International Relations and Energy Security Department of International Relations and European Studies Regional Energy Relations - Natural Gas Regional Energy Relations - Crude Oil Regional Energy Relations - Electricity Nedostatek výkonu Regional Energy Relations - Electricity BOHertz Transmission 963 GWh -5 188 GWh 31 GWh 6 703 GWh PL 1 308 GWh 1-17 840 GWh I -17 842 GWh 947 GWh -6 390 GWh CZ ■7 918 GWh ■7 165 GWh -2 505 GWh -10 424 GWh -5 118 GWh ■3 GWh 23 GWh SK Plánované výmeny pres přenosovou soustavu, zahrnuté do regulačního salda ČR Skutečné výměny přes přenosovou soustavu, zahrnuté do regulačního salda ČR Skutečné výměny po linkách 110 kV (a nižších), nezahrnuté do regulačního salda ČR IGCC, e-GCC Regional Energy Relations - Nuclear SO kin Source : Agence Internationale de I'energie atomique Definition of Region • Regional Security Complexes according to Copenhagen school of security (Barry Buzan and Ole Waever) • clusters in geographically shaped regions • the security of each actor in a region interacts with the security of the other actors • there is often intense security interdependence within a region, but not between regions Czech Republic Area 78 866 km2 Water 2% Population in 2011 10 436 560 Population density 134/km2 GDP (PPP) 27 190 USD / per capita President Miloš Zeman Prime Minister Andrej Babiš Religion 10.3 % Roman Catholic, 80 % non-declared or non-religious Ethnic Groups 63.7 % Czechs 4.9 % Moravians 1.4 % Slovaks 29.9 % Other minorities Five country-specific essential characteristics of energy sector Characteristic No. 1 - Tradition The former use of wood fuel replaced coal-energy-intensive steam technology in the food industry, transport and industry. Use of relatively rich deposits of coal transportation was limited - concentration of infrastructure around the mines. Origins of the systematic use of coal - 1930s - Kladno, Ostrava, Rosicko-Oslavany. June 22, 1919 - General purpose power companies Act -the need to connect to the network. The trend towards centralization of production - unification of networks, voltages and frequencies. Characteristic No. 1 - Tradition After nationalization of the fragmented electricity sector in 1945, the construction of a single power system began ° Destroyed infrastructure ° Planned industry 50's and 60's of the 20th century are in the spirit of intensive construction of line structures and linking of local electricity systems ° Hodonín, Poříčí, Opatovice, Vltavská kaskáda (Lipno, Orlík etc.) Inefficiencies in the industry leads to excess of consumption over current production - shutting household off Characteristic No. 1 - Tradition 60's and 70's are characterized by extensive coal-fired power plants 70's and 80's bring nuclear energy Water installations were built during these years as complementary power plants The backbone of the Czech electricity is thus built on this triangle of coal-fired, nuclear and hydro power plants > Czech historical tradition of Energy Characteristic No. 2 - Ministers of Industry and Trade Ing. Vladimir Dlouhý, CSc. JUDr. Karel Kúhnl 1.1.1993-2.6. 1997 2.6. 1997-22.7. 1998 Fakulta informatiky a statistiky VŠE ABB, KSK Power Ventur, Pač. komise Právnická fakulta UK Doc. Ing. Miroslav Grégr, CSc. 22.7.1998 - 15.7. 2002 Strojní fakulta ČVUT (Atomic grandpa) Svaz průmyslu České republiky Ing. Jiří Rusnok Ing. Milan Urban Ing. Martin Říman Ing. Vladimír Tošovský Ing. Martin Kocourek MUDr. Martin Kuba doc. Ing. Jiří Cieňciala, CSc. Ing. Jan Mládek, CSc. Ing. Jiří Havlíček, MBA Ing. Tomáš Húner Ing. Marta Nováková 15.7. 2002 - 19.3. 2003 Národohospodářská fakulta VŠE 19.3. 2003 - 4.9. 2006 Hutnická fakulta VSB v Ostravě 4.9.2006-8.5.2009 8.5.2009- 13.7. 2010 13.7.2010- 14. 11. 2011 16.11 2011 -10.7.2013 10.7.2013- 29.1.2014 29.1.2014- 28.2.2017 4.4.2017-13.12.2017 13.12.2017-27.6.2018 27.6.2018-to date Fakulta elektrotechnická VUT v Brně Středočeská energetická, a.s.; ČEZ, a.s.; ČEPS, a.s.; SPČR Fakulta elektrotechnická ČVUT^ Středočeská energetická, a.s.; ČEZ, a.s.; ČEPS, a.s. Fakulta stavební ČVUT Unipetrol, ČEZ 1. lékařská fakulta Univerzity Karlovy Českobudějovické teplárny Ekonomická fakulta VŠB v Ostravě Třinecké železárny, Svazu průmyslu ČR VŠE, Prognostický ústav AVČR Národohospodářská fakulta VŠE Kat. tepel, strojů a jad. zařízení FS na VUT System engineering, VŠB TUO Characteristic No. 3 - Privatization • Energy sector was public service until 1990 ° Politics/strategies and company praxis worked in positively complementary relation • Since 1990 it is private activity ° Politics/strategies and company praxis worke in dependent relation, company praxis must deal with restrictive politics/strategies (domestic and EU level) Characteristic No. 4 - Structural Changes • Development after 1989 General trends in post-revolution development 1) Replacement of fully controlled and directively managed energy sector with a system reflecting the interests of the new state 2) The process of entering into EU Characteristic No. 4 - Structural Changes • Phase 1 - the restructuring of centrally controlled energy system • Phase 2 - privatization of key energy companies • Phase 3 - a stable situation with finished privatization and concentration on completion of the liberalization of energy sector (EU entry). Characteristic No. 4 - Structural Changes Phase 1 - the restructuring of centrally controlled energy system 0 50 state enterprises, restructuralization of coal sector, unbdundling (CEZ, CPP) Phase 2 - privatization and liberalization of key energy companies 0 Natural gas (Transgas), Oil (refineries, transport) vs. electricity (CEZ) Phase 3 - a stable situation with finished privatization and concentration on completion of the liberalization of energy sector (EU entry). ° Current situation: stable energy sector with strong national company, diversification of oil and gas, better energy efficiency and ecologization of energy sector, liberalized market with electricity and gas, however high energy intensity (1/3 above EU average), dependence on coal and nuclear, export of electricity, old production units etc. Characteristic No. 4 - Structural Changes Until 1990, the vast majority of energy companies was in public/state ownership - a very long tradition After 1990, the privatization came into process, which has been far from successful in some sectors At the same time the transition to a democratic system took place And concurrently the EU liberalization process took place As a result, these were major changes that induced resistance and chaos among cadres and people who have studied and acquired their work experience in the energy in the period of socialism Characteristic No. 5 - Status of the power utility sector base Coal (!) Uranium Water Gas from Russia Unsuitable geographical and meteorological conditions for renewables development Czech Energy Sector Key Energy Statistics Source Consumption Imports TPES share Electricity Generation share Crude Oil 9.81 Mt 98% 17.1%* 0.1% Natural Gas 8.41 bcm 111% 15.8% 1.3% Coal (all types) 52.3 Mt 6% 42.7% 57.1% RES - - 7.5%** 9.2% Nuclear Energy - - 17.2% 32.3% * Oil products imports add another 3.1% of TPES share ** Biofuels and waste stand for 6.5% of TPES share and 3.2% of Electricity Generation share Note: 2011 data; Source: U.S. Energy Information Administration; International Energy Agency; OECD & IEA, 2013; compiled and calculated by T. Vlcek Installed Capacity Installed Capacity in the Czech Electricity Grid on 31 December 2017 Type of Power Station Installed Capacity (MWe) Production (brutto, MWh) Percentage (%) Thermal Power Station 11,075.4 45,431.7 49.7/ 52.2 Gas Combined Cycle Power Station 1,363.5 3,722.4 6.1/ 4.3 Gas Fired Power Station 895.9 3,719.6 4.0/4.3 Hydroelectricity 1,092.7 1,869.5 4.9/2.1 Pumped-storage Hydroelectricity 1,171.5 1,170.5 5.3/1.3 Nuclear Power Station 4,290.0 28,339.6 19.3/32.6 Wind Power 308.2 591.0 1.4/0.7 Solar Power 2,069.5 2,193.4 9.3/2.5 Geothermal Power 0 0 0/0 Total 22,266.7 87,037.6 100 / 100 Source: Energeticky regulacni urad, 2018, s.5, 40 JMYoLU A UbLMUUU Strategic conceptual documents of the Czech Republic • MINISTERSTVO PRŮMYSLU A OBCHODU www.mpo.cz MINISTERSTVO ÚMYSLU A OBCHODU .mpo.cz Basic documents • Raw Materials Policy • Conception of State Raw Materials Security and Energy Security • Energy Policy • State Energy Policy Basic documents • Raw Materials Policy ° Prepared by MIT ° The raw material policy is a summary of all activities the state uses to influence exploration and use of domestic raw material resources (taking into account the public interest and the protection of natural, cultural and landscape values) and the acquisition of raw materials abroad in order to ensure the running of domestic economy. ° The object of the raw material policy includes fuels, ores, industrial minerals and construction materials. ° Valid document from 1999 ° The document has been evaluated in 2004 ° In July 2012 and in March 2014 (after El A) submitted an update to the document ° The basic idea is preferential use of domestic mineral resources and conversion of waste into energy ° In December 2015 a new update was submitted (following the approval of the updated State Energy Policy) ° Accepted in June 2017 Basic documents Conception of State Raw Materials Security and Energy Security ° Prepared by MIT ° 20 years outlook ° Czech Republic does not has a document in this field. This issue is partially or marginally dealt within other strategic materials, especially the State Energy Policy updates, the Raw Materials Policy, and the Security Strategy. ° The document is aimed at identifying and analyzing the security risk from outside the country, from international environment. ° Basis presented to the Government 9. 6. 2011 and approved 17. 8. 2011, at the moment the document is still being processed Basic documents • Energy Policy ° Used to be prepared by MIT ° Energy policy was a basic document expressing targets in the energy sector related to major economic and social development in 1990s ° 15-20 years outlook ° It was the first energy policy document of the Czech Republic - EP 1992 (air pollution, diversification of oil supplies) ° Consequently, there were efforts to update in (1997, privatization, supply of natural gas) ° New document in 2000 (regulation of monopolies) ° However, the document ceased to play its strategic role just within two years and the Government commenced preparations of a new policy document of the Czech Republic - the State Energy Policy Basic documents • State Energy Policy ^° ° Prepared by MIT ° The State Energy Policy is the fundamental component of the economic I policy of the Czech Republic. The State Energy Policy specifies the state's priorities and determines the objectives to influence the development of energy sector over the next 30 years (within the market-oriented economy). ° Original document approved 10. 3. 2004 ° In October 2009 - the first draft update of SEP (not approved) I ° In February 2010 - the second draft update SEP (not approved) ° In August of 2012 - the third draft update SEP (went throught the environmental impact assessment process with 3,681 comments) ° In October 2012 - the fourth draft update SEP (the proposal was revised after the closure of the tender for the construction of new nuclear units in April 2014) ° In December 2014 - the fifth (revised) draft update SEP (2014 interdepartmental commenting procedure, ElAused from the fourth draft, ME and tripartite approval in December 2014, and Governmental approval in May 2015) Relations Among the Basic Documents politics