The second quarter marked by stable operation and higher profits

9/15/2017

From the end of June, tests of PSTs (phase-shifting transformers) were being held at the Hradec substation near Kadaň, which made it possible to successfully launch the remaining two devices. The dispatchers are now regulating the electricity flows from the east of Germany on both 400kV interconnecting lines.

The installation of the PSTs has increased the protection of the transmission system of
the Czech Republic. The setting of regulating taps is negotiated with foreign partners as part of operational preparation, with the primary objective of ensuring the reliability of the operation of the power grids throughout the region.

“With these special devices, we do not have to use costly remedial measures to maintain grid stability as often. Without the PSTs, international redispatches would be particularly robust and costly. On the other hand, it cannot be assumed that the launch of the PSTs will completely solve the problem of overflows,” says Jan Kalina, Chairman of the Board of Directors of
ČEPS, a.s.

During the second quarter, the PSTs were actively used in 25 days. Since their launch
in mid-January, these machines have contributed to reducing the power flow through our transmission system on 73 days in total.

On Tuesday, June 6, the ČEPS dispatchers resorted to regulating the power flow up to the 23rd PST angle regulation steps, the most since the PSTs were launched (the maximum is 32 steps). The reason was an extremely challenging operating situation. In particular, there was a shortage of electricity in the Balkans, and the Czech transmission system was also affected by a deficit of about 1,000 MW due to the lack of availability of a number of sources, while there were large overflows across the continent in the northwest – southeast direction.

“Thanks to the coordination with the neighboring Polish transmission system operator, which has set its PSTs up to the extreme taps, the safe operation of interconnected systems was never
in jeopardy,” Kalina adds.

In the first half of the year, ČEPS achieved a profit of CZK 1.5 billion before tax. In the year-on-year comparison, this is an increase of nearly CZK 275 million. The Company’s stable business results are a reason why it defended its high rating; Moody's has confirmed the preservation of the current A2 rating level. This high rating is only one level lower than the rating of the Czech Republic, and guarantees ČEPS good conditions for financing its needs.

The transmission system operator continues to implement its costly investment program.
In particular, these investment projects include a reconstruction of a gas-insulated part of
the Chodov substation, which will significantly improve the reliability of supply to the capital city of Prague, an expansion, reconstruction and connection of the Kočín transformer station, construction of a new transformer station in Vernéřov, replacement of the transformers in
the transformer stations Chrást and Horní Životice and modernization of the V404 Nošovice – Varín line. These are all significant construction projects aimed to increase the reliability of
the system and its transmission capability.

In the monitored period, a total of 32,132 GWh of electricity was transferred.

Press Release