PSE Value Creation Model
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Market - inputs
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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 day-ahead and intraday 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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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 - cooperation as part of the coordination of work in the Council of the European Union.
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More than 60 PSE employees engaged in ENTSO-E work.
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The cross-border exchange capacity offered by PSE transfer capacities in 2016 totalled:
synchronous exchange
6 538 GW-h export 563 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania1 360 GW-h export 2 959 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden930 GW-h export 3 345 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość – Dobrotvir line), auctions concern only the import direction1 616 GW-h import
- 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 – 0(zero)
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Volume of cross-border exchange (in the import and export direction) in all market segments (GWh)* for 2016:
synchronous exchange
1 510 GW-h export 278 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania436 GW-h export 1 070 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden172 GW-h eport 2 624 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość – Dobrotvir line), commercial exchange concerns only the import direction966 GW-h 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.
- 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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Capacity acquired through DSR services –a maximum of 201 MW (for the period 1 April to 30 September 2016 – 201 MW, for the winter period 1 January to 31 March 2016 and 1 October to 31 December 2016 – 185 MW).
Market-benefits
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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:
-
Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99,9995 percent
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Aggregate cross-border exchange capacity offered by PSE in 2016:
synchronous exchange
6 538 GW-h export 563 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania1 360 GW-h export 2 959 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden930 GW-h export 3 345 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość – Dobrotvir line), auctions concern only the import direction1 616 GW-h 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)) - 99,9995 percent
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Failure-free operation of the Balancing Market – 100 percent
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122 participants of the Balancing Market in 2016.
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Aggregate cross-border exchange capacity offered by PSE in 2016:
synchronous exchange
6 538 GW-h export 563 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania1 360 GW-h export 2 959 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden930 GW-h export 3 345 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction1 616 GW-h import Volume of cross-border exchange (in the import and export direction) in all market segments (GWh)* for 2016:
synchronous exchange
1 510 GW-h export 278 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania436 GW-h export 1 070 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden172 GW-h export 2 624 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); commercial exchange concerns only the import direction966 GW-h 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) - 99,9995 percent
-
Aggregate cross-border exchange capacity offered by PSE in 2016:
synchronous exchange
6 538 GW-h export 563 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania1 360 GW-h export 2 959 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden930 GW-h export 3 345 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction1 616 GW-h import
Benefits for the environment:
-
Electricity supply continuity index (defines the certainty of supply to all customers connected to the transmission network) - 99,9995 percent
-
Failure-free operation of the Balancing Market – 100 percent
-
122 participants of the Balancing Market in 2016.
-
Aggregate cross-border exchange capacity offered by PSE in 2016:
synchronous exchange
6 538 GW-h export 563 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania1 360 GW-h export 2 959 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden930 GW-h export 3 345 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); auctions concern only the import direction1 616 GW-h import Volume of cross-border exchange (in the import and export direction) in all market segments (GWh)* for 2016:
synchronous exchange
1 510 GW-h export 278 GW-h import
non-synchronous exchange – LitPol Link interconnection with Lithuania436 GW-h export 1 070 GW-h import
non-synchronous exchange – SwePol Link interconnection with Sweden172 GW-h export 2 624 GW-h import
non-synchronous exchange – interconnection with Ukraine (Zamość-Dobrotvir line); commercial exchange concerns only the import direction966 GW-h 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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Power available through DSR services –a maximum of 201 MW (for the period 1 April to 30 September 2016 – 201 MW, for the winter period 1 January to 31 March 2016 and 1 October to 31 December 2016 – 185 MW)
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Demand Side Response - 4 parties providing DSR services
Benefits for the environment:
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Power available through DSR services – a maximum of 201 MW (for the period 1 April to 30 September 2016 – 201 MW, for the winter period 1 January to 31 March 2016 and 1 October to 31 December 2016 – 185 MW)
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Avoiding the costs necessary to build a pumped storage power plant, e.g. the construction cost of a gas source is approx. 4 m PLN/MW
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PLN 300,000 – revenue of DSR service providers
Demand Side Response - 4 parties providing DSR services
Infrastructure and investment-contributions
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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 the course of our investment activities we take care to minimise losses.
Production capital
is the organisation's tangible resource which includes e.g. network infrastructure (power lines and substations) and buildings together with equipment, hardware and technological infrastructure, which allow the company to perform the tasks of the transmission system operator in Poland.
Value creation areas
- Transmission infrastructure development
- New build and upgrade projects
- Ensuring the continuity 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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PLN 1,216.9 m – capital expenditure of PSE *
*Total value of expenditure incurred in 2016 on project implementation is PLN 1,216.9 m. -
PLN 675.4 m – capital expenditure transferred to PSE assets*
*In 2016, fixed assets and intangible assets with a total value of PLN 675.4 m were transferred to assets of PSE S.A. -
PLN 136.5 m – modernisation expenditure of PSE *
*Actual capital expenditure related to Investment Plan Group III Upgrade of power substations and lines – PLN 136.5 m
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PLN 37.3 m – expenditure on the development of IT resources *
*In Investment Plan Group I ICT, actual expenditure in 2016 was PLN 37.3 m -
2 meetings held, attended by all contractors for investment tasks at PSE headquarters
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19 inspections carried out for 13 investment tasks
- Maintenance and repair of the transmission network
- Expenditure on improvement of contractors' health and safety, including:
- supervision of contractors
- HSEQ training to contractors
- social communication activities (activities pursued by PSE and by subcontractors).
Our contribution
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Costs incurred for maintenance and repairs amounted to PLN 109.6 m, including PLN 24.5 m, i.e. 22 percent, for non-scheduled work
- 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
Infrastructure and investment-benefits
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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 the course of our investment activities we take care to minimise losses.
Production capital
is the organisation's tangible resource which includes e.g. network infrastructure (power lines and substations) and buildings together with equipment, hardware and technological infrastructure, which allow the company to perform the tasks of the 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 PPS system operation
- Improving the PPS operation security through the implementation of PSE investment tasks
Benefits for us:
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Transmission equipment availability factor (DYSU) of 99.74 percent in 2016 compared with 99.44 in 2015
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5,645 MVA increase in capacity of installed transformers
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1.62 percent – transmission losses as percentage of total energy fed into the system
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Average age of equipment: 20 years for LV lines, 41 years for EHV lines
Benefits for the environment:
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Main groups of PSE suppliers:
– contractors for new build, upgrade and repair projects performing work on grid assets,
– equipment and hardware suppliers and service providers.98.3 percent of contractors for works and services come from Poland, 0.3 percent from the EU countries, and 1.4 percent from non-EU countries.
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PLN 223.996 m – value of local taxes paid to local authorities in 2016
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Transmission equipment availability factor (DYSU) of 99.74 percent in 2016 compared with 99.44 in 2015
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ENS – 425.10 MWh, AIT – 84.44 (minutes). Low 2016 ratios testify to a high level of operational reliability of the transmission system and the certainty of supply to consumers 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 99.74 percent in 2016 compared with 99.44 in 2015
- Winning social acceptance
- Timely completion of projects
- Increased awareness and sense of security of local communities with regard to projects in progress
- Optimisation of the line route for their acceptance by local communities
Benefits for us:
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Information meetings with local communities were held in 100 percent of communes situated along the routes of planned linear right-of-way projects
Benefits for the environment:
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526 information/consultation meetings and events attended by local authorities and communities
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Number of persons relocated in physical and economic terms, and relocation compensation – 0 (zero)
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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.
People and relations-contributions
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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 ca\re of social security
- Care of secure work performance
- 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 wage incentive system
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Fluctuation rate of 5.15 percent in 2016
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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
- Implementation 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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100 percent of employees covered by the PSE SMART programme, including 47 active persons developing and co-implementing new solutions
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18 internal trainers delivering training in 2016
- Preparing a new investment project implementation model for deployment
- 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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Developing and introducing as of 1 May 2017 a new project implementation model (NMRI). The project coordination unit is the Central Investment Unit (Centralna Jednostka Inwestycyjna, CJI) a part of the PSE's internal organisation structure
- Implementation of educational projects
- Resuming the publication of the Elektroenergetyka magazine
Our contributions
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Information meetings with local communities were held in 100 percent of communes 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 1st edition of workshops for industry journalists
People and relations-benefits
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 an organisation; abundant know-how acquired over the 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: generators, distribution system operators, energy traders, the energy exchange and contractors, subcontractors and suppliers, local authorities and communities. 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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Turnover rate of 5.15 percent in 2016 (the number does not include retirees)
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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
Benefits for the environment:
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As an employer, PSE takes a number of measures intended to build the work-life balance approach among employees
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Turnover rate of 5.15 percent in 2016 (the number does not include retirees)
- Improving the competence of employees
- Improving employee motivation, competence retention in the organisation
- Partnering with universities
Benefits for us:
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1.27 percent – percentage of employees with the doctor's degree
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In 2016, 41 PSE employees had their studies subsidised, including two doctoral students
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69 percent training budget performance in 2016
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) - 99,9995 percent
- 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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50 industry conferences with active participation of PSE's experts
- 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 communes situated in PSE's investment areas
Benefits for the environment:
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Social Communication Programmes are implemented in 100 percent of communes situated in PSE's investment areas
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1st edition of workshops for industry journalists
