Chapter 5A Embedded Generation Information Pack United Energy s guide to the Embedded Generation connection process for of Chapter 5A

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1 Chapter 5A Embedded Generation Information Pack United Energy s guide to the Embedded Generation connection process for of Chapter 5A Public

2 Table of contents 1 Connection Framework Connection Types Basic Connection Negotiated Connection Negotiated Embedded Generation Connection Process Preliminary Enquiry Application to Connect Offer to Connect Connection Sanction Fees and Connection Charges Sample Single Line Diagram Key Documents Contestable Works UE Contacts Appendix A Sample Application Fees Appendix B Sample SLDs June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

3 This document is designed to guide the Connection Applicant through the connection process for Chapter 5A. It describes connection process and appropriate documents to be utilised when pursing connection within United Energy s (UE) distribution network for non-registered generation systems (between 30kW and 5MW part of Chapter 5A). 1 Connection Framework The NER governs the NEM. Within the NER, Chapter 5 and 5A are dedicated to embedded generation connections amongst other connection matters. For Chapter 5: Embedded generation with capacity above 5MW. The Connection Applicant must use the connection process defined by Chapter 5. For Chapter 5A, the NECF (National Energy Customer Framework) applies to cover amongst other matters: Embedded generation with capacity below 5MW. The Connection Applicant may choose to use the Chapter 5 connection process, otherwise the connection process defined by Chapter 5A must be used. The merits of each connection process is briefly outlined below: Chapter 5 More defined and detailed Generally longer connection process Chapter 5A More flexible Generally shorter connection process 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 3

4 Generator Connection Is the generating systems s rating greater than the standing exemption from requirement to register as a generator (5MW)? No Yes Does the applicant wish to use the Chapter 5 Pathway? Appropriate connection process under Chapter 5A Appropriate connection process under Chapter 5 Yes No Is the generator <30kW? Yes No Is the generator inverter based and AS4777 compliant? Yes Yes Does the customer want a Negotiated Connection? No Negotiated Connection (Chapter 5A) Basic Connection Micro Embedded Generator (Chapter 5A) Figure 1 - NER Chapter 5 and 5A connection pathway 4 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

5 2 Connection Types United Energy offers two types of embedded generation connections under Chapter 5A (below 5MW). As shown in Figure 1, a customer can request a Basic Connection or a Negotiated Connection. 2.1 Basic Connection The Basic Embedded Generation Connection process has been designed to accommodate the majority of EG applications received by UE. This connection process covers most residential solar and battery applications which use AS4777 compliant inverters. Any connection applications which do not meet the criteria listed in Figure 1 shall use the Negotiated process. For more information regarding the Basic Connection process, please refer to the Connections page on the United Energy website. 2.2 Negotiated Connection Under Chapter 5A (below 5MW), an embedded generator can apply for a Negotiated Connection. This is generally for larger embedded generation connections such as solar or wind farms (larger than 30kW). A customer with a generator application less than 30kW (10kW per phase) can choose to apply for a Negotiated Connection. This process however is typically more involved and has a more detailed assessment process. The Negotiated Connection process is shown in Figure 2. The four main stages of the Negotiated Connection process are: Preliminary Enquiry Application to Connect Connection Offer Connection Sanction 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 5

6 Version 09/06/2016 Embedded Generators - NER Ch 5A Retailer Connection Applicant United Energy Other NSPs / AEMO START Submit/Resubmit Preliminary Enquiry with required information or request to by-pass stage Post/Fax/ Acknowledgement Preliminary Enquiry acknowledgement or accept by-pass request within 5 BD Preliminary Enquiry assessment In-house UE engages other parties as required Phone / Request updated information No Preliminary Enquiry information complete & correct Preliminary Response including any System Studies, Network Augmentation requirements &/or 3 rd party timeframes and Application Processing Fee requirements Best endeavours will be used to provide response as soon as possible unless otherwise agreed. Yes Provide Preliminary Enquiry response (with any required System Studies & Network Augmentation requirements) and Application Processing Fee Submit/Resubmit Application to Connect with Application Processing Fee payment Post/Fax/ Application assessment In-house Application submission deficient. Notified within 20 Business Days for remediation. Request additional information 4 Yes Further Application information required No Negotiate: Technical access standards Additional special conditions 9 UE engages other parties as required Phone 4 / Embedded Generation Connection Offer & Sanction to Connect form Provide Connection Offer & Sanction to Connect form 9 In person Accept Connection Offer and pay any Connection Charges In 16 person/ Execute Retail agreement and metering requirements Design & Install Embedded Generator Internally Register Embedded Generator Undertake any required Field Works 16In person 16On-site 9 In-house 9 In-house Conduct Commissioning 16On-site If required Witness Commissioning together with any other joint commissioning requiremnts 16 On-site UE engages other parties as required Phone 4 / Provide Sanction to Connect form and associated documentation Approve Sanction to Connect Initiate EG network parallel operation 16On-site Figure 2 Chapter 5A Connection Pathway 6 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

7 3 Negotiated Embedded Generation Connection Process 3.1 Preliminary Enquiry The purpose of the Preliminary Enquiry is to provide the Connection Applicant with an indication of the costs and timeframes associated with their embedded generation connection. This will allow the Connection Applicant to make a more informed decision when assessing whether to proceed with their embedded generation connection to United Energy s network. When a Connection Applicant wishes to connect an embedded generator to UE s network under the Negotiated process, they need to: Fill in the Preliminary Enquiry form (available from the UE website). Send completed Preliminary Enquiry form and associated documents to embeddedgeneration@ue.com.au. UE will acknowledge within 5 business days that the Preliminary Enquiry has been received and provide the following information: A link to the relevant sections on the UE website regarding embedded generation connections Confirm the application is within UE s network area, if not then redirect the customer to the relevant Distribution Service Provider UE will not accept incomplete forms. The Connection Applicant will be asked to resubmit their application if any information is missing. The information provided within the Preliminary Enquiry will form the basis of the Application to Connect if the Connection Applicant wishes to continue the connection process. The Connection Applicant may seek to engage UE for an informal meeting if clarification is required. UE will review the information provided in the Preliminary Enquiry to determine the potential impact the proposed embedded generation connection could have on United Energy s network. UE will also engage other third parties such as other Distribution Service Providers or AEMO if required (generally for larger applications). Some of the aspects UE considers during the Preliminary Enquiry include: Network capacity to accommodate the embedded generation Potential future network projects Impact of proposed generation on existing generators and customers (ie power quality) If network augmentation is required to accommodate the generator After assessing the information provided in the Preliminary Enquiry, UE will provide a Preliminary Enquiry Response Letter which will include: Application Fee System studies required Outline of any network augmentation required Indication of third party involvement required Indication of timeframes and connection charges The customer may bypass the Preliminary Enquiry stage and proceed straight to the Application to Connect by requesting it in writing to UE at the time they submit the Preliminary Enquiry form. 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 7

8 3.2 Application to Connect After the Connection Applicant assesses the information provided in the Preliminary Enquiry Response Letter, they must determine whether to proceed with the application. If they wish to proceed, they must submit the signed Authority to Proceed with the paid Application Fee. UE uses the Preliminary Enquiry form as the basis for the Application to Connect. Once the Application to Connect is received, UE will assess the information provided. If additional information is required, UE will request this from the Connection Applicant within 20 business days (or some other period agreed between the Connection Applicant and UE) of the receipt of the signed Authority to Proceed/Application Fee (whichever is the latter). Once all the relevant information has been obtained, UE will undertake a technical assessment of the generation connection application. Some of the aspects considered during the technical assessment include: Network Safety, Security and Stability; Network infrastructure availability, capability and capacity to facilitate the proposal; Infrastructure and commercial demarcation and crossover, especially when multiple jurisdictions are involved; Embedded generation network impact (and nearby customers); Network and Proposal Interconnection Protection Network Voltage Control; Generator Fault Level Contribution; Power Factor of Generator Operation; Power Quality of Supply Generated; Generator Operations (Modus Operandi: Renewables, base, peaking etc ) and all other suitable considerations unique to the proposal. UE s Embedded Generator Access Standard UE ST 2008 is recommended as the starting reference point for generator connections in this category (available on UE s website). UE will negotiate with the Connection Applicant the technical and commercial aspects of the connection based on the information provided in the Application to Connect. Once agreement has been reached between UE and the Connection Applicant, the Offer to Connect is prepared. 3.3 Offer to Connect As regulated by UE s licence in Victoria, UE must prepare an Offer to Connect within 65 business days or as otherwise agreed with the Connection Applicant. The time by which the DNSP must respond to a Connection Applicant with an offer does not include the time UE is awaiting a response from the Connection Applicant In addition UE may negotiate a longer time frame based on variables such as third party requirements and or the Connection Applicant requests that certain design and/or construction works go to tender. The Offer to Connect will consist to two parts: An offer to provide Connection Services (i.e. undertake works on the distribution and/or transmission networks to allow the generator to connect) if required June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

9 A Connection Agreement containing all technical, commercial and legal obligations for both parties for the ongoing connection and operation of the embedded generator. The Offer to Connect is required to be formally accepted within 20 business days by the Connection Applicant. Please be aware there are Connection Charges associated with embedded generator connections. These are discussed in Section 4. The Connection Agreement will also contain any ongoing fees to be paid by the embedded generator or any ongoing payments to be made by the DNSP to the embedded generator for services provided. The Connection Agreement must be signed prior to the final commissioning of the embedded generator. If the Generator Owner decides to augment or significantly modify their generating plant after the Connection Agreement is executed, it is necessary for the Generator Owner to make an application to modify their plant using the same process described above. The Connection Agreement is considered executed when the Connection Applicant and UE have signed the agreement and associated Connection Charges have been paid. 3.4 Connection Sanction The Connection Sanction is the final stage in the connection process. The Connection Sanction is designed to convey the final check list of action items required by the Connection Applicant and where applicable, the end customer to confirm their receipt and understanding to United Energy. It is highlighted that the check list of items are amongst those conditions already stipulated within the formal generator agreement entered into by the end customer and or has operational requirements. The Connection Applicant must submit the completed Connection Sanction form and following items: Prescribed CES Generator Commissioning Results Electrical Work Request (EWR) End Customer Notification End Customer and Operational Contacts If any of the items above are incomplete, missing or not as per the Connection Agreement, UE will not provide the Connection Sanction until the issues have been resolved. Once the information submitted to the DNSP has been reviewed and is as per the Connection Agreement, the DNSP will provide the completed Connection Sanction form to the Connection Applicant. This form should be kept as a record by the Connection Applicant. A completed Connection Sanction form allows the generator to be permanently connected to the DNSP s network. 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 9

10 4 Fees and Connection Charges United Energy may charge the following items when a Connection Applicant requests an embedded generation connection: Preliminary Enquiry Application Processing Fee (per hour) o An estimate of the time required by UE to assess the generator connection application and prepare the Offer to Connect. Application to Connect Connection Charges Field Works (per application) 1500 o Based on unit rate from UE Service Provider for PQ assessment work. This is the cost recovery for works required to accommodate the embedded generation connection. Additional time spent assessing application (per hour) o If the Application Fee estimate did not sufficiently cover the UE hours spent assessing an application, it will be recovered at the end of the project Site inspection fee and/or witnessing of commissioning tests (per hour) o To cover UE hours associated with attending customer sites. Connection Sanction review (per hour) o Review of the Connection Applicant's commissioning results and associated documentation Network Augmentation (application specific) o Cost of network augmentation required to accommodate the generator/connection service. The standard hourly labour rates are based on the UE s Summary of Schedule of Charges approved by the AER. Please see Appendix A for the sample fees and connection charges associated with the SLDs in Section 5. 5 Sample Single Line Diagram As per NER Chapter 5A Part D.1 (a)(7), United Energy is required to provide sample Single Line Diagrams (SLD) for different embedded generation connection configurations. These diagrams are samples only and are provided in Appendix B. The customer must ensure the SLD submitted with their application accurately reflects their generator arrangement and site June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

11 6 Key Documents The following outline the key documents required for the embedded generation application process for the Chapter 5A process (below 5MW): These are available on the UE website: Enquiry Form Below 5MW Capacity This form is to be utilised by all Connection Applicants where the proposed generation system capacity in total does not exceed 5MW plate value at unity power factor. If other third parties are involved with the connection process (such as another network services), other requirements may apply. UE ST 2008 Embedded Generation Network Access Standard v1.2. The technical performance standard employed by UE for generator compliance. This outlines the minimum access standards and plant standards applicable embedded generators. Where appropriate and or applicable, other standards and technical requirements may apply. Chapter 5A Distribution Negotiated Connection Generator Agreement Sample This provides the Connection Applicant a sample copy of the formal agreement employed by UE for the Chapter 5A process. Connection Sanction The Connection Sanction form is to be completed and sent to UE with associated documentation. 7 Contestable Works If a customer wishes to connect an embedded generator and: A new connection service is required, A connection alternation is required or Network Augmentation is required The works (excluding generation) may be contestable. Contestability Options If the customer wishes to purse the contestable pathway, UE offers the following tender options: 1. Customer may choose UE to undertake both the design and construction of the project as per the connection offer and waive its rights to call for tenders. 2. Customer may choose UE to undertake the design request UE to call tenders on their behalf for the construction of the project. 3. Customer may choose UE to undertake the design only and choose to call tenders themselves for the construction of the project. 4. Customer may choose to call tenders and undertake both the design and construction of the project utilising contractors approved by UE. It should be noted that under options 2, 3 and 4 the customer is choosing to undertake the works themselves whether under a UE tender or its own tender process. Under options 2, 3 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 11

12 and 4, the customer is required to sign a UE Contract/Agreement to ensure that the works are undertaken: By approved contractors To the required standards Use of approved materials To provide audit access to UE representatives To indemnify UE To provide defects liability and warranty cover For the following UE documents: Connection Policy Tendering Policy Please see the UE website. 8 UE Contacts Head Office United Energy and Multinet Gas 6 Nexus Court Mulgrave VIC3170 PO Box 449 Mt Waverley VIC 3149 T: F: Embedded Generation Enquiries C/O: Network Account Manager United Energy Centreway PO Box 449 Mt Waverley VIC 3149 T: embeddedgeneration@ue.com.au June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

13 Appendix A Sample Application Fees Enquiry Fee Estimate - Sample One (SLD1) Project Rating Type Mode Feeder Substation Customer Generation Project Existing 30kW + New 65kW Existing + New Solar Synchronised HV Feeder N/A Description Total Client Liaising Assessment - Network Planning (Review of data provided, review of the connection arrangement, meetings, assessment of fault contributions, perform load flow and voltage studies, assessment of primary plant and generator performance standards) Assessment - Protection (Review of data provided, assessment of protection, control, monitoring and communication requirements, perform a protection review, meetings, site visit) Preparation of an assessment report (Prepare an overview report summarising the connection arrangement, system study results, protection review results and compliance assessment) Contract preparation and execution (Update Connection Agreement, prepare technical schedules) Total , Potential Connection Charges Description Total Field Works - Data Logging and Tap Change (Installation of data logger, analysis of measurements, perform transformer tap change) 1, Additional application processing time (If the Application Fee estimate did not sufficiently cover the UE hours spent assessing an application, it will be recovered at the end of the project) Site Inspection Fee and/or Commissioning Witnessing To cover UE hours associated with attending customer sites Sanction to Connect Review (Review of the Connection Applicant's commissioning results and associated documentation) Total , Note: - These estimates are a general guide only. - It assumes complete application form with appropriate information and relevant documents submitted. - It assumes no significant network augmentation, project complications or any other project specific matters. - Cost rates refer to UE's internal resources/service Provider and excludes 3rd parties. - UE reserves all rights to recoup connection related cost, if in UE's reasonable opinion, the final outcome exceeds original estimate. - The standard hourly labour rates are based on the Summary of UE Schedule of Charges approved by the AER and published on UE s website 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 13

14 14 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2

15 Appendix B Sample SLDs This page is intentionally blank. 30 June 2016 United Energy Chapter 5 Information Pack Guide Ver Jun 16 - V2 15

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