Liaison Group Meeting 03 March 2016 Increasing Capacity Behind - - PowerPoint PPT Presentation

liaison group meeting 03 march 2016 increasing capacity
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Liaison Group Meeting 03 March 2016 Increasing Capacity Behind - - PowerPoint PPT Presentation

Increasing Capacity Behind Connection Points Liaison Group Meeting 03 March 2016 Increasing Capacity Behind Connection Points 1. Over-installing capacity (within CER approved limits) using the same or different technology as the contracted


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SLIDE 1

Increasing Capacity Behind Connection Points

Liaison Group Meeting 03 March 2016

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SLIDE 2

Increasing Capacity Behind Connection Points

  • 1. Over-installing capacity (within CER approved limits)
  • using the same or different technology as the contracted unit
  • MEC remains unchanged but Installed Capacity increases

2. Adding capacity (additional MEC)

  • using the same or different technology as the contracted unit
  • MEC increases and Installed Capacity increases

Presenting today on a number of issues identified by the SOs.

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SLIDE 3

EXISTING POLICY FRAMEWORK

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SLIDE 4

Increasing Installed Capacity

  • CER/14/047 – “Decision on Installed Capacity Cap”

– Generators are not allowed to export in excess of MEC – Generators can install up to 120% of their contracted MEC – CER/14/047 supersedes

  • COPP Section 2.2 over-installation limit of 105% and
  • COPP Section 2.3 “…a full application form including specifics of exact plant to

be installed, should be provided the SOs no later than 240 business days before energisation” as CER/14/047 applies to connected applicants as well as contracted applicants and repowering applicants. Note: the 240 days notice was intended to allow for submission of pre- energisation data hence we assume “energisation” in this context applies to energisation of the new capacity and not of the connection.

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SLIDE 5

Hybrid Plant

  • COPP Section 6

– Hybrid rules apply to mixed technology and can be applied in two ways:

1. Retain existing MEC but over-install up to 120% of contracted MEC; or 2. Apply to increase MEC under GPA or non-GPA process depending on qualification for same.

– In both cases, the applicant must comply with “Change in Installed Capacity” provisions in Section 2 of COPP (superseded by CER-14-047) and “Change in Generation Type” provisions in Section 9 of COPP.

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SLIDE 6

Hybrid Plant

  • COPP Section 6

– Where there is no increase in MEC being requested process is via a modification to existing offers / agreements.

  • COPP 6.3.1 states that Hybrids shall be subject to the basic principal of

central dispatch under the Grid Code and must be disaggregated by technology/fuel type.

– Where there is an increase in MEC being requested the process is via the application process and may be GPA or Non-GPA.

  • If the new technology does not comply with the Non-GPA rules then the offer

for an MEC increase cannot be processed until the next Group Processing project commences.

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SLIDE 7

COPP Rules S9 - Change of Generation Type

  • Two scenarios:

i. a change in type prior to energisation; and i. a change in generation type after a facility has been energised.

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SLIDE 8

COPP S9 - Change of Generation Type Pre-Energisation

  • Pre-Energisation - generally only processed as per a new application where

“there are not considered to be any undue adverse impacts on either system, or on

  • ther users” .
  • Assessment includes the following considerations:

– Where there is any change in priority dispatch status the party has gained no material advantage over other similar applications based on the original application; – Where other non firm generation connected or contracted to the system is not materially adversely affected in that the level (and in particular value) of anticipated constraints and curtailment would not rise significantly; – Where there is a change from being renewable to non-renewable or vice versa the party has gained no material advantage over other similar applications based

  • n the original application; and
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SLIDE 9

COPP S9 - Change of Generation Type Pre-Energisation

– Where there is no appreciable anticipated increase in load factor from the old plant to the new plant, taking account of all other generation connected or contracted, which is expected to lead to significant or material additional network requirements being identified.

  • Question:

CER/14/047 considered issues where capacity is being over-installed using the same technology and determined that constraints and curtailment levels were not materially impacted. Where different technology types are being used are there other considerations to be taken into account?

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SLIDE 10

COPP S9 - Change of Generation Type Post-Energisation

  • Post-energisation - generally only processed as per a new application

where “there are not considered to be any undue adverse impacts on either system,

  • r on other users”
  • Assessment includes the following considerations:

– The access rights attributable would not in any case exceed the MW capacity currently contracted to the site / unit; – That access rights would be transferable such that, given all other generation connected or contracted, no significant or material additional network requirements would be expected to be identified (reflecting size, running regime but also generation technology and its effect on network stability);

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SLIDE 11

COPP S9 - Change of Generation Type Post-Energisation

– That access rights would be transferable such that other non firm generation connected or contracted to the system would not be adversely affected in that the level (and in particular value) of anticipated constraints or curtailment would not rise significantly; and – The SO would be given 2 years notice as to when a transfer of access rights is scheduled by a customer to take place. A failure to do so would consequently result in delays in facilitating the transfer of access rights or may mean that the network has changed to such a degree that a transfer is no longer feasible, or that the access rights have been offered to another project.

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SLIDE 12

Summary of Applicable Policy

  • Where additional technology is the same, CER/14/047 applies:

– Some issues need to be considered and are outlined in the following slides.

  • Where additional technology is different, then COPP Sections 2, 6 and 9

apply and CER/14/047 may apply if no MEC increase is being sought:

– Applications may be processed as modifications if no MEC increase is being requested and as non-GPA or GPA if a MEC increase is being requested; – A range of issues arise which are considered in the following slides.

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SLIDE 13

ADDITIONAL ISSUES TO BE CONSIDERED

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SLIDE 14

List of considerations where over-installation involves no change in technology type

  • The additional capacity is installed as part of the existing unit:

– No major issues – minor modifications required to meters / RTUs etc. – Implications for ownership of the new unit – Special Purpose Vehicles for new capacity are not allowed as this results in a sharing of connection points which is prohibited.

  • If customer wishes to install additional capacity as a separate unit then it

raises questions:

– How is MEC apportioned across multiple units? – How is Firm Access apportioned across multiple units? – How does it impact subsidies / feed in tariffs – does DCENR require the “new unit” to apply for a different subsidy e.g. REFIT II? – Implications for ownership of the new unit – Special Purpose Vehicles for new capacity are not allowed as this results in a sharing of connection points which is prohibited

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SLIDE 15

Additional considerations where over installation involves a change in technology type

  • Additional capacity must be installed as a separately controlled unit per

COPP rules:

– How is MEC apportioned across multiple units? – What does this mean for the firmness of the new and old units? – How does it impact subsidies / feed in tariffs – the new unit may receive different subsidies? – Dispatch priority may be different for new and old units in a tie break situation. – Implications for ownership of the new unit – Special Purpose Vehicles for new capacity are not allowed as this results in a sharing of connection points which is prohibited.

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SLIDE 16

Additional considerations where over installation involves a change in technology type

– Which technology has priority where the availability of both units exceeds MEC and who determines this - the owner, SO, DCENR and SEMC all have an interest.

  • DCENR - e.g. a 100 MW MEC site is made up of 30 MW solar unit and 90 MW wind

unit and both are fully available – if solar is allowed to generate then this increases

  • verall subsidy costs (assuming a higher REFIT).
  • Forecasting output – we need to know which technology is likely to generate and

availability of system services from that technology.

  • Application of tie break rules depend on which technology is being utilised.
  • If the site is fully firm and EirGrid need to constrain the unit for transmission reasons

– the more expensive the unit generating, the higher the costs to End Users.

  • One technology may offer better system services than the other.
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SLIDE 17

Apportioning MEC

  • How should a connection point MEC be apportioned across multiple units behind

a single connection point?

  • MEC cannot be changed “dynamically” – it is part of the SEM registration process

and systems and the TUoS billing system. It is also part of the EirGrid control centre energy management system.

  • Initial thinking was that the MEC of each unit cannot exceed the summation of the

connection point MEC however this could have an undesirable consequence:

– e.g. a 100 MW MEC site is made up of 30 MW solar unit and 90 MW wind unit. If MEC is allocated as 20 MW to solar and 80 MW to wind then when solar output is 0% and wind is 100% the output from the wind unit is still limited to 80 MW and the 10 MW available wind is effectively stranded.

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SLIDE 18

Apportioning MEC

  • To avoid this situation, the summation of the unit level MEC could be allowed to

exceed site level MEC as long as this does not facilitate exporting in excess of MEC at the connection point or receiving capacity payments or constraints / curtailment apportionment based on the combined MEC instead of the contracted connection point MEC.

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SLIDE 19

Apportioning MEC

  • Points to note:

– MEC at unit level presently caps the registered capacity of a unit and this in turn limits the outturn availability and maximum unit level dispatch. – If the sum of unit level MEC were allowed to exceed the connection point MEC then something must be done in the control and SCADA equipment (at windfarms)

  • r in EDIL to ensure that the availability signals are capped by the site level MEC

and that the site export does not exceed connection point MEC:

  • Ensure fair allocation of capacity payments; and
  • Ensure fair allocation of constraint and curtailment levels.

– Is the control technology available to ensure that the different units do not combine to exceed MEC? – How would the technology “favour” one unit over another where the availability exceeds MEC, e.g. does the technology constrain down the solar before the wind?

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SLIDE 20

Apportioning Firm Access

  • Firm Access is also not changed dynamically therefore each unit must have a firm

access amount allocated to it.

  • Firm access determines market payments but also constraints in constrained areas.
  • In constrained areas, units are dispatched in order of firmness – is the new unit non-

firm or is the combined unit partially firm or is firmness allocated to both units? Is this a customer choice?

  • Where the technologies are different they may have different dispatch priority in SEM.

This implies the SO control which technology generates and not the customer – do the industry agree with this – what options exist?

  • Should an applicant be allowed decide how to split FAQ so long as the summation of

unit level FAQ does not exceed connection point FAQ:

– On a 100 MW MEC site with 120 MW installed only 100 MW is firm. The additional 20 MW is not firm, but it is not “non-firm” either! What does this do to tie-break classification?

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SLIDE 21

Subsidy Schemes

  • CER/14/047 states “CER has consulted with DCENR on the revised Installed

Capacity Cap and has subsequently advised DCENR of the consequential changes that will need to be made to the current REFIT terms to reflect the change from an Installed Capacity Cap of 105% to 120%”

  • Did DCENR consider that adding new technology may qualify the capacity for a

higher REFIT tariff making it more attractive for customers to install a different technology and give it priority in dispatch?

  • Should DCENR be consulted in relation to these proposals and confirm that over-

installing under COPP/CER/14/047 can be applied to hybrid units?

  • Should DCENR / SEMC be asked to advise on dispatch priority of technology types?

– The decision must inform the control systems used to “apportion” output where the summation of unit level availability exceeds site level MEC.

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SLIDE 22

SOs’ Current Working Arrangements

  • Generators can over-install up to 120% of their contracted MEC regardless
  • f whether this is a single / multiple technology types.
  • Where different technology types are being installed, e.g. wind and solar

connecting to the same customer transformer, separate units are required.

  • Each unit using a connection point must be legally owned and controlled by

the same legal entity, i.e. one contracted party.

  • The customer must specify a MEC for each unit, the sum of the unit MECs

adding up to the overall MEC for the contract. Likewise for any FAQ assigned to the existing MEC.

  • Each unit must be separately controllable and metered.
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SLIDE 23

SOs’ Current Working Arrangements

  • The over-installation limit of up to 120% of contracted MEC applies to each

Unit’s MEC.

  • Where there is a multi-unit site the ‘nearest turbine’ rule will apply for the

entire contract and not for each of the individual units.

  • Where a generator wishes to transfer MEC from one unit to another this

must be done through a modification to the connection agreement. This is not considered to be a split under COPP but where the generation types differ, e.g. wind MEC to solar MEC, then the change in generation type rules set out under section 9 of COPP would apply.

  • Should a customer apply to increase MEC, the standard GPA or non-GPA

rules would apply as applicable.

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SLIDE 24

Next Steps

  • Industry to consider issues raised.
  • Industry may have other issues that the SOs have not identified.
  • Discuss at the next Liaison Group meeting with a view to establishing next

steps, e.g. working group to address issues.