Ovidiu Demetrescu - Hidro Tarnita SA, prezentare Simpozionul International de Energie Nucleara...

TARNITA – LAPUSTESTI PSHPPa project for

national energy security

2015 Hidro Tarnița S.A. all rights reserved

October 2015

INVESTMENT CONSIDERATIONS

WHY ROMANIA ?- EU member- NATO member- Strong macro indicators- Well qualified work force

WHY Tarnita Lapustesti Pumped Storage ?- Sizeable project – approx. EUR 1 Billion- Romania lacks pumped storage capacities- Location - regional provider of energy security- Mature technology - 99% from total storage ;- Quick NPS balancing- Clean technology;- Good financials

WHY ENERGY SECTOR?- Mature market with room to grow- Access to EU Energy Union - Key sector of economy- Regional leadership role Romania- Regulated sector


PROJECT LOCATION


Balance point and storage point for Wind Farm Energy on the NPS

Relative equal distances from 2 nuclear power plants, Cernavoda in Romania, Pecs in Hungary or Kozlodui in Bulgaria

ROLE AND ADVANTAGES

RenewablesDispatchable consumerBlack startEnergy StorageNPS securitySustainable developmentClean source


ROLE AND ADVANTAGES

Hydroelectric parameters:- NWL upper reservoir, Lapustesti storage 1,086.00 masl - NWL lower reservoir, Tarnita storage 521.50 masl- Mean gross head 564.50 m - Total installed flow in turbine mode 212.00 m3/s- Total installed flow in pump mode 152.00 m3/s - Total installed capacity 4 x 250 MW reversible- Pumping cycle weekly- Energy produced in generator mode 1,649 TWh/year- Energy consumed in pump mode 2,103 TWh/year

Estimated investment cost: 966 mil. EuroEstimated construction period: 5-7 years

*Data from the feasibility study drawn up and updated by ISPH PD SA in 2014.


© 2015 Hidro Tarnița S.A

DESCRIPTION AND MAIN CONSTRUCTIVE CHARACTERISTICS OF THE DEVELOPMENT SCHEME

TECHNICAL DATA - OVERVIEW


MACROECONOMIC INVESTMENT APPROACH


Similar investments opportunity

7% gross dividend yield Electrica shares (2014)

6,28% yield USD 30 years T-bills

5,80% coupon rate for USD 15 years T-bills

5,3% gross dividend yield Fondul Propietatea shares (2014)

8% IRR for equity shares in hydro project (Tarnița – Lăpuștești PSHPP)

Source: Public information and Tarnita Feasibility Study

Good technical solutionProven feasibilityMature TechnologySustainabilityGreen field project

Project bankability

Economic growthespecially on local level

Energy security national security

component

NATIONAL POWER SYSTEM


Coal27%

Oil&Gas23%

Hydro27%

Wind12%

Biomass0%

Solar5%

Geothermal0%

Nuclear6%

Total Installed Capacity (April 2015) – 24.555 MW

CoalOil&GasHydroWindBiomassSolarGeothermalNuclear

Resources Coal Nuclear Hydro Gas Wind & Solar

Challenges Network capacity, increased share of RES Interconnections Energy price Phasing out of existing plants

© 2015 Hidro Tarnița S.A* Source: TRANSELECTRICA S.A.

NATIONAL POWER GRID - CONNECTION

Elements of NPS connection are:

- 400 kV substation- PSP double circuit line 400 kV – Mintia (158 km);- PSP double circuit line 400 kV– Cluj Gădălin (74 km).- 400 kV ring to be closed with Tarnita PSHPP node – investment of Transelectrica S.A.

TOTAL INSTALLED CAPACITY EVOLUTION ON TYPE OF RESOURCES


RENEWABLES DEVELOPMENT


Puterile instalate si disponibile intre anii 2010-2014EOLIAN

0.000

200.000

400.000

600.000

800.000

1000.000

1200.000

1400.000

1600.000

1800.000

2000.000

2200.000

2400.000

2600.000

2800.000

Pi,Pd [MW]

Pi

Wind installed capacity

Puterile instalate si disponibile intre anii 2010-2014FOTOVOLTAIC

050

100150200250300350400450500550600650700750800850900950

10001050110011501200

Pi,Pd [MW]

Pi

Solar installed capacity

INVESTMENTS IN ENERGY FIELD


Foreign direct investment in energy sector 2008 - 2012

Investments evolution on resources 2011 - 2013

ENERGY POLICIES AND STRATEGY


European energy policy OBJECTIVES Competitiveness : Affordable and

competitive prices; Improved energy

efficiency; Promotion of new technologies, growth

and jobs

Security of energy supply: Diversification of energy sources, supply countries and routes;

Grid Stability; Adequate energy infrastructures

Sustainability : Reduction of emissions; Reduction of energy consumption; Development of

alternative energy sources

National energy strategy Keeping a diversified and well balanced energy mix Increasing energy security by new generation units and by using the national potential for new energy sources Developing nuclear energy, essential to achieving decarbonisation targets; Using the potential of energy efficiency Encouraging investments and building an attractive and predictable environment for investors Prudent and sustainable development of renewable energy, in a cost-effective manner, with an emphasis on the

sustainable biomass potential Keeping coal as an important energy resource for ensuring our energy security Sustaining clear regulations for vulnerable consumers in the context of the energy price increases Taking advantage of the national geographical and energy potential Consolidating the management of the state companies from the energy sector

DRIVERS OF INVESTMENTS


European energy policy OBJECTIVES

Policy

Sustainability Security

Bankability

EnvironmentMain objective of the WFD is to prevent deterioration of the water bodies status

EnergyReduction of CO2 emissionsDirective 2009/28/EC renewable source encouragement

Usage of existing

facilities for Hydro Power

generation

ENERGY POLICIES AND STRATEGY


Investment opportunities include:Development of new

production

Rehabilitation of operating units

Strengthening interconnections Balancing NPS

Secure the proper operation of the National Grid considering the impact of the renewable energy

Areas of development

Investments need according to Romanian Energy Strategy 2015 – 2035

100 billion euro

NATIONAL STRATEGIC PROJECTS


Nuclear

• Cernavoda NPP Units 3 and 4 – New Nuclear Build

• Cernavoda NPP Unit 1 – LTO Project considered for 2022-25

Hydro

• Pump Storage Hydro Power Plant Tarnita – Lapustesti

• Turnu-Magurele – Nicopole HPP (in cooperation with Bulgaria)

Coal

• Mintia TPP Rehabilitation (hard coal)

• New Unit at Rovinari TPP (lignite)

REGIONAL DEVELOPMENT Enhancing interconnections with the neighboring countries - Moldavia, Bulgaria, Serbia, Hungary Market coupling


Lapustesti plateau view

Lapustesti plateau viewTarnita Dam

TARNIŢA – LĂPUŞTEŞTI


Ovidiu DemetrescuCEO

[email protected]

Telefon: +40 21 313 83 29Fax: +40 21 313 51 30

mailto:[email protected]

http://www.hidrotarnita.ro/

Ovidiu Demetrescu - Hidro Tarnita SA, prezentare Simpozionul International de Energie Nucleara...

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