Grid Development, Operation & Connections within EU Legal Framework

Grid Development, Operation & Connections within EU Legal

FrameworkMichael Walsh17th 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:

• 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

RI NAWADE

STRATFORDBALLYBEG

TIPPERARY

GLENLARA

ATHY

PROSPECT

NENA GH

M ONREAD

TRIEN

DRUMLINE

AHANE

LIMERICK

CASTLEFARM

SEALROCK

TYNAGH

DERRYBRIEN

AGANNYGAL

AUGHINISH

WEXFORD

KIL TEEL

BALLYWATER

GREAT ISLAND

CULLENAGH

TURLOUGHHILL

MAYNOOTH

INCHICORE

CARRICKM INES

NORTH WAL L

SHELL YBANKS

IRISHTOWN

OLDSTREET

FINGLAS

DUNSTOWN

BARODA

HUNTSTOWN

KELLIS

PLATIN

KNOCKUMBER

GORMAN

BALTRASNA

GLASM ORE

CORDUFF

WOODLAND

ATHLONE

GALWAY

LANESBORO

THORNSBERRY

CLOON

SOMERSET

CUSHALING

DALTON

KINNEGAD

BANDON

DUNMANWAY

MACROOM

BRINNY

KILBARRY

M ARINA

CARRIGADROHIDCOOL ROE

TRABEG

HARTNETTS

BALLYLICKEY

’SCROSS

CLONKEEN

COOMAGEARLAHY

GARROW

INNISCARRA

CLASHAVOON

BARRYMOREKNOCKEARAGH

DUNDALK

TANDRAGEE

STRABANE

OMAGH

DUNGANNON

COLERAINE

LOGUESTOWN

LIMAVADY

MAGHERAFELT

TAMNAMORE

KILROOT

MOYLE INTERCONNECTOR

RATHGAEL

NEWTOWNARDS

BALLYNAHINCH

NEWRY

BANBRIDGE

KELLS

BALLYMENA

CREAGH

ANTRIM

DRUMNAKELLYWARINGSTOWN

COOLKEERAGH

BALLYLUMFORDLARNE

LISAGHMORE

LISBURN

CASTLEREAGH

ENNISKILLEN

KNOCKROSEBANK

BALL YVAL LAGH

BC

CG

DG

PW

HT

FINAGHY

GG

CREDEN

KILTOY

CATHALEEN'SFALL CLIFF

BINBANE

GOLAGH

DRUMKEEN

SORNEHILL

TRILLICK

DRYBRIDGE

LOUTHMULLAGHARLIN

SLIGO

TA WNAGHMORE

MOY

RICHMOND

CARRICK

- ON -SHANNON

BELLACORICK

GILRA

GORTAWEE

ARIGNA

TONROE

CORRACLASSY

CUNGHILL

CORDERRY

SHANKILL

ARVA

RATRUSSAN

ENNIS

DALLOW

PORTLAOISE

CARLOW

KILKENNY

THURLES

CAHIRDOON

ANNER

BALLYDINE

MALLOW

CHARLEVILLE

RATHKEALE

TARBERT

BUTLERSTOWN

DUNGARVAN

BLAKE

TULLABRACK

MUNGRETMONETEEN

FASSAROE

POLLAPHUCA

IKERRIN

LISHEEN

OUGHTRAGH

TRALEE

DUNFIRTH

KILLOTERAN

KILLONAN

CASHLA

MEATHHILL

TIEVEBRACK

ARDNAGAPPARY

SHANNONBRIDGE

TURLEENAN

KINGSCOURT

LISDRUM

NORTH KERRY

CLAHANE

ATHEA

LOUGHTEEOG

BALLYRAGGET

DERRYIRON

MONE YPOINT

TARBERT REFURBI SHM ENT PROJ ECT

KNOCKRAHA

BANOGE

LODGEWOOD

CASTLEBAR

ARKLOW

SALTHILL

WATERFORD

GARVAGH

CRANE

CLOGHBOOLA

GLANLEE

CORDAL

FINNSTOWN

NAVAN

CASTLEDOCK RILL

BOOLTIAGH

ARDNACRUSHA

MULLINGAR

LETTE RKENNY

MEENTYCAT

BALGRIFFIN

EAST KERRY & NORTH W EST CORK

SRANANAGH

FLAGFORD

GL ANAGOW

BRACKLONE

POOLBEG

AGHADA

DROMADA

RAFFEEN

NEWBRIDGE

CARROWBEG

CAMUS

BOGGERAGH

KEELDERRY

KNOCKACUMMER

BALLYCUMMIN

Planned Transmission System400 kV, 220 kV and 110 kV

MILLSTREET

Programme Progress2010 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 completion14 major station projects in the same period

Capital Expenditure

Transmission Capex Spend

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2006 2007 2008 2009 2010 2011 2012 2013F 2014F

Actual Forecast

Annu

al S

pend

[€m

]

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

Cum

ulat

ive

Spen

d [€

m]

Annual Capex Spend Cumulative Capex Spend

Challenges

• Ensuring Public Acceptance

• Land access

• Legal challenges

• Legislation changes

• Uncertainty of volume of Gate 3 work

Response

• EirGrid/ESB Networks coordination on multi-Year Regional Programme Planning

• Project Development & Consultation Roadmap

• Stakeholder Engagement (local/national)

• Community Gain

• New Technologies

Overview

• Grid Development - Context and Challenges

• Constraints Reports and ATRs

• Gate 3 Offer Execution

• DS3 Update

FAQs ConstraintsATRs

3 pieces of the ‘information jigsaw’…..

Published Dec 2012 Published April-July 2013

Published April-July 2013

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

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

Area Estimated Date Range for Issue

K 24 Apr – 3 May

D 8 May- 31 May

H2 8 May- 31 May

H1 8 May- 31 May

B 4 Jun – 28 June

F 4 Jun – 28 June

J 4 Jun – 28 June

E 10 Jun – 5 Jul

A 17 Jun – 12 Jul

G 24 Jun – 12 Jul

C 24 Jun – 12Jul

I 24 Jun – 12 Jul

Non-Wind 1 Jul – 19 Jul

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

15

1934 2112 21162564 2564 2564 2564 2564

45

333 466

13691662

3385 35453999

553

607761

839

961

10121122

1306

0

1000

2000

3000

4000

5000

6000

7000

8000

2013 2014 2015 2016 2017 2018 2019 2020

Inst

alle

d W

ind

Capa

city

(MW

)

Year

Pre Gate 3 Gate 3 Northern Ireland

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

1934 2112 21162564 2564 2564 2564 2564

15110 154

452 5491117 1170 1320

553607

761

839961

1012 11221306

0

1000

2000

3000

4000

5000

6000

7000

8000

2013 2014 2015 2016 2017 2018 2019 2020

Inst

alle

d W

ind

Capa

city

(MW

)

Year

Pre Gate 3 Gate 3 Northern Ireland

Build-out rate: 33% Gate 3

Average installation rate in Ireland of ~275MW/year

Overall 100% Gate 3 results

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2014 2015 2016 2017 2018 2019 2020 2021

Redu

ction

a as

a %

of a

vaila

ble

cont

rolla

ble

win

d

Curtailment Constraint and Curtailment Constraint

Overall 33% Gate 3 results

19

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2014 2015 2016 2017 2018 2019 2020 2021

Redu

ction

a as

a %

of a

vaila

ble

cont

rolla

ble

win

d

Curtailment Constraint and Curtailment Constraint

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

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

*System Non-Synchronous Penetration

40%

45%

50%

55%

60%

65%

70%

75%

80%

2013 2014 2015 2016 2017 2018 2019 2020

SNSP Limit

Overview

• Grid Development - Context and Challenges

• Constraints Reports and ATRs

• Gate 3 Offer Execution

• DS3 Update

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

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

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

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]

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

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

Overview

• Grid Development - Context and Challenges

• Constraints Reports and ATRs

• Gate 3 Offer Execution

• DS3 Update

DS3 ProgrammeShaping the power system of the future

System ServicesPerformance MonitoringGrid CodeDemand Side Management

Frequency ControlVoltage ControlRenewable dataRate of Change of Frequency

Studies & Model DevelopmentControl Centre ToolsWind Security Assessment Tool

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

WFPS Controllability Update

Status Update1-2 slides

Feb-12 Mar-12Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12Dec-12 Jan-13 Feb-13Mar-130

200

400

600

800

1000

1200

1400

Categories of Controllability Ireland

Category (1) Category (2) Category (3)

Mar-13 MWCategory (1) 72.95Category (2) 1218.8Category (3) 62.1

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

Supporting Meitheal na Gaoithe (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/

Supporting Meitheal na Gaoithe (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 [email protected] to be added to circulation list

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