In order to meet the forecast electricity demand and Poland’s commitments under the Climate Package, it is necessary to expand the transmission grid. The forecast domestic electricity demand in 2020 will be 191.0 TWh, compared with 2008 electricity consumption of 153.4 TWh (Energy Market Agency’s figures). This means an increase of 24.5% over 11 years.

That period will see a change in the electricity demand structure resulting from the expansion of urban (metropolitan) areas. The required certainty and structure of power supply necessitate an expansion of the transmission and distribution networks, making it necessary to prepare new spatial development plans at province and municipality levels.

The provisions of the Climate Package obligate the EU member states to restructure the generating facilities of their power sector and to substantially increase the share of renewable energy sources (RES) in electricity generation. Those two factors will significantly influence the shape of the transmission grid. The restructuring of the power generating facilities will eliminate inefficient power generating units and those failing to meet environmental protection requirements. Expansion of the transmission grid is a direct consequence of the construction of generating units in new locations. In 2008, PSE Operator received requests for the determination of connection conditions for conventional power generating units of over 23000 MW. In addition to the commitments arising from those considerations, new tasks will have to be assumed arising from the increase of the RES share in total electricity production. At the end of 2008, PSE Operator issued connection conditions for wind farms for a total of 1280 MW, and agreed conditions for another 2502 MW. The low operational stability of wind farms – one of the renewable energy sources – will result in high volatility of power flows, the need to increase the available capacity margin, and the need to change the shape of the transmission grid. Another consideration affecting the shape of the transmission grid is the obligation to develop the cross-border interconnection transmission capacity and the obligation to implement the national energy policy, including power output into the grid from nuclear power plants. The above considerations are provided for in the PSE Operator’s development plan. By 2020, the Company intends to build about 2600 km of extra-high voltage lines.

Last year, PSE Operator spent PLN 974.4 m on investment. These included substations, which resulted in their improved reliability and capability to operate under new conditions (remote supervision, control and monitoring, unmanned operation), consequently ensuring reliable operation of the power system and elimination of threats.

Line upgrade projects have been completed, including the replacement of existing phase conductors with low sag conductors ensuring the elimination of grid constraints by increasing the transmission capacity of lines. This will contribute to an increased operational reliability and the adjustment of technical parameters of lines to the applicable standards and regulations. Additional autotransformers have been installed, which will make it possible to reduce barriers in free electricity trading and the resulting costs, and help to eliminate constraints in the evacuation of power from power plants. This year, PSE Operator is planning to spend about PLN 1 billion on investments. Consequently, the plans provide for about 157.4 km of new 400 kV lines and 346.3 km of optical fibre lines. PSE Operator’s main investment targets will be aimed at:

• increasing the transmission capacity of the PPS through the expansion of the 400 kV grid, replacement of some of the 220 kV grid connections for 400 kV, and increasing the transmission capacity of the existing 220 kV lines,
  
  
• grid expansion around large conurbations (Warsaw, Cracow, Poznań, Wrocław, Szczecin) resulting from a significant increase in electricity demand in those areas, and meeting the power supply reservation criterion as a prerequisite for supply security,
  
  

• improving the operational certainty and reliability of the PPS, and reducing transmission losses,
  

• connecting new electricity generators and customers in compliance with the obligation under the provisions of Article 7 of the Energy Law, including the output of electricity from renewable sources (e.g. wind farms) into the Polish Power System, thereby seeking to establish conditions, as required by the EU legislation, ensuring an increased share of renewable energy in the total electricity production,
  

• implementing the strategic infrastructural project “Poland – Lithuania Power Interconnection”, listed among individual projects under the Operational Programme Infrastructure and Environment 2007-2013 of the Ministry of Regional Development,
  

• strengthening the cross-border interconnections to enable the transmission (transit) of power and electricity,
  

• providing opportunities for the Polish power sector to participate in the European energy market,
  

• carrying out studies aimed at preparing technical and economic analyses, siting and feasibility studies for projects slated for implementation in the years to come.