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Grid Development, Operation & Connections within EU Legal Framework

Grid Development, Operation & Connections within EU Legal Framework. Michael Walsh 17 th May 2013. Overview. Grid Development - Context and Challenges Constraints Reports and ATRs Gate 3 Offer Execution DS3 Update. Wind Development - Context. Grid Development Strategy to:.

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Grid Development, Operation & Connections within EU Legal Framework

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  1. Grid Development, Operation & Connections within EU Legal Framework Michael Walsh 17th May 2013

  2. Overview • Grid Development - Context and Challenges • Constraints Reports and ATRs • Gate 3 Offer Execution • DS3 Update

  3. Wind Development - Context

  4. Grid Development Strategy to: Support energy policies: security of supply, sustainability, competitiveness, efficiency Facilitate economic growth in all regions Connect renewable and conventional generation Increase interconnectivity with other systems More than 300 projects €3.2bn expenditure

  5. Programme Progress 2010 Actual • New Line - 130km completed • Line Uprates - 340km completed 2011 Actual • New Line - 80km completed • Line Uprates - 300km completed 2012 Actual • New Line -130km completed • Line Uprates - 215km completed 2013/14/15 Forecast • New Line –200 km due for completion • Line Uprates – 860 km due for completion 14 major station projects in the same period

  6. Capital Expenditure

  7. Challenges • Ensuring Public Acceptance • Land access • Legal challenges • Legislation changes • Uncertainty of volume of Gate 3 work

  8. Response • EirGrid/ESB Networks coordination on multi-Year Regional Programme Planning • Project Development & Consultation Roadmap • Stakeholder Engagement (local/national) • Community Gain • New Technologies

  9. Overview • Grid Development - Context and Challenges • Constraints Reports and ATRs • Gate 3 Offer Execution • DS3 Update

  10. 3 pieces of the ‘information jigsaw’….. FAQs ATRs Constraints Published April-July 2013 Published April-July 2013 Published Dec 2012

  11. FAQs and ATRs • Firm Access Quantities for all Gate 3 Wind were published in December 2012 • Determination of Associated Transmission Reinforcements is now complete • ATRs will be issued alongside the constraint reports

  12. Constraint Reports • Studies for Gate 3 constraint reports have been completed following the publication of a final tie-break decision by the SEM Committee • High-level results available • Some general trends have been observed in the results • Detailed Area reports to be issued

  13. Scenarios • Two scenarios covered: • 33% uptake of Gate 3 • This is achieved by derating all Gate 3 projects to 33% of their MEC. • 100% uptake of Gate 3 • The build-out rate is the same for both scenarios • This included project size, shallow connection leadtime, planning permission status etc

  14. Build-out rate: 100% Gate 3 Large projects with planning assumed to connect ~4 years from offer acceptance Projects without planning take an extra 2 years

  15. Build-out rate: 33% Gate 3 Average installation rate in Ireland of ~275MW/year

  16. Overall 100% Gate 3 results

  17. Overall 33% Gate 3 results

  18. Observations on constraint results • Average levels are low for all years • There are some nodes that will have high constraints: • During uprate outages • Until uprates or new builds are delivered • Inside a constraint group • There are constraint groups – higher levels of constraint • Donegal • South West

  19. Observations on curtailment results • High levels of curtailment if all of Gate 3 connects • Low levels of curtailment in the 33% Gate 3 case assuming: • Exporting of excess wind on the EWIC and Moyle • DS3 can deliver 75% SNSP* • No additional operational constraints to those modelled in the study

  20. Overview • Grid Development - Context and Challenges • Constraints Reports and ATRs • Gate 3 Offer Execution • DS3 Update

  21. Gate 3 Offer Validity Period • Offer Validity Period is 50 Business Days and commences on receipt of Constraint Report • No Extensions to Validity Period • Modifications do not extend the validity period

  22. TSO Offer Execution • To execute an Offer the Applicant must meet the conditions precedent which include: • Make First Stage Payment • Put in place MEC Bond (where applicable) • Sign the offer • After signing the applicant will receive an offer acceptance letter • Contains information including Long Stop Dates • 36 Months post Scheduled Consents Issue Date • 30 Months post Scheduled Operational Date • A Kick Off Meeting will be scheduled within 20 Business Days of Execution

  23. Executing TSO Offer:First Stage Payment • The First Stage Payment (FSP) Mechanism* applies to Gate 3 Transmission Renewable Generators • This may be different to what is currently in your offer • A Sliding Scale Mechanism now applies to FSP • Full amount of the FSP may not be due on execution. • Amount due on execution depends on Scheduled Consents Issue Date • The remaining amount is due 12 months prior to your Scheduled Consents Issue Date. • First Stage Payments are non-refundable *CER/11/083

  24. TSO First Stage Payment • Renewable Projects: • Contested • FSP = €10,000 per MW • Non Contested • FSP = Greater of [X and 10% of the connection charge] where • X = Lesser of [€10,000 per MW of contracted capacity (MEC); 50% of the connection charge]

  25. Sub Groups • Project Starts when critical mass have signed • When enough MW has signed to warrant the connection works to go ahead • Members of same sub-group will have aligned validity period expiry date • Sub-Group Agreement is required for any modification that may change connection works • One party cannot unilaterally hold up progress on connection works by requesting a modification • If one or more parties wants to change the connection works e.g. AIS to GIS all parties must agree and seek to modify their agreements accordingly • Splits, Mergers, Relocations can all impact on connection works

  26. Sub Groups - Continued • We proceed with connection works as set out in contract until a contract modification is signed • We cannot act on the basis of general discussions or hearsay • We must have contractual basis for progressing works/planning for something different from what is in the offer • This is for the protection of all parties within the subgroup and for the TUoS customer • COPP is a good source of information about sub-groups

  27. Overview • Grid Development - Context and Challenges • Constraints Reports and ATRs • Gate 3 Offer Execution • DS3 Update

  28. DS3 Programme Shaping the power system of the future System Services Performance Monitoring Grid Code Demand Side Management Frequency Control Voltage Control Renewable data Rate of Change of Frequency Studies & Model Development Control Centre Tools Wind Security Assessment Tool

  29. DS3 Programme: Workstream Update (1) • System Services Review • Paper on Financial Arrangements submitted to RAs • Grid Code • All RoCoF Modifications submitted to RAs - Dec 2012 • Demand Side Management • WPDRS Phase Out, DSUs, Demonstration Projects • Renewable Data • 2012 Curtailment Report Drafted and submitted to Regulator • Performance Monitoring and Testing • Deadline for receiving Operational Certificates is 1st of December 2013 • Performance Monitoring Workshops: Belfast and Dublin on 6th and 11th of June

  30. WFPS Controllability Update Status Update 1-2 slides

  31. DS3 Programme Outlook • Project will evolve over the coming months • Enhanced role for the RAs • Progress for certain workstreams is dependent on other parties e.g. RAs, DSOs • Progress is dependent on decisions on System Services, RoCoF etc. • Move toward implementation of change in operational policies • Challenge of aligning all island position • Different Grid Codes • 2 Regulatory Authorities

  32. Supporting MeithealnaGaoithe (1) • Gate 3 Customer Meetings • Opportunity to meet with EirGrid in advance of signing your offer • Available to both TSO and DSO Customers – contact relevant SO • 18th June, 18th July, 1st August • Gate 3 Frequently Asked Questions • On Gate 3 Section of EirGrid Website http://www.eirgrid.com/gate3/frequentlyaskedquestions/

  33. Supporting MeithealnaGaoithe (2) • Customer Forums • Last forum took place on 16th April • Presentation available on the Events page of EirGrid website • Customer Connections Update • Regular Bulletins issued by EirGrid • Also available in Gate 3 section of EirGrid Website • Register for EirGrid Updates • Email info@eirgrid.com to be added to circulation list

  34. Summary • Grid Development • Network Development Update and build out • Significant challenges and TSO Response • Constraint Reports & ATRs • Progressing the issuance of all area reports • Constraint levels low for all years • Gate 3 Offer Execution • First Stage Payments • Processing of Sub Groups • DS3 • Multiple workstreams ongoing • Regulatory Input and decisions due over coming months

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