Market access for distributed generators Nigel Cornwall DEWG, 10 - - PowerPoint PPT Presentation

market access for distributed generators
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Market access for distributed generators Nigel Cornwall DEWG, 10 - - PowerPoint PPT Presentation

Market access for distributed generators Nigel Cornwall DEWG, 10 September 2007 1 Do you need a licence? Capacity factor Tidal/wave 0.33 Wind 0.43 Solar 0.17 Others 1.00 2 Elexon Code requirements (1) MW National Grid Scottish


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Market access for distributed generators

Nigel Cornwall DEWG, 10 September 2007

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Capacity factor Tidal/wave 0.33 Wind 0.43 Solar 0.17 Others 1.00

Do you need a licence?

Elexon

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Code requirements (1)

MW National Grid Scottish Power Transmission Scottish Hydro Electric Transmission > 100 Large Large Large 50 - 100 Medium EEMPS if Embedded and Exempt Large EELPS if Embedded and Exempt Large EELPS if Embedded and Exempt 30 - 50 Small EESPS if embedded Large EELPS if embedded Large EELPS if Embedded < 30 Small EESPS if embedded 10-30 <10 Small Licensable if post 2000 Bella Bega

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Code requirements (2)

  • BSC mandatory for all licensees/generators

>50MW

  • Optional for any one less
  • In effect all large and medium exempt

generators must have a contract with NGET

  • All generators wishing to claim embedded

benefits direct must have contract with NGET

  • All Cusc signatories must be BSC signatories

unless meter registered by supplier in SVA

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Trading options for small generators

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Embedded benefits – theory 1

  • Financial benefits available to

generators embedded in distribution networks

  • Avoided costs to the supplier

from not using transmission

  • Transmission network use of

system charges (triad)

  • Transmission network losses
  • Balancing services use of system

charges (BSUoS)

  • Vary by time and location
  • Principles are nationwide,

practice is location-specific

Supply Generation Transmission Distribution

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Embedded benefits – theory 2

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Deepen licence exemptions

  • Enable local supply through new supply exemption:

  • ff-site

– with limitations

  • size limit (<50MW?)
  • non-domestic or through certain meter/profile types
  • related undertaking
  • tied to generation exemption
  • What is surplus supply or back-up needed?
  • Obligation to offer terms (but on who?)
  • Generation exemptions could do with tidy up too
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New class of supply licence

  • Enable local supply through new supply licence:

– with limitations

  • size limit (<50MW?)
  • non-domestic or through certain meter/profile types
  • related undertaking
  • tied to generation exemption
  • Scope for Esco licence?
  • What is surplus supply or back-up needed?
  • Need to address compliance issues under supply

licence:

– Code compliance and meter registration (“exempt trading unit”?) – scope for discharge by agent

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Centralised purchasing role

  • Agent effectively acting as a local consolidator
  • Clear threshold so as not to impair incentives for

existing consolidators

  • Would provide settlement route but at what price
  • Diversity benefit but still need to manage imbalance
  • Add to SO imbalance and settle at administered

price?

  • Alternatively feed-in arrangement:

– administered by DNOs? –

  • ffset-able against physical losses?
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Regional agents

  • By GSP Group
  • Purchaser of last resort with suppliers tendering for

role

– requirement to offer terms?

  • Guaranteeing price for output below specified

threshold

  • Supplier/consolidator would deal with meters/output

in “usual” way

  • Similarities with outline models proposed through

TADG for DG paying TNUoS

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Final thoughts

  • High level options
  • Exemptions clearly needs further updating
  • Short-term fix would be to deepen supply

exemptions

  • Longer-term requirements of orderly

settlement and market development means that more radical approaches based on agency model should be considered sooner rather than later