Grid Connections: Now and the Future Patrick Smart Head of Commercial and Regulatory 10 th November 2010

Agenda Introduction to SEL Overview of Grid and Grid Process Technical challenges National Grid’s impact on renewables How to manage Grid risk The future of grid connections

Senergy Econnect Ltd Established as Econnect in 1995 Grid connection of all renewable generation technologies Hagshaw Hill, North Hoyle – Landmark projects for UK Renewables Electrical Engineering and Commercial and Regulatory Consulting Now part of Senergy Group, based in Newcastle

The GB Network

Overview of Electricity Industry 1 Transmission GB System Operator 3 transmission owners 14 Distribution Network Operators (7 companies) NGETL Scottish Power, Scottish Hydro-Electric

Distribution Network Areas

Securing Grid Capacity Accept a connection offer –…which generally requires a down payment (£70K to £200k for commercial onshore wind) –…and a commitment to progress construction So when do I initiate the grid process? Planning or grid first? Some information in the public domain – DNO Long Term Development Statements.

DNO Connection Process DNOs obliged to offer terms to connect to network Submit competent application (likely DNO up front fee in the near future) Offer within 3 months Open for acceptance for 30 days or 3 months. Can normally be extended but not guaranteed. Acceptance usually requires initial down payment – to cover detailed studies and design.

DNO Point of Connection Offers Non-contestable connection works only New Standards in effect from 1 October 2010 Obliged to offer budget estimates within set period (20 WDs for commercial projects) PoC Offers - DNO liable for compensation of £150 per day late!!!! (for applications received after 1 October 2010…..) All works offers – DNOs to include 4% margin on contestable works

Connection Offer Process Offers of terms for connection open for acceptance for 30 days or 3 months. Can normally be extended but this is not guaranteed. Acceptance usually requires initial down payment - £70K to £200k Obligation to agree construction programme

DNO Connection Offer Content Outline of connection solution Outline of DNO works, reinforcements and construction program Technical and communication requirements User’s obligation (design to ENA standards) Price (often indicative until contracts placed) Connection cost and risk project specific

Connection Offer Process – National Grid Transmission System Impact Dash for Wind in late 2004 / Massive shortfall of grid capacity relative to applications / agreements (note not necessarily consented wind) The “GB Queue” Much of the GB Queue connecting at distribution voltage

Connection Offer Process– National Grid

Managed through embedded bilateral agreements and the Statement of Works process “Large” generators must enter into a bilateral agreement (BELLA or BEGA) Small / medium generators may be referred to National Grid for a “Statement of Works”. National Grid responds with view on transmission system impact

Key Technical Considerations Three main network problems: Thermal capacity Fault levels Voltage rise Further technical considerations: Harmonics Voltage Flicker Design requirements (e.g. G59) If you cause technical problems, your connection will take longer to complete and be more expensive.

Transformers Overhead line Overheating leads to insulation failure Reverse power flow capability? Switchgear Overheating leads to insulation failure Cables Overheating leads to insulation failure Safety clearance Thermal Capacity

Fault Current G G Contribution of current to a fault on network can lead to an overstressing of existing switchgear and is a major limiting factor to the connection of embedded generation Primary Substation Distribution Feeder Fault Currents

Voltage Rise Voltage max min Substation Overhead line

Voltage Rise - Mitigation Voltage max min Substation GenAVC maximise generation Within limits

Connection Offer Process – Key Messages Assess grid early (publicly available information) Engage with the DNO and stay in touch Ask about National Grid impact Plan submission of connection application in light of process delays and obligation to commit c£100k Reflect outputs from assessment and DNO liaison in application

Future Grid Connections Transmission Generators Transmission Network Distribution Network Distribution Generators Consumers Network Owners Transmission Generators

Grid Connections in the Future Regulatory reform – RIIO (Revenue Incentives Innovation Outputs) Key principles –Focus on outputs and delivery (more from assets) –Longer term view (decarbonisation) –Reward for higher performance –Encourage innovation (prizes) “£32 billion” of investment required What does that mean for grid connections…?

Grid Connections in the Future Who knows….watch the RIIO space..BUT Opportunities for new technologies / techniques to raise long term efficiency Smart Grids (?) – from dynamic substation control to domestic load switching. Electrical efficiency of connecting close to significant points of demand. Extend on the principle of negative GDUoS for HV connections.

Patrick Smart Head of Commercial & Regulatory