1. EMR Delivery Body
Contract for Difference – December 2016

2. Agenda Overview of the EMR Delivery Body (DB)
Our Role
Who we are
About the Allocation Process
Process Overview
Pre-Application & Registration
Application
Qualification Assessment
Reviews & Appeals
Valuation
Auction and CFD Notification
Update on the CfD Systems

3. The DB Role Systems Development Market Analysis
Run Registration, Qualification & Auctions
Administer Agreements – (CM only)
Support DECC Policy Development
Support Applicants Round readiness
Develop enduring EMR systems
Annual systems changes to reflect policy changes
(CfD) Strike Price Analysis and Recommendation
(CM) Capacity to Procure
Market Analysis
Systems Development
Administer CM &CFD
Customer & Stakeholder Engagement
EMR is ring-fenced within the System Operator function in National Grid

4. The team… Anna Holleron Charlotte Watts Paul Mullen Nisar Ahmed
EMR Analyst
Anna
Holleron
Charlotte
Watts
EMR Delivery Manager
Paul Mullen
Senior EMR Analyst
Nisar Ahmed
Ben Smith
Mark Baker
CfD Manager
Yasharn Smith
Arjun Mukkara

5. About the Allocation Process

6. Allocation Process Overview
Registration &
Pre-Application
Application &
Qualification
Allocation &
Notification 1 1 1
Applicants
Register
Apply
Request Review
Request Appeal
Submit Sealed Bids
Sign Contract
Supply Chain
approval
Round Variation / Budget Revision Notices
Qualified Applicants
Run Auction & Allocate
Assess Eligibility
Register
Applicants
Review
Appeal
RO Check
Minor & Necessary Agreement
Contract Management

7. Pre-application System Registration Supply Chain Plan (if >= 300MW)
Minor and Necessary

8. Application Submission
April 2017
Application Window
Applicants can create, save, submit, withdraw and re-submit applications
3, April 2017
Application
Window opens
21, April 2017
Application Window closes
Date to be confirmed by Allocation Round Notice
Only submitted applications will be taken forward to qualification assessment

9. Key Qualification Criteria
Connection Agreement/Countersigned Offer/Signed Offer Acceptance
Planning Decision Notice
Supply Chain Approval Certificate if >=300MW
Declarations that not in receipt of other subsidies
Evidence of Incorporation
Target Commissioning Date within Target Commissioning Window
Crown Estate Agreement to Lease/Lease if Offshore
Offshore capacity requirements
Application Form to include technology, contact details, location, capacity and target dates

10. Valuation Formula X X X Top-Up Payment General conversion factors
Strike Price minus Reference Price
Top-Up Payment
e.g. Transmission losses, hours to years
Will be set out in Allocation Framework
General conversion factors
e.g. Load factors
Technology Specific Factors
Provided by Applicant
Capacity X X X

11. Valuation
The DB must determine the Applications Valuations in respect of each of the delivery years (DY) specified in the Budget Notice, this is done using the valuation formula.
Budget Impact
Delivery Year - 1
2021/2022
Delivery Year - 2
2022/23
£60m
£120m
£180m
£240m
£300m
Budget line
Application 1
Application 3
Application 4
Application 2
The DB determines if the valuation of qualified applications exceed the Budget and if yes an Auction is triggered…

12. CfD Auction – Overview
Step 1
Check if Auction is required. If yes, applicants notified to submit Sealed bids
Step 2
Run Allocation/ Auction
Step 3
Independent Audit of DB Calculations
Step 4
SoS reviews; Proceed, Re-run or Cancel Allocation Process.
Step 5
DB CfD Notifications : (LCCC & Applicants)

13. CFD Notifications
Following the CfD Auction the DB issues notification to Applicants: Notification information include:
Auction Outcome
Whether or not the applicant was successful in securing a CfD
If successful, notifications will include:
CfD Strike Price awarded
Successful Allocation Capacity
Target Commissioning Date
The information of successful applications will also be shared with the LCCC

14. CfD Systems

15. Systems Update Web Based System Validation to support Applicants
2 Factor Authentication process
Registration opens prior to opening of Application window, date TBC
User guides will be provided
1-2-1 System training will be provided to applicants

16. Register for DB 1-2-1 Who: CfD Applicants (April 2017)
When: Throughout February & March 2017
Where: DB Offices (Midlands, London) or Applicants Offices
Why : Support Applicants to submit applications ‘Right first Time’
Deep dive on qualification rules, & using the CfD system
Free! & Confidential
First come first served! Register your interest with anyone from National Grid

17. Thank You & Questions