Description of the Application Process for Small Embedded Generators

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1 Description of the Application Process for Small Embedded Generators This document describes the Application Process for Small Embedded Generators (as required under section 5.3.3A of the National Electricity Rules). A Small Embedded Generator is considered to be either: a generator that exports into the distribution network through a single connection point at up to 5 MW; or a generator that exports into the distribution network through a single connection point at up to 5 MW and which has to be registered with AEMO. In summary, the process for connecting a new generator to the TasNetworks distribution network is: 1. Connection Enquiry by the Connection Applicant to TasNetworks (If requested). 2. Response to the enquiry by TasNetworks (If requested). 3. Connection Application from Connection Applicant to TasNetworks. 4. Negotiation of negotiated access standards between Connection Applicant and TasNetworks. 5. Offer to Connect from TasNetworks. 6. Connection Agreement, a contract between the Connection Applicant and TasNetworks governing the on-going operation of the generator. 7. Technical Details 8. Disclaimer 9. Glossary These stages will be discussed in more detail below. 1 Connection Enquiry - Optional This stage is not compulsory for customer intending to connect embedded generation systems up to 5MW. The purpose of this stage of the connection process is for the Connection Applicant to indicate to TasNetworks that the Connection Applicant is seeking to connect generation plant of certain specifications at a nominated location on the TasNetworks distribution network. The Connection Applicant does this by lodging a Connection Enquiry with TasNetworks on the form that is available on the TasNetworks web-site.

2 TasNetworks recommends that the Connection Applicant liaise with TasNetworks before submitting the Connection Enquiry so that the Connection Applicant may discuss its plans with TasNetworks before undertaking the work to collate the information required in a Connection Enquiry form. 1.1 Information to be Provided by Connection Applicant The Connection Applicant will be required to provide the following information in its Connection Application: objectives of the proposed installation of generating plants; number of proposed generating units; type of proposed generating units: for example, gas generator, hydro-generator ; technology of proposed generating units: for example, synchronous generating unit, induction generating unit, etc.; type and capacity of any on-site energy storage; maximum power generation of each of the generating units, in MW and MVA; maximum power transfer (generation and load) through the connection point, in MW and MVA; connection voltage: for example 240 V, high voltage; expected energy production and consumption, in MWh per month; nature of any disturbing load: for example, the size of disturbing components in MW / MVAr, the duty cycle of the plant, nature of power electronic plant which may produce harmonic distortion, etc.; single-line diagram of the generating system; power requirements during construction; address of the preferred site location; physical details of the preferred site; estimated date of commissioning of each generating unit; estimated date of commencement of generation and consumption. name and address of enquirer, and, if relevant, of the party for whom the enquirer is acting; connection Applicant s Retailer; 2

3 whether the generating units will be registered with AEMO; whether the Connection Applicant is seeking only a Detailed Response; and whether the Connection Applicant requires information from TasNetworks and, if so, what that information is. Please note that TasNetworks may require additional information, such as that listed in section 7 of this document, depending upon the type and location of the proposed generation. 1.2 Information that will be Provided by TasNetworks In discussions with the Connection Applicant before lodgement of the Connection Enquiry, TasNetworks will provide sufficient detail about the configuration and capacity of the TasNetworks distribution network at the proposed location of the generator to enable the Connection Applicant to ascertain whether the connection is technically feasible. Please note that TasNetworks will not provide any information on the commercial outcomes of the operation of the proposed generator. TasNetworks will provide sufficient information to the Connection Applicant to enable the applicant to understand the information that is being sought in the Connection Enquiry form. Please note that TasNetworks will not provide engineering consultation services to the Connection Applicant in relation to the design and characteristics of the applicant s proposed generating system. 2 Response to the Enquiry The purpose of this stage of the connection process is the assessment by TasNetworks of the Connection Enquiry made by the Connection Applicant. There are two parts to this stage of the process: a Preliminary Response; and a Detailed Response. These two parts are discussed in the following subsections. Please note that the Connection Applicant may nominate that TasNetworks provide only a Detailed Response. 2.1 Preliminary Response In its Preliminary Response to a Connection Enquiry, TasNetworks will provide: 3

4 relevant technical information about the TasNetworks distribution network, including guidance on how the Connection Applicant may meet the following requirements if it were to proceed to prepare an application to connect: primary protection and backup protection; other protection and control requirements applicable to embedded generating units and associated plant; remote monitoring equipment and control communications facilities; insulation co-ordination and lightning protection; existing maximum and minimum fault levels and fault clearance times of relevant local zone substations; switching and isolation facilities; interlocking and synchronising arrangements; and metering installations; other technical information relating to the TasNetworks distribution network that would be necessary to prepare a Connection Application; for each prescribed technical requirement relevant to the proposed generator: the automatic access standards; any relevant minimum access standards; and any applicable plant standards. the normal voltage level, if it is expected to change from the nominal voltage level; information as to whether any service required to establish a connection is contestable in the relevant participating jurisdiction; worked examples of connection service charges relevant to the enquiry and an explanation of the factors on which the charges depend; information relating to any system constraints on relevant: sub-transmission lines; zone substations; and other network components; an indication of whether network augmentation may be required and if required, what work the network augmentation may involve; 4

5 a hyperlink to the Distribution Network Service Provider s information pack; the contact details for the relevant point of contact within TasNetworks that is managing the Connection Enquiry; TasNetworks response to the objectives of the connection as stated by the Connection Applicant in the Connection Enquiry; a description of the process for the provision of the Detailed Response, including the further information to be provided by the Connection Applicant and analysis to be undertaken by TasNetworks as part of the preparation of the Detailed Response; an overview of any available options for connection to the TasNetworks distribution network, as relevant to an enquiry lodged, at more than one connection point in a network, including, for each optional connection point: example single line diagram and relevant protection systems and control systems used by existing connection arrangements; a description of the characteristics of supply; and an indication of the likely impact on terms and conditions of connection, a statement of further information required from the Connection Applicant for the preparation of the Detailed Response, including: details of the Connection Applicant s connection requirements, and the Connection Applicant s specifications of the facility to be connected; and details of the Connection Applicant s reasonable expectations of the level and standard of service of power transfer capability that the distribution network should provide; an estimate of the enquiry fee payable by the Connection Applicant for the Detailed Response, including details of how components of the fee were calculated; the component of the estimate of the enquiry fee payable by the Connection Applicant to request the detailed response; an estimate of the application fee which is payable on submitting a Connection Application; and the identity of other parties that TasNetworks considers: will need to be involved in planning to make the connection or must be involved under clause 5.3A.10(c) of the Rules; and must be paid for transmission services or distribution services; and 5

6 whether it will be necessary for any of the parties identified to enter into an agreement with the Connection Applicant in respect of the provision to the Connection Applicant of connection services or other transmission services or distribution services or both; any additional information relevant to the enquiry. 2.2 Detailed Response In its Detailed Response, TasNetworks will provide: the contact details for the relevant point of contact within TasNetworks who will manage the application to connect; for each prescribed technical requirement relevant to the proposed generator: the automatic access standards; any relevant minimum access standards; any applicable plant standards. the normal voltage level, if that is to change from the nominal voltage level; details of the connection requirements based on the Connection Applicant s specifications of the facility to be connected; details of the level and standard of service of power transfer capability that TasNetworks considers that the network provides at the location of the proposed connection point(s); negotiated access standards that will require the involvement of AEMO; a list of the technical data to be included with the Connection Application, which may include that information listed in section 7 of this document; commercial information to be supplied by the Connection Applicant to allow TasNetworks to make an assessment of the ability of the Connection Applicant to satisfy the prudential requirements set out in rules 6.21 and 6A.28; in relation to services that TasNetworks intends to provide, an itemised estimate of connection costs including: connection services charges; costs associated with the proposed metering requirements for the connection; costs of any network extension; 6

7 details of augmentation required to provide the connection and associated costs; details of the interface equipment required to provide the connection and associated costs; details of any ongoing operation and maintenance costs and charges to be undertaken by TasNetworks; and other incidental costs and their basis of calculation; an explanation of the factors affecting each component of the itemised estimate of connection costs and the further information that will be taken into account by TasNetworks in preparing the final itemised statement of connection costs; using reasonable endeavours, all risks and obligations in respect of the proposed connection associated with planning and environmental laws not contained in the Rules; a draft Connection Agreement that contains the proposed terms and conditions for connection to the network and: an explanation of the terms and conditions in the Connection Agreement that need to be finalised; and if relevant, further information necessary from the Connection Applicant to finalise the Connection Agreement; a description of the process for lodging the Connection Application, including: the options open to the Connection Applicant in submitting a Connection Application; the further analysis to be undertaken by TasNetworks as part of the assessment of the Connection Application; further information required from the Connection Applicant for TasNetworks to assess the Connection Application, which will be similar to that in Schedule S5.5 of the Rules; and an outline of proposed milestones (and their timeframes) for connection and access activities which may be modified from time to time by agreement of the parties, where such agreement must not be unreasonably withheld; the application fee payable when submitting a Connection Application; whether TasNetworks agrees to the detailed response remaining valid for a specified period of time to allow the Connection Applicant to lodge a Connection Application within that time; and 7

8 any additional information relevant to the application to connect. 8

9 3 Connection Application The purpose of this stage of the process to allow the Connection Applicant to formally set out its intentions to connect generating plant as specified in the Connection Enquiry. To progress the connection process, the Connection Applicant must submit to TasNetworks: a Connection Application containing the extra information specified in the Detailed Response; and the appropriate application fee, which will have been notified to the Connection Applicant. TasNetworks will advise the Connection Applicant within 10 days if the Connection Application is materially incomplete. TasNetworks and the Connection Applicant will negotiate any relevant negotiable access standards as per section 4. 4 Negotiation of Negotiated Access Standards The purpose of this stage of the connection process is to determine the values of technical requirements prescribed in the Rules for the Connection Applicant s generation plant. The Rules prescribe three types of access standards in relation to the connection of generation to a distribution network: automatic access standards; minimum access standards; and negotiated access standards. If the generation plant meets the all of the automatic access standards for the prescribed technical requirements, connection will not be prevented in these grounds. If the generation plant fails to meet one or more of the minimum access standards, connection will not be permitted. If the generation plant exceeds one or more minimum access standards for prescribed technical requirements, but does not meet the automatic access standards for those technical requirements, the Connection Applicant and TasNetworks may negotiate appropriate values for the relevant technical requirements that may permit the connection of the generator to proceed. This process is described in more detail in the TasNetworks document Negotiating Negotiated Access Standards, which is available in the Information Pack for Large Generators on the TasNetworks web-site. 9

10 5 Offer to Connect The purpose of the Offer to Connect is for TasNetworks to formally present the proposed terms and conditions of a Connection Agreement for the proposed generation connection to the Connection Applicant. The Offer to Connect is starting point for negotiations between the Connection Applicant and TasNetworks, the culmination of which is a Connection Agreement. 5.1 Preparation of the Offer to Connect The preparation of the Offer to Connect will require liaison between the Connection Applicant and TasNetworks. TasNetworks will use its reasonable endeavours to advise the Connection Applicant of all risks and obligations associated with planning and environmental laws not contained in the Rules that may affect the proposed connection. The Connection Applicant may need to provide to TasNetworks additional information in relation to the Connection Application as the Network Service Provider reasonably requires to assess the technical performance and costs of the required connection and to enable the Network Service Provider to prepare an offer to connect. 5.2 Offer to Connect The Offer to Connect will contain at least the specific conditions that have been agreed to for connection and access to the transmission or distribution network, including but not limited to: details of the connection point including the distribution network coupling points where appropriate; metering arrangements and adjustments for losses where the point of metering is significantly different to the connection point; authorised demand which may be taken or supplied at the connection point (under specified conditions); details of each access standard agreed between TasNetworks and the Connection Applicant; connection service charges; payment conditions; duration and termination conditions of the connection agreement; terms, conditions and constraints that have been agreed to for connection to the network to protect the legitimate interest of TasNetworks, including rights to disconnect the Connection Applicant for breach of commercial undertakings; 10

11 details of any agreed standards of reliability the distribution network at the connection points or within the network; testing intervals for protection systems associated with the connection point; agreed protocols for maintenance co-ordination. The connection agreements may include other technical, commercial and legal conditions governing works required for the connection or extension to the network which the parties have negotiated and agreed to. The circumstances under which the terms of the connection agreement would require renegotiation may also be included. 5.3 Negotiation of Connection Agreement In negotiating the terms of a Connection Agreement, TasNetworks undertakes to negotiate in good faith. TasNetworks will provide to the Connection Applicant information that the Connection Applicant reasonably requires to enable negotiation to proceed. The Connection Applicant will provide to TasNetworks information that the TasNetworks reasonably requires to enable negotiation to proceed. 6 Connection Agreement This stage of the process is the execution of a formal Connection Agreement. The Connection Agreement is a contract between the Connection Applicant and TasNetworks to govern the on-going relationship between TasNetworks and the Connection Applicant once the generation plant is operational and generating into the distribution network. TasNetworks will provide two copies of the Connection Agreement to the Connection Applicant. If the Connection Applicant accepts the Offer to Connect made by TasNetworks in the previous step, the Connection Applicant should sign both copies of the Connection Agreement in the appropriate places and return both of them to TasNetworks. A TasNetworks representative will sign both copies and return one copy to the Connection Applicant for the applicant s records. 11

12 7 Technical Details This section provides a list of technical details relevant to the processing of a Connection Enquiry or Connection Application that may be sought from the Connection Applicant: protection systems and protection schemes; fault level management principles; reactive power capability and power factor correction; power quality and how limits are allocated; responses to frequency and voltage disturbances; voltage control and regulation; remote monitoring equipment, control and communication requirements; earthing requirements and other relevant safety requirements; circumstances in which augmentation may be required to facilitate integration of an embedded generating unit into the network; approaches to islanded operation; electromagnetic interference; and commissioning and testing requirements. 8 Disclaimer This document has been prepared for the purposes of informing relevant stakeholders of the requirements of the connection of embedded generators to the TasNetworks distribution network. Whilst care has been taken in the preparation of this document, and it is provided in good faith, TasNetworks accepts no liability (including as a result of negligence or negligent misstatement) for any loss or damage that may be incurred by any person relying on the information contained in this document or assumptions drawn from it, except to the extent that liability under any applicable statute cannot be excluded. In all cases, anyone proposing to rely on or use the information in this document should independently verify and check the accuracy, completeness, reliability and suitability of that information and the reports and other information relied on by TasNetworks in preparing this document, and should obtain independent and specific advice from appropriate experts or other sources. 12

13 9 Glossary This glossary explains terms used in this document. Term Meaning AEMO The Australian Energy Market Operator Automatic access standard For a given technical requirement for a given plant, means a standard of performance that is identified in a schedule of chapter 5 of the Rules as an automatic access standard for that technical requirement. Plant that meets an automatic access standard would not be denied access because of that technical requirement. Connection Applicant A person seeking to connect an embedded generator. Distribution network Has the same meaning as in the ESI Act. Embedded generator A generator, all or part of the output of which is exported into a distribution network. ESI Act The Electricity Supply Act 1995 (Tas). Minimum access standard For a given technical requirement for a given plant, a standard of performance that is identified in a schedule of chapter 5 of the Rules as a minimum access standard for that technical requirement. Plant that does not meet a minimum access standard will be denied access because of that technical requirement. Negotiated access standard For a given technical requirement for a given plant means an agreed standard of performance that has been determined in accordance with clause 5.3.4A and is identified as a negotiated access standard for that technical requirement in a connection agreement. 13

14 Term Meaning Rules The National Electricity Rules. TasNetworks Tasmanian Networks Pty Ltd ABN Technical requirements Those items identified as technical requirements in section S5.2.5 of the Rules. 14