PSE Value Creation Model
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Human capital
Intangible resource of the organisation which consists of individual competence, experience and motivations of employees and contributors, as well as their development aspirations. We are continuously building PSE's human capital through training and employee-friendly employment policy that covers a wide range of employee and supplementary benefits.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.
Value creation areas
- Involvement in the process of building the electricity market in Europe, in particular with regard to the creation of:
- Flow-Based Market Coupling for the day-ahead and intra-day markets,
- the cross-border balancing market,
- the capacity market.
- Activities towards strengthening the coordination of cross-border exchange in Europe, including the reduction of unscheduled flows though the PPS.
Our contribution
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Organising a debate in partnership with the Rzeczpospolita daily, initiating the first diagnosis of PSE titled “The European Electricity Market” and its publication on the website page at:https://www.pse.pl/documents/20182/30599076/PSE_Diagnoza_wersja_pelna_FINAL_PL.pdf
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Involvement of PSE representatives in the work of European institutions and agencies:
– The European Network of Transmission System Operators for Electricity - (ENTSO-E). ENTSO-E groups together 43 transmission system operators from 36 countries. The main components of the working structure of ENTSO-E are:
-System Operations Committee,
-System Development Committee,
-Market Committee,
-Research, Development and Innovation Committee.
We are represented on each of them.–European Commission – Cooperation in the identification of critical infrastructures in accordance with Council Directive 2008/114/EC of 8 December 2008 on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection.
–European Parliament, ACER – The cooperation concerns the coordination of work in the Council of the European Union.
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More than 80 PSE employees engaged in ENTSO-E work.
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In 2017, as part of commercial exchange, a total of 4,159 GWh was exported from the Polish power system, while electricity imports amounted to 6,758 GWh. Compared with the 2016 data, the excess of electricity imports into Poland over electricity exports to the neighbouring countries continued to persist. The surplus of imports over exports was 2,599 GWh (2,820 GWh in 2016). The largest volumes of electricity were exported as part of synchronous exchange with the system of Germany, the Czech Republic and Slovakia: 3,515 GWh, whereas the largest quantity of electricity was imported via the DC link from Sweden: 3,141 GWh.
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The cross-border exchange capacity offered by PSE in 2017 totalled:
synchronous exchange:
8 360 GWh export 2 066 GWh import asynchronous exchange – LitPol Link interconnection with Lithuania:
2 467 GWh export 3 723 GWh import asynchronous exchange – SwePol Link interconnection with Sweden:
1 936 GWh export 4 230 GWh import asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction:
1 465 GWh import -
Participation of PSE representatives in the development of the Capacity Market Rules.
The Capacity Market Rules were developed pursuant to Articles 82 and 83 in conjunction with Article 93 (1) of the Act of 8 December 2017 on the capacity market, in implementation of the Act. The Capacity Market Rules were approved by the President of ERO in coordination with the Minister of Energy on 30 March 2018.
- Implementation of segments of the Target Model of the European electricity market within the PPS.
- Effective balancing of the power system, in particular:
- failure-free execution of the balancing market processes,
- development of balancing market mechanisms.
Our contribution
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Number of borders covered by the market mechanism consistent with the European Target Model – 2 borders:
-Poland-Sweden,
-Poland-Lithuania. -
Number of fall-back procedures used in the balancing market – zero
- Developing mechanisms for customers' active participation in the PPS balancing
- Developing mechanisms for customers' active participation in the electricity market
- Supporting different forms of market operation of customers such as prosumers, aggregators, energy clusters
Our contribution
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25 agreements for the provision of interruptible load services in 2017, including:
- as a result of tendering procedures, 361 MW of guaranteed power was acquired under the Guaranteed Programme (payment for readiness and use) in the summer package under 9 agreements,
- 315 MW in the winter package under 9 agreements,
- under the Current Programme (payment for use) 7 agreements were concluded.
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Human capital
Intangible resource of the organisation which consists of individual competence, experience and motivations of employees and contributors, as well as their development aspirations. We are continuously building PSE's human capital through training and employee-friendly employment policy that covers a wide range of employee and supplementary benefits.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.
Value creation areas
- Performance of statutory obligations of PSE as an independent national transmission system operator.
- Maintaining the reliability of the power system.
- Increasing electricity import and export opportunities.
Benefits for us:
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Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99.99 percent
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The cross-border exchange capacity offered by PSE in 2017 totalled:
synchronous exchange:
8 360 GWh export 2 066 GWh import asynchronous exchange – LitPol Link interconnection with Lithuania:
2 467 GWh export 3 723 GWh import asynchronous exchange – SwePol Link interconnection with Sweden:
1 936 GWh export 4 230 GWh import asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction:
1 465 GWh import
Benefits for the environment:
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Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99.99 percent.
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Failure-free operation of the Balancing Market – 100 percent.
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125 participants of the Balancing Market in 2017.
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The cross-border exchange capacity offered by PSE in 2017 totalled:
synchronous exchange:
8 360 GWh export 2 066 GWh import
asynchronous exchange – LitPol Link interconnection with Lithuania:2 467 GWh export 3 723 GWh import
asynchronous exchange – SwePol Link interconnection with Sweden:1 936 GWh export 4 230 GWh import
asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction:1 465 GWh import Volume of cross-border exchange (in the import and export direction) in all market segments (GWh)* for 2017:
synchronous exchange:
3 515 GWh export 1 158 GWh import
asynchronous exchange – LitPol Link interconnection with Lithuania:498 GWh export 1 560 GWh import
asynchronous exchange – SwePol Link interconnection with Sweden:146 GWh export 3 141 GWh import
asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); commercial exchange concerns only the import direction:899 GWh import
*The indicators have been calculated as a sum of cross-border commercial exchange based on agreed nominations from the annual, monthly, daily and intra-day market timeframes. The above data do not include remedial actions agreed as part of inter-TSO exchange and mandatory compensation returns.
- Performance of statutory obligations of PSE as an independent national transmission system operator.
- Maintaining the reliability of the power system.
- Increasing electricity import and export opportunities.
Benefits for us:
-
Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99,99 percent
-
The cross-border exchange capacity offered by PSE in 2017 totalled:
synchronous exchange:
8 360 GWh export 2 066 GWh import
asynchronous exchange – LitPol Link interconnection with Lithuania:2 467 GWh export 3 723 GWh import
asynchronous exchange – SwePol Link interconnection with Sweden:1 936 GWh export 4 230 GWh import
asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction:1 465 GWh import
Benefits for the environment:
-
Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99,99 percent.
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Failure-free operation of the Balancing Market – 100 percent.
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125 participants of the Balancing Market in 2017.
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The cross-border exchange capacity offered by PSE in 2017 totalled:
synchronous exchange:
8 360 GWh export 2 066 GWh import
asynchronous exchange – LitPol Link interconnection with Lithuania:2 467 GWh export 3 723 GWh import
asynchronous exchange – SwePol Link interconnection with Sweden:1 936 GWh export 4 230 GWh import
asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction:1 465 GWh import Volume of cross-border exchange (in the import and export direction) in all market segments (GWh)* for 2017:
synchronous exchange:
3 515 GWh export 1 158 GWh import
asynchronous exchange – LitPol Link interconnection with Lithuania:498 GWh export 1 560 GWh import
asynchronous exchange – SwePol Link interconnection with Sweden:146 GWh export 3 141 GWh import
asynchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); commercial exchange concerns only the import direction:899 GWh import *The indicators have been calculated as a sum of cross-border commercial exchange based on agreed nominations from the annual, monthly, daily and intra-day market timeframes. The above data do not include remedial actions agreed as part of inter-TSO exchange and mandatory compensation returns.
- Reducing the risk of inability to balance power and energy in the PPS.
- Acquisition of a tool designed to increase the security of electricity supply.
- Increasing the operational flexibility of the PPS.
Benefits for us:
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25 agreements for the provision of interruptible load services in 2017, including:
– as a result of tendering procedures, 361 MW of guaranteed power was acquired under the Guaranteed Programme (payment for readiness and use) in the summer package under 9 agreements,
– 315 MW in the winter package under 9 agreements,
– under the Current Programme (payment for use) 7 agreements were concluded.
Benefits for the environment:
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25 agreements for the provision of interruptible load services in 2017, including:
– as a result of tendering procedures, 361 MW of guaranteed power was acquired under the Guaranteed Programme (payment for readiness and use) in the summer package under 9 agreements,
– and 315 MW in the winter package under 9 agreements.
– Under the Current Programme (payment for use) 7 agreements were concluded.
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.
Natural capital
Secure and reliable transmission of electrical energy to all regions of the country means the need to use both non-renewable and renewable natural resources. In our investing activities, we care about minimising key threats to nature and avoid the risk of losing biological diversity.
Production capital
The organisation's tangible resource which includes e.g. critical infrastructure assets (extra-high voltage power lines and substations) and buildings together with equipment, hardware and technological infrastructure, which allow the company to perform the tasks of the electricity transmission system operator in Poland.
Value creation areas
- Transmission infrastructure development.
- New build and upgrade projects.
- Ensuring the continuity of electricity transmission.
- IT investments.
- Expenditure on improvement of contractors' work safety, including:
- supervision of contractors,
- preparation of project implementation procedures,
- contractor training in HSEQ,
- social communication activities (activities pursued by PSE and by subcontractors).
Our contribution
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Forecast of national electricity demand:
Forecast of net national electricity demand [TWh] until 2027* 2018 2020 2025 2027 Stable 159,2 163,6 173,8 177,5 High 159,3 164,8 178,8 184,4 * Own compilation based on MF and OECD forecasts, consistent in terms of the methodology applied with the pan-European generation adequacy analysis performed by ENTSO-E.
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PLN 10.48 bn – PSE’s planned capital expenditure for 2017-2021
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147 investment projects – implemented with respect for the natural environment
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PLN 1,460.4 m – capital expenditure incurred by PSE*
*Total value of expenditure incurred in 2017 on project implementation is PLN 1,460.4 m.
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PLN 150.2 m – PSE’s modernisation expenditure*
*Actual capital expenditure related to Investment Plan Group III Upgrade of power substations and lines – PLN 150.2 m -
PLN 33.9 m – expenditure on the development of IT resources*
*In Investment Plan Group I ICT, actual expenditure in 2017 was PLN 33.9 m. -
2 meetings held, attended by all contractors for investment tasks at PSE headquarters.
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2,631 information meetings z with residents for projects undertaken in 2014-2017, including 702 meetings in 2017.
- Maintenance and repair of the transmission network.
- Expenditure on improvement of contractors' health and safety, including:
- supervision of contractors,
- contractor training in HSEQ,
- social communication activities (activities pursued by PSE and by subcontractors).
Our contribution
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PLN 121,927.5 k ─ repair and maintenance expenditure incurred in 2017, of which the amount spent on maintenance of grid assets was PLN 100,265.6 k,, and that spent on repairs was PLN 21,661.9 k..
- Social communication activities (activities pursued by PSE and by subcontractors)
Our contribution
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We fully analyse the impact of our investment projects on the local community
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.m.
Natural capital
Secure and reliable transmission of electrical energy to all regions of the country means the need to use both non-renewable and renewable natural resources. In our investing activities, we care about minimising key threats to nature and avoid the risk of losing biological diversity.
Production capital
The organisation's tangible resource which includes e.g. critical infrastructure assets (extra-high voltage power lines and substations) and buildings together with equipment, hardware and technological infrastructure, which allow the company to perform the tasks of the electricity transmission system operator in Poland.
Value creation areas
- Replacement and development of grid assets.
- Management of the reliability and continuity of electricity transmission.
- Ensuring the operational cyber-security of the PPS systems.
- Improving the PPS operation security through the implementation of PSE investment tasks.
Benefits for us:
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The condition of the transmission network is confirmed by a high overall availability factor for power transmission equipment (DYSU), which reached 99.77 percent in 2017 compared with 99.74 in 2016.
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1.60 percent – transmission losses as percentage of total energy fed into the system.
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Average age of equipment: 21 years for LV lines, 42 years for EHV lines.
Benefits for the environment:
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PLN 1.7 bn – total value of contracts with contractors in 2017.
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Main groups of PSE’s contractors:
– contractors for new build, upgrade and repair projects performing work on grid assets,
– equipment and hardware suppliers and service providers.87.5 percent of contractors for works and services come from Poland, 0.2 percent from the EU countries, and 12.3 percent from non-EU countries.
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The transmission equipment availability factor (DYSU) reached 99.77 percent in 2017 compared with 99.74 in 2016.
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ENS – 671.64 MWh, AIT – 111.15 (minutes) – low 2017 ratios testify to a high level of operational reliability of the transmission system and certainty of supply to customers connected to our network.
- Keeping grid assets in due state of repair.
- Improving the reliability and operational security of the transmission network through its ongoing maintenance and repair.
- Building and maintaining reputation for PSE's care of network operation security.
Benefits for us:
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Transmission equipment availability factor (DYSU) of 99.77 percent in 2017 compared with 99.74 in 2016.
- Winning social acceptance.
- Timely completion of projects.
- Increased awareness and sense of security of local communities with regard to projects in progress.
- Optimisation of line routes for their acceptance by local communities.
Benefits for us:
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Information meetings with local communities were held in 100 percent of gminas situated along the routes of planned linear right-of-way projects.
Benefits for the environment:
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2,631 information meetings with residents for projects undertaken in 2014-2017, including 702 meetings in 2017.
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Increasing the awareness of the significance of power infrastructure in investment areas.
Social communication is performed on the basis of a participation model engaging all interested parties in the project implementation process. Social awareness of the current state of the power sector and power projects is often in focus of sociological research in Poland. Existing data and real-life experience acquired in the course of projects suggest that energy awareness is low among the general public in Poland.
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Human capital
Intangible resource of the organisation which consists of individual competence, experience and motivations of employees and contributors, as well as their development aspirations. We are continuously building PSE's human capital through training and employee-friendly employment policy that covers a wide range of employee and supplementary benefits.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.
Value creation areas
- Ensuring an attractive employee remuneration system and non-pay benefits as well as care of social security.
- Care of safety at work.
- Internal organisation culture based on specific values: dependability, reliability, responsibility and respect.
Our contributions
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Attractive social benefit package.
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100 percent of employees covered by the pay incentive system.
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Broad access to diverse forms of professional development.
- Training and development of employees in all functional areas of the organisation, both technical and soft.
- Continuation of the SMART programme.
- Having a team of internal trainers who train employees in key positions.
- Running an internship programme, supporting studies, doctoral procedures, etc.
Our contributions
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Rollout of PSE internal Wiki service in 2017.
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71 internal trainers delivering training in 2017.
- Improving the new investment project implementation model.
- Knowledge sharing, unique corporate know-how: meetings with contractors.
- Cooperation with local and central administration in preparing and implementing projects.
- Cooperation with industry organisations.
Our contributions
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Improving the introduced new investment project implementation model (NMRI). The project coordination unit is the Central Investment Unit (Centralna Jednostka Inwestycyjna, CJI) a part of PSE's internal organisation structure.
- Implementation of educational projects.
- Publication of the Elektroenergetyka magazine.
Our contributions
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Information meetings with local communities were held in 100 percent of gminas situated along the routes of planned linear right-of-way projects.
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Publication of the Elektroenergetyka magazine
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Delivery of the 6th edition of workshops for industry journalists.
Financial capital
The company's resources of a financial nature, held or acquired in the course of financing.
PSE’s intellectual capital
Unique expert knowledge accumulated within the organisation; abundant know-how acquired over years. PSE takes care of intellectual capital and keeps expanding it, e.g. through development programmes, investing in employee education and in research and development.
Human capital
Intangible resource of the organisation which consists of individual competence, experience and motivations of employees and contributors, as well as their development aspirations. We are continuously building PSE's human capital through training and employee-friendly employment policy that covers a wide range of employee and supplementary benefits.
Social and relational capital
We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country. To this end, we cooperate with a wide group of stakeholders. We take care of trust and honesty in relations with our stakeholders.
Value creation areas
- Increased employee satisfaction and motivation.
- Work-life balance.
- Safe workplace – negligible number of accidents at work.
Benefits for us:
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Average years of service of employees carrying out maintenance work in substation maintenance teams (ZES) – 23 years.
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Employer Branding activities aimed to attract the best personnel available in the market, including: the Energy Internship programme, Start with Energy scholarship programme, participation in student job fairs and partnering with career offices.
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Full implementation, knowledge and application by employees of work safety procedures for LV electrical substations.
Benefits for the environment:
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As an employer, PSE takes a number of measures aimed to build the work-life balance approach among employees, including: special events for employee’s children, housing aid, medical care, subsidising sports, leisure, cultural and educational activities.
- Improving the competence of employees.
- Improving employee motivation, competence retention in the organisation.
- Partnering with universities.
Benefits for us:
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1.28 percent – percentage of employees with the doctor's degree.
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92.44 percent training budget performance in 2017.
Benefits for the environment:
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Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99,99 percent.
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48 training courses in PPS (Polish Power System) Simulator with the participation of 433 dispatchers from Poland and from the neighbouring countries.
- Increased effectiveness of mutual cooperation with the environment, including electricity market participants.
- Maintaining partner relations with the environment.
- Increased effectiveness of the implementation of industry initiatives.
Benefits for us:
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Development of an investment implementation analysis with special focus on environmental impact (contractors, local communities).
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Strengthening the image of industry expert by increasing PSE experts' involvement in industry events.
Benefits for the environment:
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2 meetings held, attended by all contractors for investment tasks at PSE headquarters.
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58 events and conferences - at both international and national level, with the participation of PSE experts.
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114 PSE experts engaged in events and conferences at both international and national level.
- Building understanding and social acceptance for PSE as an independent national power system operator.
Benefits for us :
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Social Communication Programmes are implemented in 100 percent of gminas situated in PSE's investment areas.
Benefits for the environment:
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Social Communication Programmes are implemented in 100 percent of gminas situated in PSE's investment areas.
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6th edition of workshops held for industry journalists.
