSIONS
Combined Cycle Gas Turbines Steam Turbines

Combined Cycle Gas Turbines Steam Turbines Hydro Solar Wind
Nuclear
Hydro Solar Wind
4400
4400
3300 3300
MW
2200 MW 2200
1100 1100
0
0
9
8
00
01
01
01
01
01
01
01
01
01
09 9
10 0
11 1
12 2
13 3
14 4
15 5
16 6
17 7
18 8
19 9
0
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
20 00
20 01
20 01
20 01
20 01
20 01
20 01
20 01
20 01
20 01
20 01
02
08
09
10
11
12
13
14
15
16
17
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
20
20
20
20
20
20
20
20
20
20
08
20
Time
Time
Fig. 4-10 Egypt: approved and planned generation expansions till 2020
Libya
diagrams below (Fig. 4-11). It can be noted that at the end of 2016 the added generation
capacity already approved will amount to about 4.7 GW (mainly composed of CC units)
and, at the end of 2020, including the planned capacities, another 12 GW will be added.
LIBYA - APPROVED GENERATION EXPANSIONS LIBYA - PLANNED GENERATION EXPANSIONS
Combined Cycle Gas Turbines Steam Turbines
Combined Cycle Gas Turbines Steam Turbines 4400
4400 3300
3300
MW
2200
MW
2200
1100
1100
0 0
2009 2010 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time
Time
Fig. 4-11 Libya: approved and planned generation expansions till 2020

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Algeria
diagrams below (Fig. 4-12). It can be seen that at the end of 2015 the additional
generation capacity already approved will amount to 10.3 GW (mainly composed of CC
units) and, at the end of 2020, including the planned capacities, additional 5.4 GW will
have been added. Note that for 2010 a CSP hybrid plant (120 MW natural gas + 30 MW
solar) has been approved.
ALGERIA - APPROVED GENERATION ALGERIA - PLANNED GENERATION EXPANSIONS

EXPANSIONS
Combined Cycle Gas Turbines Thermal Hydro
Combined Cycle Gas Turbines Thermal
Hydro CSP 2800
2800 2100
2100
MW
1400
MW
1400
700 700
0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time Time
Fig. 4-12 Algeria: approved and planned generation expansion till 2020
Tunisia
diagrams below (Fig. 4-13). By the end of 2016 the added generation capacity already
approved will amount to 1.8 GW (1.2 GW of which come from CC units) and, at the end of
2020, including the planned capacities, another 1.2 GW of CC plants will be added.
TUNISIA - APPROVED GENERATION TUNISIA - PLANNED GENERATION

EXPANSIONS EXPANSIONS
Combined Cycle Gas Turbines Thermal Hydro Combined Cycle Gas Turbines Thermal Hydro
600 600
450 450
MW
MW
300 300
150 150
0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time Time
*2016 Steam turbine or combined cycle (coal or gas, no decision taken so far).
ELMED power plant 1200 MW: 400 MW for Tunisia and 800 MW for export to Italy.
Fig. 4-13 Tunisia: approved and planned generation expansion till 2020
Morocco
diagrams below (Fig. 4-14). In the end of 2016 the added generation capacity already

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approved will amount to 3.7 GW and, at the end of 2020, including the planned
capacities, another 5.3 GW will be added. It is worth mentioning that by the year 2020 a
total installation of 1,440 MW wind turbine capacity is foreseen.
MOROCCO - APPROVED GENERATION M OROCCO - PLANNED GENERATION

EXPANSIONS EXPANSIONS
Combined Cycle Gas Turbines Thermal Combined Cycle Gas Turbines Thermal
Hydro Wind Hydro Wind
1600
1600
1200
1200
MW
800
MW
800
400
400
0
0
2009 2010 2011 2012 2013 2014 2015
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Time Time
*300 MW in 2009 and 300 MW in 2011 are classified as thermal because gas turbines are fuelled
by oil
Fig. 4-14 Morocco: approved and planned generation expansion till 2020
Summary of South Mediterranean area

As summarised in Table 4-22 and Table 4-23 below, the plans of Libya, Algeria and
Tunisia rely on natural gas, Moroccos plans rely on oil and coal and Egypts plans focus
on natural gas and light fuel Oil.
The five countries present different horizon years for the approved and planned additional
capacities. Taking the year 2018 as time horizon (in line with the AUPTDE forecasts), the
total additional approved capacities of the five countries adds to 45.0 GW, of which 24.3
GW are in Egypt, 10.4 GW in Algeria, 4.7 GW in Libya, 3.8 GW in Morocco and 1.9 GW
in Tunisia. Note that the total installed capacity in the five countries in 2008 was 46.2 GW
out of which 22.8 GW was in Egypt, 8.5 GW in Algeria, 6.2 GW in Libya, 5.3 GW in
Morocco and 1.9 GW in Tunisia.
The planned capacities are scheduled to add, by the end of 2020, a total of 54.7 GW of
new capacity, of which 31.8 GW will be in Egypt and 12.0 GW in Libya. The nuclear
option is envisaged in Egypt (1000 MW) for the year 2020. Morocco is also considering
the installation of a nuclear unit (950 MW) in the longer term.

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Table 4-22 Egypt approved and planned additional capacities
Additional capacities Additional capacities

MW MW
Year Unit Fuel MW Year Unit MW
Plan Fuel type Plan
type type app. type app.
. .
CC NG/LFO 1250 1250 CC NG/LFO 2250 2250
2008 2009
Wind - 120 120 ST NG/HFO 1050 1050
2009 2010
Wind - 120 120
ST NG/HFO 350 350 CC NG/LFO 750 750
2010 Solar - 140 140 2011 ST NG/HFO 650 650
2011 Th 2012
Wind - 520 520 Wind - 520 520
CC NG/LFO 650 650 CC NG/LFO 1750 1750
2012 ST NG/HFO 1750 1750 2013 ST NG/HFO 1950 1950
2013 Solar - 54 54 2014 Solar - 4 4
Wind - 320 320 Wind - 450 450
CC NG/LFO 250 250 CC NG/LFO 1250 1250
ST NG/HFO 1950 1950 ST NG/HFO 650 650
2014 2015
Hydro - 32 32 Solar - 4 4
2015 2016
Solar - 54 54 Wind - 700 700
Wind - 700 700
CC NG/LFO 250 250 ST NG/HFO 650
ST NG/HFO 1950 1950 CC NG/LFO 1000
2016 2017
2017 Solar - 4 4 2018 NPP - 1000
Wind - 1200 1200 Wind - 600
CC NG/LFO 1000 CC NG/LFO 750
2018 ST NG/HFO 650 2019 ST NG/HFO 1950
2019 2020
Wind - 600 Wind - 600
Legend: Dies = Diesel; GT = Gas turbine; ST =Steam turbine;

CC = Combined cycle; Hyd = Hydro; HFO =Heavy fuel oil; NG = Natural gas;
OSPP = Oil shale fired power plant; NUPP = Nuclear power plant

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Table 4-23 South Mediterranean area approved additional capacities
SOUTH MEDITERRANEAN AREA APPROVED ADDITIONAL CAPACITIES

Libya Tunisia Algeria Morocco
Year
GT NG 123 GT NG 590 Hyd 40
CC NG 1200 Wind 140
2009 GT NG 2x150
GT Oil 3x100
Diesel Oil 116
GT NG 312 GT NG 123 GT NG 1261 ST Oil 172
GT NG 570 CSP NG 120 Diesel NG 16.5
2010 CC NG 820 (HYB) Solar 30
CC NG 820
CC NG 820
CC NG 410 Diesel Oil 80
2011 Wind 200
GT Oil 300
ST NG 1400 CC NG 2400 Wind 100
2012 CC NG 2400
CC NG 400 GT NG 400 ST Coal 2x350

2013
2014 CC NG 400 CC NG 800 ST Coal 2x660

CC NG 800
2015
GT NG 400
2016 ST/CC* Coal/NG 400
Legend: Dies = Diesel; GT = Gas turbine; ST =Steam turbine;
CC = Combined Cycle; Hyd = Hydro; HFO =Heavy Fuel Oil; NG = Natural Gas;
OSPP = Oil Shale fired power plant; NPP = Nuclear P.P; D/NG = Diesel / Natural gas
OilS = fuel Oil shale; D.O. = Diesel oil
*ELMED Power Plant 1200 MW: 400 MW to Tunisia and 800 MW to Italy

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Table 4-24 South Mediterranean area planned additional capacities
SOUTH MEDITERRANEAN AREA PLANNED ADDITIONAL CAPACITIES

Libya Tunisia Algeria Morocco
Year
GT NG 855 Wind 400
2011
CC NG 820
Wind 600
2012
ST NG 700
2013
ST NG 350
ST NG 700 OSPP 100
2014 ST NG 350 Hyd 300
CC NG 750
ST NG 350 ST Coal 660
2015
ST NG 700
2016 ST NG 700 GT NG 400
ST NG 700
ST NG 700 CC NG 400 CC NG 400 CC NG 400
2017 CC NG 750 CC NG 400
GT NG 200
ST NG 700 CC NG 400 CC NG 400
ST NG 700 CC NG 400
2018
GT NG 200
GT NG 200
ST NG 700 CC NG 400 CC NG 400 ST Coal 660
ST NG 700 GT NG 200
2019
GT NG 200
GT NG 400
CC NG 750 CC NG 400 CC NG 400 CC NG 2x400
CC NG 400
2020 CC NG 400
GT NG 200
GT NG 200
Legend: Dies = Diesel; GT = Gas turbine; ST =Steam Turbine;
CC = Combined Cycle; Hyd = Hydro; HFO =Heavy fuel oil; NG = Natural gas;
OSPP = Oil shale fired power plant; NPP = Nuclear P.P; D/NG = Diesel / Natural gas
OilS = fuel oil /shale; D.O. = Diesel oil

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4.6 Net transfer capacities, energy exchanges and energy balances
Energy balances and flows:

General Remarks:
The level of export and import in the last eight years has not changed remarkably with
a few exceptions represented by the import of electricity from Europe to Morocco.
Cross-border exchanges occur mainly for mutual aid with remuneration in kind.
Commercial agreements for energy trading are however emerging, e.g., between
Egypt, Jordan and Syria. In addition, there exist Maghreb commercial agreements for
the trading of energy, but the real cross-border exchanges are limited by the weakness
of the existing transmission infrastructures.
The Net Transfer Capacity (NTC) remains weak across many borders.
East Mediterranean Area

As a whole, the EMC area imports approximately 4.0 TWh annually. Yet, there are
differences between the four countries: while Syria is in a balanced situation (0.042
TWh), Lebanon (-0.5 TWh), the Palestinian Territories (-3.2 TWh) and Jordan (-0.2
TWh) are net importing countries.
The net energy deficit of the EMC area represents a fraction of 8.6% of total
consumption, i.e., a non-negligible amount. Note that this deficit is mainly due to the
Palestinian Territorys lack of generation. Indeed, the Palestinian Territories relies
almost entirely on Israel for power supply.
South Mediterranean Area:

As a whole, the SMC area imports approximately 4.1 TWh annually. While Egypt is a
net exporter of electricity (0.6 TWh), Libya, Tunisia and Algeria have a net balance
near zero. On the contrary, Morocco relies on large scale imports (-4.3 TWh) from
Spain.
The net energy deficit of the SMC represents a share of 4.9% of the total consumption
and is due to the energy imported by Morocco. The other countries are in a mostly
balanced situation.
The present section provides an analysis of net transfer capacities, the energy
exchanges between the different countries and the resulting energy balances. This
includes a characterisation of the interconnections between the countries, as well as
information on to what extent the interconnections are exploited for power exchanges and
for what purposes these exchanges take place. Countries with a surplus of energy are
identified as well as those suffering of a shortfall in production. The latter are then
required to satisfy their energy demand through cross-border lines, as far as possible.

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The comparison among the amount of yearly exchanged energy31 and the net transfer
capacity (NTC) at the borders is useful to get a first general idea on the degree of
exploitation of the existing interconnectors. More accurate information on possible
existing congestion at the borders can be derived by the comparison between the hourly
power flows and the NTC or the physical capacity of each tie-line.
Concerning the energy balances in 2008, it is clear from Table 4-25 that on the whole the
EMC area is an importing area for electricity (import of about 4.0 TWh). While Syria is in a
quite balanced situation (0.042 TWh), Lebanon (-0.5 TWh), the Palestinian Territories
(-3.2 TWh) and Jordan (0.2 TWh) are importing countries. The Palestinian Territories
must rely almost exclusively on Israel for the supply of electricity in order to meet internal
demand. The net energy deficit of the EMC area represents a fraction of 8.6% of total
consumption, i.e., a non-negligible amount. Note that this deficit is mainly due to the
Palestinian Territorys lack of generation.
Table 4-25 Electric energy balance in East Mediterranean area countries in 2008

Net Total
Export Import Net balance /total
Country balance consumption
(GWh) (GWh) consumption (%)
(GWh) (GWh)
Syria 590 548 42 27,528 0.15%
Lebanon 0 563 -563 4,402 -12.79%
Palestinian T. 0 3,291 -3,291 3,590 -91.67%
Jordan 318 547 -229 11,509 -1.99%
Total 908 4,949 -4041 47,029 -8.59%
31
Energy = electricity

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Table 4-26 and Table 4-27 show the energy exchanges and the NTC capacities of the
interconnections in 2008 and their evolution in the previous four years. It is important to
note that the level of export and import has not changed significantly in the last 5 years.
In some cases poor energy exchanges are not only due to the limited capacity of the
interconnections or constraints inside the countries. Rather, a lack of commercial
agreements and commercial benefits hinders larger energy flows. Interconnections are
mainly exploited for mutual aid with remuneration in kind, but new agreements for energy
exchanges are emerging. In particular, commercial agreements are in place between
Egypt and Jordan for energy import from Egypt and, more recently (since 2007), Egypt
started exporting power to Syria (200270 GWh/yr). The agreement of power export from
Egypt to Syria implies a transit across Jordan. Hence, a scheme for the remuneration of
the Jordanian TSO (NEPCO) had to be put in place.
We underline that agreements for the Inter-TSO compensation of transits are of utmost
importance to favour the development of cross-border trading. In specific case of Egypt,
Jordan and Syria, payments for the use of the Jordanian grid are based on the in- and
out- metered energy with tariffs (JD/MWh) differentiated according to three different time
bands. A similar scheme applies for the compensation of Syrian and Jordanian system
operators in case of power wheeling from Egypt to Lebanon.
Finally, recall that the energy exchanges from Turkey to Syria happen in islanded
operation mode, i.e. without the full synchronisation of the two power system, but with
local power generation in Turkey connected in antenna to the newly commissioned 400
kV line from Birecik to Aleppo. The sharp decrease of energy import from Turkey to Syria
in 2008 was due to the expiration of the energy purchase contract with Turkey at the end
of 2007. Negotiations are ongoing to agree on a new energy purchase contract.

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Table 4-26 Transfer capacities and energy exchanged through the existing
interconnection lines in East Mediterranean area countries in 2008
Reasons
Tie line Energy exchanged* preventing
Net Transfer Capacity (MW)
Line thermal (GWh/year) or
limit favouring
(MW) energy
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004
exchange
Syria-Jordan 200 200 200 100 100 13 8 42 241 38 Available
1000
Jordan-Syria 350 350 200 200 100 245 159 0 0 0 energy
Syria- 0 0 0 0 0 0 0 0 0 0
Lebanon 400 kV
1000
Lebanon- 0 0 0 0 0 0 0 0 0 0 line***
Syria
Syria- 50 50 50 50 50 144 234 182 88 36
66 kV
Lebanon
Syria- 160 160 160 160 160 419 738 747 366 180
220 kV
Lebanon
Jordan-West 20 20 0 0 0 158 141 112 0 0
Bank See **
Egypt-Gaza 17 17 17 0 0 134 123 29 0 0
Syria-Turkey 0 0 0 0 0 0 0 0 0 0 Available
1000
Turkey-Syria 250 350 350 0 0 97 962 132 0 0 energy
Jordan-Egypt 200 200 200 200 200 9 13 9 0.3 1 Available

550
Egypt-Jordan 450 450 350 350 350 534 200 472 741 788 energy
* Based on actual bills between the countries

** Exchanges limited by the lack of transmission and interconnection facilities
(interconnection through a 33 kV line from Jordan and through 22 kV line from Egypt),
lack of commercial agreements for power wheeling
*** In operation since 2009.

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Table 4-27 Energy exchanged wheeled through Jordan:

East Mediterranean area countries in 2008
Reasons
Energy exchanged* preventing
Tie line Net Transfer Capacity (MW)
(GWh/year) or
Line thermal
favouring
limit
energy
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004
exchange
Egypt-Syria 206 274 50 0 116 Available
Syria-Egypt 6 4 0 2 0 energy
Concerning the SMC area, Table 4-28 summarises the energy balances recorded in 2008
for this region. As shown in the table, the SMC area as a whole imports about 4.1 TWh
annually. Egypt is a net exporter of electricity (0.6 TWh) to Jordan and Syria. While Libya,
Tunisia and Algeria have a net balance near zero, Morocco relies on large scale imports
(-4.3 TWh) from Spain. The net energy deficit of the SMC area represents a share of
4.9% of the total consumption and is due to the energy imported by Morocco. The other
countries are in a mostly balanced situation
Table 4-28 Electric energy balance in South Mediterranean area countries in 2008

Net Total
(GWh) (GWh) consumption (%)
(GWh) (GWh)
Egypt 814 251 563 106,595 0.53%
Libya 117 69 48 18,452 0.26%
Tunisia 144 137 7 11,833 0.06%
Algeria 323 274 49 32,584 0.15%
Morocco 149 4,411 -4,262 21,711 -19.63%
Total 733 4,891 -4,158 84,580 -4.92%

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Table 4-30 reports32 the energy exchanges and the NTC values of the interconnections in
2008 and in the previous four years. The comments on the cross-border trading are
similar to those reported above for the EMC area. With few exceptions, the level of export
and import in the last five years has not changed significantly due to the limited capacity
of interconnections and a lack of attractive commercial agreements. In particular,
Morocco has more than doubled its import from Europe following the commissioning of
the second AC submarine cable across the Strait of Gibraltar.
The import from Spain to Morocco is partly based on bilateral contracts and partly on the
purchase of energy on the MIBEL spot market depending on the price levels. Further
energy exchanges based on commercial agreements are in place between Libya and
Egypt (see Table 4-29). However, any expansion of commercial exchanges is hindered
by the limited NTC of the interconnections, besides, in some cases, lack of surplus in
generation.
Table 4-29 Energy exchanges between Libya and Egypt based on

commercial agreements (source GECOL)
Energy exchange agreement (MWh/a)

Countries
2008 2007 2006 2005 2004
Libya to Egypt 12,520 1,875 175 504 0
Egypt to Libya 3,305 6,612 30,292 10,660 8,565
32
For a complete description of this area, some data about Egypt are a repetition of those already
reported for East Mediterranean area.

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Table 4-30 Transfer capacities and energy exchanged:

South Mediterranean area countries in 2008
Tie line Reasons

Inter- thermal Energy exchanged* preventing
Max transfer capacity (MW)
connection limit (GWh/year) or limit
Line (MW) energy
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004 exchange
Egypt-Gaza 17 17 17 0 0 134 123 29 0 0
Jordan-
200 200 200 200 200 9 13 9 0.3 1
Egypt Available
550
Egypt- energy
450 450 350 350 350 534 200 472 741 788
Jordan
Egypt-Libya 180 69/74 77 126 119 163
See *****
Libya-Egypt 180 117/124 104 93 105 97
Algeria-
200 200 200 200 200 137 122 142 139 94
Tunisia 420 Compens.
Tunisia- MVA mechanism
180 180 180 180 180 144 130 135 142 88
Algeria
Morocco-
150 150 150 150 150 134 125 136 106 122
Algeria 470
See ***
Algeria- MVA**
190 190 190 190 190 184 152 161 136 103
Morocco
Morocco
700 700 700 400 400 15 21 28 52 6
Spain 1400
See****
Spain- MVA
700 700 700 400 400 4227 3501 2030 836 1561
Morocco

** In 2008. Up to 2008, there were two 225 kV lines Oujda-Ghazaouet and Oujda Tlemecen in
service. The thermal capacity of each line is 235 MVA.. In September 2009, a new 400 kV double
circuit line Bourdim-Hassi Ameurs was commissioned. The thermal capacity of each circuit is
1200 MVA
*** Exchanges related to mutual aid with compensation in kind (yearly zero balance)
**** The Moroccan national company of electricity (ONE) is an external agent of the Spanish
Market
***** Exchanges due both to mutual aid and commercial transactions. For the year 2008, different
values were provided by Egypt and Libya: 69 MWh and 117 MWh provided by Libya; 74 MWh and
124 MWh provided by Egypt.

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Fig. 4-15 depicts the exchanges (GWh) of the whole Southern and Eastern
Mediterranean region in 2008 while Table 4-31 and Fig. 4-16 summarizes the rate of
utilization of interconnections (Average load factor), i.e. the ratio between the yearly
energy exchanged (MWh) and the Maximum Capacity (NTC value multiplied by the
number of hours in a year) for the existing interconnections33.
Fig. 4-15 Energy exchanges in the year 2008 (values in GWh)
33
For more details on the average loading factor see par. 5.7

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Table 4-31 Rate of utilization of the cross-border lines

(percentage referred to the NTC*hour)
2008 2007 2006 2005 2004

Syria-Jordan 0,7% 0,5% 2,4% 27,5% 4,3%
Jordan-Syria 8,0% 5,2% 0,0% 0,0% 0,0%
Syria-Lebanon 32,9% 53,4% 41,6% 20,1% 8,2%
Syria-Lebanon 29,9% 52,7% 53,3% 26,1% 12,8%
Jordan-West B. 90,2% 80,5%
Egypt-Gaza 90,0% 82,6% 19,5%
Turkey-Syria 4,4% 31,4% 4,3%
Libya-Egypt 4,7%
Egypt-Libya 7,9%
Jordan-Egypt* 0,9% 1,0% 0,5% 0,1% 0,1%
Egypt-Jordan* 18,8% 12,0% 17,0% 24,2% 29,5%
Algeria-Tunisia 7,8% 7,0% 8,1% 7,9% 5,4%
Tunisia-Algeria 9,1% 8,2% 8,6% 9,0% 5,6%
Morocco-Algeria 10,2% 9,5% 10,4% 8,1% 9,3%
Algeria-Morocco 11,1% 9,1% 9,7% 8,2% 6,2%
Morocco -Spain 0,3% 0,4% 0,5% 1,5% 0,2%
Spain-Morocco 74,2% 61,5% 35,7% 23,9% 44,5%
* Taking into account the exchanges with Syria
Fig. 4-16 Rate of utilization (average load factor) of the interconnections (%)
in the year 2008

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4.7 Cross-border lines and projects in the SEMC

This paragraph gives a more detailed account of the existing cross-border infrastructures
and NTC enhancement projects, which are currently under development or being
investigated in feasibility studies. Given a favourable regulatory and legal framework,
successful completion of these projects will help to enable a substantial increase of power
trading at a regional and inter-continental level.
4.7.1 Existing cross-border lines in the SEMC
Syria Turkey
At present, the two countries are connected through a 124 km long 400 kV single circuit
line, commissioned in 2007 (Birecik-Aleppo). The line is at present in operation for local
power exchanges from Turkey to Syria in islanded mode, i.e., the two grids are not
synchronised.
Syria Lebanon
At present, the two countries are linked through two AC lines from Tartous (Syria) to Deir
Nebouh (Lebanon). The older line, commissioned in 1972, operates at 66 kV and the
second line operates at 230 kV. As pointed out above, these lines are used to supply
electricity to Lebanon only in islanded operation. The rest of the Lebanese system is still
separated from the other Mashreq countries.
A new 400 kV AC single circuit OHL, 44 km in length,

from Damascus (Syria) to Kesara (Lebanon) will be
operative in April 2010. The Syrian part and the 400 kV
Kesarasubstations (S/S) (Lebanon) have been
completed. The connection from the final tower on the
Syrian side to the final tower on the Lebanese side is still
to be completed. The line is composed of one circuit on
the Syrian side and two circuits on the Lebanese side. This implies that one circuit in
Lebanon is not operated and the line could be expanded once the Syrian side is
upgraded to two circuits.
Once the new 400 kV line is completed, the whole power system of Lebanon will be
synchronised with the other Mashreq countries. However, the existing 66 kV and 230 kV
lines will continue to be operated to feed loads in Lebanon in islanded mode, since their
parallel operation with the 400 kV would cause unacceptable overloading owing to their
much smaller rating.

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Jordan - Syria
At present, the two countries are interconnected by a 400 kV AC
single circuit OHL 217 km in length. It connects Amman North
(Jordan) to Der Ali (Syria) and is in operation since January
2001.
Jordan-Palestinian Territories (West Bank)

The interconnection between the Palestinian Territories and
Jordan consists of a 30 km long, 132 kV double circuit OHL
between Suweimeh S/S (Jordan) and Jericho (Palestinian
Territories). This link was energized and put in operation on
25/2/2008 with a load of 10-15 MW. The line currently operates
at 33 kV to supply Jericho District (isolated region) and has a
capacity of 20 MW.
Egypt Gaza
Egypt is interconnected with the Gaza Strip through a 22 kV line
supplying power to the Southern part of Gaza Strip. The capacity of
the line is 17 MW.
Egypt Jordan
In operation since October 1998, the interconnection
consists of a 400 kV AC, single circuit, submarine cable
(13 km) across the Red Sea between Taba (Egypt) and
Aqaba (Jordan). The transformers are installed in Taba
to change the voltage level from 400 kV to 500 kV. 500
kV is the standard EHV level in the Egyptian backbone
transmission system.
Libya Egypt
The interconnection is composed of a
220 kV double circuit OHL. It is 163 km
long and links Tobruk S/S (Libya) and
Saloum S/S (Egypt). The line was

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commissioned in May 1998. The interconnection will be reinforced by a new EHV line at
500 kV (on the Egyptian side), connecting Marsa-Matrouh to Tobrouk. Transformation to
400 kV takes place in the Tobrouk S/S. The profitability of this new line has been
investigated both in the MEDRING and the ELTAM study. Its commissioning was
envisaged for the year 2015.
Tunisia - Libya
Two OHL interconnect the two countries. A double
circuit 225 kV line (380 km in length) between
Mednine S/S (Tunisia) and Abou Kammash S/S
(Libya) exists. A single 225 kV circuit connects
Tataouine (Tunisia) to El Rowis (Libya). The
construction of the lines was completed in 2003,
but they are still not in operation.
A first attempt of synchronization between Tunisia

and Libya was tried on 21 November 2005. This
trial, which would have synchronised the ENTSO-
E/SCR with Libya and all of the Mashreq countries up to Syria, experienced an
emergency interruption triggered by a defence plan in the Maghreb grid. Ex-post analyses
revealed some deficiencies, such as insufficient capacity of transmission lines at cross-
border cut-sets, and faulty performance in the SEMC. Remedies are currently being
implemented. A new trial is scheduled for April 2010. This time connection will be
performed in two stages: connection of ENTSO-E/SCR to Libya alone, followed by a
connection of all other countries one day later.
Algeria Tunisia
At present, the two countries are

interconnected through 4 lines:
Tajerouine - El Aouinet, operating at 90 kV
commissioned in 1952,
Fernana - El Kala, operating at 90 kV
commissioned in 1955,
Tajerouine - El Aouinet operating at 225 kV
commissioned in 1980, and
Metlaoui - Djebel Onk operating at 150 kV
commissioned in 1984.
A fifth 400 kV line (Jendouba - El Hadjar), completed at the end of 2005 and initially
operated at 220 kV, will be fully operative in 2010 after having completed the construction
of the 400 kV S/S.

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Morocco-Algeria
Until 2008, the two countries were interconnected
by two single circuits 220 kV lines commissioned
in 1992 and 1998. The commercial capacity is
approximately 240 MW. A new 400 kV double
circuit line is currently being completed. The first
circuit was commissioned in 2006 and initially
operated at 220 kV. The circuit is fully operative at
400 kV since 29 September 2009. The second
circuit shall be in operation in February 2010 the
latest.
A list of the existing interconnections is provided in Table 4-32 and Table 4-33.
Table 4-32 Existing interconnections: Eastern Mediterranean countries

(source: CESI elaborations)
Thermal
From to Type Voltage Year of
Country To substation limit (A)
substation country AC/DC [kV] operation
winter
Jordan Aqaba Egypt Taba AC 400 1270 1997
Jordan Suweimeh Palest. Jericho AC 33 (132) 20 MW 2008
Jordan Irbed Syria Cheikmiskin AC 230 770 1980
Jordan Amman North Syria Der Ali AC 400 1450 2001
Palestinian 20 MW
Territories Jericho Jordan Suweimeh AC 33 (132) 2008
Palestinian 17 MW
Territories Rafah Egypt Rafah AC 22 --
Lebanon Anjar Syria Dimas AC 2 x 66 960 (**) 1972
Lebanon Deir Nebouh Syria Tartus AC 230 770 1977
Lebanon Kesara Syria Dimas AC 400 (*) 1660 2009
Syria Cheikmiskin Jordan Irbed AC 230 770 1980
Syria Der Ali Jordan Amman North AC 400 1450 2001
Syria Tartus Lebanon Deir Nebouh AC 230 770 1977
Syria Dimas Lebanon Anjar AC 2 x 66 960 (**) 1972
Syria Dimas Lebanon Kesara AC 400 * 1660 2009
Syria Aleppo Turkey Birecik AC 400 1440 2007
* Double circuit on the Lebanese side; single circuit on the Syrian side.
** Thermal capacity of 110 MVA, but the line is operated with an exchange limit of 50 MW.

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Table 4-33 Existing interconnections: Southern Mediterranean countries

(source: CESI elaborations)
Thermal
From To Type Voltage Year of
Country To substation limit (A)
substation country AC/DC [kV] operation
winter
Algeria Ghazaouet Morocco Oujda AC 225 640 1988
Algeria Tlemcen Morocco Oujda AC 225 640 1988
1720x2 2006
Algeria Hassi Ameur Morocco Bourdim AC 220 (400) (2010)
Algeria Djebel Onk Tunisia Metlaoui AC 150 510 1984
Algeria El Aouinet Tunisia Tajerouine AC 225 640 1984
Algeria El Aouinet Tunisia Tajerouine AC 90 380 1952
Algeria El Kala Tunisia Fernana AC 90 510 1956
1720 2005
Algeria El Hadjar Tunisia Jendouba AC 220 (400) (2010)
Morocco Oujda Algeria Ghazaouet AC 225 640 1988
Morocco Oujda Algeria Tlemcen AC 225 640 1988
1720 x 2 2006
Morocco Bourdim Algeria Hassi Ameur AC 220 (400) (2010)
Morocco Mellousa Spain Tarifa AC 400 730 MW 1996
Morocco Mellousa / 2 Spain Tarifa / 2 AC 400 960 2006
Tunisia Fernana Algeria El Kala AC 90 510 1956
Tunisia Metlaoui Algeria Djebel Onk AC 150 510 1984
Tunisia Tajerouine Algeria El Aouinet AC 225 640 1984
Tunisia Tajerouine Algeria El Aouinet AC 90 380 1952
1720 2005
Tunisia Jendouba Algeria El Hadjar AC 220 (400) (2010)
Tunisia Medenine Libya Abukamash AC 220 2 x 620 2003
Tunisia Tataouine Libya Rowis AC 220 620 2003
Libya Tobruk Egypt Saloum AC 220 2 x 630 1998
Libya Abukamash Tunisia Medenine AC 220 2 x 620 2003
Libya Rowis Tunisia Tataouine AC 630 620 2003
Egypt Taba Jordan Aqaba AC 400 1270 1997
Egypt Saloum Libya Tobruk AC 220 2 x 630 1998
Egypt Rafah Palestin. Rafah AC 22 17 MW --

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4.7.2 New interconnection projects in the SEMC

A short description of the new interconnections projects (not described in the previous
paragraph) is subsequently given. Most of them are still under discussion.
Jordan - Syria
Doubling of the existing 400 kV interconnection between Syrias and Jordans grid (from
350 to 700 MW in commercial capacity) is envisaged for the future.
Syria Iraq
The interconnection consists of a 400 kV AC single circuit OHL with a length of 165 km. It
runs from Tayem S/S (Syria) to Qaim S/S (Iraq). The 400 kV S/S on the Syrian side has
been completed.
Jordan - Palestinian Territories

A new 400 kV between the two countries is envisaged in order to supply power to the
West Bank (Fig. 4-17). The line will connect the new S/S in Amman West to a new S/S in
Jerusalem East. The Amman West S/S will be connected to the 400 kV transmission
backbone of Jordan through two lines towards Samra and Qatraneh S/S. According to the
information received from the Palestinian Energy Authority, the schedule for the lines
commissioning is at the beginning of 2013 as recently agreed between Jordan and PNA.
Egypt - Jordan
The existing 400 kV submarine interconnection between Egypt and is expected to be
reinforced in order to double the interconnection capacity up to 1100 MW.
Egypt - Palestinian Territories

The Gaza Strip is planned to be fully connected to the Egyptian network. The Islamic
Development Fund will finance the project. The line from El-Areesh (Egypt) will provide
150 MW to Gaza. Once decided, the project is expected to be completed in 12-18
months.
Egypt Libya Tunisia Algeria - Morocco

A plan exists concerning the creation of a 400/500 kV transmission backbone from Egypt
to Morocco.
Libya - Italy
A feasibility study for a 1000 MW, 500 kV DC submarine cable, 520 km in length, was
completed in February 2008.

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Fig. 4-17 - Modified 400 kV grid structure in Jordan to interconnect West Bank
(source: NEPCO)
Algeria - Spain
A feasibility study for a HVDC connection from Algeria to Spain by means of a 240 km
submarine cable with a capacity of 2000 MW was completed in 2003. It will link Terga
(Algeria) to the Litoral de Almeria (Spain). The project is under negotiations for a possible
implementation, but no firm decisions have been taken so far.
Algeria - Italy
A feasibility study was completed in June 2004 with two solutions for a 500 - 1000 MW,
400/500 kV DC interconnection being analysed:
- A direct line between El Hadjar (Algeria) and Latina (Italy) with a capacity of
1000 MW;
- An optimized line between El Hadjar (Algeria) and South Sardinia (Italy) with two
500 MW lines.
No firm decisions have been taken so far for the implementation of the project.

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Tunisia - Italy
A feasibility study was carried out in 2004-2005 for an interconnection of the electricity
grids of Tunisia and Italy through a 400 kV HVDC link. The transfer capacity was
determined to be approximately 400 MW in a first stage (monopolar scheme). After the
reinforcement of the 400 kV AC grid in Sicily a second pole is to be installed, allowing to
attain a target capacity of the interconnector of 1000 MW. The length of the
interconnection will be slightly less than 200 km. The link is expected to be in operation
by 2015 depending on the progress on the construction of new generation in Tunisia.
4.8 System performance in the SEMC

The power system, performance in the SEMC will be presented with a particular focus on
operating policy and power quality The main elements considered in this section to give
a measure of power quality are:
- stability of the system frequency;

- amount of unsupplied energy;
- reserve margin; and
- self sufficiency ratio.
4.8.1 System frequency

For all the SEMC the nominal system frequency is 50 Hz. However, due to the continuous
load variations and possible outages in the network or the generating units, the frequency
undergoes deviations from the rated value. The higher the spinning reserve and the faster
the speed of the primary and secondary frequency regulators, the shorter are the
frequency deviations from the nominal value, and the lower is the magnitude of the
frequency deviations. The performance of system frequency is measured in terms of the
magnitude of frequency deviations (expressed in mHz) and their duration (expressed in
hours/years referred to specific ranges of frequency deviations).
Since the SEMC power systems are operated in three different power pools, the statistics
of frequency performances consequently differ for each pool:
- Western Maghreb (Morocco, Algeria, Tunisia), synchronous with ENTSO-E/SCR;

- Libya and Mashreq pool;
- Israel and Palestinian Territories pool.
The frequency performances of Western Maghreb countries are the same as ENTSO-
E/SCR and are presented in par. 5.8.1.2, when discussing the performance of the
ENTSO-E/SCR. The frequency behaviour of the pool composed by Israel and the
Palestinian Territory is presented in par. 4.10.3 of this chapter.

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Fig. 4-18 and Fig 4-20 show the statistics of frequency quality and the number of hours
per month with frequency deviations larger than 50 mHz for the Libya-Mashreq pool. The
threshold of 50 mHz has been chosen to keep coherency with the common standards
adopted by ENTSO-E/SCR. Similarly, the quality of frequency is expressed by referring to
the 90th and the 99th percentile of frequency deviation distribution34.
In the last years 2007 and 2008 downward deviations from the nominal operation
frequency point towards an insufficient spinning reverse and/or a reduced number of units
equipped with secondary frequency regulation or Load Frequency Control (LFC.
Moreover, frequency errors up to (and even exceeding) 60 mHz are present in the 90th
percentile of frequency standard deviation, whilst ENTSO-E/SCR never showed
deviations exceeding 40 mHz in frequency quality statistics from January 2005 to March
2008. An even more critical situation becomes apparent when considering the 99th
percentile. In this case, frequency deviations greater than 100 mHz occur, especially in
the year 2008, while for ENTSO-E/SCR these are around 50 mHz.
Fig. 4-18 Per month frequency standard deviations in the Libya-Mashreq pool
34
See par. 5.8.1.2 for more details.

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The differences in frequency performance between the Libya-Mashreq pool and ENTSO-
E/SCR are a critical issue when examining the possibility of synchronising the two pools.
The large frequency errors in the Libya-Mashreq pool will have to be compensated for by
the generating units in the ENTSO-E/SCR, causing unwanted power flow fluctuations in
the Western Maghreb and across Libya. A harmonized frequency regulation policy is
therefore one of the prerequisites for the synchronous interconnection of the two pools.
Note that Turkey is currently improving its power systems frequency behaviour in view of
its synchronisation with ENTSO-E/SCR.
Fig. 4-19 Hours per month with frequency deviations larger than 50 mHz
4.8.2 Unsupplied energy

Two indicators define the unsupplied energy:
- the Energy Not Supplied (ENS), expressed either in energy units (MWh) or as the
ratio between the yearly unsupplied and supplied energy;
- the Average Interruption Time (AIT) defined as the ratio between the annual
unsupplied energy multiplied by 60 and the annual supplied energy divided by 8760.
This yields the average time of power supply interruptions.
Examining the tables below (Table 4-34), it becomes clear that the continuity of supply
has high standards in Egypt (besides 2008), Syria, Tunisia and Morocco. Note that an
ENS target value of at most 10-4 p.u. is adopted at the international level. Jordan is

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experiencing an intermediate situation with ENS at about 1.7 10-4 p.u. and similar values
in 2007 to 2004. More critical is the continuity of supply in Algeria showing values well
above 10-4 p.u., but with a remarkable improvement in these last years. The data about
unsupplied energy and AIT for Lebanon are statistically not meaningful, since they are
likely to be related to the power system being operated with rotational load shedding due
to a lack of generation capacity. Finally, note the worsening performance of Egypt in the
year 2008.
Table 4-34 Unsupplied energy: East Mediterranean countries
Supplied
Country ENS Energy Not Supplied (MWh) energy ENS in AIT
p.u.*10-3 (min)
(GWh)
2008 2007 2006 2005 2004 2008 2008

Syria 392 428 350 55 105 38354 0.010 5.4
Lebanon 207585 97934 62497 50864 49017 11187 18.560 9752.8
OPT - - - - - -
Jordan 2266 2199 360 853 2541 13440 0.169 88.6
Table 4-35 Unsupplied energy: South Mediterranean countries
Supplied
ENS in
Country ENS Energy Not Supplied (MWh) energy AIT
p.u.*10-3 (min)
(GWh)
2008 2007 2006 2005 2004 2008 2008

Egypt 70597 1490 890 496 665 125380 0.563 295.9
Libya 5700 5500 5400 5100 4600 16800 0.339 178.3
Tunisia 218 544 388 174 438 13750 0.016 8.3
4322
Algeria 9695 12880 12720 31030 39943 0.243 127.6
3
Morocco 991 833 877 1094 892 24569 0.040 21.2
4.8.3 Reserve margin and self-sufficiency
4.8.3.1 Reserve margin

The reserve margin of the national electricity supply is expressed as the ratio between the
operating capacity (in MW), i.e., the sum of all the capacity in service, and the peak

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demand of the national grid (in MW). A value greater than one implies that the capacity of
the national grid is able to cover more than the peak demand and the generation system
has the potential to export power. A value less than one implies that the country must rely
on imports from other countries in order to satisfy its peak demand.
Reserve margins for the SEMC are depicted in Table 4-36. As expected, most countries
are in a balanced situation with sufficient capacity to cover internal demand but without
any large reserve margin. This reflects the current situation with limited cross-border
power exchanges. The limited reserve margins have a influence the frequency behaviour,
which shows a tendency of downward deviations from the nominal value, as shown in the
previous section. An evident exception is represented by the Palestinian Territories,
which import almost its full amount of internal consumption from Israel, with some
marginal quantity imported from Jordan (Jericho district) and Egypt (South Gaza Strip).
Table 4-36 Reserve margin: East and South Mediterranean countries
Country 2008
Syria 1.00
Lebanon 1.00 (*)
Palestinian Territories 0.09
Jordan 1.04
Egypt 1.00
Libya 1.03
Tunisia 1.09
Algeria 1.16
Morocco 1.05
*
Lebanon does not have any reserve capacity and the load
follows the available generation within a rotational load
shedding schedule.
4.8.3.2 Self sufficiency index

The reserve margin index discussed in the previous section relates to the capability to
cover the internal peak demand. Therefore, the indicator refers to the power balance in a
selected time instant (the moment of maximum demand within a given year). The self
sufficiency ratio is related to the capacity to generate a sufficient amount of energy in
order to cover the internal energy consumption. Hence, the self sufficiency index
addresses a whole period of time, typically one year, instead of one specific load
condition.
The self sufficiency index is the ratio between the (net) electricity generated and the
electricity supplied to the national grid. Values greater than one denote that the country

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exported power in the respective time period. If the ratio is below one, the country had to
import electricity, i.e., it was not self sufficient. Data refers to the year 2008 and was
extracted from the country fact sheets prepared by the country experts.
As expected, one can see a large energy import to the Palestinian Territory and a quite
remarkable energy import in Morocco.
Table 4-33 Self sufficiency index: East and South Mediterranean countries
Country 2008
Syria 1.05
Lebanon 0.95(*)
Palestinian Territories 0.09
Jordan 1.02
Egypt 1.00
Libya 1.03
Tunisia 1.27
Algeria --
Morocco 0.83
(*)
This ratio is considerably lower if one accounts for
energy not supplied due to load shedding.
4.8.3.3 Continuity of supply and reserve margin for the SEMC

In the following tables the technical performance of the SEMCs electricity systems in the
years 2004 to 2008 is shown in more detail. The following indexes35 are used:
the reserve margin, indicating the available but unused generation capacity
measured in percents of peak load ;
the amount of unsupplied energy measured in GWh;
the number of hours in which load shedding occurred per year.
By examining the reserve margin, a general progressive reduction of the reserves in all
the countries becomes evident. This indicates a difficulty in coping with the demand
growth by making available new generation. The tight generation margins already have
35
The values displayed in the tables were collected at the Second National Experts Meeting held
in Tunis on 13 December 2009.

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an impact on the unsupplied energy. For example, Egypt has seen a strong increase in
unsupplied energy in 2008 along with the reserve margin reaching 0.0% one year before.

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4.9 Present structures of electricity sector

Unbundling of generation, transmission and distribution of electricity is generally regarded
as one of the first necessary steps for the creation of an effective and efficient electricity
market. Therefore, special emphasis is put on the degree of unbundling in the
subsequent description of the main actors and reform developments in the electricity
sector in each country
4.9.1 East Mediterranean countries

As can be seen from Table 4-37, Jordan has seen the strongest movement towards
market liberalisation of all the EMC. A more detailed analysis for each country in the EMC
area is presented in the following paragraphs.
Table 4-37 Main actors in the electricity sector of the East Mediterranean area
Companies
Country Notes
Generation Transmission Distribution
PEDEEE and 14 State Owned

Syria PEEGT
DisCos Companies
EDL and some
local concessions Vertical Integrated
Lebanon EDL
for the distribution Company
of electricity
Generation Company in Electricity
PT PETL
Gaza Distribution Utilities
CEGCO (60% private) National JEPCO (private) The Transmission
IDECO (private) System Operator is
SAMRA (public) Electric
Jordan state owned.
AES (first IPP) Power EDCO (private) Generation is open
BIO GAS (public) Company to private investors.
Syria
The state owned Public Establishment of Electricity (PEE) was created in 1965 as
the solely responsible entity for generation, transmission and distribution of
electricity in Syria.
The Ministry of Electricity (MOE) acts as a regulatory authority to manage the

electricity sector in Syria since its foundation in 1974. It co-ordinates and

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supervises its own producers, other public suppliers and all the customers by
setting the necessary rules for the proper functioning of the electricity sector.
Acting towards the deregulation of the electric sector, PEE has been split into two
main public establishments, namely PEEGT and PEDEEE (see below), according
to the provisions of the laws 13&14/94 in 1994.
o The Public Establishment for Electricity Generation and Transmission

(PEEGT) is responsible for the co-ordination of its generation companies,
as well as the transmission of electricity on the 230kV and 400 kV level. In
addition, it is responsible for the direct supply of a few consumers at the
230 kV level. It is also responsible for the exchange of electrical power
through the existing interconnections with neighbouring countries. PEEGT
sells its electricity to the PEDEEE, the sole buyer of electricity at the 66 kV
level.
o The Public Establishment for Distribution and Exploitation of Electrical
Energy (PEDEEE) is responsible for the distribution of electricity on the 66
kV and the 20 kV level to the fourteen distribution companies operating in
Syria, which then deliver the electricity to the costumers.
Lebanon
Generation, transmission and distribution are managed by Electricit du Liban
(EDL), a vertically integrated state-owned company; only a few concessions for
distribution of electricity exist. The distribution companies purchase energy from
EDL and sell it to their customers. Hence, these distribution companies are seen
as wholesale customers of EDL. The amount of energy resold by the distribution
companies is, however, very limited (in the range of 5% of the country
consumption).
Restructuring of the electricity sector was to be performed in 2002, when the Law
462 about Electrical sector restructuring was approved by parliament.
Nevertheless, the law has never been applied. It has not been ratified by the
presidency and the issue of related decrees and secondary legislation for the
practical application of the provisions stated in the Law 462/2002 is still pending.
The recent key developments have been:
Approval of the laws and bodies concerning electricity and energy sector reform
(General Electricity Law and the Palestinian Energy Authority)
Restructuring of the distribution system in the West Bank and Gaza by creating
local distribution utilities

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Establishment of the Palestinian Transmission Company Ltd (PETL) that shall be

in charge of managing the developing HV grid.
As a consequence of the ongoing reform process, the main actors in the electricity sector
are now:
the Palestinian Transmission Company Ltd, who acts as the Transmission System
Operator and is state owned,
the Electricity Distribution Utilities
the Palestinian Energy Authority as the policy maker,
in the generation sector, which is open to private investors.
On the technical side, according to the information received from the Palestinian Energy
Authority, the following activities are in progress:
Preparation of the plans and turnkey contract for the construction of 4 x 161/33 kV
substations in the West Bank; these substations shall be completed by end of
2012;
Development of the distribution system in Northern and Southern areas of West
Bank to connect the Palestinian Territories load to the new 4 x 161/33 kV S/S;
Feasibility study to construct 10 MW solar power plant in Jericho/West Bank
(CSP); the study is financed by the World Bank;
Preparation of plans and tender document to construct a 500 kVA solar power
plant in Jericho/West Bank; financing is from JICA;
A massive rehabilitation program of the internal distribution system in Gaza and
West Bank;
Rehabilitation of the power plant substation in Gaza;
Preparation of plans to supply Gaza power plant with natural gas.
Jordan
Since 1996, a series of restructuring and privatization steps took place in the
electricity sector of Jordan. The liberalisation process started by unbundling of
generation, transmission and distribution, followed by privatization of some of the
generation and all of the distribution companies.
The recent power sector structure includes:

o the National Electric Power Co. (NEPCO), acting as TSO and market
operator (NEPCO is the single buyer);
o three distribution companies: JEPCO, IDECO, and EDCO;
o three generation companies: CEGCO, SAMRA and AES. New generation
entry took place in 2008 through IPPs.
o The Energy Regulatory Commission (ERC) has also been created.
Table 4-38 Main actors of the electricity sector in Jordan

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Power National Electric Power Co. (transmission, public)

transmission
Electricity Distribution Company (private)
and
distribution Irbid District Electricity Company (private)
companies Jordan Electric Power Company (private)
Central Electric Power Generation Company (60% private)
Power Samra Electric Power Generation Company (public)
generating
companies East Amman Electric Power Generation Company (first IPP,private)
Bio-Gas Company (public)
4.9.2 South Mediterranean Countries

As shown in Table 4-39, all the electric utilities in SMC are state-owned public
companies. However, in some countries the generation sector is open to the private
sector for investment in new power plants.
Table 4-39 Main actors in the electricity sector of the South Mediterranean area
Companies
Country Notes
Generation Transmission Distribution
Egypt 6 Companies EETC 9 Companies All Public Companies

Vertical Integrated
Libya GECOL Company
STEG
Vertical Integrated
Tunisia CPC (IPP) STEG STEG
Company
SEEB (IPP)
SDA
SDC SONELGAZ Holding:
Algeria SPE GRTE
SDO state owned
SDE
Morocco Vertical Integrated
ONE, IPP ONE ONE, Distributors Company
Egypt
A series of restructuring steps took place since July 2001. The reform process
started by unbundling generation, transmission and distribution activities and

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creating thirteen companies: five generation companies (so called GenCos), one
TSO and seven distribution companies (so called DisCos).
The Egyptian Electricity Transmission Company (EETC) is among the most

important actors having the responsibility of managing the HV and EHV grid and
acting also as the single buyer.
Due to a high growth rate in demand as well as in the number of consumers the
number of power plants, and customer service centres increased and the power
grid grew in size. As a response to this growth, a further unbundling step took
place. Consequently, the number of market players has increased to a total of 6
GenCos and 9 DisCos.
Libya
The General Electricity Company of Libya (GECOL) has the sole responsibility for
generation, transmission and distribution of electric power in the whole country.
Since its foundation, the mission of GECOL is to extend the electricity supply to
the entire population and ensure an adequate quality of supply. This objective has
been basically achieved with the electrification of all Libyan towns and cities,
reaching almost 100% of the population as of the year 2005, with the lowest
possible operating cost and with an acceptable level of continuity and quality of
electricity supply.
The future vision is focused on reinforcing the infrastructure of GECOL by utilizing

modern technologies in the fields of generation, transmission and distribution
alongside exploring new developments related to RES to support efforts for the
global development of the population in all aspects of life.
In 2007 a new authority was founded, REAOL (Renewable energy authority of

Libya), with a mission to foster the penetration of RES generation in the country,
mainly wind and solar. REAOL is associated with the Ministry of Energy, Water
and Gas.
Tunisia
Under the supervision of the Ministry of Industry, Energy, Small and Middle
Enterprises (MIEPME), the Tunisian electricity company (STEG) was the sole
provider of the generation, transmission and distribution of electricity until 2002.
In 1996 a law dealing with independent power production was passed and in
2001/2002 the first independent power production company in Tunisia was
established.

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STEG declared in Athens its intention to create a North African electricity market,
and to integrate it into the European one in May 2003. In December 2003 the
agreement protocol was signed in Rome, jointly with Morocco and Algeria.
In February 2009 a new law was passed committing STEG to buy electrical
surplus generated by self-producers from RES and to lease them its transmission
system to transport the surplus from an establishment to another within the same
group.
Currently, the main actor is STEG, being the exclusive electricity distributor and
TSO. STEG also owns a large part of the generation as well as other actors in the
power sector are the IPPs Carthage Power Company (CPC) as well as Socit
dElectricit dEl Bibane (SEEB).
Algeria
The liberalisation of the power sector in Algeria started with the approval of the
Law No 02-01 on 5 February 2002. The Law lays down all the provisions for the
unbundling of the former vertically integrated utility, SONELGAZ, as well as the
role of each market actor and the market model (creation of a power exchange).
As a consequence, the company SONELGAZ has been restructured in the form of

a holding company. The main companies composing the holding are reported in
the Table 4-40 below.
Table 4-40 Main actors of the electricity sector in Algeria
Name Description
SPE Socit Algrienne de Production de lElectricit
OS Oprateur Systme Electrique
Socit Algrienne du Gestion du Rseau de Transport de
GRTE
LElectricit
GRTG Socit Algrienne du Gestion du Rseau de Transport du Gaz
SDA Socit de Distribution de lElectricit et du Gaz dAlger
SDC Socit de Distribution de lElectricit et du Gaz du Centre
SDE Socit de Distribution de lElectricit et du Gaz de lEst
SDO Socit de Distribution de lElectricit et du Gaz de lOuest
Concerning the transmission grid, the adopted model is in the form of an ISO, i.e.,
SONELGAZ/O.S. (Operateur Systme) is responsible of the operation and
planning of the grid, but it is not the owner. The network assets are owned by
SONELGAZ/GRTE.

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The regulatory authority CREG was established in 2005.
The procedures for the power exchange operation (market chart) were defined in
2008.
Morocco
The main actors are the Office National dElectricit (ONE), the IPPs and the
distributors.
ONE is responsible for managing the transmission grid of the entire country as
well as and its generation units and its distribution network. The mission of ONE
can be summarized as follows:
o identify and provide the least expensive kWh by improving operational
performance and encouraging private investment in electricity generation;
o provide universal access to electricity by the completion of the rural
electrification program and the global plan launched for rural electrification;
o diversify the sources of electricity supply and promote renewable energy;
o securing of the supply of electricity in the country.
Private investments in generation have been witnessed in these last years.
4.10 The electricity sector in Israel
4.10.1 Generation, installed capacity, consumption, demand and electricity

intensity: present status and past evolution
4.10.1.1 Present status

The total gross generation of electricity in Israel was 54.5 TWh in the year 2008,
corresponding to a net generation of 52.2 TWh. The total installed capacity reached
11,675 MW in 2008. About 99.9% of the country's population (7.4 million people) is
supplied with electricity from the grid. The power sector directly employs 12,084 people.
Electricity consumption in 2008 was 50.1 TWh, a level comparable to that of all the other
EMC together. The per capita consumption was 6,770 kWh in 2008, which represents the
highest level among the SEMC. Considering all the countries of the Mediterranean basin,
the per capita consumption in Israel is the second highest, exceeded only by France. The
main data about Israel are summarized in Table 4-41 below.
Table 4-41 Israel: consumption, installed capacity and generation
Israel

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Consumption Cons/capita Installed capacity Net generation

(TWh/yr) (kWh/yr/cap) (MW) (TWh)
50.1 6770 11675 52.2
The average annual growth rate has been 5% for generation since 1998. At that time, the
production level was at 36.4 TWh. The share of electricity generated from RES is still very
low, accounting for only 0.004 % of the total generation in 2008 and comes exclusively
from wind farms. However, a recently adopted feed-in tariff for CSP and PV is expected
to quickly change these figures and to add 50 MW of PV as well as 240 MW of CSP
generation capacities to the power mix.
The share of fuels used in the installed generation units is reported in the Table 4-42
below; the figures date from the summer of 2009.
Table 4-42 Israel: share of total installed capacity Summer 2009 [MW]
Coal Oil Oil for GT& CC Natural gas Total

MW 4840 282 4105 2234 11461
% 42.2% 2.5% 35.8% 19.5% 100%
In 2008, the peak load reached 9,900 MW in the summer and 10,200 MW in the winter.
The electricity intensity was 0.247 kWh/US$ in 2008. This value is better than in the other
EMC. The electricity intensity of Israel is comparable to that of the Maghreb countries, but
higher than that of the North Western Mediterranean Countries (Portugal, Spain, France
and Italy).
4.10.1.2 Past evolution

The electricity generation growth rate has been 4.13 % during the last 10 years, while in
the same time interval a more moderate GDP growth was recorded (3.85%). This implies
that the electricity intensity of Israels economy grew in this period.
4.10.2 Expected trends in the future: consumption and generation forecast

The expected electricity consumption in 2020 will be 80 TWh corresponding to an
average CAGR of 3.98%.
As for generation, Fig. 4-20 depicts the main characteristics of the generation expansion
plan presented by the Israel Electric Corporation (IEC) in 2006. As shown in the figure,

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the expansion plan foresaw a sharp increase in the number of IPPs in the short term, with
a total new capacity as high as 1,782 MW by 2010.
Fig. 4-20 Generation Expansion Plan 2006 (source: IEC)
In reality, only the 83 MW plant Delek Ashkelon, supplying a local desalination plant with
electricity (100 Mio. cbm/a), was put into operation, while the other IPPs have not yet
begun to build power plants.
As a consequence, in accordance with the demand forecast, the expected reserve margin
in summer 2009 dropped to only 2 to 3%36. For the summer of 2010 it is expected to be in
the range of 3 to 4%.
Due to the expected deficit in generation capacity, the Ministry of National Infrastructures
and the Ministry of Environment decided to initiate an emergency program for immediate
implementation by the IEC. In addition, the implementation of environmental projects in
the existing coal fired power plants was postponed to 2013-2016.
The main projects of the newly optimized long-term generation expansion plan worked
out by IEC in April 2008 are shown in the graphics below and summarized in Table 4-43.
36
Provisional value

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Fig. 4-21 Generation Expansion Plan April 2008 (source: IEC)
Table 4-43 Optimal Long-term Generation Expansion Plan

based on IECs report RD-708, April 2008

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Due to the global economic crisis, load demand and installed capacity forecasts have
been modified (see Fig. 4-22 and Fig. 4-23) as well as the forecasts for low and high
demand. The forecast scenarios take into account different GDP growth rates (4% or 5%)
and different weather conditions.
Fig. 4-22 Load demand forecast

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Fig. 4-23 Generation forecast

On the basis of these scenarios, two different updated generation expansion plans have
been developed in addition to the emergency program. The main characteristics of the
expansion plans are reported in the table below. The two scenarios are defined as
follows:
Scenario 1: Updated generation expansion plan in addition to the emergency program

with load forecast related to 4% GDP growth rate and difficult weather conditions.
Scenario 2: Updated generation expansion plan in addition to the emergency program

with load forecast related to 5% GDP growth rate and extreme weather conditions).
Table 4-44 - Israel: Generation development scenarios 1 and 2
Scenario 1 N unit x MW Scenario 2 - N unit x MW

USC GTCC PS GT USC GTCC PS GT
2011
2012 1x375
2013 2x375 2x375
2014 1x630 1x630 2x375
2015 1x630 1x630
2016 2x200 3x200
2017 2x200 1x200 2x155
2018 2x375 2x375 1x155
2019 1x375 1x155 1x375 3x155
2020 1x375 1x155 2x375
Total 2x630 6x375 4x200 2x155 2x630 9x375 4x200 6x155
Legend: USC = Super critical coal unit; GTCC = Gas Fired Turbine Combined Cycle; PS =Pumped
Storage, GT = Gas Turbine Peakers
A third updated generation expansion plan (load forecast: 4% GDP growth rate & difficult
weather conditions) including renewable energy sources is reported in the table below.
This plan is in accordance with the goals of the Ministry of Infrastructure (MNI). As a
matter of fact, one important target set by the MNI consists of the attainment of 10% of
energy production from RES by 2020. Hence, the RES share in the total installed
capacity should reach about 18%.

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Table 4-45 Israel : Generation development scenario 3
Scenario 3 N unit x MW
USC GTCC PS GT Solar Wind
2011
2012 1x375
2013 340 230
2014 1x630 340
2015 1x630 340 230
2016 340
2017 1x200 340 230
2018 2x200 340
2019 1x375 1x200 340
2020 2x155 340 230
Total 2x630 2x375 4x200 2x155 2720 920
Legend: USC = Super critical coal unit; GTCC = Gas Fired Turbine Combined
Cycle; PS =Pumped Storage, GT = Gas Turbine Peakers
Fig. 4-24 - Elasticity of CO2 emissions in the reference case

vs. electricity production and GDP

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Fig. 4-25 - Total CO2 emissions expected in 2030 in different scenarios vs. emissions
in 2005 (source: IEC)
The diagram in Fig. 4-24 shows the elasticity of the CO2 emission with respect to the
growth rates of electricity production and GDP, while the bar diagrams of Fig. 4-25 give
quantitative indications on the reduction of CO2 (MtonCO2/a) according to the various
scenarios. Reductions of CO2 are referred to the reference case scenario, which shows
a CO2 emission increase of 65% by the year 2030 with respect to the level of 2005. Note
that all scenarios entail an increase of the CO2 emissions of at least 35% with respect to
the 2005 level.
4.10.3 Operating policy and continuity of supply
4.10.3.1 System frequency and performance

The frequency guidelines of the IEC state that the normal system frequency range shall
be between 49.8 Hz and 50.1 Hz and that the difference between the synchronous time
and the universal time should not exceed 60 seconds. The performance, i.e., the
percentage of time the frequency was outside the nominal range, was 3.27% in 2007 and
3.67% in 2008. The performance data is shown in Table 4-46, Table 4-47 and in
Fig. 4-26 below.

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Table 4-46 Israel: frequency performance 2007-2008

Performance below rated frequency [% of time]
Year f < 49.9 Hz f <49.8Hz f <49.7 Hz f <49.6 Hz f <49.5 Hz
2007 1.324 0.084 0.028 0.013 0.004
2008 1.421 0.081 0.030 0.013 0.005
Table 4-47 Israel: frequency performance 2007-2008

Performance above rated frequency [% of time]
Year f >50.1 Hz f >50.2Hz
2007 3.184 0.030
2008 3.588 0.038
4.10.3.2 Transmission grid voltage operating policy

According to the IEC Transmission Voltage Guidelines, the transmission system is
operated within the following voltage ranges:
400 kV level ranging from 380 kV to420 kV(29 circuits);
161 kV level, ranging from 150 kV to 170 kV (267 circuits);
110 kV level, ranging from 105 kV to120 kV (14 circuits).
This amounts to a total of 310 circuits, which have a total length of 5117 km.
Fig. 4-26 Israel - frequency performances

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4.10.3.3 Reliability and continuity of supply

The number of transmission line interruptions in the last years is reported in Table 4-48.
Table 4-48 Israel: number of transmission line interruptions
Number of transmission line interruptions

2005 2006 2007 2008
Transitory interruptions* 102 156 195 103
Prolonged interruptions 52 49 65 65
*successful re-closing operation
Continuity of supply
As pointed out in section 4.8.2, continuity of supply is characterised by the Average
Interruption Time (AIT) and the Energy Not Supplied (ENS).
The parameter values for Israel are reported in Table 4-49 and Table 4-50 below.
Continuity of supply indexes correspond to high standards in lines with the performances
of the best European TSOs. Particularly relevant is the value of the ENS, which, in the
last years, has always been below 10-4 p.u. with respect to the total internal consumption.
Table 4-49 Israel: average interruption time
Average interruption time [min]

2005 2006 2007 2008
Transmission system 0.9 1.5 2.2 0.9
Transformer substations 2.5 1.8 2.9 2.2
Generating units
9.9 2.4 4.8 0.6
(forced outings)
Insufficient generation 5.5
Other 0.2 0.9 0.2
Total 19.0 5.7 10.8 3.9

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Table 4-50 Israel: total unsupplied energy - generation and transmission systems
Supplied Average ENS - Energy ENS in

Energy Load Not Supplied p.u.*10-3
[TWh] [MW] [MWh]
2005 48.38 5523 1749 0.036
2006 50.37 5750 546 0.010
2007 53.61 6120 1102 0.021
2008 54.50 6205 403 0.007
4.10.4 Prices, tariffs and power market

The electricity sector in Israel is partially liberalized and dominated by the state-owned,
vertically integrated IEC. The share of IPPs is almost negligible. Important institutions
include:
Public Utility Authority Electricity, the regulator responsible for tariffs and
licensing procedures;
Ministry of National Infrastructures, responsible for energy policy and

development planning.
The most significant legal instrument in the sector is the Israel Electricity Law of 1996 that
required the establishment of the Public Utility Authority (as the regulator) and granted
licenses for transmission, distribution and generation to IEC for a limited period (until
2006). Since then the Law has been extended and amended.
Fig. 4-27 Organization chart of Israeli electricity market

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The flow diagram above (Fig. 4-27) shows the energy transactions between the various
market players (IEC generation, IPP, IEC distribution/supplier, small consumers and large
consumers) and the market actor (IEC TSO). About 99.8% of electricity is provided by
power plants owned by IEC, while only 0.2 % of the electricity is generated by
independent power producers (IPPs).
As in the generation sector, IEC is in charge of the distribution and supply of energy, both
at the wholesale and retail markets. Technical and commercial distribution losses are
quite low, amounting to a total of 3% of the electricity sold by distribution companies.
Prices are determined by the regulator Public Utility Authority - Electricity. "Lifeline" tariffs
do not exist. The average tariff for residential customers is 0.41 NIS/kWh37
(10.8 cUS$/kWh). The average tariff for industrial customers are 0.32 NIS/kWh
(8.4 cUS$/kWh).
Feed-in tariffs for renewable plants are currently at 1.29 NIS/kWh (34.0 cUS$/kWh) for
wind turbines with a capacity between 15 and 50 kW and 1.65 NIS/kWh (43.5 cUS$/kWh)
for smaller wind turbines. Owners of smaller PV installations enjoy a tariff of 2 NIS/kWh
under the feed-in tariff of 2009. The feed-in scheme is capped at 50 MWp or after seven
years, whatever comes first.
In accordance with the Electricity Law of 1996 and its amendments introduced during the
last five years, Israel is in the process of creating a competitive power market to foster the
entrance of new market players. This process will include the establishment of an
independent government owned company, which will be responsible for planning and
development of the transmission (unbundling of the transmission sector) together with the
set up of a market operator. Currently, the government is negotiating this issue with IEC's
management and labour unions.
37
Exchange rate: 1 US$=3.797 NIS

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4.11 References of SEMC System Operators
Country Name Web Address

Morocco ONE www.one.org.ma
Algeria SONELGAZ/O.S. www.sonelgaz.dz
Tunisia STEG www.steg.com.tn
Libya GECOL www.gecol.ly
Egypt EEHC-TSO www.egelec.com
Jordan NEPCO www.nepco.com.jo
Israel IEC www.israel-electric.co.il
Palestinian --- ---
Territories
Syria PEEGT ---
Lebanon EdL www.edl.gov.lb

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5 TASK 3: OVERVIEW OF THE PRESENT STATUS OF THE

ELECTRICITY SECTOR IN THE NORTHERN
MEDITERRANEAN COUNTRIES
The scope of this task is to provide a thorough and updated overview of the power sector
in the countries belonging to the Northern Mediterranean side, from the Iberian Peninsula
to Turkey. For this purpose, the following information is provided:
Consumption:
o present level of electricity consumption (par. 5.1);
o past patterns of electricity consumption, electricity intensity and carbon intensity
(par. 5.2);
o peak power demand (par. 5.3); and
o expected trends for the future (par. 5.4).
Generation:
o present generation endowment and production with indication of the primary
energy sources used in the countries on the northern side of the Mediterranean
Sea (par. 5.1);
o generation evolution and system adequacy: analysis of the needed new
generation capacities to maintain the required system adequacy in the coming
years (par. 5.5).
Cross-border trading among countries:

o illustration of the NTC, energy exchanges and energy balances (par. 5.6);
o assessment of existing bottlenecks (congestion level) and cross-border projects
to overcome them (par. 5.7).
Overview of:
o power markets and the status of system operators (par. 5.9);
o common standards adopted in the Central-Western European Pool and Turkey
(par. 5.8);
References of system operators (par. 5.10).
The information subsequently presented was obtained by means of:

collection of publicly available documents and further elaboration;
specific information provided by TSOs and regulatory authorities.
The final scope of this analysis is to point out possible drivers towards an enhanced
integration of the national power systems.

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5.1 Consumption, installed capacity and production
Consumption:
The consumption level of the countries on the north side of the Mediterranean Sea is
quite heterogeneous. Countries on the western and central side recorded a total
consumption of about 1155 TWh (Portugal 52 TWh, Spain 271 TWh, France
495 TWh and Italy 338 TWh) in the year 2008. As for the eastern side, only Greece
has such a comparably high consumption level (56 TWh).
In Turkey, the consumption was about 189 TWh in 2008. The corresponding growth
rate is much higher than in the central and western European countries (more than
5% per year with respect to average growth rates in the range of 1.5 - 4% per year for
the other countries).
Installed capacity, generation mix and production:

The generation mix is different among the European countries, favouring cross-border
exchanges based on electricity price differentials. In Portugal half of the generation is
based on fossil fuels (mainly gas followed by hard coal), with the remaining half equally
divided between hydropower and other RES. Spain also has also a balanced generation
mix with the share of fossil fuels equal to a little less than 50% (coal and an increasing
share of gas). The other sources include nuclear power and an increasing share of RES,
particularly wind generation (production from wind has already overcome the hydro
production).
France has the largest share of nuclear based generation of all the countries under
consideration. The share of hydro power based generation is greater than that based
on fossil fuels in France.
The generation mix in Italy is substantially thermal (with a very large share of gas) and
a considerable share of hydropower.
The situation of generation in the other countries can be summarized as follows:

Slovenia has a balanced share of nuclear, fossil fuel and hydropower generation.
Croatia utilises a similar amount of fossil fuels and hydropower (it shares with
Slovenia the exploitation of the Krsko NPP). In Serbia, Montenegro and Bosnia-
Herzegovina the fossil fuel based production, essentially coming from coal,
approximately equals hydro power based generation. The installed capacity in
FYROM is mostly hydropower.
In Greece the generation mix is mainly based on fossil fuels (coal and increasingly
gas).
In Albania the generation mix is almost totally based on hydropower and, as such, the
country is subject to shortage of energy during dry periods, as it has happened
several times in the last years.
Bulgaria has about 50% of fossil fuelled generation with the rest based on
hydropower and nuclear. Nuclear generation is now covering about one third of the
internal production. However, the role of nuclear generation is expected to decline as

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a consequence of the phasing-out of the Kozlodui NPP, unless new nuclear power
units are commissioned in time.
The generation mix in Turkey is mainly based on fossil fuels (coal and increasingly
gas) though the country is endowed with fairly good hydro resources, especially in the
East.
The scope of this paragraph is to provide a general view of the electricity consumption,
the generation endowment, and the electricity production of the countries on the northern
coast of the Mediterranean Sea. As already described, this area can be analysed
clustering the countries into three different groups (Fig. 5-1):
NWM - North West Mediterranean area, including Portugal, Spain, France and
Italy;
SEE South East Europe area, including Slovenia, Croatia, Bosnia &
Herzegovina, Serbia, Montenegro, Albania, Greece, FYROM and Bulgaria;
Turkey.
5.1.1 North West Mediterranean countries

Table 5-1 shows the yearly consumption level, the per capita consumption, the installed
capacity and the net generation for the countries in the NWM area in the year 2008.
Fig. 5-1 Countries considered in the examination of the North Mediterranean area

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Table 5-1 North West Mediterranean countries:

consumption, installed capacity and generation
North-West Mediterranean countries

Installed Net
Consumption* Cons/capita**
Country capacity* generation*
(TWh/yr) (KWh/yr/cap)
(MW) (TWh)
Portugal 52.2 4908 14 923 43.4
Spain 270.9 5939 90 269 285.7
France 494.5 7940 117 653 549.1
Italy 337,6 5689 98 419 305.2
Total 1155.2 6495 321 264 1 183.4
*Source: ENTSO-E/SCR Statistical Database

**Consumption per capita=Total consumption /Total population (IMF Database)
Fig. 5-2 summarizes the installed capacities, split among the main primary energy
sources according to ENTSO-E/SCR classification. Finally, Fig. 5-3 displays the related
yearly electricity production.
France has the largest consumption (494.5 TWh) followed by Italy (337.6 TWh), Spain
(270.9 TWh) and Portugal (52.2 TWh). The per capita consumption shows the same
ranking besides Spain, having a per capita consumption a little higher than Italy.
The analysis of installed capacity highlights a significant difference in the generation

endowment among the various countries. In Portugal, half of the generation is based on
fossil fuels, with the remaining half being equally divided between hydro and other
renewables. The generation mix in Spain is balanced with the share of fossil fuels (coal
and increasingly gas) attaining a little less than 50% of the total. While nuclear units
account for approximately 8% of generation, more than 40% of the generation capacity is
from renewable sources. Recently, wind farms have seen a strong increase; the installed
capacity has presently exceeded the installed hydro capacity.
In France, the largest share of generation capacity is based on nuclear units. The share
of hydro generation capacity is greater than that based on fossil fuels. On the contrary,
the generation mix of Italy is substantially thermal (with a huge share of gas)
complemented by a significant share of hydro. Installed renewable power, besides hydro,
is still limited. Yet, thanks to feed-in schemes, wind and solar capacities are developing
swiftly.

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Fig. 5-2 Installed capacity in the North West Mediterranean area
Concerning the electricity production, note the remarkable difference between France
(more than 70% of production based on NPP) and Italy (about 60% of electricity
generated from gas, mostly CCGT units). On the one hand, this situation creates the
conditions for substantial energy trading from France to Italy and, on the other hand, the
high amount of electricity generated from gas in Italy sets challenging problems related to
the security of supply considering the decline of the internal gas reserves covering only
about 10-15% of the annual gas consumption.
The different generation mix in France and the Iberian Peninsula also creates conditions
supportive to energy trading. Indeed, the borders between the two regions are at present
heavily congested as described later in section 5.7. Moreover, it is important to note the
increasingly important role of RES generation (basically wind in Spain) for the volatility of
cross-border power flows across the Pyrenees. This contributes to higher congestion
levels.

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Electricity Generation - 2008

North-West Med.
700
Hydro
600 Renewables
Fossil Fuels
500
Nuclear
400
TWh
300
200
100
0
Portugal Spain France Italy
Fig. 5-3 Electricity generation - North West Mediterranean area
5.1.2 South East Europe

Table 5-2 depicts the yearly consumption level, the per capita consumption, the installed
capacity and the net generation for the countries in this area in 2008.
Table 5-2 South East Europe: consumption, installed capacity and generation
South East Europe area

Installed* Net
Country capacity * Generation*
(MW) (TWh)
Slovenia 12.7 6,302 2, 894 14.3
Croatia 17.9 4,026 3,762 11.4
BiH 11.6 2,899 4 ,021 13.2
Serbia 39.0 8, 355 39.4
5,902
Montenegro 4.6 870 2.7
FYROM 8.6 4,206 1, 410 5.9
Bulgaria 34.5 4,544 10,699 40.6
Albania*** 6.3 1,980 1 440 3.8
Greece 56.3 5040 12 492 51.9
Total 191.4 4577 45 943 183.1
*Source: ENTSO-E/SCR Statistical Database.

***Source [7]

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The countries of the SEE region are characterised by considerable differences in their
respective generation mix. Slovenia has a balanced share of nuclear, fossil fuel and
hydro generation. Croatias generation assets consist of similar shares of fossil fuel
based and hydro generation units. Croatia and Slovenia jointly make use of the Krsko
NPP in Serbia, Montenegro and Bosnia-Herzegovina the fossil fuel (essentially coal)
based generation capacities, have a share twice the size of hydro power. On the
contrary, the installed capacity in FYROM is predominantly hydro power based.
In Greece, the generation mix is mainly based on fossil fuels (coal and increasingly gas).
In Albania the generation mix is almost totally based on hydro resources. As a result, the
country is subject to shortages of energy during dry periods, as it has happened several
times in the last years.
Bulgaria has about 50% of fossil fuelled generation with the rest based on hydro and
nuclear. Nuclear generation is now covering about one third of the internal production,
however the role of nuclear generation is expected to decline as a consequence of the
phasing-out of the Kozlodui NPP, unless new nuclear power units are timely
commissioned.
5.1.3 Turkey
Table 5-3 depicts the yearly consumption level, the per capita consumption, the installed
capacity and the net generation of Turkey in 2008.
The generation mix in Turkey is mainly based on fossil fuels (coal and increasingly gas),
though the country is endowed with fairly good hydro resources, especially in the East.
Table 5-3 Turkey: consumption, installed capacity and generation
Turkey
Installed* Net
Country capacity * Generation*
(MW) (TWh)
Turkey 198.1 2842 41 802 198.4
*Source [8]

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5.1.4 Comparison of generation and consumption in the North

Mediterranean countries
Net generation and consumption values for the countries and regions on the northern
coast of the Mediterranean Sea are shown in the figure below (Fig. 5-4). Per capita
consumption for the NMC area is shown in Fig. 5-5.
North Mediterranean Sea Area
Consumption Net Generation
600
500
400
TWh
300
200
100
0
Spain + France Italy South Est Turkey
Portugal Europe
Fig. 5-4 Electricity consumption and net generation - North Mediterranean region
North Mediterranean Sea Area
Consumption/Capita
10000
8000
kWh/capita
6000
4000
2000
0
Portugal Spain France Italy South Turkey
Est
Europe
Fig. 5-5 Per capita consumption North West Mediterranean area

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As shown in Fig. 5-6, the generation mix is quite heterogeneous between the respective
country clusters in the North Mediterranean region.
The NWM area is substantially balanced, with one third of the capacity based on
renewables, a little more than one fifth on nuclear and with a share of fossil fuel capacity
of less than 50% (shared between coal and gas). In SEE the fossil fuel capacity is more
than 55% (mainly coal) together with a good share of hydro (about 34%). The generation
mix in Turkey is dominated by fossil fuels with a share of more than 66%, (mainly coal
with an increasing share of gas).
As already mentioned, inside each region there are large differences in the generation
mix. Italy has no nuclear power at all and relies mainly on gas: 50% of all units are gas-
fired. On the contrary, in France the generation capacity is mainly nuclear (54%) with gas
fired units attaining only 4% of the total capacity. These structural differences in the
generation mix can explain the price gaps observed in power exchanges, prompting for
high cross-border energy exchanges.
Fig. 5-6 Composition of the generation mix North Mediterranean region
5.2 Past patterns of electricity consumption, electricity and carbon

intensity
Table 5-4 depicts the past patterns of electricity consumption (extracted from data
obtained from the statistical database of the ENTSO-E/SCR) with the values of the
growth ratio (expressed as CAGR) for the four countries considered in the NWM area.

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Portugal and Spain are found to show growth ratio values greater than those of France
and Italy. Table 5-5 depicts the past patterns of electricity consumption (extracted from
data obtained from the Statistical Database of the ENTSO-E/SCR)38 with the values of
the growth ratio (expressed as CAGR) for the SEE area.
Finally, Table 5-6 gives the past pattern of electricity consumption for Turkey, which
showed a fast growth rate in the electricity consumption in the period considered.
Table 5-4 North West Mediterranean area electricity consumption 1998-2008
CAGR (%)
Electricity Consumption
600
Portugal 3.57
500
400 Spain 3.95

PORTUGAL
SPAIN
TWh
300
FRANCE
ITALY
200 France 1.55
100
0 Italy 1.97
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
38
For Bulgaria and FYROM data are available only since 2003; for Serbia and Montenegro since
2007. Albania: source from [7]

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Table 5-5 South East Europe area electricity consumption 1998-2008
CAGR* (%)
Electricity Consumption Slovenia 0.86
60
Croatia 3.96
50 -
SLOVENIA
BiH
1.72
CROATIA
40
BiH Serbia 3.02
SERBIA
TWh
30 MONTENEGRO -
FYROM Montenegro
1.53
ALBANIA
20
GREECE FYROM 3.70
BULGARIA
10
Albania 2.20
0
Greece 2.90
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
-
Bulgaria
1.25
*related to the period for which data were available
Table 5-6 Turkey electricity consumption 1998-2008
CAGR
(%)
Electricity Consumption
250
200
150
5.68
TWh
TURKEY
100
50
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

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In the following table (Table 5-7), the electricity intensity for the year is reported. The table
shows the pronounced difference between the NWM countries, having an electricity
intensity less or equal to 0.2, and countries in SEE, like BiH, Montenegro and FYROM,
with values above 0.9.
Table 5-7 Electricity intensity in 2008 in the NMC
Electricity Intensity (Consumption/GDP) [kWh/US$] - 2008

Portugal 0.213 Serbia 0.779
Spain 0.164 Montenegro 0.945
France 0.172 FYROM 0.903
Italy 0.147 Albania 0.486
Slovenia 0.232 Greece 0.157
Croatia 0.258 Bulgaria 0.690
BiH 0.945 Turkey 0.271
The following table (Table 5-8) displays the carbon intensity, i.e. the amount of CO2
emitted for the generation of electricity. Large differences in carbon intensity between the
European countries can be observed. A better integration of the power system would
allow a reduction of the carbon intensity towards an average value lower than the mere
weighted arithmetic average of the national CO2 emissions, as a result of a better overall
system efficiency. The reinforcement of interconnections permits optimal usage of highly
efficient, low emission generation resources. The need to fulfil the binding targets for CO 2
emissions, set out by the European Commissions RES directive, can be seen as one of
the key drivers towards an enhancement of the NTC both within the EU and between the
EU and other countries.
The carbon intensity of the total gross production mainly reflects the differences in the
generation mix between the various countries. When only the share emitted due to
thermal gross production is considered, the indicator is a measure for the efficiency of the
units and for the type of fossil fuels that are used for generation. Countries using mainly
coal have a high carbon intensity (Greece, Bulgaria and to some extent Portugal and
Spain), while countries where thermal generation is mainly based on gas show lower
carbon emissions (Italy). Besides the widespread usage of gas, Italys thermal power
units are characterised by a very high efficiency.

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Table 5-8 Carbon intensity in 2006 in the NMC
Carbon Intensity (kg of CO2 emission/MWh) - 2006

Country Carbon intensity referred to
Carbon intensity referred to the
the thermal gross
total gross production
production
Portugal 687 484
Spain 636 395
France 681 71
Italy 581 485
Slovenia 876 348
Greece 805 694
Bulgaria 877 418
Turkey 594 444
5.3 Summer and winter peak loads

Table 5-9 shows summer and winter peak loads (extracted from the data recorded on the
third Wednesday of each month of 2008 and provided by ENTSO-E/SCR).
In the NWM region, peak loads in winter are usually reached in the period December-
January and in July during summer. Note that in Italy the peak loads in summer have
values similar to those recorded in winter.
Table 5-9 North West Mediterranean area: summer and winter peak loads
North-West Mediterranean Countries

Winter max loads Summer max loads
(MW) (MW)
Country
Date and hour Value Date and hour Value
Portugal Dec, 17 21:00 8,857 July, 16 13:00 7,657

Spain Dec, 17 19:00 42,588 July, 16 12:00 37,618
France Dec, 17 19:00 84,239 July, 16 13:00 58,646
Italy Jan, 16 17:00 52,632 July, 16 11:00 51,498
In many countries of the SEE region, the yearly load patterns are different from the NWE
region. As shown in Table 5-10, the 2008 winter peaks for Slovenia, Croatia and
Montenegro were recorded in February, for Serbia in January and for Bosnia-
Herzegovina in November. Slovenia, Bosnia-Herzegovina and Serbia do not show any
peak loads in the summer. The seasonal peak is shifted to September in these countries

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and the load reaches a minimum during June and July. Summer peak loads occur in
August for Croatia and Montenegro. Greece shows peak loads in summer that are higher
than in winter.
Table 5-10 South East Europe area peak loads (2008)
Winter Max loads Summer Max Loads

Country
Slovenia Feb,20 20:00 1,918 Sep,17 20:00 1,823

Croatia Feb,20 20:00 2,839 Aug,20 21:00 2,553
Bosnia&Herz Nov,19 18:00 1,894 Sep,17 20:00 1,682
Serbia Jan,16 19:00 6,520 Sep,17 20:00 5,536
Montenegro Feb,20 20:00 715 Aug,20 21:00 617
FYROM Jan,16 18:00 1,431 Aug,20 21:00 1,091
Bulgaria Jan,16 20:00 6,771 Aug,20 22:00 4,708
Albania* December 1,397 September 1,028
Greece Feb,20 19:00 8,226 Jun,18 13:00 9,007
*source: ERE ENTI RREGULATOR I ENERGJISE, Annual Report 2008" [7].
By comparing the yearly load patterns in Italy and the SEE region as a whole, the benefits
of energy exchanges with respect to the load (and price) become evident, as patterns are
complementary in the two areas. As shown in Fig. 5-7 Italy experiences high peak loads
during the months of June and July, while in SEE the load reaches its annual minimum
during the same period.
This can provide an opportunity for producers in SEE to sell excess energy to Italy and,
indirectly, to Western Europe, provided the trend towards high summer price-spikes
continues in Western Europe in the years to come. For a more accurate estimation of the
expected amount of traded energy between the respective countries, detailed simulations
covering Italy, SEE and parts of Central Europe need to be performed.

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35000 Summer peak Summer peak
30000 Italy
Monthly energy (TWh)
25000
20000
SEE
15000
10000
5000
0
0 0
05 1
20 /12
0 0
06 1
2
20 5/1
20 /2
20 5/3
20 5/4
20 5/5
20 5/6
20 5/7
20 5/8
0 9
20 6/1
20 6/2
20 6/3
20 6/4
20 6/5
20 6/6
20 6/7
20 6/8
0 9
20 5/1
20 5/1
20 6/1
20 6/1
/1
20 05/
20 06/
05
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
Year and Month

Fig. 5-7 Monthly energy absorption in Italy and SEE in 2005 and 2006
As for Turkey, Table 5-11 shows the summer and winter peak loads. As it is the case for
Greece, Turkey also experiences summer peaks being higher than winter peaks. Note
that in absolute values, peak demands in Turkey are comparable or even exceed the
peak demands of the entire SEE region.
Table 5-11 Turkey peak loads (2008)
Turkey
Winter Max loads Summer Max Loads

Country
Turkey 17:30 29,865 July, 23 14:00 30,517

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5.4 Expected trends in the future
ENTSO-E/SCR countries:
Consumption: according to the estimations of ENTSO-E, an average annual growth
rate of 1.6% is expected for the next decade. However, the growth rate is not uniform
across the European countries. The highest growth rates are expected in the eastern
and southern ENTSO-E/SCR countries, especially in Bulgaria, Croatia, Slovenia and
Greece with more than 2.5%. A very moderate growth rate is foreseen in France with
less than 1.5%.
Peak load: the forecasts are carried out for three points in time with reference to
selected operational conditions representing the ENTSO-E/SCR synchronous load
under standard weather conditions. The time points chosen are the third Wednesday
of January at 11:00 and 19:00, as well as the third Wednesday of July at 11:00. The
load at the January 19:00 reference point is expected to increase faster than the total
consumption (1.8% vs. 1.6%) up to the year 2010. Peak load growth at this reference
point is then expected to slow down to 1.6% as a result of improved load
management and price elasticity. The south of Europe is expected to witness the
strongest load growth rate for the January 11:00 reference point with a value of 3%.
The highest increases are expected in the following countries: Croatia with 3.7%,
Bosnia-Herzegovina with 3.4%, Greece with 3.1% and Spain with 3.0%. A similar rate
is forecasted for the reference point in July.
Turkey and Albania:

Turkey and Albania are expected to show a trend different from the other NMC.
In Turkey, a remarkable annual growth rate equal to 7.5% is forecasted both for the
consumption and the yearly peak load for the period of 2010 to 2017.
For Albania, the most recent estimations show an average growth rate of 4.8%
annually during the period of 2008 to 2020 for both consumption and peak load.
According to the estimations of ENTSO-E/SCR [11], based on national growth rate

forecasts and recorded national consumptions, the consumption in the overall ENTSO-
E/SCR perimeter is expected to reach 2,700 TWh in 2010 and to exceed 3,000 TWh by
2017 with an average annual growth rate of 1.6%. The growth rate is not uniform across
the European countries. The highest growth rates are expected in the eastern and
southern ENTSO-E/SCR countries, especially in Bulgaria, Croatia, Slovenia and Greece
with more than 2.5%. A very moderate growth rate is foreseen in France with less than
1.5%.
Fig. 5-8 shows the average consumption growth rates in the years 2010-2015 elaborated
by ENTSO-E/SCR.

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Fig. 5-8 Average annual consumption growth rate from 2010 to 2015 (source [11])
Fig. 5-9 Average annual load growth rate from 2010 to 2015 (source [11]). Load
forecasts referred to reference point January 19:00 under standard weather conditions.
Load forecasts are carried out for three points in time with reference to selected
operational conditions representing the ENTSO-E/SCR synchronous load under standard
weather conditions. The time points chosen are the third Wednesday of January at 11:00
and 19:00, as well as the third Wednesday of July at 11:00. The load at the January
19:00 reference point is expected to increase faster than the total consumption (1.8% vs.
1.6%) up to the year 2010.

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Peak load growth at this reference point is then expected to slow down to 1.6% as a
result of improved load management and price elasticity. As shown in
Fig. 5-9, the south of Europe is expected to witness the strongest load growth rate for the
January 11:00 reference point with a value of 3%. The highest increase is expected in the
following countries: Croatia with 3.7%, Bosnia-Herzegovina with 3.4%, Greece with 3.1%
and Spain with 3.0%. A similar rate is forecasted for the reference point in July.
In Albania, the most recent estimations of the consumption and load forecast show an
average growth rate of 4.8% in the period from 2008 to 2020 for both consumption and
load. These estimations were made by CESI on the basis of the results of several studies
executed in the region.
Table 5-12 Estimations of peak load and consumption growth in Albania
Peak Load Consumption CAGR (%)

Year
GW TWh
2010 1.642 7.89
2012 1.765 8.5 3.79
2015 1.978 9.5 3.78
2017 2.207 10.6 5.73
2020 2.629 12.6 5.93
2020-2010 4.79
In Turkey, the growth of consumption and load estimated for the period of 2010 to 2017
are shown in Table 5-13. A very high growth rate of 7.5% is forecasted both for
consumption and the yearly peak load.
Table 5-13 Estimations of peak load and consumption growth in Turkey (source TEIAS)
Peak Load Consumption CAGR (%)

Year
GW TWh
2010 37.8 236.1
2012 43.8 272.8 7.49
2015 54.6 338.6 7.47
2017 62.7 390.5 7.39
2017-2010 7.45
Note that the presented above refer to the pre-crisis situation and are now being revised
downward to account for the economic downturn. However, it is expected that the
differential in the growth rates between countries will be maintained in the mid-long term
following a global economic recovery.

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5.5 Generation evolution and adequacy
Problem statement
Generation adequacy addresses the ability of the generation assets to cover the
expected peak load taking into account uncertainties in the generation availability and
on the load level.
Appropriate Adequacy Reference Margins (ARMs) shall be ensured in each country
or bloc of countries.
The most recent study on generation adequacy has been carried out in 2008 and
published in January 2009 by the ENTSO-E association with a time horizon up to the
year 2020 adopting two long-term generation scenarios:
o a conservative scenario (scenario A) where only the commissioning of new
power plants considered as sure is taken into account;
o a best estimate scenario (scenario B), which takes into account the capacity
evolution of scenario A as well as additional future power plants that have a
sufficiently high probability of being commissioned.
For Albania and Turkey, who are not associated with the ENTSO-E, estimations are
derived from analyses carried out by CESI for Albania and by TEIAS for Turkey.
Major results
Portugal: in both scenarios the Remaining Capacity (RC) is expected to be quite
small up to 2009. A significant margin is reached in 2010 to 2011 with the
commissioning of new CC power stations.
Spain: the forecasted RC is above the ARM even in case of an extreme peak
demand in the short term, i.e., in the near future Spain has more than sufficient
generating capacities to provide security of supply. In the medium and long-term, the
ARM is met in the Spanish system up to the study time horizon, given the load growth
forecast is correct and generation expansion continues as planned.
France: the security of electricity supply in mainland France appears to be reasonably
assured up to the year 2013. However, this result is based on the commissioning of
new plants. Therefore, progress with regard to these units needs to be monitored very
closely over the next few years.
Central-South ENTSO-E/SCR (Italy, Croatia, Slovenia): adequacy should be ensured
up to 2014 in both scenarios A and B. However, without appropriate load
management measures, adequacy is not maintained in either scenario.
Bosnia-Herzegovina, Montenegro, Serbia, FYROM, Bulgaria and Greece: the region
is expected to have an appropriate level of adequacy from 2009 onwards. Moreover,
based on to the proposed generation expansion plans, the situation is foreseen to

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further improve with a continuous increase in adequacy until 2015. The situation then
stabilised at a quite comfortable level in both scenarios.
Albania: during 2008, concession contracts for construction of HPP with small, middle
and large capacities were signed with domestic and foreign investors and approved
by the government. The construction of the Vlora TPP has also started. These facts,
together with the onset of construction of the 400 kV transmission lines Tirana-
Podgorica, TiranaElbasan and Kashar-Kosovo-B will make possible the
improvement of the power import-export capacities in the regional market. This will
further increase the security of supply in the country.
Turkey: the generation capacity projection of the Turkish power system for the next
ten years (the newest available study refers to the period of 2008 to 2017) was
conducted by TEIAS, the Turkish TSO. The studys Base Energy Demand scenario
forecasts an approximate doubling of the present yearly consumption and an even
higher increase in peak demand within 10 years. In order to maintain system
adequacy levels, it was projected to be necessary to add a total of 34.1 GW in new
capacity. 11.6 GW were planned to come from wind and hydro resources and the
remaining 22.5 GW from thermal units.
In the past, each TSO association used to carry out its own evaluations of the expected
generation evolution exclusively for the power system under its control. In 2008all the
TSO associations (UCTE, NORDEL, BALTSO, ATSOI, UKTSOA and ETSO) started a
joint study for the first time.
The results were issued in July 2008 in a joint power system adequacy report. It provides
an assessment of the interconnected European power systems for the time period of
2010 to 2020 [10]. The most recent assessment of the ENTSO-E/SCR system adequacy
was issued in January 2009 [11]. It also has a time horizon of 2020. The results of the
January 2009 study are intended to serve as a basis for anticipating either the needs for
new generation in a given country or, alternatively, for strengthening interconnections to
ensure security of supply.
Before presenting the results for the different countries, a few remarks concerning
methodology and important indicators are made.
The generation adequacy analysis is carried out in four consecutive steps:
1. Estimation of Reliably Available Capacity (RAC) by subtracting the unavailable

capacity39 from the Net Generation Capacity (NGC) 40 .
39
unavailable capacity is the part of NGC that is not reliably available to power plant operators due
to limitations of the power plants output. It refers to the Non-Usable Capacity, Maintenance and
Overhauls, Outages and System Services Reserve.

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2. Estimation of the Remaining Capacity (RC) by subtraction of the estimated Load 41

from the RAC.
3. Estimation of the so-called Adequacy Reference Margin (ARM). This is an
additional reserve that accounts for:
possible differences between the estimates used for the load and the actual
peak load, and
unexpected events affecting load and generation.
4. Comparison of the RC and the ARM.
The result can be interpreted as follows: When Remaining Capacity is over or equal
to Adequacy Reference Margin, it means that some generating capacity is likely to
be available for export on the power system. When Remaining Capacity is lower
than Adequacy Reference Margin, it means that the power system is likely to have
to rely on import flows when facing severe conditions. [11]
Load is estimated for three points in time with reference to selected operational conditions
representing the ENTSO-E/SCR synchronous load under standard weather conditions.
The time points chosen are:
the third Wednesday of January at 11:00,

the third Wednesday of January at 19:00, and
the third Wednesday of July at 11:00.
The forecasted available generation and forecasted load are compared at these
reference time points. The ARM accounts for the differences between the projected load
at the reference time points and the projected peak load.
For each regional bloc, as well as for ENTSO-E as a whole, the ARM is set to 5% of total
Net Generating Capacity (NGC) plus the sum of individual margins against peak loads.
This threshold is consistent with a 1% risk of shortfall in a power system, i.e., the load
supply is guaranteed in 99% of the situations. For some other national systems, more
sensitive to random factors (load variations or unavailability of generation), an ARM of
about 10% of the national generating capacity is adopted to fulfil the same criterion.
In the study, two long-term generation scenarios are considered:
40
Net Generating Capacity is the maximum electrical net active power which can be produced
continuously throughout a long period of operation in normal conditions. The NGC of a country is
the sum of the individual NGC of all power stations connected to either the transmission grid or to
the distribution grid
41
Load is defined as the net consumption (excluding consumption of power plants auxiliaries, but
including network losses) corresponding to the hourly average active power absorbed by all
installations connected to the transmission or distribution grid, excluding the pumps of the
pumped-storage stations.

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a conservative scenario (scenario A) where only the commissioning of new

power plants that is considered as sure is taken into account;
a best estimate scenario (scenario B), which takes into account the capacity
evolution of scenario A and, in addition, future power plants for which
commissioning is reasonably probable.
Both scenarios take into account the forecasted decommissioning of existing power
plants not complying with the EC Directive on Large Combustion Plants [12] and the
effects of the new RES Directive on promotion of generation from renewable sources [4].
The results presented hereafter about the ENTSO-E countries are mainly taken from the
System Adequacy Forecast 2009-2020 issued in January 2009 [11].
5.5.1 ENTSO-E countries
5.5.1.1 Portugal and Spain

Portugal and Spain belong to the South Western ENTSO-E/SCR. Compared to its ARM,
this region has a predicted excess RC for the next five years that is much higher than
projected in previous studies. In the B scenario about 5 GW of surplus RC remain
throughout the forecasted period up to 2020. In the conservative scenario A some
additional generation capacity is required by 2020. About 2.4 GW of additional NGC
would be necessary to maintain RC at the ARM level. This lack of capacity by 2020 is due
to adequacy worsening in both countries, especially in Portugal.
The improved capacity development in Spain and Portugal has its origin in a constant
increase in generating capacity, especially from RES (mainly wind until 2020). In the B
scenario the NGC is expected to increase by about 57 GW (54%) with RAC increasing by
27 GW. At the same time, load is expected to increase by about 22 GW (41%). The
commissioning of new generation capacities can therefore cover the increase in load and
the decommissioning of old thermal units due to the impact of LCP Directive.
Particularly for Spain, it is worth underlining the impressive growth of wind turbine
installations in the last decade (Fig. 5-10); this trend is expected to continue with a
forecasted share in electricity production of about 40% in 2020. In the year 2008 Spain
had a share of generation from wind exceeding 11%; other RES generation, namely
solar, is playing a non-negligible role with a 4% of the total electricity generation.

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Fig. 5-10 Evolution of the installed wind power capacity in Spain (source REE)
5.5.1.2 France
France belongs to the North Western ENTSO-E/SCR, which also includes Austria,
Belgium, Germany, Luxembourg, the Netherlands and Switzerland. In the entire region,
the RC in excess to ARM is projected at slightly above 15 GW in 2009 but is foreseen to
decrease by 3 GW in 2010 in scenario A. Based on scenario B, the level is expected to
remain at a similar level. After 2010, excess capacity is projected to increase up to 2013
in both scenarios A (about 15 GW) and B (about 25 GW). In the subsequent time period,
2014-2020, the RC will smoothly decrease, nevertheless being above the ARM for the
entire region [11].
In 2009 a total of 13 GW of new generation capacity had registered for connection with
RTE, the French TSO since 2005. Most of the applications come from CCGT projects
(11.9 GW).
Further indications given in the ENTSO-E System Adequacy Forecast 2009-2020 issued
in January 2009 are [11]:
Decommissioning of existing conventional thermal plants is expected mainly as a result
of the application of the LCP Directive. Around fifteen units, mainly coal-fired plants, with
a total capacity of 3,600 MW, will see their operation reduced to 20,000 hours from
1 January 2008 on. They will be decommissioned by 31 December 2015 at the latest.

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Concerning nuclear power, the construction of a new EPR reactor has begun at the
Flamanville site. It is expected to be commissioned in 2012, and will provide 1,600 MW of
capacity.
Renewables also began to soar, with 1400 MW of wind power in the beginning of 2007,
but face technical and environmental constraints. The Best Estimate forecast is 5 GW in
2010, 10 GW in 2015 and 17 GW in 2020. As far as cogeneration is concerned, RTE
plans a decrease by 1 GW by 2013
In summary the security of electricity supply in mainland France appears to be reasonably

assured until 2013. However, there are some projects underway that are needed to
ensure this. According to the indications provided by the French system operator, RTE,
these projects need to be monitored very closely over the next few years:
concerning supply: the start of work on new CCGTs, the rate of development of
wind farms (and other RES), possible decisions to decommission CHP units;
concerning demand: growth in demand, notably peak demand (for heating, heat
pumps in particular), demand shading;
concerning exchanges with neighbouring systems: development in the supply-
demand balance within these systems, and available capacities at peak demand
times in France. [18]
5.5.1.3 Italy, Slovenia and Croatia

Italy, Slovenia and Croatia belong to the Central South ENTSO-E/SCR for which
adequacy is projected to be ensured up to 2014 in both scenarios A and B. However,
without load management, adequacy will not be attained in either scenario.
In Italy, an increase higher than 10 GW for conventional thermal plants is expected up to

2013. For the same year, an increase in installed wind power of 3 GW is expected
(3.5 GW installed at the end of 2008). In the longer term a wind power installation as high
as 16 GW is forecasted, mainly concentrated in South Italy. Under normal conditions the
RC, including only the firm importing contracts, is sufficient. The RC may attain higher
values with a full importing capacity.
In Slovenia, the generation capacity increases due to new hydro units on middle and
lower Sava river, 2 pump-storage units on Soa and Drava river as well as a new lignite
thermal unit and gas units. The Best Estimate scenario (scenario B) considers also the
installation of wind power after 2011 and a new unit in Krko nuclear power plant in 2019.
Remaining Capacity, especially in scenario A, will decrease and reach its lower value in
winter 2013. Fossil fuels units that come into operation after 2013 raise remaining
capacity to a high degree. The lack of generation capacities will be covered through
import.

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Croatia will experience major changes in the generation assets due to the
decommissioning of up to 1000 MW of old thermal units and the construction of new
thermal and hydro power plants. Wind energy will also play an increasingly important role
with a target to reach a 19% of total electricity production from wind farms in the year
2020. Remaining Capacity will show a constant increase until 2015 dominantly due to
increased volume of construction of gas fired thermal power plants. After the end of that
cycle a slow constant decrease is expected, which will cause a need for smaller import of
electricity in the period until 2020, but the dependence on imported energy will be
reduced in relation to the current situation.
5.5.1.4 Bosnia-Herzegovina, Montenegro, Serbia, FYROM, Bulgaria and Greece

Bosnia-Herzegovina, Montenegro, Serbia, FYROM and Greece, together with Romania
and Bulgaria, belong to the South Eastern ENTSO-E/SCR. The region should have an
appropriate level of adequacy from 2009 onwards. Moreover, the situation is even
foreseen to improve with a continuous increase of adequacy up to 2015. The situation
should be stabilised as from 2015 at a quite comfortable level in both scenarios.
In scenario B, the RC should exceed the ARM by 5 GW in 2013 (66 GW of installed

capacity in 2013) and 12 GW in 2020 (83 GW of installed capacity in 2020).
However, the quite favourable situation in the region should not hide national disparities,
as additional generating capacities in some countries may compensate consumption and
load growth in others.
5.5.2 Non ENTSO-E countries
5.5.2.1 Albania
During 2008, 31 concession contracts with domestic and foreign investors were signed
and approved by the Government. All contracts related to new HPP with either small,
middle or large capacity. Actually, in a mid-term time frame of three to six years, a hydro
power generation capacity of approximately 530 MW is expected to be commissioned
with an expected annual production of 1.76 TWh. This corresponds to about 28% of
Albanias total consumption.
In 2008, the construction of Vlora TPP started, with an installed capacity of 98MW and an
annual output of about 560 GWh. It is an investment undertaken by KESH, with financing
from the World Bank (WB), the European Bank for Reconstruction and Development
(EBRD) and the European Investment Bank (EIB). Up to date, the construction works are
ongoing. Based on the schedule, the plant is expected to be commissioned within one
year.

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Work on the construction of the 400 kV transmission lines TiranaPodgorica and

TiranaElbasan with a transmission capacity of 1000 MW started as well in 2008. This
new Adriatic corridor will make possible the interconnection of the Albanian power system
with the Northern transmission axis of Montenegro, Bosnia-Herzegovina and Croatia.
These lines are financed respectively by the German and Italian Governments and are
scheduled to be completed in one year. The commissioning of this corridor will improve
the power import-export capacities at the Albanian borders, thus enhancing the security
of supply of the country. Furthermore, this new electric axis will positively affect the
regional integration, contributing to the development of an efficient regional electricity
market.
During 2008, the Albanian Government has approved the construction of two submarine
400 kV HVDC cables between Albania and Italy with a transmission capacity of 500 MW
each.
Finally, in 2009 an agreement was reached for the construction of a new 400 kV AC line
between Albania and Kosovo. The technical and economical feasibility study, together
with the identification of the routing, was carried out in 2005 by a consortium led by CESI
with the financial support of the World Bank.
5.5.2.2 Turkey
Turkey has already successfully completed a study examining the technical conditions for
the synchronization of its power system with the ENTSO-E/SCR pool. The final objective
is to improve the security of electricity supply on the Turkish system and to proceed
towards an effective integration of the Turkish electricity market into the internal
electricity market of EU42.
After the completion of the synchronisation process, new generation capacities or

interconnections, which are needed to ensure an adequate security of supply, will be
contained in the outcomes of the future ENTSO-E adequacy forecast studies.
Meanwhile, the generation capacity projection of the Turkish power system for the next
10 years (the last available study refers to the period of 2008 to 2017) is performed by
TEIAS, the Turkish TSO [9]. The studys Base Energy Demand scenario forecasts an
approximate doubling of the present annual consumption, and an even higher increase in
peak demand within 10 years. In order to maintain system adequacy levels, it was
42
On 15 November 2002, Turkey signed the Memorandum of Understanding, which envisioned
the establishment of South-East Europe Regional Electricity Market and its integration to the EUs
internal electricity market.
Regarding the constitution of a regional electricity market, in the concept of the MoU, SETSO
(Southeastern Europe Transmission System Operators) Task Force was established under the
cooperation and coordination of the SUDEL (Union for the South East Europe Transmission
System Operators) and ETSO (European Transmission System Operators)

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projected to be necessary to add a total of 34.1 GW in new capacity. 11.6 GW were

planned to come from wind and hydro resources and the remaining 22.5 GW from
thermal units. By relying only to the new 4.3 GW under construction and 12.8 GW of
capacity already granted licence, the firm generation capacity would not be able to cover
the demand as from the year 2014.
Concerning the assessment of the RC, the analysis of the change in the shape of the
annual load curve is very interesting. Due to tourism and air conditioners the summer
peak has increased more rapidly than the annual peak recently. Today, the hourly
summer peak tends to exceed the winter peak (annual peak). Given such a situation,
DSM measures can yield a significant reduction of the peak loads. This in turn lowers the
required generation capacity. It is important to note that this trend is present in almost all
Mediterranean countries.
5.6 Net transfer capacities, energy exchanges and energy balances
Energy balances and flows:

Iberian Peninsula:
Portugal is a net importer from Spain (-9.3 TWh in 2008 corresponding to 18% of the
internal demand), while Spain is a net exporter to Portugal and to Morocco.
France:
France is the largest exporter of the region (46.3 TWh in 2008). A small amount of
this energy flows to Spain and the rest to the other European countries.
Italy:
Italy is a net importer (-39.8 TWh in 2008, 12% of the internal demand); in turn, Italy
exports power to Greece (1.6 TWh in 2008).
SEE:
Slovenia is a net exporter (1.6 in 2008); the country is affected by large transits
flowing towards Italy (4.6 TWh in 2008) and coming from Croatia (-2.7 TWh in 2008).
Croatia is a net importer (-6.6 TWh from other countries such as Bosnia-Herzegovina
and Hungary). Examining the in- and out- power flows at the Croatian border, it is
possible to identify transits also across Croatia from the other neighbouring countries.
In practice, both Slovenia and Croatia are affected by transits originating in Central
Europe and some SEE countries with power flows directed to Italy.
A second power flow pattern is from Bulgaria and Italy to Greece, which is a net
importer (-5.6 TWh in 2008, equal to 10% of the internal demand); a part of this
energy flows to Albania that is a net importer, too (-2.4 TWh in 2008, 38% of the
internal demand). Albania imports energy also from Serbia (directly and through
Montenegro).
Bosnia-Herzegovina (1.6 TWh in 2008) is a net exporter while Montenegro is a net
importer (-1.9 TWh in 2008). Serbia is in a quite balanced situation (-0.6 TWh in
2008).

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In general, the transmission system of the SEE region is affected by a remarkable

amount of parallel and loop flows reducing the capacity available for commercial
transactions. This is the consequence of a lack of coordinated planning among
countries during the transition from the situation existing up to 1990 to the full
synchronisation of the countries within ENTSO-E/SCR.
Turkey:
Turkey, a net exporter in 2008, exchanges its energy with neighbouring countries
(Georgia, Nakhicevan-Azerbaijan, Iraq, Iran) in islanded operation. There is a flow
also from hydro power plants in Turkey to Syria (0.973 TWh in 2007) through the
recently commissioned 400 kV line Birecik-Aleppo; the operation is in islanded
mode.
The scope of the analysis shown in this section is the identification of the countries
showing a surplus of energy or suffering of a shortfall of production. The latter hence
need to cover the internal consumption with energy import through cross-border lines.
Moreover, the NTC and the main energy flow patterns are displayed.
To have a first general idea of the degree of exploitation of the existing interconnectors, a
comparison is made between the magnitude of annual energy and power flows, the
physical capacity of each tie line and the NTC at the borders. The NTC is taken as
reference for the international commercial transactions.
Concerning the energy balances in 2008, it is noted in Table 5-14 that the North West
Mediterranean area as a whole is an exporting area (export of about 7.7 TWh). Yet there
exist differences between the four countries: France is a large exporter while Spain
exports energy to Portugal (a net importer) and to Morocco (4.2 TWh).
The largest importer in the area is Italy, though the yearly energy import is progressively
reducing, due to the commissioning of new, highly efficient CCGT and the refurbishment
of the existing ones. The net energy surplus of the NWM area represents a quite
negligible amount (0.7% of the total consumption). However, countries are importing large
amounts of energy not due to a lack of internal generation resources, but rather because
of the electricity price differentials originating in the power markets: Italy (11.8% in 2008)
and Portugal (17.8% in 2008).
For instance, in Italy there is presently an overcapacity of about 10 GW, which would not
make necessary any import from abroad; nevertheless, due to the structural differences
in the generation mix between Italy and the other European countries, energy import
persists at a high amount (43.4 TWh in 2008 and 46 TWh in 2009, despite the
economical crisis).
Indeed, a further driver is pushing towards an enhancement of cross-border exchanges in

Europe: the need to comply with the EU targets on generation from RES. Referring again
to Italy, 38.4 TWh out of 43.4 TWh of imported energy in 2008 was certified as green

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energy from RES generation, while in 2009 this amount is about 30-35 TWh43. Hence,
the trading of energy from RES generation is now becoming a key driver for energy
exchanges.
Table 5-14 Electric energy balance in NWM countries in 2008

Net Total
Export Import Net Balance /Total
Country Balance consumption
(TWh) (TWh) Consumption (%)
(TWh) (TWh)
Portugal 1.3 10.6 -9.3 52.2 -17.8
Spain 16.5 5.9 10.6 270.9 3.9
France 56,5 10.2 46.3 494.5 9.4
Italy 3.4 43.3 -39.9 337,6 -11.8
Total 77.7 70.0 7.7 1,155.2 0.7
The energy flows during year 2008 in the North West Mediterranean area are shown in
Figure. 5-14.
As a whole, SEE is an importing area (import of about 7.4 TWh in 2008) as reported in
Table 5-15 with a difference between the various countries. Note that the current situation
is different with respect to the 1990s when the area was a net exporter.
At present, the largest exporting country is Bulgaria (5.3 TWh in 2008) thanks to the
availability of nuclear generation, followed by Slovenia. Serbia is in a quite balanced
situation with power export in some periods and import in others. In absolute values, the
largest importing country is Croatia, followed by Greece and Montenegro. In relative
values, the ratio between net balance and total consumption is -41.3% for
Montenegro, -38.6% for Albania and -36.8% for Croatia. Note that Slovenia and Croatia
share the exploitation of Krsko NPP. Hence, the country energy balance should be netted
of the 50% of energy produced by Krsko NPP and conveyed to Croatia.
43
Final values not available yet

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GB B
6
69
D
728
5
923 10
6
12448
203
8
86
8787 CH
AUT
67
13
3548
400
2
2416
0
114
0
61
128
16
54
41 4733 SI
46
10597 95
1315
1758 GR
181
4227
15
Exchanges between Med Countries and other EU Countries

MA Exchanges between Med Countries
Exchanges with non-EU Countries
Fig. 5-11 Energy flows in the NWM area
Table 5-15 Electricity balance in SEE countries in 2008

Net Total
(TWh) (TWh) consumption (%)
(TWh) (TWh)
Slovenia 7.8 6.2 1.6 12.7 12.6 %
Croatia 5.7 12.2 -6.6 17.9 -36.8 %
Bosnia&Herz 5.0 3.4 1.7 11.6 14.3 %
Serbia 8.6 9.1 -0.5 39.0 -1.2 %
Montenegro 1.5 3.4 -1.9 4.6 -41.3 %
FYROM 1.2 2.8 -1.6 8.6 -18.2 %
Bulgaria 8.4 3.1 5.3 34.5 15.5 %
Albania 0.2 2.6 -2.4 6.3 -38.6 %
Greece 2.0 7.6 -5.6 56.3 -10.0 %
Total 40.4 50.4 -10.0 191.4 -5.2 %

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Table 5-16 shows the electrical energy balance of Turkey. Its power system is operated in
islanded mode and, as such, only a relatively small amount of energy is exchanged with
the neighbouring regions feeding only pocket loads. Turkey, a net exporting country in
2008, exchanges energy in islanded operation mode with the neighbouring countries
Georgia, Nakhicevan (Azerbaijan), Iraq and Iran. There is also a power flow from hydro
power plants in Turkey to Syria (+0.973 TWh in 2007) through the newly commissioned
400 kV line Birecik-Aleppo; in this case the operation is also in islanded mode.
Table 5-16 Electric energy balance - Turkey in 2008
Turkey
Total
Export Net Balance Net Balance /Total
Country Import (TWh) consumption
(TWh) (TWh) Consumption (%)
(TWh)
Turkey 1.1 0.8 0.3 198.1 0.2
NTC values for winter 2008 and summer 2009 for the North Mediterranean Countries are
reported in the tables below.
Table 5-17 NTC values in NWM countries in 2008-2009

Winter Summer Winter Summer
From To From To
2008 2009 2008 2009
Spain Portugal 1,300 1,100 France Italy 2,650 2,400
Portugal Spain 1,200 1,200 Italy France 995 870
Spain Morocco 650 650 Slovenia Italy 430 330
Morocco Spain 600 600 Italy Slovenia 160 120
France Spain 1,400 1,200 Italy Greece 0* 500
Spain France 500 500 Greece Italy 0* 500
* Greece provided 500 MW

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Table 5-18 NTC values in SEE countries in 2008-2009
North-East Mediterranean Countries

Winter Summer Winter Summer
From To From To
2008 2009 2008 2009
Croatia Slovenia 900 700* Serbia Bulgaria 500 0**
Slovenia Croatia 900 800* Bulgaria Serbia 450*** 500
Bosnia&H Croatia 600 550 Albania Montenegro 100 220
Croatia Bosnia&H 630 600 Montenegro Albania 200 220
Serbia Bosnia&H 350 350 Albania Greece 50 100
Bosnia&H Serbia 430 400 Greece Albania 300 200
Montenegro Bosnia&H 480 450 Greece Bulgaria 300**** 100
Bosnia&H Montenegro 400 400 Bulgaria Greece 500***** 600
Serbia Croatia 420 350 Greece FYROM 300 200
Croatia Serbia 430 400 FYROM Greece 70 500
Montenegro Serbia 450 500 Bulgaria FYROM - 450
Serbia Montenegro 400 350 FYROM Bulgaria - 50
FYROM Serbia 600 500 Serbia Albania 250 250
Serbia FYROM 250 400 Albania Serbia 250 250
NTC values equal to: *1000 MW provided by Slovenia; **300 MW provided by

Serbia;***650 MW provided by Bulgaria;****600 MW provided by Bulgaria;*****500 MW
provided by Bulgaria
5.7 Existing bottlenecks and cross-border projects

This chapter addresses the main grid constraints preventing free energy and power
exchanges among the various countries of the region and, consequently, hindering the
effective market integration. When examining the possibility of reinforcing the
interconnections between NMC and SEMC, the presence of congestion inside the
European grid is an issue to be carefully addressed to avoid problems during the
operation, e.g., forced reduction of power flows through the interconnectors. The analysis
presented in this report refers to existing cross-border net capacities.
The estimation of congestion is usually carried out by assessing its duration (hours/year)
and entity (congestion rent). However in this section, to have a general, though rough
view on the most congested cut-sets on the existing cross-border infrastructures, the
following indicator has been evaluated:

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Average loading crossborder

Yearly energy exchanged where NTCi is the net transfer
iNTCi * di
capacity available for the period di.
The analysis of the average loading allows appraising the congestion level and, most of
all, compare the loading of interconnections in the various regions of the Mediterranean
basin starting from a very reduced set of data.
Fig. 5-12 Annual energy exhanges - physical values in GWh (in 2008)Fig. 5-12 and Fig.
5-13 show the yearly physical energy44 exchanges in GWh, and the NTC in MW. As for
NTC, the two seasonal values are referred to as the winter capacity (higher value) and
the summer capacity (lower value). Each season is attributed a duration of six months.
The average loading of the cut-sets are shown in Fig. 5-14. As we can see, there are
many cross-borders lines heavily loaded and, in some cases, the physical energy flows
exceed the commercial capacity. This is the case for the border between Slovenia and
Italy. For security reasons, the NTC is very low45, but due to parallel and loop flows, this
section is often loaded above the NTC limit. Another section heavily loaded is between
Portugal and Spain.
Many reinforcements projects concerning this bottleneck have already been proposed in
the coordinated transmission development plan [15]. The average loading is also high
across the Alpine borders between Italy and Switzerland and Italy-Austria. Other
congested borders are present in SEE between Bulgaria-Greece and Greece-Albania.
The section France-Spain is also heavily congested as highlighted before. Here, the
average loading factor is low due to internal bottlenecks further limiting the energy
exchanges. On top of this, the high volatility of power flows related to the non-
dispatchable RES generation (wind) in Spain further worsens the situation.
As for North Africa note the high loading of the connection between Spain and Morocco.
In this case loading does not directly reflect a congestion level, since most of the energy
exchange is based on scheduled bilateral contracts, i.e., there are no loop or parallel
flows overlapping the scheduled energy transactions.
The comparison of the average loading in NMC with the SEMC is very interesting (see
Fig. 4-16). It can be seen that the average loading in the SEMC is very limited with
values below 20% if the section Spain-Morocco and Syria-Lebanon is included. As the
load in Lebanon is supplied from Syria in islanded operation mode, the tie lines are not
44
Throughout this report energy and electricity are identical and expressed in an energy unit
such as kWh, MWh ,GWh and TWh.
45
Indeed, the interconnection is composed by a 400 kV in parallel to a 220 kV line. Thus, to
preserve the N-1 security criterion, one shall strongly limit the commercial capacity to avoid
overloading on the 220 kV line in case of tripping the 400 kV line.

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actual interconnections between two countries. The very low average loading is due to
the weak capacity of the transmission grid that is strongly limiting the commercial
exchanges.
Fig. 5-12 Annual energy exhanges - physical values in GWh (in 2008)
Fig. 5-13 NTC in 2008 values in MW

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Fig. 5-14 Average loading factor of the cross-borders in 2008 values in %
Fig. 5-15 Proposed cross-border reinforcements in the North Mediterranean countries

(source [15])

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To overcome the existing bottlenecks a series of cross-border reinforcements have been

proposed by the European TSOs. The subsequent analysis describes the main projects
that have been scheduled to solve the problems in the North Mediterranean countries,
including also the trans-Mediterranean links both in south-north (Maghreb-Europe) and in
east-west direction (across the Adriatic sea). The results are extracted from the ENTSO-
E/SCR Transmission Development Plan issued in April 2009 [15].

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5.7.1 North-Western Mediterranean countries
Cross-border congestion and reinforcement plans:
Spain France: the border is among the most heavily congested cut-sets in Europe
and needs urgent reinforcements. France and Spain have the shared goal to increase
their transfer capacities from the currently very low levels (300-500 MW from Spain to
France and 1100-1400 MW from France to Spain) to a short-term NTC target value of
2600 MW, and 4000 MW in the long term. A new interconnection line is required for
each stage.
Spain - Portugal: several interconnection projects are envisaged to achieve a better
integration of the national power markets into the Iberian market (MIBEL). New 400
kV cross-border lines are planned both in the north and in the south section of the
border. Further NTC increase will be achieved by changing the connection schemes
of the existing lines and, when the authorisation process has been completed,
upgrading the voltage from 220 kV to 400 kV.
Italy France: frequent congestion occurs on the interconnection lines between
France and Italy as soon as there are significant exchanges between France and
Switzerland and France and Italy. The enhancement of the NTC at the border will be
achieved by increasing the capability of existing lines adopting high temperature low-
sag conductors and, in the long term, realising a new HVDC interconnection (1000
MW) along the Frjus motorway.
Italy - Slovenia: a new double circuit 380 kV interconnection between Italy and
Slovenia is planned to increase the transfer capacity with Slovenia, resolve current
congestion in north-eastern Italy, improve the security of supply and secure the
operation of the grid within Slovenia, In the short term, the NTC will be enhanced
thanks to the installation of PST at the ends of the existing lines.
Italy - Northern Borders: reinforcements towards Switzerland will be achieved with
new lines proposed by private investors (so-called merchant lines). In 2006, the
authorities of the countries involved authorized two interconnection lines with
Switzerland, which had been proposed by private investors. Enhancement of the NTC
with Austria will be made possible by installing PST on the existing interconnection
and with the construction of some merchant lines.
South-East Europe: several new cross-border lines are planned to overcome the
present fragmented and not optimised structure of the transmission grid in the region.
All reinforcements are based on 400 kV AC overhead lines.
Turkey: the new 400 kV interconnection line with Greece was completed in 2008 and
it will be operated together with the other two 400 kV lines to Bulgaria when the
Turkish power system is synchronised with ENTSO-E/SCR.
New links across the Mediterranean basin:
Italy-Tunisia: in June 2007, an agreement was reached between the Italian Minister of
Economic Development and the Tunisian Minister of Industry and Energy, appointing
Terna and the Tunisian vertically integrated utility STEG to set up a joint venture to
implement the electricity interconnection between the two countries: final target size
1000 MW HVDC.

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Italy - Malta: in June 2008, Terna and Enemalta, the public operator of the network in
Malta, signed an agreement of collaboration for the feasibility study of a new
interconnection link between Malta and Italy; the link will be likely realised in HVAC
(2x220 kV cables) allowing a transfer capacity of 400 MW. The project was granted a
financial support of 20 Mio. in the framework of the European Economic Recovery
Programme.
Italy Montenegro: a 500 kV HVDC submarine cable (1000 MW) between Tivat (ME)
and Villanova (IT) is being planned. An agreement for carrying out the preliminary
project and proceeding with the implementation phase of the HVDC undersea
interconnection between the two countries was signed in December 2008 between
Terna and Montenegros electricity company, EPCG.
Italy Albania: a new interconnection line proposed by private investors was
authorized by the authorities of the countries involved in August 2008.
Italy Croatia: the construction of a 400 kV HVDC submarine cable with 500 MW
1000 MW capacity between Dalmatia in Croatia and the Marche Region has been
investigated in a feasibility study carried out in the year 2007. No progress is seen at
the moment.
Italy - Greece: the interconnection with Italy increased the reliability of the Greek
system. A preliminary study is under consideration to assess the possibility of a
second DC link enhancing the transfer capacity from 500 MW to 1000 MW.
Spain - France
At present there are only four tie lines (two at 220kV and two at 400 kV) between France
and Spain, the last one was built in 1982. The border between the two countries is among
the most heavily congested cut-sets in Europe and needs urgent reinforcements as
demonstrated in the recent studies carried out on behalf of the EC coordinator [16]. Table
5-19 shows the number of the days in 2007 during which the maximum interconnection
capacity has been reached for at least one hour of the day. The congestion rate of the
France-Spain interconnections is the highest with respect to other French borders.
Table 5-19 Congestion ratio at the French borders (source: CRE* and CNE*)
Days for which the maximum

interconnection capacity has been
Country
reached at the French borders for at
least one hour of the day (% in 2007)
Belgium 22%
Germany 26%
England 34%
Italy 92%
Spain 97%
* CRE: French Regulator; CNE: Spanish Regulator

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Moreover, the ratio of utilization of the capacity46 between French and Spain is two to
seven times larger than that of the other French borders.
Another obstacle hindering the free power exchanges is related to the reduction of the
capacity allocated due to security reasons. The reduction of the allocated capacity was
574 hours from Spain to France and 250 hours from France to Spain in 2007. Note that
the number of hours in which the capacity has been fixed to zero was equal to 501 hours
(6% of time).
A further index highlighting the insufficient exchange capacity between France and Spain
is the price paid by the operators for the capacity allocation according to the auctioning
mechanism in place. A high value of capacity allocation means high congestion
intensity47. Except for the French-Italy border, market operators give the highest value to
the France-Spain capacity, which means a great interest for the operators to exchange
electricity between the two countries. In order to reserve capacity for the period of one
year, operators have to pay almost 100,000 /MW/yr with an impact on the kWh price that
consumers have to pay. The France-Spain capacity allocation cost increased appreciably
in 2007. The very strong congestion ratio and the resulting fragmentation of the two
electricity markets show the opportunities of increasing transfer capacity through new
interconnections.
Table 5-20 Hours of reduction of capacity (2007) for safety reason

(source: CRE and CNE)
Export : from France; Import: to France
Number of hours
Number of hours of
Country of reduced
capacity equal to 0
capacity
Export 0 0
Belgium
Import 0 0
Export 0 0
Germany
Import 0 0
Export 5 0
Italy
Import 0 0
Export 250 0
Spain
Import 574 501
46
As a percentage to the net transfer capacity in MW
47
The congestion intensity can be assessed referring the congestion duration (hours/year) and
the congestion intensity (MWh/year). Another indication of congestion intensity is the value that
the operators have to pay for reserving the capacity through the border (/MW).

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Table 5-21 Average price for interconnection capacity allocation - /MW

(source: CRE and CNE)
Average price for interconnection capacity

Country
allocation - /MW/year
Belgium 25 413
Germany 34 928
England 56 521
Spain 96 422
Italy 161 663
To increase the NTC between France and Spain, the construction of a new line is
required. Following the actions undertaken by the EC coordinator, [13], the shared
solution consists of a new HVDC line between Baixas (FR) and Sta. Llogaia (ES), fully
underground and with a capacity in the range of 1400-2000 MW, depending on the
chosen technical solution [14].
To attain the long-term objective of a NTC equal to 4000 MW, another interconnector
through the central or western Pyrenees will be needed. Studies for the best routing of
the new tie-line have to be carried out.
Spain - Portugal
Several interconnection projects are planned, or have been studied to achieve a full
integration of the Iberian power market (MIBEL).
In the short term, a new interconnection line through the Duero corridor is expected in
2010. A 400kV line Aldeadvila (ES)-Lagoaca (PT), along with a new 400-kV connection
between Laoaca (PT)Armamar (PT) and Recarei (PT) S/S (near Porto). Further
interventions on the grid close to the border have been scheduled. These consist of
changes in the topology and voltage upgrades from 220 kV to 400 kV.
In the long-term, two new interconnections have been suggested and studied, one in the
North and one in the South. This will yield a NTC of 3000 MW in both directions. The new
northern interconnection is palnned to operate at 400 kV and follows the Cartelle (ES) /
Pazos (ES)Vila Fria (PT)-Vila do Conde (PT)Recarei (PT) route. The expected
commissioning date is 2013/2014. The new southern interconnection consists of the 400
kV Puebla de Guzman (ES)Tavira (PT) interconnector. The expected commissioning
date is 2011. Both of these new interconnection lines will be built with double circuit
towers, although only one circuit will be installed initially on the cross border section.

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Italy - France
Frequent congestion occurs on the interconnection lines between France and Italy as
soon as there are significant exchanges between France and Switzerland as well as
France and Italy.
Two measures have been agreed upon between the French and the Italian TSO to
increase the NTC:
increasing the capacity of the French 400 kV lines close to the border by installing
high temperature conductors on the Albertville (FR)-Grande Ile (FR) No 3 line and
connecting it to one existing circuit Albertville(FR)-Rondissone(IT). The Albertville
(FR)-Grande Ile (FR) No 3 line is currently out of order.
installation of a PST on the 220kV Trinit Victor/Menton (FR) Camporosso (IT)
interconnection line.
A significant enhancement of the NTC can be attained in the medium term by installing a
1000 MW HVDC cable along the Frjus motorway using the new emergency tube. A joint
feasibility study has been launched. RTE and TERNA have also studied the long-term
development of the interconnection through the railway infrastructure of the Lyon (FR)
Turin (IT) connection along the European corridor No 5. However, this option appears
less promising than the utilising the motorway tunnel.
Italy Slovenia
A new double circuit 380 kV interconnection between Italy and Slovenia is planned,
linking the Udine Ovest (IT) and Okroglo (SI) S/S to increase the transfer capacity with
Slovenia. This should resolve a current congestion in north-eastern Italy and improve the
security of supply and operation of the grid within Slovenia. The operational constraints
on the Italy - Slovenia border will be reduced. Further internal reinforcements are required
in the region of Venice to eliminate all congestion in the area.
Moreover, the installation of two PSTs have been planned in order to improve the security
of supply and grid operation in both Slovenia and Italy. A better utilisation of the existing
transmission system and the regional market will also be achieved.The first PST was
installed in the 220 kV S/S of Padricano (IT). It is in operation since March 2008. The
second PST will be installed in the 400 kV S/S of Divaca (SI) that is currently under
construction.
Italy - Northern borders
Italy - Switzerland
In 2006, two merchant lines proposed by private investors were authorized by the
authorities of the countries involved:
a 380 kV line Cagno (IT) Mendrisio (CH), in operation since June 2008;

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a 150 kV line Villa di Tirano (IT) Campocologno (CH), under construction,

and scheduled to be in operation in 2010.
A new study to investigate the feasibility of a 380 kV line between Lavorgo (CH) and
Morbegno (IT) should be launched in the future. A further merchant line project under
authorisation is the 1000 MW HVDC underground interconnector linking Sils (CH) to
Verderio (IT).
Italy - Austria
The NTC between Italy and Austria has historically been very low with 200-220 MW
from Austria to Italy and 70-85 MW from Italy to Austria. The two countries are
connected only through a 220 kV line routed from Soverzene (IT) to Lienz (AT). To
increase the NTC without building new lines the installation of a 220/220 kV PST for
the Lienz (AT)Soverzene (IT) tie line at the Lienz substation is planned as a short-
term measure.
In order to significantly increase NTC between Austria and Italy, a new 380 kV line
between a new substation on the Sandrigo (IT) - Cordignano (IT) line and Lienz (AT)
have previously been planned for the long-term.
For further significant expansion of the transmission capacity between Austria and
Italy, a study referring to a new 380 kV double circuit line between Innsbruck (AT) and
Brixen/Bressanone (IT), passing through the planned Brenner Base Tunnel (BBT-
Project), has been carried out by TERNA and TIWAG-Netz AG (TEN-E Study). The
realisation of the new line depends on the progress of BBT railway project.
Further projects are related to a renewed section at 110/132 kV between Prati di

Vizze (IT)Steinach (AT) S/S as well as the realisation of merchant lines between the
region of Krnten/Carintia (AT) and Friaul/Friuli (IT).
5.7.2 South East Europe

Croatia - Hungary
A new 400-kV interconnection line between Ernestinovo (HR) and Pecs (HU) (double
line) is being built. This double tie line between Croatia and Hungary is expected to
increase steady state security in the SEE region. The import capacity of Croatia and
surrounding countries from central Europe and Ukraine is also expected to increase.
Slovenia - Hungary and Slovenia Croatia

The first interconnection between Slovenia and Hungary via a new 400 kV double circuit
line Cirkovce (SI) Pince (Hungarian border) and the new interconnection between
Slovenia and Croatia should be completed by 2013.

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FYROM Albania
A 400 kV interconnection line between Bitola (MK) and Elbasan (AL) is being considered.
This line is supposed to be part of the backbone of the European corridor No 8, a
foreseen gas, oil and energy connection between the Adriatic and the Black Sea.
Albania Montenegro
A 400 kV line between Tirana (AL) and Podgorica (ME) is under construction. This
interconnection line establishes a firm connection of Albania with its neighbours and
allows the safe operation of the Albanian system also under emergency conditions. The
transmission line between Tirana and Podgorica will represent a valuable asset for
Albania and constitute an important missing link in the regional power network. The
continuous connection between Tirana and Montenegro also allows Albania to participate
in the international regional electricity market. From the technical point of view, the project
is straightforward and does not carry any particular risk.
Albania Kosovo
The construction of a 400 kV line between Kashar (AL), near Tirana, and the Kosovo B
S/S has been approved by the Albanian TSO KESH-Ost and the Kosovo TSO and market
operator KOSTT. The agreement was signed in September 2009. The project will allow to
optimally exploiting the complementary generation mix of Kosovo (generation based
almost totally on lignite) and Albania (hydro generation). The project is expected to cost
70 Mio. and is to be partly financed by the German Bank for Development and
Reconstruction (KfW).
Serbia Romania
A new 400 kV between Serbia and Romania has been examined. Six options were taken
into consideration within a system study completed in July 2007. The system study
proposed three options to be further investigated as part of a feasibility study that will
follow up the system study. Maximum increase in NTC at the SerbianRomanian border
was 160 MW in winter and 260 MW in summer. A prefeasibility study for the line has
been carried out on the Romanian side. The Serbian TSO, EMS (Elektromrea Srbije)
has received a grant to carry out project design, prefeasibility and environmental study for
this line.
Serbia FYROM
A new 400 kV interconnection line between Serbia and FYROM along Nis (SR) Stip
(MK) is planned. The maximum increase of NTC at the Serbia FYROM border is 250
MW in winter, according to the study carried out for this new line. Two more substations
will be connected to the Serbian side: the 400(220)/110 kV S/S Leskovac 2 and the
400/110 kV S/S Vranje 3. These substations will make the operation of the transmission
network in South Serbia independent of the engagement of hydropower plants connected
to the 110 kV level.

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Bulgaria FYROM
The new 400 kV Chervena Mogila (BG) Stip (MK) OHL between Bulgaria and FYROM
partially entered into commercial operation in January 2009. It is currently being operated
along the route Chervena Mogila (BG) Dubrovo (MK) until the construction of the
400/110 kV S/S Stip (MK) is completed. This line will improve the security of the
interconnections in the region.
Greece - Bulgaria
A new 400 kV interconnection line between Nea Santa (GR) Maritsa East 1 (BG) is
planned. This line is expected not only to increase transfer capacity from Bulgaria to
Greece, but also improve power system security and stability as soon as Turkey is
connected to ENTSO-E/SCR.
Bosnia & Herzegovina Croatia

A new 400 kV interconnection line between both countries is under consideration. The
project will have a bilateral and regional impact. It will enhance security of supply in both
systems and boost exchange and transit capacities in the region.
5.7.3 Turkey
An overview of the Turkish interconnections is provided in the figure below.
Fig. 5-16 Turkey interconnections
The objective of Turkey is the interconnection with ENTSO-E/SCR to receive the benefits
of synchronous parallel operation and the integration of the Turkish electricity market in to
internal electricity market of the EU. Studies have shown that the interconnection of the
Turkish and the ENTSO-E/SCR system is technically feasible from the static security

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point of view. Measures to improve the dynamic performance of the Turkish system are
being undertaken to fully comply with the ENTESO-E/SCR standards.
The synchronisation to ENTSO-E/SCR by three lines provides the necessary technical

conditions for import/export of significant amounts of electricity: NTC for the import to
Turkey is within the range of 8001300MW while NTC for the export from Turkey is within
the range of 10001100MW.
Turkey Greece
The Turkish part of the interconnector was completed in 2006. By operating the Turkish
part at 154 kV electricity transfer from the Hamitabat power plant in Turkey to Greece
have become possible in the summer months of 2007.
The 400 kV OHL between Greece and Turkey, Nea Santa (GR) Babaeski (TR), has
been completed during the summer 2008. The line will be put into operation when the
synchronous connection of Turkey to ENTSO-E/SCR is possible.
Turkey Romania
In the long-term horizon (2018), a 400 kV Constanta (RO) Pasakoy (TR) HVDC
submarine cable is planned across the Black Sea.
Concerning the already existing interconnections between Turkey and its neighbouring
countries, the situation can be summarized as follows.
Turkey Bulgaria
Two 400 kV OHL exist connecting:
o Maritsa East3 (BG) Babaeski (TR) with a thermal rating of 1310
MVA,
o Maritsa East3 (BG) Hamitabat (TR) with a thermal rating of 1715
MVA.
These OHL are not used at present and will be put to operation when the
synchronous operation between Turkey and ENTSO-E/SCR is possible. Until six
years ago (2004), the OHL Maritsa East 3 (BG) Babaeski (TR) was in operation to
supply a passive load in Turkey.
Turkey Georgia
The 220 kV interconnection line with Georgia is being operated for exchange of
electricity in islanded mode. The construction of a new 400 kV transmission line
Akhaltsikhe (Georgia) - Borka (Turkey) together with a DC back-to-back station at
the Georgian side is planned. The cross border point and route of this new 400 kV line
have been selected. The tendering process for the construction of this line and
relevant facilities will be initiated in 2009.

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Turkey Azerbaijan
Azerbaijans 154 kV interconnection is operated for import from Turkey via isolated
region operation mode.
Turkey Armenia
Armenias 220 kV interconnection to Turkey has never been operative. The
interconnection consists of an overhead line and its exploitation requires a
transformation from 220 kV to 154 kV on the Turkish side. No fixed date is scheduled
for the operation of this line waiting for the normalisation of the relationships between
the two countries.
Turkey Syria
Syrias 400 kV interconnection is operated for exporting to Syria power generated by
Turkish units since 2007.
Turkey Iran
The 154 kV interconnection with Iran is currently out of operation and the 400 kV link
currently operates at 154 kV for the import of electricity to Turkey via isolated region
operation mode.
Possible measures are under examination to provide asynchronous connection

through the construction of a DC back-to-back station to be linked to the existing 400
kV line or conversion of the existing 400 kV connection form AC to DC by constructing
converter stations at the ends of the line. The construction of an additional 400 kV line
is being considered.
Turkey Iraq
The Turkey - Iraq 400 kV link currently operates at 154 kV for export to Iraq via
isolated region operation mode.
The construction of an additional 400 kV line is in implementation stage. The cross

border point is determined and the construction of the Iraqi part of the line has been
initiated. Construction on the Turkish side will soon be initiated, too.
5.7.4 Interconnections across the Mediterranean Sea

Spain Morocco
The second 400 kV circuit linking Tarifa (ES) - Fardioua (MA), with AC submarine
technology, was commissioned in June 2006. No other projects are currently scheduled,
although in the future new connections with Morocco and/or with Algeria may be
considered.

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Italy - Tunisia
In June 2007, an agreement was reached by the Italian Minister of Economic
Development and the Tunisian Minister of Industry and Energy, appointing Terna and the
Tunisian company STEG to set up a joint venture for the realization of the electricity
interconnection as well as the management of the international transits of electricity on
the link. A Tunisian-Italian joint venture (ELMED) has been successively set up in April
2009.
A new interconnection cable will join the peninsula of Cap Bon in Tunisia with (Fig. 5-17),
to carry electricity generated by a new power plant in Tunisia to be located in El Haouria
or more southwards, depending on the primary fuel (imported gas or imported coal). The
plant will generate 1200 MW, of which 800 MW will be supplied to Italy and 400 MW to
Tunisia. The launching of a bid to build a power plant in Tunisia will also be coordinated
by the newly formed company ELMED.
The undersea cable will be a 195 km double cable with a maximum depth of 600 m. The
project will be developed in two stages: in a first stage a monopole HVDC link will be built
having a capacity of about 400500 MW to be connected to the existing 220 kV grid in
Sicily. Later on, following the reinforcement of the Sicilian grid with a ring at 380 kV, the
second pole of the HVDC link will be commissioned allowing to attain the target capacity
of 1000 MW.
The interconnector will be operated in the form of a merchant interconnection with 80%
of capacity exempted from TPA and reserved for the investor in the new power plant. This
value is compliant with the Italian Ministerial Decree on Merchant Lines issued in October
2005 [26].
Fig. 5-17 Italy-Tunisia interconnection

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Italy - Malta
On 5 June 2008, Terna and Enemalta, the public operator of the network in Malta, signed
an agreement of collaboration for the feasibility study of a new interconnection link
between Malta and Italy (Fig. 5-18). The main characteristics of the identified solution
(though the final choice is still to be taken) are:
AC interconnection between Ragusa 220 kV (IT) and new Kappara 220 kV (MT)
2 triphase AC cables at a rated voltage of 220 kV
a rated capacity of 400 MW
a submarine cable length of 100 km and a depth of about 160 m (routing still to be
defined in a detail).
This project was granted 20 million of support in the framework of the European
Economic Recovery Programme launched by EU in May 2009.
Fig. 5-18 Italy-Malta interconnection
Italy Montenegro
A 500 kV HVDC submarine cable (thermal capacity 1000 MW) between Tivat (ME) and
Villanova (IT) is being planned. The agreement for carrying out the preliminary project
and proceeding to the implementation phase of the new undersea interconnections
between transmission grids of Italy and Montenegro was signed on 23 December 2008
between TERNA and Montenegros electricity company, EPCG. In particular, the
agreement included the Parties commitment to build the new interconnection system and
to develop infrastructures to strengthen Montenegros grid for the best operation of the
submarine interconnection. Feasibility and technical studies have been completed and a

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new study - on the reinforcements required on the Montenegro transmission system

has been launched in 2008. The interconnection project will include both a submarine
section at 500 kV DC and a terrestrial section at 400 kV AC (Fig. 5-19). The key data of
the interconnector are:
450 km the total length of the interconnection, 375 km of which in submarine

cable and 75 km in terrestrial connection
maximum sea depth 1210 m
1000 MW of maximum transportation capacity (2 x 500 MW bipolar).
Expected benefits deriving from this interconnector are:

diversification in the energy supply sources in Italy (hydropower, other RES and
lignite)
possibility of importing electricity to Italy at lower and increasing competition in the
Italian domestic market
greater security and efficiency in both the Italian and the Montenegro electricity
systems.
Fig. 5-19 Italy-Montenegro interconnection
Italy Albania
In August 2008, a new merchant interconnection was authorized by the authorities of the
countries involved. The new HVDC line (400 kV, 500 MW) will connect the Italian
substation Brindisi with Vlore (AL). The study on the impact of the new interconnector on
the Italian and Albanian transmission grids still needs to be executed.
Italy Croatia
The construction of a 400 kV HVDC submarine cable with a capacity of 500 - 1000 MW
between Dalmatia in Croatia and the Marche Region (presumably at Candia substation)
in Italy (Fig. 5-20). The feasibility study has been completed in 2008; the main

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characteristics of the interconnector are reported in Table 5-22. No short-term progress

on this interconnector is envisaged at the moment.
Table 5-22 Main characteristics of the Italy-Croatia interconnections
Terrestrial
Marine Terrestrial
Converter Converter Landing Maximum cable
cable cable
station in station in point in water length in
length length in
Italy Croatia Croatia depth (m) Croatia
(km) Italy (km)
(km)
Candia Konisko Movar 218.0 200 6.8 52.5
Candia Konisko Siren 223.5 200 6.8 50.5
Fig. 5-20 Italy-Croatia interconnection
Italy - Greece
The interconnection with Italy has increased the reliability of the Greek system. A
preliminary study is foreseen to assess the possibility of a second DC link between Italy
and Greece, or the transformation of the existing one from the monopolar to the bipolar
scheme, hence doubling its capacity from the actual 500 MW to 1000 MW.

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5.8 System performances in the Northern Mediterranean countries and

common standards adopted in the Central-Western European Pool
Operation
To ensure an adequate level of power quality for customers, ENTSO-E/SCR defined
general provisions for national TSOs regarding mainly:
System Security: the N-1 criterion must be adopted by each TSO to cope with the
consequences of trips of network elements or generating units and to adopt in
advance adequate remedial actions to prevent violations of network constraints.
Frequency control: system frequency is directly connected to the rotation speed of all
the synchronised generators. It has to be maintained at its nominal value at all times.
Two automatic types of control are used:
o Primary Control: it maintains the balance between generation and demand in
the network acting on a timescale of a few seconds;
o Secondary Control: it maintains interchange power flows across the borders
(or the perimeter of the area under control) at the scheduled values and it
brings back to zero the frequency error in case of frequency deviations. The
automatic control system act in a few tens of seconds or, at most, in a few
minutes.
Voltage control: system voltage must be kept in the nominal range to ensure system
security and quality for consumers. Different types of voltage control are adopted:
o Primary Voltage Control (all TSOs): it is realised by the voltage regulators of
generating units, controlling the voltage level at the generator terminals acting
in few hundreds of ms or, at most, in a few seconds;
o Other (Secondary or Tertiary) Voltage Controls: these are implemented within
a delay that can vary up to some minutes. Voltage can be controlled at remote
substations far away from the generator terminals.
Emergency situations: each TSO implements successive organisational and

preventive measures to anticipate any critical situation within a very few hours or a
few minutes before the real time operation, preventing system cascading effects and
limiting its consequences.
System reliability: each TSO must ensure an adequate capability to supply power,
taking into account the scheduled maintenance and random outages of generation
and network

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Planning
A TSO's main objective is developing the transmission grid in a manner that
maximises security of supply, fostering integration of power markets and penetration
of RES generation. Network reinforcements shall allow an efficient use of the
generation assets and, consequently, a minimisation of the total costs for customers
(from generation to retail).
Every year, TSOs shall submit to the regulatory authority a ten-year network
development plan based on existing and forecast supply and demand. That network
development plan shall:
o indicate to market participants the main transmission infrastructure that needs
to be built;
o contain all the investments already decided upon and identify new
investments which have to be executed in the next three years;
o provide a time frame for all investment projects;
o as for network access, particularly for new generation, the criteria to be
adopted by each TSO are set in the Directive 2009/72/EC.
5.8.1 Operation
The scope of the analysis shown in this section is the highlighting of the ENTSO-E/SCR
technical performances following the adoption of the provisions defined by ENTSO-
E/SCR members [22]. These provisions have to be fulfilled by the national TSO to ensure
an adequate level of power quality for the customers. The provisions involve mainly the
following topics:
criteria to guarantee system security,

frequency control,
voltage control,
measures in emergency conditions,
criteria to assess and guarantee system reliability.
Whilst frequency control and voltage control are used exclusively in real time operation,
the other issues involve also operational planning and planning of the transmission grid.
5.8.1.1 Criteria to guarantee system security

TSOs are in charge of managing the security of operation of their own networks in a
subsidiary way. The most relevant rules for the security of interconnected operation are
related mainly to the functioning of interconnections. TSOs cooperatively adapt
continuously such common rules for inter-operability to be applied mainly at the borders
of their control areas and consequently at the borders of countries or entire blocs.

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Each TSO, taking into account the planned outages in the network and the best
forecasted demand and generation scheduling available, must simulate all the possible
N-1 situations. This rule guarantees that the loss of any element of the network or tripping
of generating units is compatible with the operational criteria of the system, taking into
account available remedial actions. The definition of the N-1 criterion adopted by
ENTSO-E is restated below:
The N-1 CRITERION is a rule according to which elements remaining in operation after
failure of a single network element (such as transmission line / transformer or
generating unit, or in certain instances a busbar) must be capable of accommodating
the change of flows in the network caused by that single failure.
The aim of N-1 simulations is to make aware the TSO of the consequences of trips of
network elements (as defined in the set of contingencies to be considered) and to prepare
adequate remedial actions to prevent violation of network constraints. Credible
contingencies outside its responsibility area have also to be taken into account.
Each TSO must simulate all the possible N-1 situations in the operational planning stage
and it has to perform systematically an automatic N-1 simulation in real time.
Concerning the spinning reserve within ENTSO-E/SCR, starting from undisturbed

operation of the interconnected network, a sudden loss of 3000 MW of generating
capacity (reference incident) must be offset by frequency primary control alone, without
the need for load shedding in response to a frequency deviation. The primary control
reserve of each control area or bloc (determined in accordance with the corresponding
contribution coefficient and equal to 3000 MW for the entire synchronous area) must be
fully activated within 15 seconds in response to disturbances P48 of less than 1500 MW
or within a linear time limit of 15 to 30 seconds in response to a P of 1500 to 3000 MW.
5.8.1.2 Frequency control

The frequency in the network is a measure for the rotation speed of the synchronised
generators. By an increase in the total demand the system, the frequency will decrease,
and by a decrease in the demand, the systems frequency will increase. Regulating units
will then perform automatic Primary Control action and the balance between demand and
generation will be re-established (Fig. 5-21).
48
P indicates the power unbalance following a disturbance. It is measured in MW.

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Fig. 5-21 Dynamic response of a system subject to a step-load increase (source [21])
Primary Control maintains the balance between generation and demand in the network
using turbine speed governors. Primary Control is an automatic decentralised function
of the turbine governor to adjust the generator output of a unit as a consequence of a
frequency deviation / offset in the synchronous area. By the joint action of all
interconnected systems, Primary Control ensures the operational reliability for the
power system of the synchronous area.
The following assumptions have been applied for the definition of marginal conditions for
the operation of Primary Control (Appendix 1, ENSTO-E/SCR Operational Handbook
2009 [22]):
possible stationary frequency deviation 50 mHz

insensitivity of turbine controller: 20 mHz
maximum permissible frequency deviation:
o quasi-steady-state: 180 mHz
o dynamic-steady state: 800 mHz
system start time constant: 10 to 12 seconds
Primary Control is not the only action present in the ENTSO-E/SCR system. Secondary
Control will take over the remaining frequency and power deviation after 15 to 30
seconds. The function of Secondary Control is to restore power cross-border exchanges
to their (programmed) set-point values and to restore the system frequency to its set-point
value at the same time.

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In fact, as shown in Fig. 5-21, Primary Control is designed to leave a certain frequency
(as well as power interchange) offset; this error is brought to zero through the action of
the Secondary Control.
Secondary Control is a centralised automatic function to regulate the generation in a

control area based on Secondary Control reserves in order to maintain its interchange
power flow at the scheduled program and to restore the frequency in case of a
frequency deviation. Secondary Control operates for periods of several minutes and it
is applied to selected generator units.
In order to allow the continuous monitoring of the quality of Secondary Control, the
frequency deviation is evaluated statistically each month by determining the standard
deviation:
fi f
1
0
2
,
n 1
i
where n is the number of averaging intervals (each with a duration of 15 minutes), f0 is the
nominal frequency (50 Hz) and fi is the average value of the frequency during an
averaging interval.
In addition to the standard deviation, the number and duration of frequency corrections is
monitored. In continental Europe, the TSOs have agreed to monitor the frequency
deviations f = fi f0 exceeding 50 mHz with respect to the frequency set-point, together
with the proportion of time during which f exceeds 50 mHz.
Fig. 5-22 and Fig. 5-23 show the standard deviations and the hours per month with
frequency deviations greater than 50 mHz (in positive and in negative direction with
respect to the nominal value) in the ENTSO-E/SCR system.
The columns 90 and the columns 99 in Fig. 5-22 represent the 90th and the 99th
percentile of frequency deviation distribution, respectively.
The graphs clearly highlight that within the ENTSO-E/SCR interconnected system the
frequency variations are quite limited, with a very limited number of hours per month
showing frequency deviation greater than 50 mHz. Comparing Fig. 5-22 to Fig. 5-23, note
that the higher the 90th and the 99th percentiles of frequency deviation are, the higher is
the number of hours with frequency deviation greater than 50 mHz and vice-versa.

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Quality of frequency
_ 90 _ 99
70
60
50
40
mHz
30
20
10
0
Jul-05
Jul-06
Jul-07
Jan-05
May-05
Nov-05
Nov-07
Jun-05
Aug-05
Jan-06
May-06
Jun-06
Aug-06
Nov-06
Jan-07
May-07
Jun-07
Aug-07
Jan-08
Feb-05
Mar-05
Apr-05
Sep-05
Dec-05
Feb-06
Mar-06
Apr-06
Sep-06
Dec-06
Feb-07
Mar-07
Apr-07
Sep-07
Dec-07
Feb-08
Mar-08
Oct-05
Oct-06
Oct-07
Fig. 5-22 Per month frequency standard deviation in the ENTSO-E/SCR
Frequency deviation > 50 mHz

> + 50 mHz > - 50 mHz
30
25
20
hours
15
10
0
Jan-05
Jun-05
Jul-05
Jan-06
Jun-06
Jul-06
Jan-07
Jun-07
Jul-07
Jan-08
May-05
Aug-05
Nov-05
May-06
Aug-06
Nov-06
May-07
Aug-07
Nov-07
Apr-05
Apr-06
Apr-07
Feb-05
Mar-05
Sep-05
Dec-05
Feb-06
Mar-06
Sep-06
Dec-06
Feb-07
Mar-07
Sep-07
Dec-07
Feb-08
Mar-08
Oct-05
Oct-06
Oct-07
Fig. 5-23 Hours per month with frequency deviation larger than 50 mHz
in the ENTSO-E/SCR
5.8.1.3 Voltage control

The voltage is regulated in a range of values, which guarantees:
the compatibility with the rating of the equipment,
the supply of customers within the contractual ranges of voltage,

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the voltage stability of the power system, i.e., sufficient voltage stability margins
for small and large disturbances in the short and long term.
This must also be true for the N-1 case, i.e., tripping of any given interconnection or
generation unit.
Different kinds of voltage control are implemented by individual TSOs, based on their
respective policies:
Primary Voltage Control: this control is represented by the voltage regulators of

generating units, which initiate an automatic rapid variation in the excitation of
generators when they detect a variation in voltage across the generator terminals.
The corresponding reactive power is activated by automatic devices in a time
response less than a few seconds. Other controllable devices, such as Static
VAR49 Compensators (SVCs) may also be involved in primary voltage control.
Other (Secondary or Tertiary) Voltage Controls; these are implemented within a

delay that can vary up to some minutes by (i) either control automatic devices
within a given zone of the network, or by (ii) manual actions to activate shunt
compensation equipment (such as shunt capacitors and shunt reactors) or
topology changes, e.g., cable or line opening in off-peak hours.
Policies and procedures for voltage control have to be developed and implemented by
each TSO in its respective responsibility area.
For security reasons and in respect of mutual commitments for operational conditions, a
continuous voltage control is needed and co-ordinated by each TSO in order to maintain
voltage variations within predetermined limits in their responsibility area:
Each TSO is responsible for managing voltage and reactive power in its own
network (responsibility area);
TSOs are in charge of coordinating all needed operational actions with their
adjacent TSOs and other stakeholders owning installations connected to the
transmission network (Distribution System Operators and related distribution
networks, connected generating units, connected consumers).
Voltage limits
Too high voltage can lead to accelerated ageing or the destruction of equipment.
Generally, the upper limit is around 420 kV for the 380-400 kV network and around 245
kV for the 220-225 kV network. Exceeding these limits can be acceptable only for a
limited time according to TSOs internal rules.
49
Volt Ampere Reactive

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Too low voltage can disturb the normal operation of some protections and transformer on-
load tap changers, electronic power based load or affect the behaviour of the auxiliaries
of generation units.
At any time, TSOs must guarantee that:
in the N situation, the voltage level at any node is kept within the normal
(contracted or agreed) voltage ranges;
in the N-1 situation, the voltage level can move temporarily to exceptional ranges
given the existence of remedial actions to go back to the normal voltage range.
This rule leads TSOs to determine acceptable voltage levels for the N situations and
potentially different ones corresponding to N-1 situations. These voltage levels have to
include margins from the critical voltage. They can be the same for all the nodes of the
network. But, sometimes, it can be necessary to calculate specific voltage levels for
particular nodes.
Within ENTSO-E there arent any common voltage limits established in N and N-1
conditions; each TSO defines the voltage ranges to be fulfilled in the various operational
conditions. To provide an example, the upper and lower limits adopted by TERNA [20]
(Italian TSO), REE [23] (Spanish TSO) and RTE (French TSO) are reported in Fig. 5-24,
Fig. 5-25 and Fig. 5-26.
Table 5-23 Italian voltage limits
Normal condition Normal or Alert Emergency or

Nominal
[kV] for 95% of time condition restoration
Voltage
* [kV] for 100% of time ** conditions [kV]
[kV]
Lower Upper Lower Upper Lower Upper
400 375 415 360 420 350 430
220 222 238 200 242 187 245
150 143 158 140 165 128 170
132 125 139 120 145 112 150
* these limits are not absolute and they can be violate for 5% of time
** these limits must be respected and they can never be violated

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Table 5-24 Spanish voltage limits
N condition N-1 condition N-2 condition*

Nominal
[kV] [kV] [kV]
Voltage
Lowe Uppe
[kV] Lower Upper Lower Upper
r r
400 375 435 375 435
(1)
220 200 245 200 245
(1) Voltage profile defined for the different electrical zones, e.g., a voltage profile in the range
380417 kV has been adopted for the bordering regions with France when studying the
introduction of a new interconnection line [24]
* Tripping of two circuits on the same electric tower
Table 5-25 French voltage limits
Normal condition Alert condition

Nominal Voltage
[kV] [kV]
[kV]
Lower Upper Lower Upper
400 380 417 365 420
220 210 242 200 245
5.8.1.4 Measures in emergency conditions

Measures for emergency conditions are based to a certain extent on the following
philosophy: in the event of a major disruption, selective restrictions in the energy supply
are more acceptable than the consequences of an extended network breakdown. The
latter would result in a power cut lasting for several hours. The parameters that can
indicate an emergency situation in the system are:
the system frequency (global indicator),

overloading of the interconnecting tie lines (local indicator),
decreasing of the busbar voltages (local indicator).
As shown in Fig. 5-24, there are four different security levels:
1. In a NORMAL system state the system is stable and there are no violations (both
for voltages and for currents) in any grid component in N and N-1 situations.

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2. In an ALERT state, the power system is stable and all the operational reserves
(for transmission and generation balance) have to be mobilised. One cannot
define in general if (or in which time frame) it will be possible to fully return to
security limits. This depends on the gravity of the alert and the possible risk of
cascading events. The system is viable and operated within the acceptable
operating constraints. However in the Alert case, the system parameters are
very close (still within or just beyond) to the security limits. During such situations,
the concerned TSO shall recover the system to the Normal state by enhancing
the security margins, i.e., changing the network topology, calling for new
generating units and, becoming more frequent, exchanging information with
neighbouring TSOs to look for suitable remedial actions to be taken jointly.
3. In an EMERGENCY system state, the system is not stable and its evolution tends
to bring it to an insecure and uncontrollable situation, if countermeasures are not
taken. Global security of the whole interconnected power system is endangered.
Exceptional actions may be necessary to limit the spreading of the dangerous
phenomena and prevent the collapse (partially or as a whole) of the system. In
this state, the system goes rapidly towards highly endangering conditions of
operation with system parameters out of the limits fixed for operational security.
4. In the AUTOMATIC ACTIONS phase, the system security level is seriously

compromised and only a sequence of automatic actions can save the system
(totally or partially).
The notion of ASAP (see Fig. 5-24) is related to the delay of remedial actions
implementation to come back to a N-1 secure situation after the occurrence of a first
contingency. This is done in order to be ready to cope with a possible further contingency
that might occur. During the ASAP time period, the system is put at risk. In practice,
TSOs shall react to possible contingencies according the following scheme:
First contingency always covered by remedies. For any situation of the system at any
time, the N-1 principle requires that after a first contingency, TSOs are always required to
have ready and checked remedial actions to be launched in a very short period of, e.g.,
15 to 20 minutes, to keep the system secure.

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Fig. 5-24 Security levels representation [22]
Second contingency covered by remedies ASAP. Once the contingency occurs, the
concerned TSO shall launch security calculations to detect possible risks and prepare
new remedies. The TSO implements remedies with a minimum delay (ASAP, i.e., as
soon as possible). Regional coordination eases and enhances the search for (possible,
yet not optimized) coordinated solutions in case of a call for help. In any case, the TSO is
encouraged to contact its neighbours as quickly as possible, even during the beginning of
the search for remedies. After occurrence of the first contingency and the execution of the
planned remedial actions, if the remedies are available and efficient on short notice, the
system is OK. When remedies are not sufficient, the TSO informs its neighbours about
the delay of remedies and calls for help to avoid or reduce the delay. A delayed recovery
can occur whenever the following measures have to be undertaken:
in case of starting a cold power plant that will be connected in after a time interval
as long as eight hours;

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in case of a delay of more than two hours in the return of a scheduled outage ;
in case of damages due to storm, the impacted TSO might need days in order to
fully comply with the N-1 rule again.
The time interval of ASAP cannot be estimated. It depends on the available remaining
facilities in the power system and on the risks in terms of cascading effects.
5.8.2 Planning
5.8.2.1 Criteria to guarantee and evaluate system reliability

TSOs must optimize any operational grid situation by looking for the best quality and
continuity of the provided services.
To this end, some reliability indexes are commonly adopted, which take into account the
uncertainty in all components of the generation and transmission system. The most
widely used indexes are:
EENS: Expected Energy Not Supplied (MWh, usually expressed in p.u. with
reference to the yearly consumption or energy supplied: p.u. MWhnot-supplied /
MWhsupplied);
LOLE: Loss Of Load Expectation (hr/yr);
LOLP: Loss Of Load Probability (percentage).
For these indices, there are no common standards defined by the ENTSO-E/SCR, but
each TSO can define its objectives compatible with the structure of the national grid and
the generation mix.
For example, the Italian TSO (TERNA) defines the following targets [19]:
EENS: < 10-5 in relative value, calculated as the ratio between energy not supplied
[MWh] and the total energy supplied [MWh],
LOLE: virtually close to zero [hours/year],
LOLP: < 1%.
Instead, the French TSO (RTE) defines the following target [18]:
EENS: there is not a specific target,
LOLE: < 3 [hours/year],
LOLP: index not defined.

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In Fig. 5-24 and Fig. 5-25 the energy not supplied per years and because of what reasons
in the whole ENTSO-E/SCR transmission grid are reported. The reasons are coded as
follows:
R4: Overload,
R5: False operation,
R6: Failure in protection device or other element,
R7: Outside impact (animals, trees, fire, avalanches, ),
R8: Very exceptional conditions (weather, natural disaster, ),
R9: Other reasons,
R10: Unknown reasons.
Energy not supplied - Years

Energy [MWh]
35000
29639
30000
25000
20000 2005
16068 2006
13608 2007
15000
10000
5000
0
2005 2006 2007
Year
Fig. 5-25 Energy not supplied per year
From the Fig. 5-25 and Fig. 5-26, reporting the data of three years (2005, 2006 and
2007), a trend is visible towards a decrease in the energy not supplied (EENS) within
the ENTSO-E/SCR transmission grid. Fig. 5-26 summarizes the total unsupplied
energy in ENTSO-E/SCR transmission grid, pointing out the percentage of unsupplied
energy with respect to the total supplied energy.

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Energy not supplied - Reasons
18000
16000
14000
12000
Energy [MWh]
10000 2005
2006
8000 2007
6000
4000
2000
0
R4 R5 R6 R7 R8 R9 R10
Re a sons
Fig. 5-26 Energy not supplied per year and reasons
Table 5-26 Total unsupplied energy
Year Supplied energy Total unsupplied energy Total unsupplied energy

[TWh] [MWh] [p.u.]*10-6
2005 2496.8 29639 11.9
2006 2531.2 16068 6.3
2007 2607.1 13608 5.2
5.9 Power Markets - Status and roles of System Operators
5.9.1 EU countries
5.9.1.1 Power markets

The basic conditions for the creation of an effective European integrated electricity market
(IEM) are laid down in the EU Directive 2009/72/EC [1] concerning common rules for the
internal market in electricity and the repealing Directive 2003/54/EC. The basic
conditions can be summarized as follows:
Free access to the network for producers to participate in the market. There should
be no legal, administrative or discriminatory action for TPA from the distribution
system operator (DSO) or the TSO, or during the connection licensing process.

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Free access to networks for consumers willing to participate in the market. This
means no geographical barriers and no discriminations among applicants, who
require to be connected to the grid50.
Possibility for customers to change supplier and make informed choices regarding
who should supply them electricity, based upon the price and the quality51 of the
electricity.
The possibility for producers to make informed choices on electricity generation

should be based on published information. The information regarding tariffs should
be easily available and transparent. The market rules should be well defined and
information regarding system constraints and the market should be available to
those who require it.
The market should strive to be liquid. This means that it should have many
participants and that no sole actor should be able to manipulate the price by their
bids to the market. If one sole actor has that possibility, it can manipulate prices for
his own interests. The term liquid implies a smooth price formation, which is not
noticeably affected by a single bid. The regulator should have the possibility to
restructure companies with a market share of the production assets that is too high,
if such an actor takes advantage of its size to manipulate prices. To be liquid, the
market must have a sufficient number of generators and consumers.
Electricity prices should be cost reflective of the actual costs to produce electricity.
This also refers to internalizing external costs although external costs are difficult to
assess. These costs are usually handled with taxes or, in the cases of GHG
emission, through trading with carbon credits.
The network tariffs must be cost-reflective. This means that the TSO must act as a
perfect monopoly, spreading its costs equally to users of its services. These costs
must include long run costs meaning current and future investments and costs for
the operation of the networks.
The access to the network for cross-border exchanges is regulated by the Regulation
(EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on
conditions for access to the network for cross-border exchanges in electricity, repealing
Regulation 1228/2003. Among other provisions, the Regulation spells out the principles of
cross-border congestion management
50 st
Since July 1 2007 the power markets are fully open; all customers are eligible customers
(except for some exceptional derogations like for Estonia).
51
Quality refers to the source of the electricity, fossil, nuclear or renewable. To enable this, access
to easily comparable information is very important.

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In order to enhance cross-border exchanges, the following principles are to be applied:
Transmission system operators must be compensated for costs incurred as a

result of hosting cross-border flows of electricity on their networks. This is
prerequisite for an open, competitive market.
Non-discriminatory and transparent tariffs for access to networks must be set to

reflect payments and receipts resulting from compensation between transmission
system operators. This is a precondition for effective competition in the internal
market.
In cases of network congestion, the allocation of cross-border capacities shall be

addressed with non-discriminatory, market based solutions to give efficient signals
to market participants and transmission system operators.
Different safety, operational and planning standards used by national transmission

system operators should be harmonized in order to avoid distortion of competition.
Publication of relevant data for the market participants to eliminate asymmetries in

information.
As part of the enforcement, the national governments have the duty to lay down the rules
on penalties applicable to infringements of the regulation. The penalties must be effective,
proportionate and dissuasive. The Regulation 714/2009/EC identifies explicit and implicit
auctions as an appropriate market orientated measure to allocate available cross-border
capacities.
An overview of the electricity market is Europe is given in Fig. 5-27. In particular, for the
EU Member States in the North Mediterranean Sea Area well developed Power Market
Exchanges, often coexisting with bilateral contracts, are present in Spain and Portugal
(MIBEL, the Iberian Electricity Market, that constitutes a joint initiative from the
Governments of Portugal and Spain, and it is an example of national markets integration),
in France (PowerNext coupled with BelPEx and Apex, an example of market coupling)
and in Italy (IPEX) (Fig. 5-27).
Electricity prices of the main European Power Exchanges Market in 2008 are reported in
Fig. 5-28. As shown by the diagram, the highest average electricity prices have been
recorded in the IPEX Market (with peaks in July and October of about 100 /MWh), the
lowest prices in the NordPool one (Sweden, Norway, Denmark, Finland Integrated
Market) that it is largely dominated by hydro generation (minimum in May, maximum in
September).

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Fig. 5-27 - Overview of the electricity market in Europe (source: EMS)
The average electricity prices of EEX (Germany) and Powernext Markets, two well-
integrated markets, are quite similar: as of January 2009 the two markets were merged
with the creation of the French-German common market EPEX.
(EEX =European Energy Exchanges Germany; NordPool=Sweden, Norway,

Denmark, Finland Integrated Market)
Fig. 5-28 Average electricity prices 2008 (source: Thompson Reuters)

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In the EU Member States for the South-East Europe, power markets exist in Slovenia
(BORZEN power exchange) and Romania (OPCOM, the Romania Power Market
Operator). Nevertheless, these markets are still characterised by a quite low liquidity. At a
regional level, there are difficulties on the creation of an effective energy market in South
East Europe.
5.9.1.2 Status and roles of System Operators

One of the main requirements introduced by the Directive 2009/72/EC is the unbundling
of the TSO and the DSO from generation and supply.
In order to meet the objectives of the European energy policy, the transmission grid must
be developed while maximizing the security of supply and minimizing the total cost for
customers (from generation to retail). Grid development is influenced by two interrelated
parameters: consumption and generation. Whilst consumption is expected to follow a
rather low growth rate as a result of improved energy efficiency, generation is affected by
major changes resulting from the development of renewable energy sources and the
renewal of the oldest thermal plants.
The entity responsible for the definition of new projects related to the grid development is
the Transmission System Operator. The entity is defined in the Directive 2009/72/EC [1]
and in the UCTE (now ENTSO-E/SCR) Operational Handbook [22] as follows:
EC Directive 2009/72/EC: Art. 2, par. 4: transmission system operator means a natural

or legal person responsible for operating, ensuring the maintenance of and, if necessary,
developing the transmission system in a given area and, where applicable, its
interconnections with other systems, and for ensuring the long-term ability of the system
to meet reasonable demands for the transmission of electricity.
ENTSO-E: Operational Handbook-Glossary: a Transmission System Operator is a

company that is responsible for operating, maintaining and developing the transmission
system for a control area and its interconnections.
Transmission System Operators (TSOs) have two objectives: maximising the security of
supply and integrating the market in order to allow an efficient use of the generation and
by this way minimise total costs. One of the most important characteristics of a TSO is its
independence from supply and generation interests (Directive 2009/72/EC):
Under ownership unbundling, to ensure full independence of network operation from

supply and generation interests and to prevent exchanges of any confidential information,
the same person should not be a member of the managing boards of both a transmission
system operator or a transmission system and an undertaking performing any of the

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functions of generation or supply. For the same reason, the same person should not be
entitled to appoint members of the managing boards of a transmission system operator or
a transmission system and to exercise control or any right over a generation or supply
undertaking (preliminary statements of the Directive, comma 15).
With reference to Directive 2009/72/EC, each TSO is responsible for (article 12):
ensuring the long-term ability of the system to meet reasonable demands for the
transmission of electricity, operating, maintaining and developing under economic
conditions secure, reliable and efficient transmission systems with due regard to
the environment;
ensuring adequate means to meet service obligations;
contributing to security of supply through adequate transmission capacity and
system reliability;
managing electricity flows on the system, taking into account exchanges with
other interconnected systems;
providing to the operator of any other system with which its system is
interconnected sufficient information to ensure the secure and efficient operation;
coordinated development and interoperability of the interconnected system;
ensuring non-discrimination as between system users or classes of system users,
particularly in favour of its related undertakings;
providing system users with the information they need for efficient access to the
system.
Moreover, with reference to Directive 2009/714/EC each TSO shall:
create network codes for providing and managing effective and transparent
access to the transmission networks across borders;
cooperate at Community level through the ENTSO for Electricity, in order to
promote the completion and functioning of the internal market in electricity and
cross-border trade and to ensure the optimal management, coordinated operation
and sound technical evolution of the European electricity transmission network;
promote operational arrangements in order to ensure the optimum management
of the network and shall promote the development of energy exchanges, the
coordinated allocation of cross-border capacity through non-discriminatory
market-based solutions;
put in place coordination and information exchange mechanisms to ensure the
security of the networks in the context of congestion management.

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Actually, the Third Liberalisation Package52 introduces some specific exceptions (ITO and
ISO) on the unbundling between GenCos and TSOs.
In fact, the new Directive permits a second alternative option to ownership unbundling.
Vertically integrated energy companies have to hand over all the functions of a network
operator to another entirely separate company or entity if they wish to maintain ownership
of their physical network assets. This is called an independent system operator (ISO).
A third alternative (Independent Transmission Operator or ITO) allows vertically

integrated energy companies to retain ownership of electricity networks if they completely
separate management thereof in an independent transmission operator (also owned by
the vertically integrated company). The ITOs operational independence and complete
separation from its parent company should be guaranteed by a Supervisory Body
composed of members representing vertically integrated undertaking, third-party
shareholders and transmission system operator representatives. A compliance officer
appointed by the Supervisory Body monitors the implementation of the compliance
programme.
The Directive also states the definition of the Regulator that should create market rules,
incentives and monitor the markets.
5.9.1.3 Provisions for network planning

The future needs for each interconnection are described on the basis of what TSOs
expect according to the hypotheses for load and generation development (e.g.,
interconnections which are expected to be congested in the future). Those needs have
been assessed either by each TSO individually or through bilateral grid studies. These
analyses are based on forecast of the load, the generation development and the market
behaviour used in the Transmission Development Plan of each TSO.
The provisions of Directive 2009/72/EC involving network planning can be summarised as

follow:
Every year, transmission system operators shall submit to the regulatory authority
a ten-year network development plan based on existing and forecast supply and
demand after having consulted all the relevant stakeholders. That network
development plan shall contain efficient measures in order to guarantee the
adequacy of the system and the security of supply.
The ten-year network development plan shall in particular:
52
The first European Directive on Internal Market in Europe was issued in December 1996:
Directive 92/96/EC.

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o indicate to market participants the main transmission infrastructure that

needs to be built or upgraded over the next ten years;
o contain all the investments already decided and identify new investments
which have to be executed in the next three years; and
o provide for a time frame for all investment projects.
When elaborating the ten-year network development plan, the transmission

system operator shall make reasonable assumptions about the evolution of the
generation, supply, consumption and exchanges with other countries, taking into
account investment plans for regional and Community-wide networks.
The transmission system operator shall provide the investors with all information
needed to realise the investment, shall connect new assets to the transmission
network and shall generally make its best efforts to facilitate the implementation of
the investment project.
5.9.1.4 Provisions for generation expansion

This sector, as well as that of energy supply, is a liberalized market. However, since the
commissioning of new generation capacity requires a long period of time (few years), an
assessment of the additional generation needed to warrant the adequacy standards of
the energy supply is carried out by the TSOs, who periodically issue a report on System
Adequacy Forecast [11]. This assessment is of utmost importance to anticipate a
possible lack of new capacity in the coming years on the basis of the available
information on requests of connection of new generating units.
From the regulatory point of view, the Directive 2009/72/EC sets provisions for both the
authorization procedure and the tendering for new capacity in order to ensure fair
conditions for all the investors. The key concepts of the EC Directive are the following:
Authorization procedure
For the construction of new generating capacity, Member States shall adopt an
authorisation procedure, which shall be conducted in accordance with objective,
transparent and non-discriminatory criteria.
Member States shall lay down the criteria for the grant of authorisations for the
construction of generating capacity in their territory. In determining appropriate
criteria, Member States shall consider, on the other hand,
o the contribution of the generating capacity to meeting the overall
Community target of at least a 20 % share of energy from renewable
sources in the Communitys gross final consumption of energy in 2020
referred to in Article 3(1) of Directive 2009/28/EC of the European

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Parliament and of the Council of 23 April 2009 on the promotion of the use
of energy from renewable sources, and
o the contribution of generating capacity to reducing emissions.
The authorisation procedures and criteria shall be made public. Applicants shall
be informed of the reasons for any refusal to grant an authorisation. Those
reasons shall be objective, non-discriminatory, well-founded and duly
substantiated. Appeal procedures shall be made available to the applicant.
Tendering for new capacity
Member States shall ensure the possibility, in the interests of security of supply, of
providing for new capacity or energy efficiency/demand-side management
measures through a tendering procedure or any procedure equivalent in terms of
transparency and non-discrimination, on the basis of published criteria. Those
procedures may, however, be launched only where, on the basis of the
authorisation procedure, the generating capacity to be built or the energy
efficiency/demand-side management measures to be taken are insufficient
to ensure security of supply.
Member States shall designate an authority or a public or private body

independent from electricity generation, transmission, distribution and supply
activities, which may be a regulatory authority to be responsible for the
organisation, monitoring and control of the tendering procedure.
5.9.2 Western Balkan Countries
5.9.2.1 Power market

In the Western Balkan Countries energy transactions are based only on physical bilateral
contracts without any clear electricity price signals: OTC (Over The Counter) transactions.
In many situations, the system operator acts also as single buyer purchasing all the
produced energy and reselling it to the distributors and the customers connected to the
transmission grid.
The market will be fully opened by the year 2015 according to the provisions of the
ECSEE Treaty [17]. Hence, nowadays the theoretical market opening doesnt exceed
50%, though, in many cases, the degree of real market opening is zero, since the
regulated tariffs dont provide any incentive to switch to the free electricity market. At
present, the only project to introduce a power exchange has been launched by Serbia:
SERPEX, a day-ahead physical market.

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5.9.2.2 System Operator

A formal unbundling of System Operators from the generation, distribution and trading
sector achieved in most of the countries: Croatia, Serbia, FYROM and Albania and
Montenegro. The situation is more complicated in Bosnia-Herzegovina with three System
Operators (Fig. 5-29) reflecting the existing political barriers between the Srpska
Republika (Elektroprivreda Republike Srpske) and the Federation of Bosnia and
Herzegovina (Elektroprivreda Bosne I Hercegovine and Elektroprivreda Hrvastke
Zajednice Herzegovine).
In most of the countries, the System Operator acts also as market operator and single
buyer.
Fig. 5-29 - Area of influence of the three TSO of Bosnia-Herzegovina
5.9.3 Turkey
5.9.3.1 Power market

In Turkey the electricity market is based on voluntary bilateral contracts with residual
balancing pool. The main rules of the market have been fixed by the Electricity Law no.
4628 (enacted in 2001). EMRA (the Energy Market Regulatory Authority) grants licenses
for generation, auto-producers, transmission, distribution and wholesale and retail sale in
accordance with the other laws in force (licenses are issued for a period of 49 years, with
a minimum term for generation, transmission and distribution licenses of 10 years).

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The transmission company TEIAS acts as the system and market operator. Eligibility
threshold is set by the EMRA (6 million kWh in 2006). In 2007, market opening is
calculated as about 39% with an eligibility threshold of 3 million of kWh. The Electricity
Sector Reform and Privatization Strategy Paper envisages the full market opening by
2011. As of March 2007, 344 new private generation facilities (74 auto producers) and 23
private wholesale licenses were granted.
5.9.3.2 System Operator

The Turkish System Operator (TEAIS) is fully unbundled from the generation, distribution
and trading sector. The management of the regulated assets (transmission equipment) is
made by TEIAS with incomes deriving from network tariffs approved by the Energy
Regulator (EMRA).
5.10 References of NMC System Operators
Country Name Web Address

Portugal REN http://www.ren.pt/
Spain REE http://www.ree.es/
France RTE http://www.rte-france.com/
Italy TERNA http://www.terna.it
Slovenia ELES http://www.tso.eles.si/
Croatia HEP http://www.hep.hr/
EPSR http://www.ers.ba/
BiH EPBH http://www.elektroprivreda.ba/np/ep/epp
EPHZBH ----
EMS - Elektromrea www.ems.rs
Serbia
Srbije (Serbia)
Montenegro EPCG www.epcg.co.me
FYROM MEPSO www.mepso.com.mk
Albania OST www.ost.com.al
DESMIE-ISO http://www.desmie.gr/
Greece
PCC-TSO http://www.dei.gr
Bulgaria NEK http://www.nek.bg/
Turkey TEIAS http://www.teias.gov.tr/

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6 TASK 4: SYNTHESIS OF THE OVERVIEW
The power systems around the Mediterranean basin are spread over 24 countries. These
are (in clockwise direction):
Northern Mediterranean Countries (NMC): Portugal, Spain France, Italy, Slovenia,

Croatia, Bosnia-Herzegovina, Montenegro, Serbia, the Former Yugoslav Republic
of Macedonia (FYROM), Albania, Greece, Bulgaria, Turkey
Eastern Mediterranean Countries: Syria, Lebanon, Israel, the Palestinian

Territories, Jordan,
Southern Mediterranean Countries: Egypt, Libya, Tunisia, Algeria, Morocco.
The 24 Mediterranean countries have a total population of more than 484 million of
inhabitants distributed across the three continents with a total GDP of 9,213 billion US$53
and an electrical consumption of 1,836.5 TWh in the year 2008.
Some of the above countries (Serbia, FYROM, Bulgaria, Jordan and Portugal), although
not having shores with the Mediterranean Sea, play a non-negligible role in the closure of
the MEDRING and the electricity flows. Thus, they have are taken into account in the
analyses.
As a matter of fact, the NMC, with the exception of Turkey, are strongly interconnected
with all the countries of Central Europe and operated with common rules in the framework
of ENTSO-E/SCR (the European Network of Transmission System Operators for
Electricity / Synchronous Continental Region). Albania, though in synchronism with
ENTSO-E/SCR, is not a member of the association.
Thus, the closure of the Mediterranean electricity ring, either in AC or DC mode, will give
origin to an interconnected system spreading in longitude from 15W (Western Morocco)
to 45E (Eastern Turkey) and in latitude from 57N (Denmark) to 22N (South Egypt) (see
the map in Fig. 6-1).
Moreover, several DC submarine interconnections link the continental European

transmission system with the rest of Scandinavia and Finland (ENTSO-E/NORDEL pool),
allowing remarkable power exchanges between the Nordic European Countries and the
Continental European pool (11.5 TWh from North to South and 4.1 TWh from South to
53
Exchange rate referred to the year 2008 equal to 1 = 1.471 US$, as published in the IMF
World Economic Outlook Database October 2009.
Country Gross Domestic Products (GDP) are referred to the year 2008 at price 2008 as
published by IMF World Economic Outlook Database October 2009.

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North in 2007). Consequently, at present, power exchanges are theoretically already

possible from Scandinavia to the Western Maghreb (Morocco, Algeria and Tunisia).
Fig. 6-1 The area of the Mediterranean basin
GDP and electrical consumption

The countries of the Mediterranean region are quite heterogeneous in terms of
population, per capita GDP, electrical consumption and per capita electrical consumption
and can be roughly divided into five geographical clusters. The key figures for each
cluster are summarized below:
NWM the North West Mediterranean region includes Portugal, Spain, France
and Italy. With a population of 177 million inhabitants, a total GDP of 7,027 billion
US$ and an electrical consumption of 1,155.2 TWh, this region presents the
highest per capita GDP (39,558 US$) and consumption (6,495 kWh) in the
Mediterranean basin.
SEE the South East Europe region is composed by Slovenia, Croatia, Bosnia
& Herzegovina, Serbia, Montenegro, Albania, Greece, FYROM and Bulgaria. This
region is characterised by an overall population of about 42 million inhabitants and
a relatively low per capita GDP per (except for Slovenia and Greece that have a
per capita GDP higher than that of Portugal). The total annual GDP is 627 billion
US$, corresponding to an annual per capita GDP of 14,937 US. The total
electrical consumption of 191.4 TWh corresponds to a per capita consumption of
4,577 kWh.

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We remark that the total consumption of SEE is much lower than that of NWM
bloc and even the single NWM countries. Furthermore, the countries of the SEE
region are characterised by quite large differences in GDP and per capita
consumption.
Turkey, having about 70 million of inhabitants, is characterised by the following

key data: a GDP of 730 billion US$54, corresponding to a per capita GDP of
10,472 US$, and a total electrical consumption of 198.1 TWh, corresponding to an
annual per capita consumption of 2,842 kWh. The total consumption in Turkey is
comparable with the overall consumption of SEE, but with a much lower per capita
consumption.
EM the East Mediterranean region is composed of Syria, Lebanon, Israel, the

Palestinian Territories and Jordan. With 37.5 million inhabitants, these countries
have a population comparable to that of South East Europe. Yet, the EM countries
have a higher population growth rate. They and show a lower GDP per capita
(except for Israel) compared to most of the EU Member States in the
Mediterranean region. The total GDP amounts to 286 billion US$ 55, out of which
70.6 % are produced by Israel. This corresponds to a per capita GDP in the region
of 3,432 US$. The total electricity consumption is about 102.3 TWh, out of which
about 50% is consumed in Israel. This yields a per capita consumption in the
region of 2,729 kWh. A wide gap exists between the average per capita
consumption in Israel (6,770 kWh) and that of the regions other countries
(1,735 kWh).
SM the South Mediterranean region is formed by Egypt, Libya, Tunisia, Algeria

and Morocco. The total population is 158 million producing a GDP of 542 billion
US$ and having a total electricity consumption of 189.5 TWh. This corresponds to
average per capita values of 3432 US$ for the GDP and an average per capita
electricity consumption of 1,200 kWh. The region is characterised by countries
showing large differences in their population and electricity consumption.
Particularly, note that Egypt has a population far exceeding that of all the other
North African countries together, while having the lowest per capita GDP in the
region. On the contrary, Libya has the highest per capita GDP in the region with a
value of more than 16,000 US$. This is also reflected by the highest per capita
electricity consumption with more than 3,000 kWh annually. In the region, more
than 50% of the total consumption of this area is due to Egypt.
54
Billion US$ per year
55
Data doesnt include PNA

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Expected trends of consumption and peak load

Besides a gap in the consumption level between Northern Mediterranean Countries
(NMC) and most of the Southern and Eastern Mediterranean Countries (SEMC), quite
remarkable differences exist concerning the growth rate of consumption. According to the
estimations of ENTSO-E/SCR [11], based on national growth rate forecasts and recorded
national consumptions, an average annual growth rate of 1.6% is expected for the next
decade. However, the growth rate is not uniform across the European countries; the
highest growth rates are expected in the eastern and southern ENTSO-E/SCR countries,
especially in Bulgaria, Croatia, Slovenia and Greece with more than 2.5%. A very
moderate growth rate is foreseen in France with less than 1.5%.
Concerning peak load,the forecasts are carried out for three points in time with reference
to selected operational conditions representing the ENTSO-E/SCR synchronous load
under standard weather conditions. The time points chosen are the third Wednesday of
January at 11:00 and 19:00, as well as the third Wednesday of July at 11:00. The load at
the January 19:00 reference point is expected to increase faster than the total
consumption (1.8% vs. 1.6%) up to the year 2010. Peak load growth at this reference
point is then expected to slow down to 1.6% as a result of improved load management
and price elasticity. The South of Europe is expected to witness the strongest load growth
rate for the January 11:00 reference point with a value of 3%. The highest increase is
expected in the following countries: Croatia with 3.7%, Bosnia-Herzegovina with 3.4%,
Greece with+3.1% and Spain with 3.0%.
Turkey and Albania are expected to show a trend different from the other NMC. In
Turkey, a remarkable annual growth rate equal to 7.5% is forecasted both for the
consumption and the yearly peak load for the period of 2010 to 2017. For Albania, the
most recent estimations show an average growth rate of 4.8% annually during the period
of 2008 to 2020 for both consumption and peak load.
The SEMC have high growth rates for both consumption and peak load. Consumption is
foreseen to grow at a rate in the range between 4% (Israel and Lebanon) and slightly
below 7% (Libya and Morocco). Similar growth rates are also expected for peak loads.
The consumption and peak load growth (data provided by AUPDTE) seems to be based
on a business as usual scenario. A more moderate consumption growth could be
foreseen or encouraged if energy efficiency measures were adopted. In addition,
introducing appropriate DSM measures favouring the reduction of the demand during
peak hours could smooth the growth of peak loads.
Generation mix
The NMC are characterised by a heterogeneous generation mix, while the SEMC present
a more uniform picture. Generation is mainly based on gas with the exception of Morocco
and Israel (imported coal). Hydropower resources are available only in Egypt and, in a

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much smaller quantity, in Syria. In the other SEMC hydro power plants, when existent,
have a marginal role in the countrys power supply. The differences generation mix
between the NMC countries give rise to gaps in the electricity prices on the various power
markets. This is one driving factor towards higher cross-border energy exchanges.
Moreover, in the North Western Mediterranean Countries (Portugal, Spain, France and
Italy) a significant part of the installed capacity is based on RES, mostly wind farms, as
can be seen in Fig. 6-2. The increasing penetration of non-dispatchable RES generation
is a further driver towards enhanced cross-border NTC to cope with the intermittency of
generation.
At present, Spain is already facing severe problems to evacuate the available wind power
generation during low load hours due to the very limited NTC from Spain to France -
besides other internal restrictions in Spain. The forced reduction of wind power
generation in Spain might become a frequent event in the short term, i.e., in the next four
years. Given the present trend of wind farm installations, a forced loss of wind generation
of about 1 TWh in a normal wind year is expected.
Fig. 6-2 Installed capacity in the North West Mediterranean area
In SEE and Turkey, RES generation except hydro, gives a marginal contribution to the
power supply. In the Southern and Eastern Mediterranean region a very limited amount of
RES generation is currently available only in Egypt (wind and solar), Tunisia (wind) and
Morocco (wind). The contribution to the power supply is negligible: 0.8 TWh in Egypt,
0.04 TWh in Tunisia and 0.3 TWh in Morocco.

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A possible significant penetration of RES generation in the area, particularly in the

framework of the Mediterranean Solar Plan, shall be accompanied by a strengthening of
the transmission grid, both internally to each country and at the borders, together with
enhanced balancing capability to cope with the intermittency of RES generation.
Power pools
The power systems of the countries around the Mediterranean basin are currently
operated in four separate asynchronous blocs:
The Northern Mediterranean countries are synchronously interconnected within

ENTSO-E/SCR, which, since 1997, is interconnected with Morocco, Algeria and
Tunisia after the first Morocco-Spain submarine interconnection was
commissioned.
Turkey, which officially requested a connection to the ENTSO-E/SCR in 2000. The

Turkish system has undergone intensive improvements in order to align it with
ENTSO-E/SCR standards. This was expected to be completed by mid 2009. A
trial for synchronous connection might be conducted in 2010. Depending on the
outcome of the trials, a decision will be made in favour of either synchronous or
asynchronous connection.
The Mashreq-Libya pool, referred to as the Eight Countries Interconnection is

composed of: Libya, Egypt, Jordan, Lebanon, Syria, Saudi Arabia, Palestinian
Territories, and Iraq.
Israel and Palestinian Territories.
Note that at present Lebanon is still disconnected from Syria, and the two existing 220 kV
and 66 kV OHL feed only local loads in Lebanon in islanded operation mode. When the
new Syria-Lebanon 400 kV line will be commissioned in 2010, the whole power system of
Lebanon will be synchronised with the Mashreq-Libya pool.

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Fig. 6-3 Euro-Mediterranean synchronous power pools
Transmission system
The transmission system of the Mediterranean countries is based on several voltage
levels:
- EHV: 500 kV (only in Egypt), 400 kV and 220 kV in almost all the other countries;
- HV: 161 kV (Israel only); 154 kV (only in Turkey); 150 kV; 132 kV; 110 kV and 90
kV.
It is worth mentioning that between some power pools transmission lines have already
been erected. Some of them are being operated, yet in islanded operation mode. The
respective lines are:
- ENTSO-E/SCR-Western Maghreb pool / Libya-Mashreq pool: two 220 kV lines

have been completed in 2002. The Abou Khamesh-Medine (double circuit) and the
Rowis-Tataouine (single circuit) line. These lines are out of operation due to
technical problems with synchronising the two pools;
- Libya-Mashreq pool / Turkey: one 400 kV line, Aleppo-Birecik (single circuit), has
been completed in 2007 and is now in operation to supply power to Syria from

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Turkey. The generating units in Turkey are disconnected from the rest of the
Turkish system;
- Turkey / ENTSO-E/SCR pool: three 400 kV lines exist, interconnecting Turkey with
Bulgaria (Hamitabat-Maritsa 3 and Babaeski-Maritsa 3, both single circuit) and with
Greece (Babaeski-Nea Santa-Filippi, single circuit up to Nea Santa and double
circuit from Nea Santa to Filippi). These lines are operated for local exchanges of
energy in islanded operation mode.
- Palestinian Territories - Jordan: one line at 132 kV exists connecting Jericho to

Suweimeh. However, this line is operated at 30 kV to feed load in Jericho in
islanded operation mode.
From the above situation it can be concluded that the construction of cross-border lines
connecting different power pools is not sufficient for successful synchronisation. A series
of further requirements involving all the interconnected parties needs to be fulfilled.
Energy exchanges
The NMC have much stronger interconnections, and consequently higher NTC compared
to the SEMC. NMC are characterised by remarkable energy exchanges due to cross-
border trading and, more recently, generation fluctuations due to non-dispatchable RES
generation.
In the year 2008, the physical energy exchanges in the ENTSO-E/SCR reached 335
TWh, which is equivalent to 13% of the internal consumption. The cross-border trading
has steadily increased in the last decade following the liberalisation of electricity markets
(Fig. 6-4). More recently, energy exchanges are growing more slowly, owing to the
saturation of the interconnection lines.

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Starting of the liberalisation of

electricity markets
saturation of cross-
border infrastructures,
commissioning of new
power plants in markets
showing high energy
prices, .
Consequence of the
events occurred in
2003,
Fig. 6-4 Physical energy exchanges in ENTSO-E/SCR (former UCTE) in TWh

(source: ENTSO-E)
Fig. 6-5 shows the physical energy exchanges in ENTSO-E/SCR in the year 2008. Heavy
cross-border flows across quite a lot of cut-sets are observed, creating congestion and
consequent power market fragmentation. Congestion occurs:
across the borders of importing countries (e.g., Portugal, Italy);

in countries affected by power wheeling (e.g., Switzerland, Belgium, Poland and the
Czech Republic).
Congestion is also caused by wind power, as in the case of the connections between
Spain and France, Denmark and Germany, as well as Germany and Poland.
On the contrary, SEMC are characterized by low or very low NTC preventing the
development of free cross-border energy transactions. NTC in the SEMC are in the range
of 150 MW to 450 MW, with the exception of the border between Morocco and Spain (700
MW in both directions). Fig. 6-6 shows the physical energy exchanges recorded in 2008.
The total exchanges were 7 TWh, of which 4.2 TWh were from Spain to Morocco. The
exchange from Spain to Morocco is based on bilateral agreements and the purchase of
energy on the Iberian spot market (MIBEL). Across some borders, as in the case of Syria
and Lebanon, as well as Turkey and Syria, the exchanges take place in islanded
operation mode.

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Fig. 6-5 Physical cross-border energy flows in ENTSO-E in 2008 in GWh

(source: ENTSO-E)
Energy exchanges in the SEMC did not increase structurally in the last years. Exchanges
were less than 5 TWh in 2000, with 2.3 TWh accounted for by the trade between Spain
and Morocco. The increase of energy exchanges in the region is predominantly driven by
higher exchanges between Spain and Morocco, following the commissioning of a second
submarine cable under the Strait of Gibraltar. This example shows clearly the
relationships between the strengthening of cross-border infrastructures and the increase
in electricity trading.
Power markets
The NMC which are EU Member States have achieved the full opening of their electricity
markets and a shared mechanism for capacity allocation, congestion management, and
an inter-TSO compensation is in place. Network access is regulated on the basis of
transparent and non-discriminatory principles. The new EC Regulation for the electricity
market [1] and the conditions for access to the network for cross-border exchanges [2]
have been issued in July 2009 within the framework of the third liberalization package.

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Total energy exchanges

less than 7 TWh
Fig. 6-6 Physical energy exchanges in the SEMC in 2008 in GWh
The NMC which are EU non-Member States (Croatia, Bosnia-Herzegovina, Montenegro,

Serbia, Albania and FYROM) are have made progress towards the opening of their
electricity markets in accordance with the provisions of the Energy Community of South
East Europe (ECSEE) Treaty. The timetable for implementation of the treaty is as follows:
- implementation of the two EU energy market Directives (electricity and gas) and
the Regulation on cross-border network access starting from 1 July 2007;
- liberalisation of the market for all non-household customers starting from

1 January 2008,
- liberalisation of the market for all customers starting from 1 January 2015.
At present, Turkey has observer status in the ECSEE.
An overview of the electricity market in Europe is given in Fig. 6-7. In particular, among
the EU Member States in the North Mediterranean region, well-developed power
exchange markets often coexist with bilateral contracts. Exchanges are present in:
- Spain and Portugal: MIBEL (Mercado Ibrico de Electricitade), the Iberian Electricity
Market that constitutes a joint initiative from the Governments of Portugal and Spain,
and it is an example of national markets integration,
- France: EPEX (European spot Power Exchange), a power market integrated with
Germany, Switzerland and Austria, and coupled with BelPex (Belgian Power
Exchange - Belgium) and Apex (Amsterdam Power Exchange - the Netherlands),
- Italy: IPEX (Italian Power Exchange), managed by GME (Gestore del Mercato
Elettrico), the Italian market operator.

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Fig. 6-7 - Overview of the electricity market in Europe

(source: EMS, the Serbian TSO and market operator)
In Turkey, unbundling of the electricity sector has been performed. Now the transmission
company TEIAS acts as a system and market operator. The electricity market is based on
voluntary bilateral contracts with a residual balancing pool. The eligibility threshold is set
by the regulator (EMRA). Market opening is calculated to be approximately 39% with an
eligibility threshold of 3 TWh in 2007.
In the SEMC, the electricity market status is remarkably different. In some countries the
electricity sector is managed by vertically integrated utilities (Syria, Lebanon, Israel,
Libya, Tunisia, and Morocco). In other countries the formal unbundling between the
generation, transmission and distribution sectors has been achieved (Jordan, Palestinian
Territories, Egypt, and Algeria). Private investments in generation are possible in almost
all the SEMC.
Algeria has progressed faster towards the creation of a power exchange: the electricity
law for the liberalisation of the electricity market was approved in February 2002 and the
market design of the Algerian power exchange was defined in 2007.
A major obstacle for the creation and development of regional electricity trading is the
lack of shared rules on capacity allocation, congestion management and inter-TSO
compensation mechanisms. The setting up of shared rules on the above issues is a
mandatory prerequisite for the free trading both between SEMC and with the NMC.
Energy and carbon intensity and targets for CO2 reduction

It is well-known that in the framework of the new European energy policy, launched in
March 2007 and subsequently confirmed in the Energy Policy Plan in November 2008,

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the EU set firm commitments with regard to greenhouse gas (GHG) emissions. Three
main targets have been established:
30% reduction of greenhouse gases (GHG) emissions in 2020 compared to 1990,

provided that all developed countries commit themselves in comparable emission
reductions. Otherwise the EU commitment targets a 20% reduction of GHG
emissions;
20% savings in energy consumption compared to baseline projections for 2020;
20% of the primary energy derived from RES by the year 2020.
At present, no targets for CO2 emissions reduction or for a minimum share of RES
generation exist in the SEMC. However, RES targets exist in almost all the SEMC. Some
SEMC have approved regulations or laws to improve energy efficiency. However, the
relevant provisions are generally not applied yet.
Two indicators are particularly important for characterising the electricity sector in the
Mediterranean Countries. The first one is the electricity intensity. It is defined as the ratio
between the countrys electricity consumption and its and is expressed in kWh/US$. The
second one is the carbon intensity. It is defined as the ratio between the CO2 emissions
and the amount of electricity generated. By considering the carbon intensity with respect
to the amount of energy generated only in units supplied with fossil fuels (gas, oil and
coal), one obtains a more accurate picture of the efficiency of a countries generation
endowment. Otherwise the figures might be strongly distorted as a consequence of the
countries generation mix.
The tables below show the electricity intensity of the Mediterranean countries. Note the
clear difference between the North West Mediterranean countries, having an electricity
intensity less or equal to 0.2, and countries in SEE, like BiH, Montenegro and FYROM,
with values above 0.9. This can indicate a poor efficiency in electricity consumption. As
for the SEMC, note the gap between the EMC plus Egypt, having a large value of
electricity intensity, and the other four SMC, having electricity intensity values in the range
0.2-0.3 kWh/US$. The electricity intensity of these latter countries (Morocco, Algeria,
Tunisia and Libya) is substantially in line with that of the North-Western Mediterranean
Countries. The same also is true for Israel.

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Table 6-1 Electricity Intensity in the NMC in 2008

Electricity Intensity (Consumption/GDP) [kWh/US$] - 2008
Portugal 0.213 Serbia 0.779
Spain 0.164 Montenegro 0.945
France 0.172 FYROM 0.903
Italy 0.147 Albania 0.486
Slovenia 0.232 Greece 0.157
Croatia 0.258 Bulgaria 0.690
BiH 0.945 Turkey 0.271
Table 6-2 Electricity Intensity in the SEMC in 2008

Electricity Intensity (Consumption/GDP) [kWh/US$] 2008
Syria 0.500 Egypt 0.655
(*)
Lebanon 0.324 Libya 0.205
OPT --- Tunisia 0.290
Israel 0.247 Algeria 0.204
Jordan 0.542 Morocco 0.244
(*)
The calculation doesnt take into account the local generation not under the monitoring
system of EDL.
The following table displays the carbon intensity for the NMC56. Note the large
differences in carbon intensity between the European countries. Countries using mainly
coal have a high carbon intensity (Greece, Bulgaria and to some extent Portugal and
Spain), while countries where thermal generation is mainly based on gas show a low
value of carbon emissions (Italy). Besides its widespread use of gas, Italy is characterised
by a very high efficiency of its thermal units.
A better integration of the power system would allow a lowering of the carbon intensity
towards an average value lower than the mere weighted arithmetic average of the
national CO2 emissions, as a result of a better overall system efficiency. The
reinforcement of interconnections permits an optimal usage of highly efficient, low
emission generation resources. The need to fulfil the binding targets for CO 2 emissions,
set out by the European Commissions RES Directive, can be seen as one of the key
drivers towards an enhancement of the NTC both within the EU and between the EU and
other countries.
56
This indicator is not available for the SEMC.

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Table 6-3 Carbon intensity in 2006

Carbon Intensity (kg of CO2 emission/MWh) - 2006
Country Carbon intensity referred to
Carbon intensity referred to the
the thermal gross
total gross production
production
Portugal 687 484
Spain 636 395
France 681 71
Italy 581 485
Slovenia 876 348
Greece 805 694
Bulgaria 877 418
Turkey 594 444
6.1 Key drivers towards new interconnections

Transfer capacities between different power pools can be increased by both, the
reinforcement of existing interconnections or the construction of new ones. The main
drivers for both these measures can be summarized as follows:
a) enhanced security of supply

b) improved technical performance
c) better market integration combined with an increased amount of commercial
exchanges based on bilateral contracts
d) higher penetration of RES and/or more efficient exploitation of the available RES
installations;
e) need for higher exchanges in order to meet CO2 reduction targets and exploiting the
improved efficiency of the overall interconnected system.
These key drivers are common for both the NMC and the SEMC. But although common
key drivers towards new interconnections exist, the different rationales are given different
priorities and weights in the various Mediterranean regions. For instance, market
integration and fostering a higher penetration of RES generation are often the most
important reasons for new cross-border projects in NMC. For the EU Member States the
need to cut CO2 emissions according to the binding GHG emissions targets will play an
increasingly important role in favour of new interconnections.
In SEMC new interconnections, especially those linking still isolated pools, are mainly
driven by the need for an enhanced security of supply and an improved technical
performances, e.g., higher margins of back up capacity.

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Also, the obstacles for the commissioning of new interconnections are different. In the EU
Member States, the main obstacles are related to the environmental impact of the new
infrastructures and the opposition of the affected local population. More and more
frequently, in order to overcome these obstacles, novel and often more costly solutions
are adopted, i.e., alternatives to the classical OHL.
An example of such an unconventional solution is the new interconnection between Spain

and France. It will be realised with HVDC technology and an underground cable forms the
cross-border section. An innovative solution will also be adopted for the new
interconnection between France and Italy. The HVDC cable exploits synergies with
existing infrastructures, such as motorways or the Frjus tunnel running through the Alps.
Other non-conventional solutions, being adopted in Europe, are based on the installation
of Phase Shifter Transformers (PST) to increase the effective capacity of the existing
lines. PST are installed between Spain and France, France and Italy, as well as Italy and
Slovenia. Finally, a further measure to enhance the NTC without building new lines
consists of equipping existing lines with new low-sag high-temperature wires.
Obstacles in the SEMC are sometimes related more to the investment costs of the new
interconnections. In some cases agreement on how to share the investment costs
between the concerned parties is hard to achieve. Nevertheless, strengthening of the
interconnections is particularly urgent in the SEMC since the currently weak transmission
infrastructure is preventing commercial exchanges.
As a matter of fact, commercial exchanges are overlapped by daily power exchanges for
mutual support. Sufficient additional capacity for the trade of electricity, while warranting
the system security, is needed. For instance, although contracts exist that allow Morocco
to purchase electricity from Algeria, the weak NTC at the border of Morocco and Algeria
prevents the commercial energy exchange (except for a very small amount of energy).
Similarly, the Algerian generation companies cannot sell power to Spain at present, owing
to the insufficient transmission capacity (a power flow of 400 MW is foreseen on the basis
of bilateral contracts and participation to the Spanish spot market). This situation is going
to change in the near future after the achievement of the 400 kV corridors from the
Gibraltar Strait into Algeria.

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6.2 Interconnection projects in the Mediterranean Region

In this section, a summary of the current interconnection projects in the Mediterranean
area is given. Information was obtained from the concerned TSOs and utilities. Note that
the projects listed below have different degrees of maturity and some of them are only at
the stage of feasibility studies.
6.2.1 Interconnection projects in the NMC

In Europe the planning of the transmission grid is coordinated within the ENTSO-E
association. To optimise the planning solutions, regional forums have been created. For
the present discussion the outcomes of the regional forums South West, Centre South
and South East are relevant.
Regional Forum South West
Fig. 6-8 South-West Europe interconnection projects (source: ENTSO-E)

Euro-Mediterranean
The information summarized here is based on the status of projects and studies reported
in the ENTSO-E/SCR Transmission Development Plan [15] issued in April 200957,
further details on the interconnection projects listed hereafter can be found in this
document.
Regional Forum Centre South
Fig. 6-9 Centre-South Europe interconnection projects (source: ENTSO-E)
The following projects are currently being coordinated in the regional forum South-West.
The year given in brackets refers to scheduled commissioning. The main reasons for
construction of the interconnection are also provided:
Portugal-Spain (2009/2010): reinforcement of the Duoro interconnection for

market integration;
Portugal-Spain (2011): Portugal-Spain Southern interconnection for market

integration;
57
Country abbreviation according to ENTSO-E rule: AL: Albania, AT: Austria, BG: Bulgaria, CH:
Switzerland, ES: Spain, FR: France, GR: Greece, IT: Italy, ME: Montenegro, MK: FYROM, MT:
Malta, PT: Portugal, RO: Romania, RS: Serbia, SI: Slovenia, TR: Turkey, TU: Tunisia

Euro-Mediterranean
France-Spain (2014 with important delay): constraint on France-Spain border,

market integration, higher penetration of RES generation;
Portugal-Spain (2013/2014): Portugal-Spain Northern interconnection for market

integration.
Project driver: in general, the reinforcements across the Alps address the reduction of
existing congestion and constraints and, consequently, allow a better integration of power
markets in the region.
France-Italy (2011): get higher benefit from existing 220-kV Trinit-Victor (FR)-
Camporosso (IT) interconnection line;
France-Italy (2012): increase of transfer capacity on France Italy border;
Italy-Slovenia (Long term): congestion on Italian Slovenian border, new 380 kV
line;
Italy-Slovenia (2011): congestion on Italian Slovenian border, new 400 kV PST;
Italy-Slovenia (2008): congestion on Italian Slovenian border, new 220 kV PST;
Italy-Austria (2011): congestion on Italian Austrian border, new 220 kV PST;
Italy-Austria (Long term): constraints on Italian Austrian border, new 380 kV line;
Italy-Austria (Long term): increase of transfer capacity on Italian-Austrian border,
new 380 kV GIL58;
Italy-Austria (Long term): constraints on Italian Austrian border, new 220 kV line;
Italy-Austria (2011): constraints on Italian Austrian border, new 110/132 kV line;
Italy-Switzerland (Long term): cross border Italy-Switzerland;
France-Switzerland (long-term): cross border France- Switzerland;
France-Italy (mid-term): increasing transfer capacity on French Italian border.
Different project drivers apply to the following interconnectors:
Italy-Malta (mid-term): interconnection line between Italy and Malta to enhance the
security of supply for Malta and reduce the use of non-efficient generating units in
Malta. This project was granted a funding of 20 M in the framework of the
European Economy Recovery Plan.
Italy-Tunisia (2016): interconnection line between Italy and Tunisia (see par.
6.2.3).
58
GIL: Gas Insulated Line

Euro-Mediterranean
Regional Forum South East
Fig. 6-10 South-East Europe interconnection projects (source: ENTSO-E)
Project driver:
FYROM-Bulgaria (late 2008), FYROM-Albania (2012), Montenegro-Italy (mid-
term): establishing East West Corridor in south-eastern Europe (pan-European
corridor VIII);
Albania-Montenegro (third quarter of 2009): alleviate congestion in the region;
Greece-Turkey (2008): integration of Turkey in the ENTSO-E/SCR pool;
Greece-Bulgaria (2012-2015): enhancing energy exchanges from Bulgaria to
Greece;
Greece-Italy (to be defined): increase of interconnection capacity, enhancement of
security of supply for Greece, possibility of importing energy to Italy from Bulgaria;
Croatia-Italy (Mid Term): create a sub-sea interconnection between Croatia and
Italy for trading of energy between Italy and eastern Europe;
FYROM-Serbia (2011): completion of a North South Corridor in SEE;
Romania-Turkey (2018): SouthEast border, possibility of energy trading between
the two countries.

Euro-Mediterranean
6.2.2 Interconnection projects in the SEMC
As stated above, the main drivers for new interconnection projects in the SEMC are
different from the ones in northern European countries. An enhancement of security of
supply is one of the main drivers of new interconnections in the SEMC as countries with
a low generation margin can overcome critical situations without the need to activate load
shedding measures if a reliable and strong interconnection with neighbouring areas
exists. Better interconnections also yield an improved technical performance, with a
reduction of frequency deviations and interchange power errors. Finally, the will to open
the power systems to international electricity trade is a driving force. In fact, it is
emphasised by SEMC representatives that despite the willingness to exchange electricity
through bilateral contracts, the physical exchanges remain low due to the limited NTC.
Eastern Mediterranean Countries
Fig. 6-11 Eastern Mediterranean interconnection projects

(source: AUPTDE and CESI elaboration)

Euro-Mediterranean
Finally, following the launching of the Mediterranean Solar Plan (MSP), the
interconnections are likely to be progressively used for the sale of green electricity from
the SEMC to Europe. On the basis of the interests stated above, the development of
interconnection projects is following two main directions:
Local reinforcements in the EMC for a better integration among them;
Completion of a strong 400/500 kV transmission backbone from Egypt to

Morocco.
A new 400 kV line between Syria and Lebanon is being built to synchronise the
power system of Lebanon with the rest of Mashreq. This line shall be ready by
April 2010;
The reinforcement of the north-south 400 kV corridor from Syria to Egypt is

foreseen. This entails the doubling of the interconnection line between Syria and
Jordan with an increase of the commercial capacity from 350 to 700 MW and the
doubling of the submarine interconnection between Jordan and Egypt with a new
capacity of 1100 MW. Timing for the commissioning of these reinforcements is not
decided yet.
A new 400 kV line is foreseen between Jordan and the Palestinian Territories
to supply the West Bank with electricity from a new S/S located in Amman West;
Plans exist to supply the Gaza Strip with electricity by means of a new 220 kV line
from El Areesh in Egypt to the Palestinian Territories.
The time schedule for the realisation of the interconnection projects between the
Palestinian Territories and Jordan, as well as the Palestinian Territories and Egypt are
uncertain due to pending of the agreement with Israel.
A 500 kV line between Egypt and Lybia linking Dabaa (Egypt) to Saloum (border)
and Tobrouk (Lybia) with transformation from 500 kV to 400 kV in Tobrouk
(Lybia). The project has not started yet. Yet, GECOL is constructing the 400 kV
corridor from the region of Tripoli to the region of Benghazi.
A 400 kV line shall connect Libya with Tunisia. The region of Tripoli is to be
linked with a new 400 kV S/S in Bouchemma (Tunisia) and a new 400 kV south-
north corridor crossing Tunisia from Bouchemma to Mornaguia shall be realised.
Timing for the realisation of this infrastructure has not been decided upon yet.

Euro-Mediterranean
Southern Mediterranean Countries
Fig. 6-12 Southern Mediterranean interconnection projects

( AUPTDE and CESI elaboration)
The fifth interconnection line between Tunisia and Algeria (Jendouba-El Hadjar
400 kV line), completed at the end of 2005 and initially operated at 220 kV, will be
fully operative in 2010 after having completed the construction of the 400 kV S/S.
This corridor will be integrated with a second 400 kV line linking Jendouba to
Mornaguia in Tunisia.
A new 400 kV double circuit line is being completed between Algeria and
Morocco (Hassi Ameur to Bourdim). The first circuit was commissioned in 2006
and initially operated at 220 kV. Since 29 September 2009 the circuit is fully
operational at 400 kV. The second circuit shall be in operation in February 2010 at
the latest. In parallel, ONE is proceeding with the realisation of the internal 400 kV
corridor (Bourdim-Oualili) from the Algerian border to the Strait of Gibraltar.
6.2.3 South-North HVDC submarine links across the Mediterranean Sea

An overview of the Mediterranean HVDC links (in operation, under construction or
potential projects) is provided in Fig. 6-13.

Euro-Mediterranean
Fig. 6-13 Overview of the Mediterranean HVDC links.
Two HVDC links are presently under construction:
The SAPEI (SArdegna PEninsola Italy) project will reinforce the connection
between Sardinia and continental Italy. The connection will consist of a bipolar link
(500 MW+500 MW). The first pole has been commissioned in July 2009 and the
second one is scheduled to be completed in 2011. The realisation of this
interconnector will enable a full integration of the zonal market area Sardinia with
the rest of the Italian market, eventually yielding a lower national average price of
electricity for consumers. Moreover, the availability of SAPEI will allow a higher
penetration of wind generation in Sardinia. Finally, the link is essential to improve
the security of supply of the island. It sets up a new world record for the marine
depth with a maximum depth of 1600 m. The length of the DC cable is 435 km
and its operating voltage is 500 kV DC. The capital expenditure is 700 Mio. ;
The ROMULUS link will provide a transmission capacity enhancement between
the Balearic Islands and continental Spain. The interconnector will warrant a
better security of supply for the Balearic Islands and reduce CO2 emission by
exploiting more efficient generating units in continental Spain. It consists of a
bipolar connection (200 MW + 200 MW) with a length of 237 km and a maximum
sea depth of 1485. It operates at a voltage level of 250 kV DC. Commissioning
is expected for 2011, the capital expenditure is foreseen to be 375 Mio. .

Euro-Mediterranean
Currently, there are HVDC south-north interconnection projects for links between:
Tunisia-Sicily
Algeria-Sardinia
Algeria-Spain
Libya-Sicily
Note that only the link between Tunisia and Italy is progressing towards its realisation.
This interconnector will be developed in two stages (400500 MW in the first stage and
an additional 500 MW in the second stage). For the second stage to become operational
reinforcement of the Sicilian grid is required. The final configuration will be a bipole at
400 kV DC. The submarine length of the cable is 195 km and the terrestrial length is 30
km. The maximum sea depth is 600 m. The realisation of the project is linked to the
construction of a new power plant in Tunisia (coal or gas fired with a capacity of 1200
MW).
As of January 2010, the tender for the new power plant is expected to be issued in the
following months. A Tunisian-Italian joint-venture (ELMED) has been set up in April 2009
and will manage the process of tendering and contract awarding for the construction of
the new power plant. The interconnector will be operated in the form of a merchant
interconnection with 80% of capacity exempted from TPA and reserved for the investor in
the new power plant. This value is compliant with the Italian Ministerial Decree on
Merchant Lines issued in October 2005 [26].
The access to the remaining capacity is open. This capacity may be eventually used for
trading green energy between the Maghreb and Italy on the basis of Art. 9 of the EC
Directive 2009/28/EC on the promotion of the use of energy from renewable sources [4].
The interconnector is expected to enter in operation in 2016.
As for the other south-north interconnectors, only feasibility studies have been carried out
addressing technical issues, the economical profitability and the environmental
constraints. Note that according to the performed feasibility studies, the main rationale for
these interconnectors lies in the trading of energy towards Europe. The energy is
projected to be produced by gas fired CC units to be installed in North Africa. Hence, the
economic profitability is related to the arbitrage between exporting gas or selling
electricity on the Italian and/or Spanish markets. The feasibility studies did not consider
the possibility of building RES power plants in the Maghreb and selling the generated
energy to Europe.
An overview of the feasibility studies about HVDC links between North Africa and Europe
is given in [25].

Euro-Mediterranean
7 REFERENCES
[1]. Directive 2009/72/EC of the European Parliament and of the Council of 13 July
2009 concerning Common rules for the internal market in electricity and repealing
Directive 2003/54/EC, July 2009, Brussels
[2]. Regulation (EC) no 714/2009 of the European Parliament and of the council of 13
July 2009 on Conditions for access to the network for cross-border exchanges in
electricity and repealing Regulation (EC) No 1228/2003, July 2009, Brussels
[3]. Regulation (EC) no 713/2009 of the European Parliament and of the Council of 13
July 2009 establishing an Agency for the Cooperation of Energy Regulators, July
2009, Brussels
[4]. Directive 2009/28/EC of the European Parliament and of the Council of 23 April
2009 on The promotion of the use of energy from renewable sources and
amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC,
April 2009, Brussels
[5]. ENTSO-E, The European Network of Transmission System Operators of
Electricity, www.entsoe.eu
[6]. Decision No 1364/2006/EC of the European Parliament and of the Council of 6
September 2006 laying down Guidelines for trans-European energy networks and
repealing Decision 96/391/EC and Decision No 1229/2003/EC, September 2006,
Brussels
[7]. ERE ENTI RREGULATOR I ENERGJISE, Annual Report 2008, www.ere.gov.al
[8]. TEIAS, Statistical Database 2007, www.teias.gov.tr
[9]. TEIAS, Turkish Electrical Energy 10-year Generation Capacity Projection (2008-
2017), July 2008, www.teias.gov.tr
[10]. ENTSO-E, Power System Adequacy Report- An Assessment of the
interconnected European Power Systems 2010-2020, prepared by ETSO, UCTE,
UKTSOA, ATSOI, BALTSO and NORDEL TSOs, 1st-July 2008, Brussels, available
on www.entsoe.eu
[11]. ENTSO-E, System Adequacy Forecast 2009-2020, 5th Jan. 2009, Brussels,
available on www.entsoe.eu
[12]. Directive 2001/80/EC of the European Parliament and of the Council of 23 October
2001 on The limitation of emissions of certain pollutants into the air from large
combustion plants, October 2001, Brussels
[13]. European Union, Decision 1364/2006/EC of the European Parliament and the
Council of 6 September 2006 laying down guidelines for trans-European energy
networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC,
September 2006 Brussels,

Euro-Mediterranean
[14]. European Coordinator for the interconnection between France and Spain, Study
Reports, June 2008, available on
http://ec.europa.eu/ten/energy/coordinators/index_en.htm
[15]. ENTSO-E, UCTE Transmission Development Plan, April 2009, Brussels,
available on www.entsoe.eu
[16]. B.Cova, M. de Nigris on behalf of the EC, Analyse des besoins pour une
nouvelle interconnexion entre la France et lEspagne Cahier n. 1 , CESI,
rapport A8007147, Milan, mars 2008, available on:
http://ec.europa.eu/energy/infrastructure/tent_e/coordinators_en.htm
[17]. Treaty Establishing the Energy Community of South-East Europe: ECSEE
Treaty, Athens, October 2005
[18]. Generation adequacy report on the electricity supply demand balance in
France, prepared by RTE, available on www.rte-france.com
[19]. Piano di sviluppo 2009 Nuovi interventi di sviluppo Stato avanzamento Piani
precedenti, prepared by TERNA, available on www.terna.it
[20]. Qualit del servizio di trasmissione livelli attesi della qualit della tensione per
lanno 2009, September 2009, prepared by TERNA, available on www.terna.it
[21]. O. I. Elgerd, Electric Energy Systems Theory An introduction, Second Edition,
Ed. Mc. Grow Hill, 1983
[22]. ENTSO-E/SCR, Operational handbook 2009, www.entsoe.eu
[23]. REE s.a, Tensiones admisibles nudos red, available on:
http://www.ree.es/operacion/procedimientos_operacion.asp
[24]. B.Cova, M.de Nigris, et alii, Etude de faisabilit technico-conomique
dalternatives la ralisation dune ligne trs haute tension entre la France et
lEspagne, CESI Report A2/038822, December 2002
[25]. B. Cova, B. Zecca, F. Abougarad, S. Allagui, L.Colla, M. Rebolini , R. Touileb,
"Linking Europe to Africa through long distance HVDC submarine interconnectors:
methodology applied to the feasibility study and technical challenges to be
overcome, 42th CIGRE general Session 2008, Paris, August 2008
[26]. Ministry of Productive Activities, Decreto recante criteri e modalit per le richieste
di esenzione dalla disciplina che regola il diritto di accesso dei terzi da parte dei
soggetti non titolari di concessioni di trasporto e distribuzione di energia elettrica
che realizzano, a proprio carico, nuove linee elettriche di interconnessione con i
sistemi elettrici di altri Stati, in corrente continua o con tecnologia equivalente,
Ministerial Decree Merchant Line, Rome, 21st October 2005

Euro-Mediterranean
ANNEX-1. TECHNICAL PAPERS FIRST MEDRING STUDY
List of technical papers issued following the execution of the MEDRING study:
P.Scarpellini, Ch. Lematre, J. F. Alonso, A. Koronides, R. Touileb, S. Allagui, F.

Abougarad, M. Awad, A. Hiyasat, K. Homsi, H. Sezer, Analysis of Operation of the
Forthcoming Mediterranean Ring, CIGRE General Session, Paris (France), August
2002
F. Abougarad, S. Allagui, J. F. Alonso, M. Awad, B. Cova, A. Hiyasat, K. Homsi, A.

Koronides, Ch. Lematre, H. Sezer, R. Touileb, Towards the Synchronously
Interconnected Mediterranean Electric System: the main technical challenges to be
overcome for a secure and economical operation, MEDPOWER 2002, Athens
(Greece), November 2002
B. Cova, Interconnection of the Power Systems of the Mediterranean Basin, proc. of

CIGRE Symposium on Development and Operation of Interconnections in a
Restructuring Context, April 2003 (proc. available at central CIGRE offices)
B. Cova, The development of network infrastructures to foster electric energy

markets, First International Colloquium MEDenergie, Algiers (Algeria), October 2003
F. Kharbat, B. Cova, The Role of the Jordanian System within the Mediterranean
Synchronously Interconnected Ring, Jordanian IEEE Conference, Amman (Jordan),
October 2003
B. Cova, Electrical Interconnections in the Mediterranean Basin: towards a single tri-

Continental synchronous system, invited paper at the AUPTDE (Arab Union of
Producers, Transporters and Distributors of Electricity) Conference, Amman (Jordan),
December 2003
B. Cova, Ch. Lematre, J.F. Alonso, I. Daskalakis, R Touileb, S. Allagui, F.

Abougarad, K. Yasien, F. Kharbat, K. Homsi, H. Sezer, T. Labi, Technical
challenges set by the closure of the Mediterranean Ring from the dynamic security
point of view, paper abstract accepted at the CIGRE General Session, Paris, August
2004

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MED-EMIP This project is funded

by the European Union

OVERVIEW OF THE POWER SYSTEMS OF

Final Draft, April 2010

EXECUTIVE SUMMARY .................................................................................................. 3

3 TASK 1: BACKGROUND AND PREVIOUS FINDINGS .......................................... 21

3.1 Background ...................................................................................................... 21

4.1 Consumption, installed capacity and production ............................................... 31

5 TASK 3: OVERVIEW OF THE PRESENT STATUS OF THE ELECTRICITY

5.1 Consumption, installed capacity and production ............................................. 107

6.1 Key drivers towards new interconnections ...................................................... 194

ANNEX-1. TECHNICAL PAPERS FIRST MEDRING STUDY ................................... 207

AC: Alternating Current

BiH: Bosnia and Herzegovina

DC: Direct Current

MEDRING Update: Volume I Overview of Power Systems Page 1/207

MEDRING Update: Volume I Overview of Power Systems Page 2/207

MEDRING Update: Volume I Overview of Power Systems Page 3/207

2. Important overriding policy issues

MEDRING Update: Volume I Overview of Power Systems Page 4/207

3. State of play of closing the Ring

MEDRING Update: Volume I Overview of Power Systems Page 5/207

- A second attempt to synchronise ENTSO-E/Tunisia/Libya will be undertaken in April

- Closure of the Ring in AC mode will be complicated requiring sophisticated defence

MEDRING Update: Volume I Overview of Power Systems Page 6/207

The strategy of announcing ambitious RE power capacity addition programmes without

5. Electricity rate considerations and the financial impact of going solar

MEDRING Update: Volume I Overview of Power Systems Page 7/207

MEDRING Update: Volume I Overview of Power Systems Page 8/207

MEDRING Update: Volume I Overview of Power Systems Page 9/207

analysing in detail the behaviour of the SEMCs electricity system as a whole;

and concluded that:

MEDRING Update: Volume I Overview of Power Systems Page 10/207

In spite of the recommendations made in the MEDRING study, the progress of

ENTSO-E/SCR and Morocco-Algeria-Tunisia;

MEDRING Update: Volume I Overview of Power Systems Page 11/207

MEDRING Update: Volume I Overview of Power Systems Page 12/207

Fig. 1-1 The area of the Mediterranean basin

MEDRING Update: Volume I Overview of Power Systems Page 13/207

Portugal 52.2 10,631 4,908 22,997

Slovenia 12.7 2,013 6,302 27,149

MEDRING Update: Volume I Overview of Power Systems Page 14/207

Turkey the key data of which are:

EM The East Mediterranean area is composed of Syria, Lebanon, Israel, the

Table 1-4 East Mediterranean Countries data

SM The South Mediterranean area is composed of Egypt, Libya, Tunisia,

MEDRING Update: Volume I Overview of Power Systems Page 15/207

South Mediterranean Countries Area

Egypt 106.6 76,000 1,403 2,161

* Source: AUPTDE Statistical Bulletin 2008

MEDRING Update: Volume I Overview of Power Systems Page 16/207

Coherent with its scope, the study consists of four volumes:

Volume I summarizes the situation of the power systems in the 24 countries

Volume II presents an overview of the still remaining technical challenges for

Volume I is divided in four separate tasks:

Task 1: Background and previous findings

Task 2: Overview of the Southern and Eastern Mediterranean part of

Task 3: Overview of the Northern Mediterranean part of the ring, including

MEDRING Update: Volume I Overview of Power Systems Page 17/207

Croatia, Bosnia-Herzegovina, Montenegro, Serbia, FYROM, Albania, Greece,

As for interconnectivity, all the Northern Mediterranean countries are synchronously

Task 4: Synthesis of the overview

This task summarizes the information pertaining to the Northern Mediterranean