Stable operation of the national power system

We care about the safety and stable operation of the power system - today and in the future.

Being aware of the state of the national infrastructure and the challenges and trends that affect the development of the system, we make investments and conduct research and development works to ensure its stability and security.

Our activities help improve the operation of the NPS and optimize energy costs borne by the customers.

We run our business locally, purchasing from local Polish suppliers, thus having a positive impact on the development of the Polish economy.

Through the services provided, PSE supports the development of industry in Poland, creating the infrastructure and providing facilities for business development.

The power system belongs to a special type of critical infrastructure, as it determines the security of society, the economy and the state. This system is centrally controlled. The National Dispatching Center, the so-called dispatching service of PSE, is responsible for the operation of the Polish power system.

The national power system (NPS) is formed by three subsystems responsible for specific tasks.

• Electricity generation ─ the production of energy by generation sources, which - in the power system - are power plants, combined heat and power plants and distributed sources.
• Transmission of electricity ─ is carried out through the transmission network in order to deliver energy to distribution networks or to customers connected to the transmission network. Electricity transmission is carried out by the transmission system operator whose functions are performed by PSE.
• Distribution of electricity ─ the supply of electricity through distribution networks to institutional and individual consumers connected to this network. Electricity is distributed by distribution system operators.

The national transmission system operates:

• ynchronously with the systems of continental European states ENTSO-E (formerly UCTE),
• with dedicated power units of the Dobrotwór power plant of the Ukrainian system,
• non-synchronously with the Swedish system via a DC submarine cable,
• non-synchronously with the Lithuanian system through a DC back-to-back converter station.

The current operational security of the power network is ensured by the dispatching services of the TSO and DSO as well as the operational services of generators and customers operating in a hierarchical system.

The national power system has the following hierarchy of dispatching services:

• National Dispatching Center (KDM) – manages the operation of the 750, 400, 220 kV transmission network, as well as selected 110 kV lines of system importance,
• Area Dispatching Center (ODM) – manages the operation of the transmission network and the switching operations of the 750, 400, 220 and 110 kV transmission network,
• Central Dispatching Centers, Branch Dispatching Centers (CDM, OCD) – manage the operation of the 110 kV distribution network and switching operations in the distribution network of 110 kV and below.

The dispatching services of TSOs cooperate directly with the dispatching services of DSOs (Central Dispatching Centers, Branch Dispatching Centers) and with the operational services of power generation companies (Power Plant On-Duty Engineer - DIRE). This cooperation is carried out in accordance with the Transmission Network Code.

The cooperation of TSOs with TSOs of neighboring countries with respect to network operation is carried out in accordance with the terms and conditions set out in the ENTSO-E/UCTE network codes and conditions specified in bilateral agreements.

The economic development of the country is associated with an increase in the power demand. This affects the need for having suitable generation and transmission capacities to ensure security of supply.

In order to provide the generation capacity necessary to meet demand as a transmission system operator, we implement a coordination planning process for different time horizons. This process includes annual, monthly, and daily coordination plans.

The schedule of activities related to the development of plans and the scope of forecast and published data is defined in the Transmission Network Code.

Coordination plans are designed to allow the levels of excess capacity available over forecast demand to be met as required during the assumed period. This is achievable by coordinating the repair and maintenance schedules of generating units and shutdowns of meshed network elements, taking into account plant and network constraints and planned inter-system exchange restrictions.

In order to ensure secure and economic operation of the system, in particular to ensure the required reliability and quality parameters of the power system operation, PSE purchases system services.

System Services:

• Control System Services (RUS):
  • operational capacity reserve,
  • participation in primary control,
  • participation in secondary control,
  • under- or overload operation,
  • participation in automatic voltage and reactive power control;
• Start-up service for Generating Units (start-up service);
• Control system services as part of the contingency reserve:
  • contingency operation,
  • contingency cold reserve (service provided until the end of 2020),
  • reduction of demand upon order of the TSO (service provided until the end of 2020, new service - Contingency Consumption Reduction since 2021);
• Availability service for non-Centrally-Dispatched Generating Units (GWS service).
• National power system restoration service.

The indices describing the continuity of power supply and the duration of power interruptions ( ENS and AIT ) were calculated for the group of delivery points, which include end customers and electricity distribution system operators with one delivery point from the transmission network. Shutting down the delivery point of these customers results in an interruption of energy supplies from the transmission network.

To determine the reliability of network operation in accordance with applicable regulations, ENS and AIT indices for emergency outages are calculated.

In 2020 and 2018, there were no events resulting in emergency power interruptions and outages to customers at delivery points from the transmission grid identified as above.

There was one emergency interruption resulting in no power to the customer in 2019. The interruption lasted approximately 36 hours and was caused by a spontaneous shutdown of the 110 kV line from which the customer drawing power from the transmission network is supplied. The immediate cause of the interruption was a ground fault due to a tree coming close along the line section.

In 2017, there was one emergency interruption that resulted in an approximately 3-hour outage of energy delivery to one customer supplied from the transmission network. This was due to an emergency manual shutdown of the power lines due to a bystander climbing on a 220 kV line pole. The shutdown of other equipment, lines and transformers associated with the site was dictated by safety concerns.

Low levels of the ENS and AIT indices demonstrate a high level of operational reliability of the transmission network managed by PSE, as well as to the reliability of power supplies to customers connected to that network.

The persistently low values of ENS and AIT indices have a positive impact on the confidence of customers connected to the transmission network. The reduction of the number and duration of planned outages of the supply of electricity to customers results, among other things, from the implementation of a system to optimize the schedule of repair and maintenance works of transmission network elements supplying the customers. The shutdowns in the case of scheduled outages are carried out by PSE at times agreed with the customers - usually during periods of no energy consumption as declared by the customers. As a result, during outages, customers adjust their demand or use other methods of supplying electricity (e.g., from the DSO network).

To determine the continuity of electricity supplies, the so-called WCD index is calculated.

Maintaining the supply continuity indices at a high level is the result of the TSO's operation and maintenance policy for transmission assets.

The amount of electricity not supplied to transmission service customers during the year was determined taking into account interruptions in energy supplies to customers - both scheduled and unscheduled. The index used in the calculation of the total amount of electricity supplied from the transmission network during the year is the volume of electricity taken from the transmission network at all delivery points by end customers and DSOs connected to the transmission network.

2016-2020 WCD index values are provided in the table below.

Maintaining the supply continuity indices at a high level is the result of the TSO's operation and maintenance policy for transmission assets.

• Preparation of coordination plans for network works in the long and short term horizons. The work schedules for both the operation and maintenance of network elements and generating units are planned in such a way as to ensure that the required levels of surplus capacity available over the forecast demand are met over the assumed period and that the required criteria for safe operation of the network, including the reliability criterion (n-1), are met;
• Development and implementation of a uniform operating model allowing for cyclic, standardized and measurable assessment of the technical condition of equipment and its operating environment. Thanks to these actions, the most worn out and oldest elements of network assets - potential sources of emergency and disturbance conditions - are preventively replaced;
• Implementation of the operating services development program. It allows for continuous improvement of the competence of our own operating services, including those performing work in the field;
• Taking investment activities. Optimizes the load on transmission lines and eliminates overload conditions on transmission system components;
• Systematic standardization of network equipment and creation of a storage base. It allows to make necessary replacements quickly and in a financially optimal way;
• Working closely and making arrangements with transmission service customers at every stage, i.e. from planning to implementation.

Electricity losses in the transmission process in the transmission network result from technical losses, i.e. losses caused by physical phenomena in the network (e.g. load losses). They depend on many factors including wind unit generation, cross-border exchanges, equipment condition and weather conditions.

The year 2020 was exceptional in terms of balancing the national power system. The COVID-19 pandemic resulted in reduced demand for electricity in the country, causing lower loss volumes relative to 2019. Despite lower flows in the transmission network, the loss ratio was able to be maintained at a similar level and was 1.40 percent for 2020.

We are an enterprise of strategic importance to national security. Our company is:

• a critical infrastructure operator,
• the owner of facilities subject to mandatory protection,
• the owner of facilities of particular importance for the safety and defense of the state,
• an enterprise of particular economic and defense importance.

Certain tasks and responsibilities have been imposed on PSE in connection with these functions.

As an operator of critical infrastructure, PSE is required to ensure the protection of the company's facilities¹. In accordance with the National Program for Critical Infrastructure Protection, this obligation is understood very broadly and includes activities aimed at ensuring physical, technical, personal, ICT and legal security, as well as ensuring continuity of operations and the ability to restore critical infrastructure.

The Company is required to develop and update:

• Critical Infrastructure Protection Plans - agreed with voivodeship governor, voivodeship chiefs of the Police, voivodeship chiefs of the State Fire Service, voivodeship inspectors of building control office and the minister in charge of energy and approved by the Director of the Government Security Center
• Protection Plans - approved by regional Police chiefs and directors of the Regional Headquarters of The Internal Security Agency (ABW) (with respect to anti-terrorist annexes).

PSE is obliged to cooperate and exchange information with public administration authorities. In particular, we cooperate with the Government Security Center, the Ministry of Climate and Environment, the Ministry of State Assets, the Internal Security Agency, the Police, and provincial and local government administrations in this regard. Our company has also signed agreements on cooperation and information exchange with voivodeship and county authorities, where PSE facilities are located.

As the owner of facilities of particular importance for national security and defense and an entrepreneur of particular economic and defense importance, in accordance with the provisions of law² we also perform tasks for national defense.

In order to ensure a high level of technical protection for PSE facilities, the Technical Protection Department was established within the structure of the Security Department, the task of which is to build up in-house expertise in this area and - ultimately - to reduce the costs of external service agreements related to the maintenance of these systems. At present, the process related to reviews of individual elements of technical protection systems operating at all substations is underway in order to check their technical condition and determine further necessary repair or investment activities. The review process associated with the technical protection systems at substations will last until the end of 2021.

The Transmission Network Development Plan (PRSP) defines transmission network development projects, the implementation of which is expected to ensure that the national demand for capacity and electricity is met in the long term. The main factors influencing the directions of the transmission network development include: the increase in electricity demand, the development of generation sources, and the need to expand cross-border connections.

The analytical process to identify required infrastructure needs has changed significantly from the previous PRSP. An improved methodology for mapping the power system and its processes was developed and used. It included market analyses using the European market model, which resulted in a forecast of cross-border exchange between Poland and neighboring countries. In the tools and methods used, the time granularity was significantly increased, the stochastic nature of the NPS processes and the impact of weather variability on the power system operation were taken into account. Special emphasis was placed on the integrity and consistency of the quantities, databases, and assumptions used.

In preparing the 2021-2030 PRSP, legal considerations resulting from the following were taken into consideration:

• concept of spatial development of the country,
• voivodeship spatial development plans,
• Poland's Energy Policy,
• ENTSO-E TYNDP 2018 10-Year Development Plan,
• erformance of connection agreements and specified conditions for connection to the transmission network,
• performance of other obligations, including arrangements with the DSO,
• EU regulations.

Implementation of the planned investment projects will contribute to the creation of measurable effects.

In order to implement investments more efficiently, PSE periodically updates the Investment Portfolio, which is one of the main tools for managing investment projects.

The portfolio is a collection of network infrastructure investment projects grouped into investment programs. The projects entered into it are subject to grouping, categorization, prioritization and determination of the order of their implementation, taking into account in particular the system conditions related to the possibility of the required outages of transmission network elements. In exceptional cases, elements other than network infrastructure may be included in the Investment Portfolio.

All investment projects included in the Network Investment Portfolio are grouped into investment programs based on:

• strategic importance - strategic programs,
• locations and interdependencies of projects - area programs,
• the nature of works supporting the implementation of other investment projects (e.g. investor’s deliveries, formal and legal issues).

Portfel inwestycji sieciowych obejmuje sześć programów strategicznych oraz cztery obszarowe.

Program 1.
The strategic program "Power output system from the Kozienice Power Plant and improvement of power supply conditions in north-eastern Poland": 13 investment projects, PLN 1,053,760 thousand in total contracted budget.

Program 2.
The strategic program "Power output system from the Turów Power Plant and improvement of power supply conditions in south-western Poland": 16 investment projects, PLN 541,396 thousand in total contracted budget.

Program 3.
The strategic program "Power output system from the Dolna Odra Power Plant and RES , including improvement of power supply conditions in north-eastern Poland": 13 investment projects, PLN 650,403 thousand in total contracted budget.

Program 4.
The strategic program "Power output system from RES and improvement of power supply conditions in the northern Poland - eastern part": 24 investment projects, PLN 1,630,026 thousand in total contracted budget.

Program 5.
The strategic program "Power output system from the Bełchatów Power Plant and improvement of power supply conditions in central, eastern and north-western Poland": 30 investment projects, PLN 968,201 thousand in total contracted budget.

Program 9.
Strategic Program "Building submarine connections and energy storage facilities." 2 investment projects, no contracted investments.

Program 6.
“North” Area Program: no investment projects are currently assigned under the program.

Program 7.
“South” Area Program: 22 investment projects, PLN 447,567 thousand in total contracted budget.

Program 8.
Area Program "Formal Completion of Investments." 14 investment projects, projects after the 6th decision gate.

Program 10.
“Investor's Deliveries” Area Program: 17 investment projects, PLN 463,195 thousand in total contracted budget.

Program 11.
The strategic program "Power output system from RES and improvement of power supply conditions in the northern Poland - western part": 9 investment projects, PLN 375,592 thousand in total contracted budget.

The vast majority of the ongoing investments included in the network investment portfolio are projects with priority 1 assigned.

The portfolio of network investments includes six strategic and four area programs.

• Strategic Program 1. Power output system from the Kozienice Power Plant and improvement of power supply conditions in north-eastern Poland
  The objective of investment projects included in the Program 1 is to ensure reliable power output from the Kozienice Power Plant following its extension with a new 1000 MW power unit and to improve the reliability of power supply in the northern and north-eastern parts of the National Power System and Warsaw agglomeration.

• Strategic Program 2. Power output system from the Turów Power Plant and improvement of power supply conditions in south-western Poland
  The purpose of investment projects included in the Program 2 is to ensure reliable power output from the Turów Power Plant following its extension with a new 480 MW power unit and to improve the reliability of power supply in the south-western part of the National Power System, specifically for the largest recipient in this area - Kombinat Górniczo-Hutniczy Miedzi (KGHM). The investment projects included in the Program 2 also have a significant impact on the possibility of energy transmission and power supply in the northern areas of the country and on the possibilities of cross-border exchange in the synchronous section (connections between Poland and Germany, the Czech Republic and Slovakia) - especially in the import direction.

• Strategic Program 3.Power output system from the Dolna Odra Power Plant and RES, including improvement of power supply conditions in north-eastern Poland
  The implementation of investment projects included in the Program 3 is expected to ensure reliable power output from the Dolna Odra Power Plant as well as from the wind farms and photovoltaic sources existing or planned in the northern part of the country and to improve the reliability of power supply in the north-western part of the NPS. These investment projects also have a significant impact on the possibility of cross-border exchange in the synchronous section (connections between Poland and Germany, the Czech Republic and Slovakia), especially in the import direction.

• Strategic Program 4. Power output system from RES and improvement of power supply conditions in the northern Poland - eastern part
  The purpose of investment projects included in Program 4 is to ensure reliable power output from wind farms located in the northern part of the country, to improve the reliability of power supply in the northern part of the NPS and the possibility of cross-border exchange with the Swedish and, in the future, Lithuanian power systems.

• Strategic Program 5. Power output system from the Bełchatów Power Plant and improvement of power supply conditions in central, eastern and north-western Polandi
  Implementation of the investment projects included in the Program 5 is expected to ensure reliable power output from the Bełchatów Power Plant and improve the reliability of power supply in the central, eastern and north-western parts of the NPS, including the Łódź and Szczecin agglomerations. The investment projects included in the Program 5 also have a significant impact on improving the reliability of telecommunications and communications infrastructure. Some of these are local in nature, primarily related to the expansion and retrofit of existing network assets.

• Area Program 7. South
  The purpose of implementing the investment projects included in the Program 7 is to ensure the reliability of operation of the transmission network in the southern part of Poland located below the conventional Warsaw-Poznan line. These are local investment projects, mainly related to the expansion and modernization of existing network assets.

• Area Program 10. Investor's deliveries
  The purpose of implementing the projects included in the Program 10 is to ensure investor's deliveries of autotransformers and reactors for implemented network investment projects as well as deliveries of selected equipment and instrumentation for investment projects and operating tasks.
  These projects - with regard to the supply of circuit breakers, isolating switches, busbar protection, feeder protection, optical ground wires (OPGW), transformers, phase conductors, MTS and SSiN (Control and Monitoring System) circuit-breaker modules - are intended to optimize the company's purchasing processes and reduce investment and operating expenses by achieving the economies of scale.