Connection Offer Policy Principles (COPP) Paper – An Overview

Overview to G3 Liaison Group

24th of August 2010

Agenda

(i) Overview of Topics for Consideration

(ii) Timetable for Delivery of COPP

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Overview

• Deals with application processing issues from application being submitted up to connection offer or modification being accepted

• Supplementary to:– CER Gate Directions

– Non GPA paper

– Contestability paper

– Pricing Principles paper

• Applies to both TSO and DSO

• Paper for CER consultation.

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Topics considered1. Capacity relocation

2. Internal network/connection point changes

3. Increasing/decreasing MECs

4. Reprocessing subgroups

5. Non-LCC Planning Related Charging Issues

6. Capacity Bond

7. Offer Validity Periods

8. Term and Transferability of Access Rights

9. Hybrid Plant

10. Phasing of Offers

11. Phasing of Connection

12. Temporary Connections

13. Non-Firm Connections

14. Change of Generation Type

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• Customer Costs & leadtimes

• UoS Costs

• SO costs and delivery times

• Practicality

• LCC

• Customer Preferred

• SO Preferred

• Pre-Gate

• During a Gate

• Post Gate (Live offer)

• Transmission demand

• Windfarms – onshore and off

• Non-GPA’s – CHP etc.

• Conventional

• Autoproducers

• Interconnectors

• HybridsCategories Timing

ImpactsConnection

Methods

Scope (i.e. stress test scenarios)

1. Capacity Relocation

• What is the Issue?

• Policy Backdrop?– Paper issued for consultation

• Where does it fit?– A continuation of previously considered but unresolved issue.

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“The relocation of a project, whereby an applicant wants to move the location of turbines, for example, from one site to another”

2. Internal N/W Changes

• What’s the Issue?

• Policy Backdrop?– Policy previously agreed and signed off by CER – never published.

• Where does it fit?– A continuation of previously considered but unpublished.

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“Applicants requesting lengthy internal networks or changes @ the connection point including mergers”

3. Increase/Decrease MEC

• What’s the issue?

• Policy Backdrop?– 2007 GPA Pricing Principles Paper

• Where does it fit?– A change in existing policy on decreasing MEC.

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“At what stage and under what circumstances can an applicant increase or decrease their Maximum Export Capacity (MEC)”

4. Reprocessing Subgroups due to Fallout

• What’s the Issue?

• Policy Backdrop?– Group Processing Directions

• Where does it fit?– Clarification on existing policies

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“Where applicants drop out of a subgroup at a particular juncture and the connection method must be reviewed”

5. Non-LCC Planning Related Charging Issues

• What’s the Issue?

• Policy Backdrop?– CER 09/137a and CER 10/085 GPA Pricing Principles

• Where does it fit?– An elaboration of existing policy

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“The process that underlines SO’s decision to deem it necessary to pursue a non-LCC connection method requiring either OHL or cable”

6. Capacity Bond

• What’s the Issue?

• Policy Backdrop?– CER 09/138

• Where does it fit?– Clarification of new policy as set out in 09/138

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“Timing of MEC bond in relation to phasing of connections”

7. Offer Validity Periods

• What’s the Issue?

• Policy Backdrop?

– CER 08/260 and recent conventional direction

• Where does it fit?

– An elaboration of existing policy as directed by the CER.

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“Applicants requesting an extension to the validity period of its offer beyond that directed by the CER”

8. Term and Transferability of Access Rights

• What’s the Issue?

• Policy Backdrop?– Paper on issue currently in draft form.

• Where does it fit?– A new standalone topic.

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“The transfer of capacity in connection agreements to different generators. A similar strand of the issue is also where multi-unit sites can transfer their Firm Access Quantity (FAQ) between units on a real time basis. The issue of increasing terms of connection agreements is linked to this”

9. Hybrid Plant

• What’s the Issue?

• Policy Backdrop?– None

• Where does it fit?– A new standalone topic.

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“Projects with two parallel types of technology, or applications outside of the Group Processing Approach (GPA) that draw a portion of their capacity from wind”

10. Combination of Offers

• What’s the Issue?

• Policy Backdrop?– None

• Policy Backdrop?– A continuation of previously considered but unresolved policy.

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“When an applicant submits multiple applications for combinations of the same project.”

11. Phasing Of Connections

• What’s the Issue?

• Policy Backdrop?– CER 09/138

• Where does it fit?– An elaboration of existing policy

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“Where an applicant may reasonably wish to defer connection of part of their capacity and how this sits with the new requirement of MEC reducing to installed capacity 1 year after energisation. Also Capacity bond issue”

12. Temporary Connections

• What’s the Issue?

• Policy Backdrop?– Scheduling and dispatch paper

– Ruleset for Gate 2

• Where does it fit?– A continuation of previously considered but unresolved policy.

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“Whether or not to facilitate temporary connections for Gate 3”

13. Non-Firm Connections

• What’s the Issue?

• Policy Backdrop?– Various firm/non-firm directions

• Where does it fit?– Clarification on existing policy

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“Confirm policy in relation to non-firm connections to the Grid”

14. Change of Generation Type

• What’s the Issue?

• Policy Backdrop?– None

• Where does it fit?– A new policy area

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“Supplementing part of a facility with generation plant of a different technology, for example conventional with onsite wind, without increasing the original MEC”

Next Steps

• Take on board any feedback from LG Meet today.

• Proceed as per proposed timeline.

• Go to consultation.

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Timetable For Delivery

• Present @ August LG Meet 24th August

• SO 1st Draft end of September

• CER Feedback 1st Draft mid October

• SO 2nd Draft start of November

• CER feedback 2nd Draft mid November

• Final Paper & Consultation end of November

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