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1 Click to edit Master title style Click to edit Master title style Active Network Management Getting Connected in the East Riding David van Kesteren Northern Powergrid

2 Click Introduction Click to to edit edit Master Master title title style style Current network issues and benefits of ANM How ANM works Principles for queuing Cost structure How to apply 2

3 Click Click to to edit edit Master Master title title style style Driffield network issues export capacities Current contracted HV / EHV generation capacity Network export capacity Network minimum demand Overall generation capacity at minimum demand Maximum demand Theoretical generation capacity at maximum demand 129MW 105MW 17MW 122MW 114MW 236MW Conventional limit for generation Additional headroom can only be accessed by managing the output from generation Exceeding the conventional limit for connected generation may lead to the network plant being overloaded Network minimum demand can reduce or increase over time 3

4 Click to edit Master title style Click to edit Master title style Assumes all HV/EHV generation is operating at maximum output, though this will not occur often. All of the existing generation is wind powered or controllable synchronous plant. Small levels of overload on network plant 4

5 Click Click to to edit edit Master Master title title style style Conventional reinforcement solutions Increase network export capacity via reinforcement Increase the capacity of existing transformers, or Install additional capacity Minimum cost reinforcement solution ~12m Creates up to 30MW of capacity Minimum cost new connections solution (from an alternative network point) ~ 6m Dedicated long cable routes and/or transformer (sole user assets) No cheap solutions Cost is prohibitive to new entrants 5

6 Click ANM Click to to as edit edit a solution Master Master title title style style ANM constrains the generator at peak time to avoid overloading the network Pros Minimum demand only occurs for short periods in the year As network demand increases more generation can be turned on Unused contracted generation capacity can be utilised by other generators Significantly cheaper than conventional reinforcement Releases more capacity at Driffield than can be economically achieved through conventional reinforcement Cons Generation output must be flexible No absolute guarantee of level of network availability Small-scale generation (LV) may erode available headroom over time Levels of curtailment will be higher for later entrants 6

7 Click Click to to edit edit Master Master title title style style ANM main building blocks example Measurement points Local controllers (sgs connect) Comms links Central controller (sgs core) Nb. Service provider not yet selected 7

8 Click Click to to edit edit Master Master title title style style Requirements for ANM participation Connections at LV are excluded, but limited to <250kW (dedicated new connections at LV are limited to 190kW) All new HV or EHV generation connections into the Driffield network must participate Modifications to existing connections will often affect curtailment levels for existing ANM participants. The following are examples of where a modified connection may be required to participate: Increase in export capacity Increase in installed capacity (with or without a change to export capacity) Changing the type of generation (with or without a change to export capacity) Changing the operating regime (where a customer has an existing connection agreement for a specific operating regime) A customer requesting a generally more expensive conventional connection will not be required to participate in ANM 8

9 Click Queuing Click to to edit edit in the Master Master ANM title title environment style style A generator s queue position is key to the level of curtailment applied to the generator General principle is Last In, First Off (LIFO) However, during market opening we will apply a group curtailment principle for the first two months From 1st June 2016 we will revert to LIFO for new applicants 9

10 Click Cost Click to structure to edit edit Master Master for ANM title title elements style style Capital costs Shared costs, by number of users: central controller, shared measurement points, shared comms routes Sole user costs: local controller, local dedicated comms, any dedicated measurement points Operating Costs Same principle as capital elements 10

11 Click How Click to to edit apply edit Master Master title title style style Generation applications within the affected area will be followed up by a commercial engineer to determine whether you require a conventional offer or an ANM offer Additional assessment and design (A&D) studies are required for ANM offers S22 rather than S16, allows us to charge upfront for A&D studies and allows us to manage the ANM queue in a more certain way for customers A&D fee initially set at 4,000 + VAT per application Customers can still request a free conventional connection offer, but we will not process a conventional offer in parallel with an ANM offer Queue position determined by date of payment of A&D fee, subject to the customer continuing to show adequate progression 11

12 Click to edit Master title style Click to edit Master title style Questions and Answers