Save the Date – Battery Storage Workshop • Proposed date 15 th May 2018 – likely in Dundalk • EirGrid & SONI hosting workshop to discuss wider battery storage considerations: Grid Code Network charging costs Connection Assessments Energy Market Interactions • These topics will be covered at this workshop • More details to follow over the next two weeks
DS3 System Services Industry Forum Volume Capped Consultation 25 April 2018
Agenda Topic Time Speaker Registration (Tea & Coffee) 09.30 10.00 Ian Connaughton/ Introduction Jon O’Sullivan Volume Capped Consultation – Part 1 10:15 John Young Questions Noel Cunniffe Volume Capped Consultation – Part 2 11:15 John Young Questions Volume Capped Consultation – Part 3 12:15 John Young Questions Next Steps / Session Closed 12:45 Ian Connaughton
DS3 System Services Volume Capped John Young Noel Cunniffe
DS3 System Services Volume Capped 1. Volume Capped Aims Questions Panel 1 Questions Panel 2 10. Staged Procurement 2. Background & Drivers 17. Industry Frameworks 11. Maximum Contract Size 3. Consultation Purpose 18. I-SEM Interactions 12. Bid Structure 19. Question Recap 4. Timelines and Principles 13. Application of Scalars 20. Next Steps 5. Product Bundling Questions Panel 3 6. Product Characteristics 14. Tariff Cap & Floor 7. Over-Frequency 15. Bid Assessment 8. Availability 16. Bonding 9. Site & Network Reqs
1. Volume Capped Aims • Fixed contracts Commercial frameworks • Fixed term (6 years) appropriate for new market • Inclusion of build period entrants • Fast response Opportunity to incentivise • High Availability effective service provision for • Consistent delivery increasing RES • Cost effective with respect to Requirement that Regulated Arrangements arrangements are appropriate • Risk mitigation for fixed contracts and cost effective • Correct and appropriate incentives
2. Background & Drivers Feedback from 2017 consultation • Encourage applications from viable bidders • Prevent barriers for newer entrants • Level playing field
3. Consultation Purpose The DS3 Volume Capped Consultation represents the first step of a new and ambitious procurement exercise Feedback, questions and stakeholder Further background, viewpoint (verbal and in explanation and TSO response to thinking consultation) Appropriate and effective outcome for 6 year fixed term services contracts
4. Timelines and Principles Indicative timelines proposed below Consultation closes 11 th May Contract Consultation Recommendation/Decision
DS3 System Services Volume Capped 1. Volume Capped Aims Questions Panel 1 Questions Panel 2 10. Staged Procurement 2. Background & Drivers 17. Industry Frameworks 11. Maximum Contract Size 3. Consultation Purpose 18. I-SEM Interactions 12. Bid Structure 19. Question Recap 4. Timelines and Principles 13. Application of Scalars 20. Next Steps 5. Product Bundling Questions Panel 3 6. Product Characteristics 14. Tariff Cap & Floor 7. Over-Frequency 15. Bid Assessment 8. Availability 16. Bonding 9. Site & Network Reqs
5. Product Bundling Proposed in previous DS3 Service Name Abb. Short Description consultation that the MW delivered between Fast Frequency Response FFR Volume Capped 2 and 10 seconds competition would cover MW delivered between Primary Operating Reserve POR 5 and 15 seconds reserve products from MW delivered between FFR to TOR2 Secondary Operating Reserve SOR 15 to 90 seconds MW delivered between Considerations Tertiary Operating Reserve 1 TOR1 • 90 seconds to 5 minutes Stakeholder feedback • MW delivered between System stability Tertiary Operating Reserve 2 TOR2 • 5 minutes to 20 minutes Consistency of volumes • Frequency of use TSO Proposal: FFR-TOR2 Options • Effectiveness of contracts required to the same 1: FFR – TOR1 Bundle contracted volume level 2: FFR – TOR2 Bundle Need for flexibility in dispatch
5. Product Bundling Need for flexibility in dispatch Dispatchable TOR1 and TOR2 • Events where frequency falls below trigger and remains at this level into TOR1 and TOR2 timescales will be infrequent (but significant when they do occur) • Added flexibility and usability of services needed to ensure effective and worthwhile contracts Early Question Question 1 : Do you have any Feedback comments on the two options Preconditions for dispatch? for service bundling proposed Under consideration and the TSO’s preferred option ? • For TSO, the more flexible the better • Recognise the need to understand frequency of discharge
6. Product Characteristics How should the Characteristic Requirements bundled service Type of response Dynamic capability in response to a Reserve Trigger proposed be delivered? Reserve trigger 49.8 Hz Considerations* capability • Impact on and benefit to Minimum speed of 150-300ms system stability response • Usability and effectiveness Trajectory 0.3Hz • Ability of providers and Recharge limitations Trickle recharge allowed post- impact on design • Existing frequency curves set event provided frequency has out in regulated returned to within ±0.05Hz of arrangements 50Hz and remained there for 5 *Consideration of scalar minutes application will be covered later in the presentation
6. Product Characteristics TSO Proposal: • Output following FFR Dynamic Capability – Frequency Response Curve • F1 = 49.8Hz and F2 = 49.5Hz • Provision of POR-TOR2 must continue with FFR response characteristics during the required timescales
6. Product Characteristics
6. Product Characteristics
7. Over-Frequency No current over-frequency service – but need will increase out to 2027. What is the correct requirement for this procurement? TSO Proposal: % Requirement • Technical ability to Some over-frequency capability provide over- available for the future • frequency response Represents an additional is required requirement Symmetrical Requirement Question 2 : Do you • Maximum future have any view on the capability technical requirements • Potential significant proposed? additional requirements No Requirement • Simple from this procurement perspective • Missed opportunity to deliver future system need
8. Availability What are the appropriate availability obligations for providers? Purpose of contracts i.e. high Availability Performance Scalar availability <60% 0% ≥60% <70% 25% Need for some periods of unavailability ≥70% <80% 50% ≥80% <90% 70% Considerations ≥90% <95% 85% • Need for certainty – can be ≥95% <97% 95% managed for planned maintenance • Appropriate timescales – alignment ≥97% 100% with scalar assessment frequency • TSO Proposal: Performance scalar will apply Incentive for prompt recharge as per table above TSO Proposal: 97% availability Question 3 : Do you have any comments (exclude planned periods of maintenance) on the availability obligation proposed?
9. Site & Network Requirements • Area where encouraging viable applicants, whilst facilitating new market entrants, needs careful consideration • Network constraints and financial risk considered Clarification of Interactions with Connection Early Feedback Policy/ECP-1 in Ireland requested Connection Requirements Network Limitations Questions Question 4 : Do you have any comments on pre-requisites with respect to Connection Offers ? Question 5 : Do you have a view on the two options provided with respect to managing network limitations ?
9. Site & Network Requirements Connection Requirements Considerations • Certainty of project go-live 1. On Hold • Risk of speculative bidding Application for connection received • Facilitating competition but not progressing at present • Interactions with ECP-1 dates 2. Processing Options Application for connection is deemed 1: ‘Contracted phase’ only complete and is being processed 2: ‘Contracted phase’ and ‘Live Connection Offer phase’ 3. Live Connection Offer 3: ‘Contracted phase’, ‘Live Connection Connection offer has been made to a Offer phase’ and ‘Processing phase’ customer - with them for acceptance. TSO Proposal: Option 2 4. Contracted Customer and the TSO/DSO have entered into a legally binding connection agreement/offer.
9. Site & Network Requirements Network Limitations Considerations • Risk of non-delivery over 6 year contract With whom should the risk of service • Potential revenue uncertainty for unavailability due to network aspiring market entrants limitations sit? • Incentivise appropriate network location 1. With the TSOs Options Unavailability due to network 1: With the TSOs - Providers would need to limitations will not negatively impact submit confirmation from the TSO/DSO that on remuneration network limitations will not prohibit service availability 2. With Providers 2 : With Providers - will not be remunerated Unavailability due to network in the event of unavailability due to network limitations will be reflected in limitations remuneration
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