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Grid Issues

Grid Issues. Charles Davies Commercial Director, National Grid Company British Wind Energy Association 17-18 April 2002. Outline. Overview National Grid obligations Reinforcements Commercial/regulatory/charging issues. N ational Grid Obligations.

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Grid Issues

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  1. Grid Issues Charles Davies Commercial Director, National Grid Company British Wind Energy Association 17-18 April 2002

  2. Outline • Overview • National Grid obligations • Reinforcements • Commercial/regulatory/charging issues

  3. National Grid Obligations • owner & operator of high voltage transmission system in England & Wales • offer connection to anyone who applies (within 3 months) • offer use of system to anyone who applies (within 28 days) • charge on the basis of approved charging principles • wind generators treated like any other generator - but is tailoring needed?

  4. Generic Transmission Connection Grid Substation Deeper Infrastructure Generation Circuit Generation Spur Generation Owned Shallow Connection Charge TNUoS Tariff

  5. National Grid Obligations - Issues • If connection interface is onshore, then existing procedures address: • direct transmission connection; or • ‘use of system’ if distribution connected • However, do obligations extend offshore? If so • are connections regulated or not? • are charging principles same as onshore?

  6. generation ACS Power Flow Pattern for demand 2003/04 2200 UPPER NORTH SCOTLAND 3055 3356 B1 1899 NORTH B2 MIDLANDS 7329 B3 19486 14056 CENTRAL 8190 9496 4956 8635 2736 5716 ESTUARY B7 1847 13238 24983 1976 3044 1197 SOUTH WEST B9 FRANCE

  7. Reinforcement - Issues • Potentially significant costs (UK studies in progress) • Basis of investment • Contractual? • Strategic? • Market determined? (Tx Access?) • Timing/consents • Reinforce then connect? • Connect then reinforce?

  8. Commercial, Regulatory & Charging • Shallow connection (for transmission): • minimum capital cost scheme • charges based on scheme specific costs • sharing with subsequent users • Deeper infrastructure: • guarantees sought from connectees • but costs shared via TNUoS tariff

  9. Connection - Issues • Individual transmission connections expensive for wind developments • Sharing connections reduces costs to connectees • Is there a role for National Grid in finding partners? • Are changes to connection charging principles needed? • connection tariff • shallower boundary

  10. System Infrastructure Charges • Based on contracted developments • locationally based tariff • reflects incremental network reinforcement costs on both demand and generation who use capacity • capacity-based charges • highest registered capacity of directly connected generator • triad demand contribution (basis of embedded benefit) • Future review likely (eg. Tx Access)

  11. Conclusions • Wind can get access to the transmission network now • Potential benefits in tailoring processes to achieve necessary connection sharing • Need to clarify off-shore ground-rules • Significant challenges from access review • Constructive dialogue underway • “Getting Connected Guide” see www.nationalgrid.com/uk/library/

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