OUR STRATEGYImplementation of the business strategy

Selected strategic directions

Adequate integration with RSCs/RCCs

The deepening regional integration of electricity systems promotes PSE to intensify its efforts to model its interactions with partners accordingly. The company’s activities are geared towards regionalisation of key TSO processes and transferring selected processes to Regional Coordination Centres (RCCs), which started operating on 1 July 2022, replacing the Regional Security Coordinators (RCCs) that had been in place up to then.

TSCNET Services GmbH functions as the Regional Coordination Centre to which PSE belongs. PSE seeks to systematically strengthen the RCCs while developing tools to verify actions taken at regional level.

Implementation of the outage planning system

In 2023, our organisation decided that it needed to update its plan to deliver the Outage Management System (OMS-W). Our priority was to provide a system for use by Regional Dispatch Centre and National Dispatch Centre planners and dispatchers. Another planned measure was, unlike the previous plan, to allow operational units from the Operations Department, the Central Investment Unit, and business partners (e.g. DSOs) to report outage needs for the NPS elements.

In pursuit of the above goal, an important refactoring decision was also made, which involved migrating the application logic from PLSQL code to Java services in the backend and using a microservice approach. Such a solution, in line with current IT trends, enables high application scalability (as opposed to database-embedded logic), automated application testing, and easier access to Java specialists (as opposed to hard-to-reach PLSQL specialists). The advantages indicated translate into an increase in application speed and faster deployment of new application versions.

In accordance with the new delivery plan, the work stage was completed including the design and implementation of the OMS-W system in terms of:

  • refactoring, which involved migrating the application logic from PLSQL code to Java services in the backend and using a microservice approach. Such a solution enables high application scalability (as opposed to database-embedded logic), automated application testing, and easier access to Java specialists (as opposed to hard-to-reach PLSQL specialists). The advantages indicated translate into an increase in application speed and faster deployment of new application versions.
  • managing outage cards and outages taking into account multiple planned outage periods, and registration of outage needs.

The system for managing the unavailability of power system elements OMS-W will be implemented on a modern IT platform using data on NPS system elements contained in the RBES database. At the level of our company, it will represent the next step towards future integration of the corporation’s outage planning processes (with the AM system). Ultimately, the application will be provided with a support module for the Shift Management sub-process (integrated with the OMS-R and OMS-OS system) and will have an additional module allowing for the creation of operating systems assigned to individual outage requests in the NPS.

The OMS-W system is intended to replace the SEW Rejestr and SEW Projekty systems currently used for outage planning, developed more than 25 years ago. It is also intended to partially replace the DYSTAN system for recording emergency and operative outages, topological changes in the NPS, and consumer constraints resulting from emergency outages of transmission network elements and weather events in the MV network.

The next phase of work has also begun, with the goal of implementing an outage planning process in the OMS-W system that enables the determination of planning outcomes for short-term outages (PWK), approval of the daily outage plan (PWD), integration with the Reference Database of System Elements (RBES), and basic management of roles and rights.

Definition of the CC process with specification of resources, parallel exchange by PSE

In accordance with Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing guidelines on capacity allocation and congestion management and Regulation (EC) 714/2009, a new Flow-Based (FB) methodology has been adopted for capacity calculation for parallel exchange in the day-ahead timeframe.

In 2023, we continued developing IT tools to support the precoupling process and the Capacity Calculation Analysis tool to support the Intra-Day Flow-Based Capacity Calculation process in the CORE region as follows:

  • continued work in the evolutionary development phase for the implementation of an IT solution to support the precoupling phase in the intra-day timeframe (IDCC Stage 1) for the Flow-Based Market Coupling task,
  • continued work in the evolutionary development phase in the development and implementation of the core functionality of the Capacity Calculation Analysis tool to support the Intra-Day Flow-Based Capacity Calculation process in the CORE region.

Definition of the CCA process with specification of resources, parallel exchange by PSE

 In accordance with Commission (EU) regulations, new ROSC and CS RDCT methodologies were adopted for conducting security analyses and cost-sharing for activation of remedial actions. The new methodologies are designed to enhance the operational security of Europe’s power system.

In 2023, work continued on implementing an IT tool to support the ROSC/CS process under the CorNet project (RCC TSCNET and RCC Coreso) with the support of TSOs from the CORE region. In preparation for the implementation of the ROSC process on the PSE side, a base phase was developed to design a solution for data feeding of the central process, automatic data exchange and IT support of the ROSC process. A base phase was also developed, in which a solution was designed to provide IT support for the cost-sharing process.

Implementing a distribution network flexibility mechanism

Member States were required to implement a mechanism for procuring flexibility services from the distribution network and frequency-independent services under the provisions of the Directive of the European Parliament and of the Council (EU) of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (hereinafter: Directive 2019/944). In September 2023, the Act amending the Energy Law and certain other acts, which implemented Directive 2019/944, came into force.

The implementation of the mechanism for procuring flexibility services from the distribution network and non-frequency services was intended, among other things, to reduce the risk of blackout – thanks to the increased participation of system users connected to the distribution network in the provision of system services and balancing of the NPS. The above services, provided to system operators, expand the ability of operators to ensure the secure and reliable operation of the power system.

In carrying out work related to wide-ranging flexibility services, PSE is active in the international, EU-funded research and development project OneNet. The aim of the project is to develop and implement an implementation concept for the work, with a focus on the Polish demonstrator, i.e. to define, test and demonstrate the acquisition of procurement of services from flexibility sources that can be used in the future to support grid management by system operators.

The OneNet project began on 1 October 2020, under which, among other things:

  • services were defined, the procurement of which from entities connected to the MV and LV distribution network is considered useful for the TSO;
  • a prototype of the flexibility platform was built and tested;
  • customers were procured who provided services to TSOs/OSDs;
  • a demonstration was carried out on the purchase and use of NPS balancing services, congestion management and voltage control in HV, MV and LV distribution networks.

The experience gained during the implementation of the project will be used by PSE and the DSOs at the stage of implementing flexibility services in the territory of the Republic of Poland in accordance with the requirements of Directive 2019/944.

In 2022, the European Commission initiated the process of developing a new network code or modifying the existing codes so that their scope includes the area of services provided by so-called flexible consumers. The parties involved included all distributed resources (in particular, consumers, small-scale generators and electricity storage owners). In accordance with the legislative procedure, in 2022, the Agency for the Cooperation of Energy Regulators (ACER) developed and held public consultations on the “Framework Guideline on Demand Response” document, or guidelines on the content of the future network code. PSE participated in ENTSO-E working groups in this area. Our company also submitted, through ENTSO-E, its comments as part of the consultation process. On 21 December 2022, ACER published and submitted to the EC the final “Framework Guideline on Demand Response”.

In March 2023, the European Commission requested the EU DSO Entity and ENTSO-E to develop, on the basis of the “Framework Guideline on Demand Response”, a Demand Response Network Code (NC DR), which would specifically cover the service area of distributed resources (including consumers, heat pump owners, small-scale generators and electricity storage owners). PSE actively participated in working groups made up of representatives of both the EU DSO Entity and ENTSO-E to develop proposals for the NC DR. From 29 September to 10 November 2023, public consultations were held on the jointly developed draft NC DR, and on 8 May 2024. the EU DSO Entity and ENTSO-E submitted the NC DR proposal to ACER. In accordance with the legislative procedure, ACER will study the NC DR proposal, hold a public consultation and submit the final NC DR proposal to the European Commission. 

Building a competence centre capable of implementing innovations

The Operator’s research and development activities are aimed at improving energy efficiency, increasing the security of the NPS and maintaining the continuity of electricity supply, and improving the implementation of solutions to adapt diversification of the generation structure, including RES generation.

PSE has been building R&D competence for years, both internally and within the corporate group. We rely on the support of PSE Innowacje to carry out R&D tasks.

In 2023, activities were carried out aimed at initiating relationships with national and foreign partners to form consortia aimed at participating in future international research and development projects. PSE applied for funding under EU programmes such as Horizon Europe and Digital Europe through the initiated international consortia. Participation in competitions held by the National Research and Development Centre is also under consideration.

Building an electricity quality management system in the NPS

The purpose of building the NPS electricity quality management system is to implement solutions for the PSE to ensure the required electricity quality (JEE) parameters and, if necessary, to provide the information necessary to determine the source of JEE disturbances and implement corrective measures.

The main objective of the line of action, i.e. building an electricity quality management system in the NPS, will be achieved through the implementation of the following specific tasks:

  • providing electricity quality monitoring systems (SMJEE) for all points of electricity delivery to consumers and all substations of the TSO – so that monitoring covers each voltage level in at least one metering point;
  • implementation of the master electricity quality metering and billing system (SPRJEE), which integrates metering data from SMJEE systems and is used to process, report and make available electricity quality indicators and information on JEE parameters to the CSIRE system.

The SMJEE system currently in operation consists of 169 measuring devices (analysers) and covers about 39 percent of the required metering points. Implementation of the Expansion of the Electricity Quality Monitoring System investment task will enable electricity quality monitoring to be carried out at all transmission grid facilities.

As part of this task, 2 SMJEE systems are being implemented within separate packages, each covering 130 metering points (260 metering points in total). Upon completion of the task, monitoring of electricity quality parameters will be performed at a total of 429 metering points. The SMJEE systems currently being implemented will meet very high IT security standards and will provide a number of additional functionalities in line with the latest TSO standards.

In 2021, following a tendering procedure, contracts were signed with two contractors and the work planned for the next four years began. As part of Stage 1 of the task, contractors developed and agreed on detailed work schedules. In 2022, in Stage 2, contractors developed and agreed on detailed design documentation for equipment installed at 104 substations. In 2023, as part of Stage 3, contractors developed and agreed on detailed design documentation for SMJEE IT systems. For one of the packages, a pilot SMJEE system was implemented with the installation of metering equipment at two substations and SAT tests were conducted. The project is scheduled for completion in 2026.

The SPRJEE system will make it possible to identify predominant sources of disturbances, determine the parties’ contribution to introducing those disturbances, and verify the legitimacy of discounts, and in the future, if provided for by law, also to estimate penalties for exceeding the permissible levels of individual parameters. The work started in 2023, with a solution design developed and a pilot version of the system deployed in development environment, including basic functionalities for configuration, calculation of electricity quality indicators and evaluation of electricity quality parameters based on definable criteria. The project is scheduled for completion in 2026.

Electricity quality management in the target system will be based on:

  • electricity quality monitoring systems (SMJEE) – performing data reading from the metering devices installed at the transmission grid facilities and supporting the verification of data,
  • the electricity quality metering and billing system (SPRJEE) – integrating metering data from SMJEE systems and used to process, report and make available electricity quality indicators and information on electricity quality parameters to the CSIRE system.

The implementation of the electricity quality management system in the NPS will provide benefits and opportunities such as:

  • checking compliance of power quality parameters with the requirements of the System Regulation and other applicable rules at all facilities,
  • verification of the legitimacy of applications, claims and notifications of end users, DSOs and other users of the NPS concerning non-compliance with electricity quality parameters, including those relating to discounts and network events,
  • identification and prevention of new disturbance sources within completed connections RES generators and customers to the transmission grid,
  • issuing opinions on test reports on wind farm impact on the power system in terms of electricity quality parameters,
  • identification of causes of disturbances for electricity quality parameters and identification of the entity responsible for their introduction,
  • use of collected metering data to determine corrective measures and eliminate identified disturbances,
  • collecting information on the electricity quality status to determine appropriate requirements for future connections,
  • provision of data and recorded events for the evaluation of the operation of substation equipment and switching operations as part of the work of the Disturbance Investigation Committee and the evaluation of their impact on the plants of entities connected to the transmission system,
  • evaluation of the operation of control automation systems used - analysis of problems concerning the maintenance of voltage levels and voltage unbalance in the power system.

Implementation of investment tasks arising from the TGDP

PSE’s capital expenditure for investment tasks in 2023 amounted to around PLN 1.8 billion. The most important tasks completed in that year were:

  • Construction of the 400 kV Chełm-Lublin Systemowa line,
  • Construction of the 400 kV Baczyna-Plewiska line and construction of the 400 kV Krajnik – Baczyna line in the Baczyna substation foreground,
  • Construction of the 400 kV Kozienice-Miłosna* line,
  • Construction of the 400 kV Ostrołęka-Stanisławów line (one circuit of the 400 kV line)*;
  • Suspension of the second 400 kV circuit of the Ostrów-Kromolice line together with expansion of the 400/110kV Ostrów substation and 400/110kV Kromolice substation*,
  • Commissioning of the 400 kV Rzeszów-Chmielnicka line,
  • Redevelopment of the 220 kV Byczyna-Poręba, Poręba-Czeczott line,
  • Modernisation of the 220 kV Janów-Zgierz-Adamów – Stage II line (Zgierz-Adamów section),
  • Modernisation of the double-circuit section of the 400 kV Dobrzeń-Trębaczew-Joachimów line,
  • Replacement of the OPGW ground wire on 220 kV lines: Kozienice-Mory-Piaseczno and Mory-Podolszyce,
  • Expansion of the 220/110 kV Chełm substation.
  • Adaptation of the 400(220)/110 kV Żydowo Kierzkowo substation together with the 220 kV line entry from Piła Krzewina substation and Dunowo substation
  • Replacement of a transformer including infrastructure adaptation at the 220/110 kV Radkowice substation
  • Modernisation of transformer units at the 400/220 kV Krajnik and 400/220/110 kV Skawina substations,
  • Modernisation of 6 kV cable lines and auxiliary service power system at the 400/110 kV Żarnowiec substation.

*The lines were commissioned in 2023. Formal completion of the above-mentioned investment tasks and their transfer as assets to PSE S.A. is scheduled for 2024.

Deployment of independent air operations

Since 5 February 2021, PSE has held authorisation PL.SPO.058-HR to carry out commercial high-risk specialised operations issued by the President of the Civil Aviation Authority. The permit allows us to patrol substations, electricity towers and lines, gas pipelines, other pipelines, and to fly site inspection missions and patrol missions monitoring strategic power infrastructure. 
We employ trained, experienced pilots and task specialists. We also own three Robinson R66 helicopters, the specifications of which meet the company’s needs and, in addition, have met the conditions of low purchase and operating costs.
Helicopters and crews are based in three locations around the country, allowing them to quickly reach the any power line. The aviation operations we have carried out have confirmed the high efficiency and speed of transmission infrastructure inspections.

Cybersecurity

Due to its significant impact on the security of the Polish power system, cybersecurity plays a key role in PSE’s business strategy.

One of major strategic initiatives identified in the PSE Strategy to date was to repel external threats. These activities are continued as part of ongoing projects, tasks and initiatives aimed at improving security. This includes managing the risk of losing the ability to control and manage the NPS operation associated with cyber attacks on the IT/OT systems of the TSO and DSOs, generators, trading companies, exchanges or industrial consumers.

In 2023, we continued to follow up on the cybersecurity strategy, which identified possible developments and implemented the measures necessary to eliminate the defined risks. The growing volume of cyber threats and specialised attack tools confirmed the accuracy of the assumptions made in the strategy. The security dimension is an important element of the company’s successive activities.

ICT security and cyber threat management – approaches and projects

PSE’s ICT Department continued its ICT security assurance activities during the reporting period. The assumptions highlighted the unavoidable and mutual dependence of cyber security of PSE, our market partners in Poland and abroad, and entities of the Capital Group and its subcontractors, while noting the aggregate impact of cybersecurity on the operational stability of the NPS. The pillar of the activities undertaken was always ICT security, i.e. ensuring business continuity through availability and resilience of systems as well as integrity and confidentiality of data in IT solutions.

Priority areas of ongoing projects at PSE:

  • Network segmentation – projects aimed at ensuring adequate separation of resources with different levels of vulnerability, including ICT systems at the substations and central critical systems – both through actions at the level of technological standards (e.g. EAZ, SSiN), ICT architecture, appropriate shaping of business projects, and at the level of infrastructure itself;
  • Workstation – projects that provide secure work tools to maintain performance and functionality according to business needs, with malware protection and control of rights and data flow;
  • Internet interface – our external perimeter providing PSE’s employees and visitors, subject to rules derived from rights separation and management, with functional and unified access to the Internet (including via a secure Wi-Fi network, implemented at both the company’s head office and at the remote organisational units) and adequate, secure remote access;
  • Detection and response – threat monitoring conducted 7x24h by a dedicated Security Operations Centre (SOC) team to ensure ongoing ICT security, including actions and remedial measures for both IT and OT network incidents. Another support line is the Computer Emergency Response Team (CERT), which was established in 2016 and holds relevant certifications issued in successive years, confirming that it meets the highest standards of operation. An important element of this line of action is raising employees’ awareness, publishing threat alerts and warnings, reporting information about incidents and cooperation with external entities (including CERT NASK, CERT.GOV.PL, RCB) in the area of ICT security.

As part of the actions taken, we adapt organisational and technical solutions to legal requirements, both existing and being developed, i.e. the Act on the National Cybersecurity System, the network code for cybersecurity[1] and current ICT security standards, as well as industry standards.

[1] Commission Delegated Regulation (EU) 2024/1366 of 11 March 2024 supplementing Regulation (EU) 2019/943 of the European Parliament and of the Council by establishing a network code on sector-specific rules for cybersecurity aspects of cross-border electricity flows.

Collaboration

In cooperation with our stakeholders, we constantly work to ensure an appropriate level of collective ICT security and strategic harmonisation of efforts. We also closely cooperate with domestic and international entities responsible for cybersecurity of the country and the power sector.

To enhance this cooperation and to spread awareness of cybersecurity threats and approaches to combat them, we actively participate in numerous conferences and seminars as well as national and international sector cooperation forums. As part of ICT security promotion and enhancement of cooperation in the energy sector, since 2018 we have been organising PolEx training courses and the Cybersecurities Conference for the Energy Sector (CC4ES) with the participation of national and international industry experts. 

A key forum for international cooperation is the European Network of Transmission System Operators for Electricity – ENTSO-E. PSE representatives are involved there in projects aimed at ensuring energy security in Europe – developing new solutions or concepts and rules for critical infrastructure in various working and project groups. Below are some of the groups in which PSE representatives participate:

  • ICTC Information and Communication Technologies Committee – a committee that coordinates all issues associated with ICT and ICT security in ENTSO-E, with a particular focus on common ICT tools used by the electricity transmission system operator community;
  • Steering groups supporting ICTC, responsible for strategy issues, providing ICT and ICT security services.
  • Cyber Security Working Group – an ICTC working group that deals with ICT security issues. Its task is to monitor information about threats in the world and to cooperate in projects where it is necessary to take care of security and shape rules for the secure operation of systems and operators.
  • A working group bringing together experts from ENTSO-E and a similar association of European distribution system operators (E-DSO) which is responsible for development and implementation of the provisions of the Network Code for Cybersecurity;
  • Enterprise Architecture Working Group – an ICTC working group whose mission is to ensure proper coordination, consistency and decision support on architecture issues within the framework of operator community collaboration;
  • CIM (Common Information Model) Working Group – an ICTC working group that has developed and maintains standards for electronic exchange of information in the European electricity market.

PSE members also join the work of other groups, supporting them with their competence in the areas of inter-TSO IT management and designing future solutions that will be created to meet the growing needs of operator systems and the market. As part of these activities, concepts are created for new data exchange connections between transmission system operators, and existing connections are developed. Cooperation in these groups has a significant impact on the security and stability of the power systems in Europe. It also helps to improve employee competence and support partners in this process and fosters the exchange of knowledge and experience. Thanks to this activity, our employees have an impact on the formation of global standards in the field of IT security of industrial systems, as well as significantly improve their competence in this area. The cooperation also facilitates the adaptation of the ICT environment to the growing security requirements and improving resilience to threats.

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