www.senergyworld.com

Grid Connections:

Now and the Future

Patrick SmartHead of Commercial and Regulatory

10th 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

1TransmissionGB System

Operator

3 transmission owners

14 Distribution Network Operators (7 companies)

NGETL

NGETLScottish 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 / 2005.

• 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

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 CurrentFault CurrentGGFault CurrentFault Current

Contribution of current to a fault on network can lead to an overstressing of existing switchgear and is a majorlimiting factor to the connection of embedded generation

Primary Substation

Distribution Feeder

Fault Currents

Voltage Rise

Voltagemax

min

Sub

stat

ion

Overhead line

Voltage Rise - Mitigation

Voltagemax

min

Sub

stat

ion

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 GeneratorsConsumers

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 SmartHead of Commercial & Regulatory

0191 238 7344patrick.smart@senergyworld.com