guidelines for the connection of embedded generators

Guidelines for the Connection of Embedded Generators Greater than 5MW

Document number: SOP 33-05

Issue number: 3

Status: Approved

Approver: Joanne Soysa

Date of approval: 13/02/2015

AusNet Services SOP 33-05


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UNCONTROLLED WHEN PRINTED

TABLE OF CONTENTS

1 INTRODUCTION AND PURPOSE ................................................................................. 5

2 ABBREVIATIONS AND DEFINITIONS .......................................................................... 5

3 CONNECTION PROCESS ............................................................................................. 5

3.1 PRELIMARY ENQUIRY ........................................................................................................... 6

3.1.1 Preliminary Response to Enquiry ........................................................................................ 7

3.2 DETAILED ENQUIRY .............................................................................................................. 8

3.2.1 Detailed Response to Enquiry ............................................................................................. 8

3.2.2 CONTESTABILITY OF CONNECTION AND AUGMENTATION ........................................ 9

3.3 CONNECTION APPLICATION ................................................................................................ 9

3.3.1 Network Studies ................................................................................................................... 9

3.4 OFFER TO CONNECT .......................................................................................................... 10

3.5 CONNECTION AGREEMENT ............................................................................................... 11

4 TECHNICAL REQUIREMENTS FOR THE CONNECTION OF EMBEDDED GENERATION 11

4.1 ACCESS AND PERFORMANCE STANDARDS ................................................................... 11

4.2 EMBEDDED GENERATOR PERFORMANCE ..................................................................... 12

4.2.1 Reactive Power Capability (S5.2.5.1) and Power Factor Correction ................................. 12

4.2.2 Quality of Supply (S5.2.5.2) ............................................................................................... 12

4.2.3 Response to Frequency (S5.2.5.3) and Voltage Disturbances (S5.2.5.4) ........................ 13

4.2.4 Voltage and reactive power control (S5.2.5.13) ................................................................ 13

4.2.5 Fault current (S5.2.8) ......................................................................................................... 13

4.2.6 Other Access Standards .................................................................................................... 14

4.3 PROTECTION SYSTEMS AND PROTECTION SCHEMES ................................................. 14

4.3.1 Customer Installation Protection ........................................................................................ 15

4.3.2 Interconnection Protection ................................................................................................. 15

4.3.3 Location of Main Switchboard ............................................................................................ 16

4.3.4 AusNet Services Disconnection......................................................................................... 16

4.4 PREFERRED CONNECTION ARRANGEMENTS ................................................................ 17

4.4.1 22kV Connection Process ................................................................................................. 17

4.4.2 66kV Connection Process ................................................................................................. 19

4.5 COMMUNICATIONS AND REMOTE MONITORING AND CONTROL ................................ 22

4.5.2 Control Systems Required at Power Stations ................................................................... 23

4.6 EARTHING REQUIREMENTS .............................................................................................. 24

4.6.1 HV Generator Earthing Requirements ............................................................................... 24

4.6.2 LV Generator Earthing Requirements ............................................................................... 24

4.7 COMMISSIONING AND TESTING REQUIREMENTS ......................................................... 24

4.7.1 Principles ........................................................................................................................... 24

4.7.2 Demonstration of Performance Standards ........................................................................ 25

4.7.3 Hold Points ......................................................................................................................... 25

4.7.4 Developing a Commissioning Plan .................................................................................... 25

4.7.5 Commissioning Test Plan Requirements .......................................................................... 26

4.7.6 Undertaking Commissioning .............................................................................................. 26

4.7.7 Commissioning Results ..................................................................................................... 27

4.7.8 Commissioning Report ...................................................................................................... 27



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4.8 NETWORK AUGMENTATION .............................................................................................. 27

5 CONNECTION FEES AND CHARGES ........................................................................ 28

6 MODEL CONNECTION AGREEMENTS ...................................................................... 29

7 RESOURCE REFERENCES ........................................................................................ 29

8 APPENDICES .............................................................................................................. 30

9 SCHEDULE OF REVISIONS ........................................................................................ 30

APPENDIX A. TYPICAL TESTS FOR SYNCHRONOUS MACHINES ............................ 31

APPENDIX B. TYPICAL TESTS FOR NON-SYNCHRONOUS MACHINES ................... 32

APPENDIX C. MODEL CONNECTION AGREEMENTS ................................................. 33



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DISCLAIMER

This document belonging to AusNet Services may or may not contain all available information on the subject matter this document purports to address.

The information contained in this document is subject to review and AusNet Services may amend this document at any time. Amendments will be indicated in the schedule of revisions, but AusNet Services does not undertake to keep this document up to date.

To the maximum extent permitted by law, AusNet Services makes no representation or warranty (express or implied) as to the accuracy, reliability, or completeness of the information contained in this document, or its suitability for any intended purpose. AusNet Services (which, for the purposes of this disclaimer, includes all of its related bodies corporate, its officers, employees, contractors, agents and consultants, and those of its related bodies corporate) shall have no liability for any loss or damage (be it direct or indirect, including liability by reason of negligence or negligent misstatement) for any statements, opinions, information or matter (expressed or implied) arising out of, contained in, or derived from, or for any omissions from, the information in this document.



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1 INTRODUCTION AND PURPOSE

The intention of this guideline is to cover the connection of Embedded Generators that are registered by AEMO to the AusNet Services distribution network. It also applies to Embedded Generators that are required to, or intend to register with AEMO. These Embedded Generators typically have a capacity greater than AEMO’s standing exemption from registration, which is currently 5MW.

This guideline includes: the connection process;

the steps a Connection Applicant will need to follow at each stage of the connection process;

the information to be provided by the Connection Applicant;

the type of information that will be made available to the Connection Applicant by AusNet Services;

the technical requirements; and

the factors taken into account by AusNet Services when assessing a Connection Application.

This guideline is to be treated as the information pack in accordance with clause 5.3A.3 of the National Electricity Rules.

2 ABBREVIATIONS AND DEFINITIONS

Italicised expressions in this guideline are defined in the glossary in Chapter 10 of the National Electricity Rules.

Term Definition

Connection Agreement

the agreement entered into between the Embedded Generator and AusNet Services in accordance with the National Electricity Rules

DNSP Distribution Network Service Provider

ESC Essential Services Commission

NEM The National Electricity Market

NER National Electricity Rules.

A copy of the current version of the National Electricity Rules (NER) is available here. Chapter 5 of the NER outlines the requirements for the connection of generators to a Network Service Provider’s (NSP) network.

Point of Connection the point on a distribution feeder at which an Embedded Generator is connected to AusNet Services network

VEDC Victorian Electricity Distribution Code

3 CONNECTION PROCESS

This section focuses on the minimum exchange of information that is required to progress the connection of Embedded Generators greater than 5MW on AusNet Services’ distribution network. The minimum requirements and timeframe for responses are governed by the AEMC and the NER.

Figure 1 depicts the high level process for a new connection. Refer to specific sections for further details for each stage.

http://www.aemc.gov.au/energy-rules/national-electricity-rules/current-rules





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Figure 1: The high level connection process

3.1 PRELIMARY ENQUIRY

A Connection Applicant who wishes to make a Connection Enquiry must utilise the Connection Enquiry form which is located on the connections page of the AusNet Services website. This form identifies the information that is required as part of a connection enquiry. AusNet Services will provide a written acknowledgment (in the form of letter or email) within 5 Business Days after receiving an enquiry. If the enquiry is incomplete in a material respect, AusNet Services will advise the Connection Applicant within 5 Business Days and will require further information to be provided.

A Connection Applicant may request to bypass the preliminary enquiry stage of the connection process and proceed straight to the detailed enquiry stage. AusNet Services will assess the request to bypass the

Preliminary Connection

Enquiry

•The Connection Applicant must utilise the Connection Enquiry form (document number SOP 33-05A) which is located on the connections page of AusNet Services website.

•AusNet Services will provide a preliminary response to the connection enquiry within 15 days of receipt of this enquiry and all relevant information.

Detailed Connection

Enquiry

•The Connection Applicant may lodge a request for a detailed enquiry response to AusNet Services by providing all the information requested in the preliminary response and the enquiry fee.

•AusNet Services will provide a detailed response to the connection enquiry within 30 business days of receipt of all relevant information and the enquiry fee, unless agreed otherwise.

Connection Application

•The Connection Applicant may choose to apply for the Connection Application Services by providing all the information requested in the detailed response and paying the application fee.

•AusNet Services will provide an offer to connect within four months of receipt of the Connection Application (but with stop clock mechanisms for technical dispute).


• If the Connection Applicant accepts the offer to connect, the Connection Applicant and AusNet Services must negotiate and enter into a Connection Agreement.



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preliminary enquiry stage within 5 Business Days of receipt of all necessary information; it will then advise the Connection Applicant if it agrees to the request.

3.1.1 PRELIMINARY RESPONSE TO ENQUIRY

AusNet Services will provide a preliminary response to the connection enquiry within 15 days of receipt of this enquiry and all relevant information. If AusNet Services requires an extension of time, it will provide a notice in writing specifying the reasons required for the extension. The Connection Applicant may not unreasonably withhold consent to that extension. An extension of time may also be required if another DNSP or AEMO needs to be consulted.

AusNet Services will provide the following information within a preliminary enquiry response as set out in the NER Schedule 5.4A. This includes:

relevant technical information about the AusNet Services network, including guidance on how the Connection Applicant may meet those requirements if it were to proceed to prepare an application to connect;

information relevant to each technical requirement of the proposed plant as relevant to applicable minimum, automatic and plant standards and normal voltage level;

identity of other parties to be involved in connection;

those services that are contestable;

worked examples of connection charges;

information regarding AusNet Services and its network, system limitations and other relevant constraints;

an indication of whether network augmentation may be required and if required, what work the network augmentation may involve;

link to AusNet Services’ information pack (this guideline);

contact details for the relevant point of contact within AusNet Services;

AusNet Services response to objectives of connection sought;

an overview of any available options for connection;

description of the detailed enquiry process;

further information requirements from the Connection Applicant;

an estimate of the enquiry fee payable by the Connection Applicant for the detailed response and the component payable to request the detailed response;

an estimate of the application fee which is payable on submitting an Application to connect; and

any additional information relevant to the enquiry.

If AusNet Services agreed to the Connection Applicant’s request to bypass the preliminary response stage, AusNet Services will advise the Connection Applicant, within 15 Business Days of receipt of a connection enquiry:

an estimate of the enquiry fee payable by the Connection Applicant for the detailed response and the component payable to request the detailed response

an estimate of the application fee which is payable on submitting an Application to connect



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3.2 DETAILED ENQUIRY

A Connection Applicant must lodge a request for a detailed enquiry response to AusNet Services by providing the enquiry fee and all other information requested in the preliminary response. AusNet Services, within 5 Business Days after receiving such request and relevant information, will provide a written acknowledgment (in the form of letter or email). If the further information provided (as requested in the preliminary enquiry response) is incomplete in a material respect, AusNet Services will advise the Connection Applicant within 10 Business Days of the deficiency and what is required to address it.

The proposed connection may be subject to RIT-D (regulatory investment test for distribution). If so, AusNet Services and the Connection Applicant are to agree a timeframe for provisions of a detailed response taking into account the requirements of the RIT-D.

3.2.1 DETAILED RESPONSE TO ENQUIRY

AusNet Services will provide a detailed response to the connection enquiry within 30 Business Days of receipt of all of the following:

the enquiry fee, or any component of it as requested by AusNet Services in the preliminary enquiry response;

any further information requested in the preliminary enquiry response; and

any further information requested if and when further information provided (as requested in the preliminary enquiry response) is found incomplete in a material respect by AusNet Services.

AusNet Services will confirm once all the information required to provide a detailed response to the enquiry has been received. From experience, preparation of the detailed enquiry response is expected to be an iterative process to allow for clarification and consideration of options and alternatives.

If AusNet Services requires additional time, it will provide a written notice specifying the reasons required for the extension. The Connection Applicant may not unreasonably withhold consent to that extension.

AusNet Services will provide the following information within the detailed enquiry response as set out in the NER Schedule 5.4B. This includes:

contact details for the relevant point of contact within AusNet Services;

written details of each technical requirement of the proposed plant as relevant to applicable minimum, automatic and plant standards and normal voltage level;

those services that are contestable;

details of the connection requirements;

details of the level and standard of service of power transfer capability;

negotiated access standards requiring AEMO involvement (if any);

list of technical data to be included with the Application to connect;

commercial information to satisfy any prudential requirements;

itemised estimate of connection costs;

risks and obligations in respect of proposed connection associated with planning and environmental laws;

draft connection agreement containing proposed terms and conditions for connection to the network;

description of the process for lodging the application to connect;

application fee payable when submitting an application to connect;

validity period for the detailed connection enquiry response; and

any other relevant information.



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AusNet Services will pass all AEMO and other DNSP costs (if any) to the Connection Applicant. It is the Connection Applicants responsibility to pay the relevant costs within the agreed timeframe.

3.2.2 CONTESTABILITY OF CONNECTION AND AUGMENTATION

If connection of the Embedded Generator requires augmentation to the distribution network, a Connection Applicant may choose to engage AusNet Services approved and accredited designers and constructors to undertake network extensions and augmentations (including tendering).

There are certain tasks which only a DNSP can perform, such as detailed design, audits, reviews and interface works. All other works are considered contestable, but must be based on AusNet Services design and safety standards. AusNet Services’ tendering policy will be applicable as per the Electricity Industry Guideline No. 14 published on Essential Services Commission’s website.

3.3 CONNECTION APPLICATION

Following receipt of a detailed response from AusNet Services, a Connection Applicant may make an

Application to connect by providing all the information requested in the detailed response and the

application fee. If the further information provided (as requested in the detailed enquiry response) is

incomplete in a material respect, AusNet Services will advise the Connection Applicant within 10

Business Days of the deficiency and what is required to address it.

3.3.1 NETWORK STUDIES

Access Standards

The Connection Applicant needs to undertake network studies to determine the technical standards that it must provide to AusNet Services in its Application to connect. Schedule 5 of the NER defines the technical access standards and the required parameters, also known as generator performance standards. They form the basis of the generator connection requirements by DNSPs in the NEM. For each standard, the NER defines an Automatic, Minimum and Negotiated Access Standard.

All generators must meet the minimum access standard. If a generator meets the automatic access standard then no further negotiation is required. If a generator’s capability falls between the minimum and automatic standard then negotiated access standard needs to be determined based on the network requirements. The DNSP might specify an automatic access standard to be a minimum requirement for connection at certain parts of its network.

AusNet Services will require a competent power systems engineer (individual or consultancy firm) to undertake these network studies (steady state and dynamic). Any due-diligence required by AusNet Services will be charged as per the estimate and rates provided in the detailed enquiry response. It is the Connection Applicant’s responsibility to arrange network studies to be undertaken prior to connection approval. This enables the Connection Applicant to have significant influence over the scenarios to be modelled and in recommending an economic solution, whilst meeting AusNet Services’ obligations under the VEDC and NER. Negotiating Access Standards

Meeting the automatic access standard for all technical requirements allows quick agreement over the connection of the generation project. However, this may be relatively expensive or unachievable in many cases. For each technical requirement where the proposed arrangement will not meet the automatic access standard, the Connection Applicant must submit with the application to connect, a proposal for a negotiated access standard for each such requirement. This is then assessed by the DNSP to ensure its network requirements are met. This sometimes results in installation of additional equipment (dynamic reactive support, switched capacitors etc.) and is determined on a case by case basis.

Provision of Network Model

http://www.ausnetservices.com.au/assets/codeguides/TenderingPolicy.pdf

http://www.esc.vic.gov.au/getattachment/b57f7430-0352-4eba-ae98-0995c99511cd/Electricity-Industry-Guideline-No-14.pdf



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A non-disclosure agreement needs to be signed with the proposed engineering consultant or Embedded Generator (in case of in-house expertise) and AusNet Services. Once this agreement is signed, AusNet Services will provide network information of the 66kV network in PSS/E format and the 22kV & 6.6kV networks in SINCAL format, as raw data files. The Connection Applicant’s appointed engineer is expected to propose a set of contingencies and network scenarios for connection studies. AusNet Services will comment and approve the proposal and reserves the right to propose further contingencies and scenarios that need to be studied.

Steady State Study

The steady state criteria defines the ability of the network to accept the connection of embedded generation within the component ratings, voltage limits and power quality limits defined in the NER and as per VEDC.

The main objectives of this study are: to identify any network thermal limitations which would lead to Embedded Generator

operating constraints. This may in turn facilitate the need for network augmentation before connecting;

to assess the impact of connecting the Embedded Generator on the voltage levels including voltage dips / rise and voltage fluctuations at the point of connection, considering both normal and single contingency scenarios;

to assess voltage harmonics and flicker emissions. (Note: The acceptable harmonics and flicker emission limits will be allocated prior to the system studies); and

to determine the impact of the Embedded Generator on existing network fault levels in order to access if existing switchgear has the capability to accommodate increased fault levels.

The steady state studies are used to assess the Embedded Generator’s compliance with the relevant NER performance standards and VEDC.

Dynamic Study

The dynamic study assesses the ability of the Embedded Generator to remain connected and recover from the critical faults on the network; this phenomenon is also called ‘fault ride-through’. This study also assesses the Embedded Generator’s response to voltage disturbances in the network and the network’s stability with the presence of the generator.

The main objectives of this study are: to assess if the generator will be capable of continuous uninterrupted operation where a

power system disturbance causes the voltage at the connection point to vary within pre-determined ranges;

to assess that the generator has fault ride-through capability and will remain connected and will recover from major network disturbances; and

to assess the stability of the network after the commissioning of the generator.

A final report is prepared using the results of the steady state and dynamic studies for submission with the connection agreement. This needs to be comprehensive and shall demonstrate how the Embedded Generator will meet the proposed performance standards.

These two technical reports will be reviewed by AusNet Services prior to agreement on the connection arrangements.

3.4 OFFER TO CONNECT

AusNet Services will proceed to prepare an offer to connect in response to the Connection Application once all technical standards (automatic, minimum or negotiated) have been agreed. To maintain levels of service and quality of supply to existing generators in accordance with the NER, AusNet Services may need to consult with AEMO and other generators in the region.



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If the Embedded Generator has a capacity of greater than 10MW, AusNet Services will need to consult with the TNSP (AusNet Transmission Group for Victoria) regarding the impact of the connection on fault levels, line reclosure protocols and stability aspects. The TNSP’s cost of addressing these technical matters will be included in the Offer to connect and AusNet Services will make it a condition of the offer to connect that the Connection Applicant must pay these costs.

AusNet Services will provide an Offer to connect within four months of receipt of the Connection Application (but with stop clock mechanisms for technical dispute), or unless otherwise agreed between the Connection Applicant and AusNet Services.

An offer to connect will remain open for acceptance for 20 Business Days from the date it is made and, if not accepted within that time period, lapses unless the Connection Applicant has sought an extension of the period of time from AusNet Services.

3.5 CONNECTION AGREEMENT

If the Connection Applicant wishes to accept the Offer to connect, the Connection Applicant and AusNet Services must negotiate and enter into a Connection Agreement.

The provision of connection by AusNet Services will be made subject to gaining environmental and planning approvals for any necessary augmentation or extension works to the network.

The Connection Agreement sets out: the terms and conditions under which AusNet Services will provide the connection;

the rights and obligations of each party concerning the installation, use and operation of AusNet Services’ network; and

details of the connection charges to be paid.

4 TECHNICAL REQUIREMENTS FOR THE CONNECTION OF EMBEDDED GENERATION

The following technical requirements have been written to provide the Embedded Generator with details that must be considered in the processing of a connection enquiry or an application to connect.

4.1 ACCESS AND PERFORMANCE STANDARDS

The NER Schedules S5.2.5 and S5.2.6 refer to various performance standards that an Embedded Generator needs to consider for its detailed connection enquiry. During the preliminary response to the connection enquiry (refer to Section 3.1.1), AusNet Services provides to the Connection Applicant written details of applicable standards and the normal voltage levels. These standards may be different depending on the various power system conditions at the proposed location of the connection.

For each standard, the NER defines an automatic, minimum and negotiated access standard (AAS, MAS and NAS). Please note all generators must meet the MAS. If an Embedded Generator meets the AAS, no further negotiation is required. If a generator’s capability falls between the minimum and automatic standard, then a negotiated access standard must be agreed with AusNet Services. The NER describes the philosophy to underpin negotiations for these standards.

The generator must be able to demonstrate compliance to the proposed standards by performing required studies during post-commissioning tests.

As a general rule, Embedded Generators that are less than 10MW have less onerous requirements in relation to some NER standards as compared to larger generators. This is assessed on a case by case basis and the response to the preliminary enquiry will list the requirements.



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4.2 EMBEDDED GENERATOR PERFORMANCE

4.2.1 REACTIVE POWER CAPABILITY (S5.2.5.1) AND POWER FACTOR CORRECTION

Network voltage management in a typical DNSP’s sub-transmission and distribution network is designed for power to flow through the network from the higher voltage levels to the customers connected at the lower levels.

In general if the Embedded Generator is supplying VARS to the network (i.e. effectively acting like a capacitor) the network voltage will rise and conversely if the generator is absorbing VARS from the network then the resulting voltages will be lower. Modern generators are capable of adjusting the network power factor and provision of reactive power may be required.

Hence, the ability of a generator to operate over a range of leading and lagging power factors is an important criterion when establishing its’ suitability for installation in a particular part of the distribution network. The preferred operating range is 0.93 lag to 0.93 leading as specified in Clause S5.2.5.1 (a) in the NER.

Assessment of proposed performance standards requires steady state analysis to validate the reactive power capability at the point of connection over a range of power system conditions.

Additionally, as the network may also experience a much wider variation in real and reactive power flows to and from the network, AusNet Services will require that under all conditions of real and reactive power transfer that the variation in voltage seen by the other customers remains within acceptable limits. In order to maintain voltage within acceptable limits at the connection point (i.e. point of common coupling), operating range of the generator’s power factor will be specified as per Clause S5.2.5.1(c) of the NER. Power system simulation studies are required to determine the generator’s operating power factor range and optimum voltage at the point of common coupling.

The allowable operating range of the generator’s power factor must be specified in the connection agreement and associated instruments of agreement. In addition to operating range of the generator’s power factor, connection point operating voltage range can also be specified in the agreement.

4.2.2 QUALITY OF SUPPLY (S5.2.5.2)

The NER in Schedule 5.1 specifies “Network Performance Requirements”. This schedule places certain responsibilities on DNSPs for quality of supply. NER schedule S5.2.5.2 details the requirements for quality of electricity generated regarding voltage fluctuations, harmonics and voltage unbalance.

The VEDC stipulates quality of supply parameters that must be maintained by DNSPs to its customers in respect of:

steady state voltage;

voltage fluctuations (Flicker);

harmonic voltages;

negative sequence voltage;

load unbalance; and

inductive interference

The generator must not impact adversely on AusNet Services’ ability to meet these requirements and mitigation actions may be included as part of the connection agreement.

Connection Applicants are required by the VEDC to control the following at their point of connection; power factor;

harmonic currents generated;

load balance between phases; and

voltage fluctuations caused by the Connection Applicant’s connection.

Harmonic and Flicker limits



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The Embedded Generator is required to provide detailed information about their plant and proposed connection arrangement. Based on the information, an acceptable harmonic and flicker emission level will be allocated to the generator on case by case basis. The Embedded Generator is required to install power quality monitoring for one week before and one week after the generator connection is made to prove compliance. Any deviations from the allocation need to be rectified by the generator to meet DNSP’s requirements.

The following standards and guidelines stipulate the assessment of emission limits for distorting loads:

AS/NZS 61000.3.6:2001 “Electromagnetic compatibility (EMC) – Part 3.6: Limits –

Assessment of emission limits for distorting loads in MV and HV power systems (IEC 61000-3-6:1996, MOD)”

AS/NZS 61000.3.7:2001 “Electromagnetic compatibility (EMC) – Part 3.7: Limits – Assessment of emission limits for fluctuating loads in MV and HV power systems (IEC 61000-3-7:1996, MOD)”

ENA Doc 033-2014 Guideline for Power Quality: Harmonics. Recommendations for the application of the Joint Australian/New Zealand Technical Report TR IEC 61000.3.6:2012

ENA Doc 034-2014 Guideline for Power Quality: Flickr - Recommendations for the application of the Joint Australian/New Zealand Technical Report TR IEC 61000.3.7:2012

Latest version of Victorian Electricity Distribution Code

4.2.3 RESPONSE TO FREQUENCY (S5.2.5.3) AND VOLTAGE DISTURBANCES (S5.2.5.4)

An Embedded Generator must ensure that the embedded generating unit is capable of continuous uninterrupted operation at the system frequency of 50 Hz and permitted variations in accordance with the NER.

An Embedded Generator must ensure that the embedded generating unit is capable of continuous uninterrupted operation for network voltage variations permitted in accordance with the NER. Embedded Generators must be equipped with controls that enable satisfactory operation over a variation in network voltage that could occur due to many reasons including, load rejection and power system faults. For power system faults the generator should remain in service provided that the event is not one that would disconnect the generator from the network.

The compliance to these two clauses will need to be demonstrated by network studies.

4.2.4 VOLTAGE AND REACTIVE POWER CONTROL (S5.2.5.13)

Network voltage management in a typical DNSP’s sub-transmission and distribution network is designed for power to flow through the network from the higher voltage levels to customers connected at the lower levels.

Section 4.2.1 describes the acceptable operating range of generator’s power factor.

The connection agreement must stipulate the allowable voltage variation at the point of common coupling in order to maintain other customers’ voltage within acceptable limits as per the VEDC.

4.2.5 FAULT CURRENT (S5.2.8)

This standard considers the fault current contribution of the Embedded Generator to the connecting network and the fault current withstand of both the generator and those circuit breakers used to isolate it from the network.



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The installation of an Embedded Generator may raise the fault level1 of the network to which it is connected.

It is important to ascertain that the resulting fault levels are not raised above the existing acceptable fault levels for circuit breakers, conductors, any auxiliary plant and fittings or design limits.

General rulings regarding fault levels are not provided as these are completely dependent upon unique variables such as the size of the Embedded Generator, the voltage at which it is connected and the fault capacity of the local distribution network. Typical fault level management strategies to comply with the VEDC include reduction of generator size, installing a series reactor with the generator, connection to an alternate part of the network or at a higher voltage. These are discussed in detail with the Connection Applicant during assessment of Connection Application.

An Embedded Generator must design and operate its embedded generating units so that it does not cause fault levels in the distribution system to exceed the levels specified in the VEDC. These limits are given in Table 1.

Table 1: VEDC Fault Level Limits

Distribution System Fault Levels

Voltage Level kV System Fault Level MVA Short Circuit Level kA

66 2500 21.9

22 500 13.1

11 350 18.4

6.6 250 21.9

<1 36 50.0

The generating unit(s) contribution to connection point fault level values and facility switchgear details must be provided with the application for connection. The amount of short circuit current an Embedded Generator is permitted to contribute shall be nominated by AusNet Services considering the limits specified in Table 1 and the expected organic growth in the area. The calculation of short circuit currents will be in accordance with the latest version of Australian Standard AS 3851.

The Embedded Generator’s switching devices and infrastructure must be designed to withstand the total short circuit current from AusNet Services’ distribution network plus Embedded Generator’s installation.

Should the Embedded Generator’s installation raise fault levels in excess of Table 1, the Embedded Generator will be responsible for any augmentation required to reduce these to within the prescribed limits of Table 1. Any required augmentation must not limit AusNet Services network operation or efficiency.

4.2.6 OTHER ACCESS STANDARDS

Other Access Standards as per the NER Schedule 5 will be assessed on a case-by-case basis. If the proposed performance standard is below the automatic access standard, AusNet Services will assess the proposed Negotiated Standard based on the specific requirements for that connection. These requirements may vary according to the location of the connection point and various power system conditions.

4.3 PROTECTION SYSTEMS AND PROTECTION SCHEMES

Generally AusNet Services does not state what protection is required to protect the Embedded Generator; however in some special circumstances AusNet Services may require additional functions. The Embedded Generator will be notified accordingly after an assessment is made.

1 Fault level has the same meaning as Short Circuit level



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NOTE: The generator control and synchronisation must occur at the generator circuit breaker associated with the generator protection. Generator reconnection can only occur once the distribution network has maintained stable supply conditions for more than 1 minute. Generator protection is the responsibility of the Embedded Generator.

The following is the basis for AusNet Services protection requirements: CB at point of connection;

must disconnect from grid in <3 seconds of network loss;

if protection is communication dependent then must disconnect from grid in <30 seconds of communication’s failure; and

AusNet Services must have remote capability to disconnect the generator.

4.3.1 CUSTOMER INSTALLATION PROTECTION

This document does not cover customer’s obligations as required by the following standards and guidelines:

Electricity Safety Act, Electricity Safety (Installations) Regulations and other Australian Standards including AS 3000, NOTE: Under AS3000 the customer must also provide overcurrent protection and now for new circuit’s earth fault via a RCD. AS 3000 does not specify unidirectional or bidirectional protection.

Distribution Code – In particular Section 7

Victorian Service and Installation Rules – Clause 6.8

It is generator’s responsibility to meet the above requirements.

4.3.2 INTERCONNECTION PROTECTION

Interconnection protection is required to permit the Embedded Generator to be connected to the electricity grid to enable it to operate in a grid interactive mode. Interconnection protection must be located near the point of supply at the main switchboard and will control the operation of the main switch or generator circuit (at the main switchboard).

Its function is to: Disconnect the Embedded Generator should the grid supply be interrupted for safety and

operational needs.

a. Anti-island protection,

b. For larger HV installations the HV/LV interconnecting transformer must be delta/star with interconnection protection including Neutral Voltage displacement.

Protect the electricity network and other network customers from damage caused by connection of the Embedded Generator for legal and quality of supply needs. (e.g. Machine Based generation, such as an induction generator, is capable of producing up to 2 times the rated voltage under certain fault conditions. Machine Based generation, such as an induction generator, is capable of producing up to several (6) times its rated current under certain fault conditions.

Any protection must disconnect the generator in the dead time of the AusNet Services reclose function so as to protect the generator from damage.

Besides safety considerations this is a compelling reason why the Embedded Generator must provide interconnection protection within their installation which must conform to AusNet Services’ requirements. AusNet Services will require providing Live Line blocking of the reclose function for Embedded Generators.



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4.3.3 LOCATION OF MAIN SWITCHBOARD

Interconnection protection must be located on the main switchboard. AusNet Services must provide protection for the service line up to the generator’s protective equipment as required by Electricity Safety (Installation) Regulations Clause 233 and as a result the main switchboard which incorporates the generator’s protective equipment, for HV and LV installations must be located within 5m of the point of supply.

AusNet Services will not provide primary or backup protection beyond the generator’s main switchboard.

4.3.4 AUSNET SERVICES DISCONNECTION

For generators with nameplate equal and larger than 5 MW, AusNet Services must have the independent ability to disconnect the Embedded Generator from the rest of the distribution network. This facility is provided by the Embedded Generator and controlled via normal control room to control room agreed operating procedures. In addition AusNet Services must be able to independently disconnect the generator under an emergency condition without reference; due to the advent of remote controlled enclosed switches a remote controlled bi-directional ACR set to a single trip (no reclose) is required. The Embedded Generator needs to provide coordination for faults internal and external of site.

The ACR provides: isolation point;

additional protection – Capacity Control Device (in both directions) and a Service Protection Device;

Ground Fault Neutraliser (GFN) may be implemented in AusNet Services. As such if the generator protection ignores operation it will result in additional generator protection operations.



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4.4 PREFERRED CONNECTION ARRANGEMENTS

The following requirements define the minimum interconnection requirements. Typical Installations include single or grouped synchronous or power electronic controlled induction machines - wind farms, hydro, solar thermal, gas and diesel fuelled plant.

4.4.1 22KV CONNECTION PROCESS

The preliminary enquiry is undertaken prior to detailed studies being undertaken by approved AusNet Services consultants. If the Project proceeds additional design and other studies may need to be completed prior to a preparation of a firm offer. A typical HV Embedded Generator’s installation is shown in Figure 2.

Customers HV

Main Switch

Customer

Generator

Customer Load

Point of Supply

ACR

HV FeederCBZone Substation

Figure 2: Typical HV Embedded Generator installation (22kV Connection)

Meanwhile Figure 3 lists the minimal protection requirements for the interconnection of 22kV only.



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Customers 22 kV

Main Switch

Generator

supply main

switch

Distribution

Switchboard 1

27

50

94

Protection Legend

27 Undervoltage

59 Overvoltage

50 Overcurrent

51 Overcurrent

81U Under frequency

81O Over frequency

81R RoCoF

78 Vector Shift

46 Phase Balance

59N Neutral Voltage Displacement

94 Direct Trip

COM Communications Failure

NOTE: The customers protection requirements are not included in this diagram

Safety services

circuits

Load Circuits

Point of Supply

To AusNet Services

line protection

Com

Meter

ACR51

NOTE: Additional requirement not showing in this diagram is

a Live Line Blocking VT to be installed on the load side of

AusNet Services’ network to block feeder CB auto reclose if

volts present.

59

81R

81U 81O

78

46 59

Figure 3: Minimum requirements for 22kV generator connection

The protection relay MUST be located at the main switchboard and cannot be installed at the Distribution Switchboard. If the Embedded Generator is able to provide a communications path to trip the IES rather than the circuit breaker, staged tripping will be considered. Staged tripping if proposed would normally incorporate a loss of communication trip requirement. Staged tripping, which must incorporate tripping at the Main Switchboard, will be considered. The Embedded Generator is not permitted to provide an auto reclose function at the site to reconnect the generator.



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4.4.2 66KV CONNECTION PROCESS

The proposed Embedded Generator may be connected to a new 66kV switching station built by AusNet Services or the Embedded Generator for the proposed connection. The switching station will be located between two zone substations currently connected via a 66kV line as shown in Figure 4 below.

ZSSA ZSSB

CB

CB

CB

CB

CB

CB

Customer HV

Main Switches

Switching Station

Figure 4: Typical HV Embedded Generator installation (66kV Connection)



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Meter

Tx1

Tx1 X prot

49, 50BF(MV),

59N, 87T

Tx1 Y prot

49, 50BF(MV),

59N, 87T

Main 66kV

OHL1 Y Prot

50BF, 87L, 21L

Main 66kV

OHL2 X Prot

50BF, 87L, 21L

AUX Tx

66kV Line 1

33kV BUS 1

Meter

Tx2

Tx2 X prot

49, 50BF(MV),

59N, 87T

Tx2 Y prot

49, 50BF(MV),

59N, 87T

Main 66kV

OHL2 Y Prot

50BF, 87L, 21L

Main 66kV

OHL2 X Prot

50BF, 87L, 21L

AUX Tx

66kV Line 2

33kV BUS 2

Comms Interface

OHL1 X Diff Prot

OHL1 Y Diff Prot

OHL2 X Diff Prot

OHL2 Y Diff Prot

Runback X Scheme

Runback Y Scheme

Anti Island X Scheme

Ant Island Y Scheme

Remote Monitoring &

Control

Other Intertrips &

Transfer trips

27, 50, 51,

51N, 59,

81O, 81U

Where

applicable

refer to Sec

4.3.1

27, 50, 51,

51N, 59,

81O, 81U

Where

applicable

refer to Sec

4.3.1

Protection Legend

21L Line Dist prot

27 Undervoltage

49 Overload

50 Inst Overcurrent

50BF Breaker Fail

51 Inverse Overcurrent

51N Inst Earth Fault

87L Line Diff

87T Transformer Diff

81O Over frequency

81U Under frequency

NOTE: The customers protection requirements are not included in this

diagram

Note: RoCoF and Vector shift protection is required at the main

switchboard and must protect each circuit with any form of embedded

generation.

Figure 5: Minimum requirements for 66kV generator connection



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The final type of connection arrangement to be applied shall be at the discretion of AusNet Services. In both cases, circuit breaker(s) must be provided at the Embedded Generator’s installation for each connection point to switching stations for complete isolation of the Embedded Generator from the connection point.

Single line diagrams of the Embedded Generator’s preferred connection arrangements and other possible connection arrangements if applicable, showing the connection point, the point of common coupling, the generating units(s), circuit breakers, isolators, earth switches and other primary equipment should be submitted.

For each preferred connection arrangement, a single line schematic diagram of the protection system, control system monitoring equipment and instrumentation/metering equipment relevant to the connection of a generating unit to the distribution network should be submitted. The protection schematic should indicate the protection system and control system to be applied, in their ANSI code where applicable. The protection schematic should indicate locations of all relevant current transformers, and voltage transformers and their connections to the relevant protection system, control systems, monitoring equipment and instrumentation/metering equipment.

4.4.2.1 CONNECTION TO A NEW 66KV SWITCHING STATION

Consider a switching station with 66kV lines to Zone Sub A and Zone Sub B; the following protection will be required at Zone Sub A as a minimum:

X and Y current differential protection with built-in distance protection for 66kV Lines between switching station and zone sub;

X and Y CB failure protection with associated communications for remote trips between switching station and zone sub;

duplicated anti islanding schemes with associated communications for remote trips; and

duplicated runback schemes for the Embedded Generator with associated communications for remote trips.

Similar protection systems as in Zone Sub A shall be provided at Zone Sub B.

The following protection will be required at the Switching Station: X and Y current differential protection with build-in distance protection for 66kV Lines

between switching station and each zone sub;

X and Y CB failure protection with associated communications for remote trips between switching station and each zone sub;

duplicated anti islanding schemes with associated communications for remote trips between switching station and each zone sub;

duplicated runback schemes for Embedded Generator with associated communications for remote trips between switching station and each zone sub;

X and Y current differential protection with built-in distance protection for 66kV Lines between switching station and Embedded Generator;

X and Y CB failure protection with associated communications for remote trips between switching station and Embedded Generator;

duplicated anti islanding schemes with associated communications for remote trips between switching station and the Embedded Generator; and

duplicated runback schemes for the Embedded Generator with associated communications for remote trips between the switching station and the Embedded Generator.

For protection at the Embedded Generator, please refer to Section 4.4.2.2.



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4.4.2.2 PROTECTION FOR CONNECTION TO 66KV SWITCHING STATION

The following protection will be required for 66kV lines connecting power station to zone sub or switching station:

X and Y current differential protection with build-in distance protection for 66kV Lines between switching station and each zone sub;

X and Y CB failure protection with associated communications for remote trips between switching station and each zone sub;

duplicated anti islanding schemes with associated communications (as receiving end of the scheme);

duplicated runback schemes for Embedded Generator with associated communications (as receiving end of the scheme);

duplicated directional power protection if limited power or no power is permitted to be exported by Embedded Generator to the grid;

duplicated neutral voltage displacement for protection against earth fault when 66kV side of generator transformer is not earthed;

duplicated under and over-frequency protection, including rate of change of frequency;

duplicated under and over-voltage protection;

overcurrent protection; and

duplicated direct intertrip function for intertrip received from zone sub or switching station.

4.5 COMMUNICATIONS AND REMOTE MONITORING AND CONTROL

There are two different types of existing functions between the Embedded Generator and AusNet Services that require the communication services are:

Embedded Generator provided communications path from generator CB and Main Switch to the AusNet Services ACR. Note: isolation of the two earthing systems is required either by the use of a fibre optic path or intermediate relay to provide isolation;

Embedded Generator to provide communication path from Main Switch and (optional) generator CB to AusNet Services ACR.

4.5.1.1 22KV CONNECTION

The following data points are generally required for any generator connected at 22kV or greater and embedded generation connected at low voltage but of 1.5MW and above or incorporating a complex connection arrangement (dedicated or second methods of supply):

MW (directional 3 phase);

MVAr (directional 3 phase);

3 Phase Amps;

3 of Phase to Phase Voltages and 3 of Phase to Ground Voltages;

open/Close status of incomer feeder (Embedded Generator’s main switch);

last trip Amp (R,W, B and N);

generator Open/Close status;

protection trip at main switch; and

the Embedded Generator is to provide a suitable two paths of reliable communication one for SCADA and one for remote trip

Remote trip of AusNet Services incomer switch (refer to “Embedded Generator Inter-Trip” for



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more details).

4.5.1.2 66KV CONNECTION

Meanwhile for 66kV connection the communication requires Duplicated digital communication channels should be provided between AusNet Services interconnecting Zone substation (or switching station) and the generator station. Optical fibre based communication links are preferred.

The communication channels will be used for the following applications:

OHL No.1 X Line Differential Protection

OHL No.1 Y Line Differential Protection

OHL No.2 X Line Differential Protection

OHL No.2 Y Line Differential Protection

X Anti Islanding Scheme

Y Anti Islanding Scheme

X Runback Scheme

Y Runback Scheme

Remote Monitoring and Control

Other X and Y intertrip and transfer trip signals

4.5.2 CONTROL SYSTEMS REQUIRED AT POWER STATIONS

Synchronism Check

Synchronisation to the grid system must occur at the generator circuit breaker or at the Embedded Generator owned circuit breaker at the point of connection to the grid. Generator connection to the grid can only occur after the grid has been in a stable condition for more than 1 minute.

Remote Monitoring

The following data points are generally required to be communicated to AusNet Services: MW (directional 3 phase);

MVar (directional 3 phase);

3 Phase Amps ;

3 of Phase to Phase Voltages and 3 of Phase to Ground Voltages;

Open/Close status of Embedded Generator circuit breakers at point of connections;

last trip Amp (R,W, B and N);

generator CB Open/Close status;

protection trip at Embedded Generator; and

acknowledgement of Intertrip signals received from AusNet Services.

Communication Links Required at Power Stations

If the protection and control requirements call for an X & Y or duplicated requirement, two separate and independent optical fibre cables with diverse routes should be installed between the Embedded Generator and the zone sub or switching station. Sufficient cores should be provided in each optical cable for protection, control and communication functions.



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4.6 EARTHING REQUIREMENTS

The earthing system shall ensure the safety of personnel and the public, protect electrical installations, ensure correct system operations, and minimise interferences on other infrastructure. At a minimum the earthing system shall comply with all relevant Australian Standards, codes, and best industry practices. Potential earthing hazards shall be eliminated or adequately mitigated.

As embedded generation connections become an integral part of the distribution network once connected, they need to be designed such that any neutral earthing arrangements for the generators and any interconnection transformers suit the requirements of both the distribution network and the Connection Applicant’s generation installation.

Where these requirements are unable to be met, the Connection Applicant shall consult AusNet Services.

4.6.1 HV GENERATOR EARTHING REQUIREMENTS

To meet the automatic access standards the zero sequence impedance of the generator observed from the network must be infinite. This is required to prevent earth fault current flowing between the network and the generator that can affect earth fault protection on the network.

Generator and transformer earthing will be reviewed and designed on a case by case basis by AusNet Services and the Connection Applicant.

4.6.2 LV GENERATOR EARTHING REQUIREMENTS

To comply with the automatic access standards the earthing system of an LV generator must provide satisfactory earthing independently of the AusNet Services network earthing system to prevent the generator from being a source for earth fault, limit any contribution to a network earth fault and inhibit the flow of harmonic currents through the neutral.

4.7 COMMISSIONING AND TESTING REQUIREMENTS

4.7.1 PRINCIPLES

It is expected that the commissioning process will be directly managed by the Embedded Generator and AusNet Services. It should be noted that AEMO may have requirements over and above the requirements of AusNet Services.

As the first stage of the commissioning process, the Embedded Generator must develop a commissioning plan and submit the plan to AusNet Services.

The Embedded Generator is required to cooperate with AusNet Services to ensure that commissioning is undertaken in a manner that:

does not adversely affect other customers connected to the network;

does not affect quality of supply, particularly to customers connected to the same part of the network; and

minimises the risk of damage to the equipment of the network or other customer connected to the network.

The Embedded Generator is responsible for specifying and undertaking commissioning tests and providing evidence to AusNet Services that demonstrates the performance of the plant. The commissioning tests of interest to AusNet Services are considered a part of the overall commissioning activities, with AusNet Services expecting that the Embedded Generator would have additional commissioning requirements.

General principles applied for the commissioning of generating systems connected to the AusNet Services network are:

Commissioning tests are intended to provide evidence to AusNet Services at the time of commissioning that a generating system may remain safely connected to the power system, and the generating system meets the Registered Performance Standards and any other technical requirements specified in the connection agreement.



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AusNet Services requires the applicant to compare the actual recorded results with the results expected from design or modelling. Once a model is verified under one set of conditions, it is assumed to be verified for other sets of conditions in the model.

Independent equipment is to be installed to collect commissioning results separate from the device under test; and the resolution and accuracy of the test instruments, for both time and recorded value, are suitable to measure the response.

4.7.2 DEMONSTRATION OF PERFORMANCE STANDARDS

During commissioning, the applicant must demonstrate that its generating system meets or exceeds the Registered Performance Standards. Wherever practicable, the performance of the generating system must be demonstrated by test. Particular performance standards and the associated testing will be discussed on a case by case basis.

To robustly demonstrate the performance of the generating system against all performance standards, AusNet Services requires that commissioning tests demonstrate that the actual plant performance meets the expected plant performance within predefined and agreed tolerances. The requirements for how the test will be assessed will be agreed on a case by case basis.

Commissioning tests are undertaken under power system conditions at the time of commissioning; however, the comparison of actual results against the design or modelled results provides reasonable evidence that the generator may remain in service for the full range of power system conditions according to its design.

Appendix A and Appendix B outline a number of typical tests that have been conducted on generating systems in the past. These tests are not mandatory; however, the results from these tests have been used in the past to demonstrate generating system performance.

The generator must advise AusNet Services that the generating system is able to comply with each of the Registered Performance Standards.

If the results show a failure to meet a generating system’s Registered Performance Standard or model, AusNet Services may halt or modify the commissioning process of the generator if there is a risk of damage to the power system or other safety concerns. Where the generating system is connected and acts inconsistently with its Registered Performance Standards at commissioning, AusNet Services may also constrain the output of the generating system to any output (including zero), or otherwise disconnect the plant.

4.7.3 HOLD POINTS

AusNet Services will nominate specific points in the commissioning plan on a case by case basis, at which the generator must submit results for AusNet Services to review prior to progressing further with commissioning. Broadly, AusNet Services may require the applicant to submit commissioning test results prior to energisation or synchronisation occurring and through a staged release of capacity. This process allows the demonstration of Registered Performance Standards through testing at various pre-agreed output levels. Typically, hold points will be established at minimum load, and 50% and 75% of maximum output of the generating system or generating unit.

4.7.4 DEVELOPING A COMMISSIONING PLAN

As the first stage of the commissioning process, the applicant must develop a commissioning plan and submit the plan to AusNet Services. The commissioning plan must be submitted at least three months prior to when commissioning is expected to take place for a transmission connected generating system and a minimum of one month prior to when commissioning is expected to take place for a distribution connected generating system.

The plan is then reviewed by AusNet Services. AusNet Services may also request further information in relation to the proposed plan, including test procedures or data capture and storage methods.



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If AusNet Services identifies any concerns, the parties will negotiate changes to the commissioning plan until a final plan is agreed.

AusNet Services must notify the Embedded Generator that they agree with the proposed commissioning plan, or require changes to it in the interest of maintaining power system security, safety of operation, and quality of supply.

4.7.5 COMMISSIONING TEST PLAN REQUIREMENTS

The Rules do not detail any specific commissioning tests that must be undertaken by a Embedded Generator. Instead, as technologies, types and the specific installation (either in installed equipment or settings) may vary from site to site, it is expected that the tests will be tailored to the requirements of the installed equipment and settings.

The commissioning plan must include a list of commissioning tests to be undertaken, providing: a description of the purpose of the test, outlining:

the equipment under test;

which performance standard will be assessed;

what comparison against the expected result;

the proposed dates for test;

the proposed duration of test;

measurement equipment; and

any specific network conditions.

The plan must allow for hold points and include a proposal for evidence to be provided at each hold point.

The commissioning plan may include other commissioning tests; however, it must show clearly which tests are intended to demonstrate the performance of the generating system against the Registered Performance Standards.

AusNet Services may request a specific commissioning test procedure for further clarity regarding a particular test.

4.7.6 UNDERTAKING COMMISSIONING

Preconditions to Online Commissioning

Prior to commencing online commissioning of a generating system, the following must be completed: approval of commissioning plan for the generating system;

registration of the generating system; and

commissioning of SCADA systems relating to the generating system.

Provision of Commissioning Status Advice

As commissioning activities may be subject to rescheduling due to on-site works and issues, AusNet Services may request that the applicant provide regular updates regarding commissioning. These updates may be requested on a weekly or daily basis depending on the impact of the generating system on the local network. This status advice may also provide an opportunity to review and update the commissioning plan.

Undertaking a Commissioning Test

As commissioning activities may impact on the network, specific actions may be required prior to undertaking online commissioning tests. For these tests, AusNet Services requires that the applicant:

advise appropriate contact details in advance of commissioning;



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contact the AusNet Services commissioning engineer prior to commencing a commissioning test that:

a. may impact the MW, MVAr, voltage or frequency of the generating system; or

b. has the potential to impact the performance of the generating system as outlined in the Registered Performance Standards or any other network configuration; and

follows all appropriate operational and market protocols – including reflecting its commissioning activities in its interaction with electricity market systems.

The AusNet Services control room may, at its sole discretion and to manage quality of supply to customers, require the delay or cancellation of a commissioning test due to system conditions at the time.

4.7.7 COMMISSIONING RESULTS

During the preparation of the commissioning plan AusNet Services will nominate any tests that need to be reviewed prior to undertaking further testing and any other test results that need to be submitted as they become available.

The output of the generating system will be restricted and testing will not be permitted at higher output levels until a review of the commissioning test results is completed. Once AusNet Services has reviewed the commissioning test results for each hold point, AusNet Services will allow the generating system to progress beyond that hold point.

4.7.8 COMMISSIONING REPORT

A draft commissioning report must be submitted to AusNet Services no more than two weeks after the completion of commissioning. This commissioning report must:

outline the commissioning tests undertaken on-site;

compare expected performance (modelled) with on-site performance; and

outline the conclusions drawn regarding compliance with the NER, compliance with the design and consistency with the model.

4.8 NETWORK AUGMENTATION

As a guide, a generating plant of capacity 10 MW or below 2 MW is not connected to the high voltage distribution system.

This limit is indicative only as it depends on many factors including the location, generators size, network short circuit rating, the nature of other loads and local factors. It is sometimes necessary to augment the network to accommodate the proposed generation to comply with the required quality of supply to other customers.

The connection process will identify the extent of network extension and augmentation that is required to facilitate a generation connection. The shared network augmentation will be undertaken according to AusNet Services’ standards.

The circumstances in which network augmentation may be required to facilitate integration of the generator into the network are given below.

1) Increase thermal rating of plant and equipment (e.g. conductors) to enable generator connection

2) Maintain network fault levels (short circuit ratings) within VEDC

3) Maintain power quality within VEDC

4) Protection and coordination work required for safe operation of the generator

5) Any other safety related work



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5 CONNECTION FEES AND CHARGES

The following example enquiry fees, application fees and connection services charges are based on the preferred connection arrangements depicted in Figure 2 and Figure 4. It should be noted that these scopes of work are indicative only and hence the scope of works for other connections may vary in quantity and type of works and thus cost of those works may vary considerably from the examples provided below. As a result, fees and charges will be assessed on a case by case basis.

These examples are also based on the assumption that AusNet Services completes all capital works. These examples are also based on the assumption that AusNet Services will pass all AEMO and other DNSP costs (if any) to the Connection Applicant.

Example 1 – 66kV Connection (30MW Connection into sub-transmission network)

The following fees and charges are based on the below scope of works and assumptions and the connection arrangement depicted in Figure 4:

Scope of Work and Assumptions

Engineering, design, procurement and construction associated with the following scope:

Reconductor 15kM of existing 66kV 6/1/0.186ACSR single circuit with 66kV 19/4.75AAC;

5kM of new 66kV overhead, single CCT 19/4.75AAC;

20kM of fibre optic link 20kM (ADSS);

3 circuit breakers;

Civil works (fencing, earthing, buildings); and

Bus works and isolators

The following assumptions have been considered:

a. The following activities are excluded from this estimate: Easement acquisition, land owner negotiations, planning permits, environmental investigations and potential offset works and procurement of land. These activities would be the responsibility of the Connection Applicant.

b. Traffic management, vegetation clearing, access works and significant protection works occurring due to fault level increases are also excluded.

Enquiry Fee

Based on the above scope of work and assumptions, the enquiry fee for this example would be approximately $15,000.

Application Fee

Based on the above scope of work and assumptions, the application fee for this example would be approximately $260,000.

Connection Service Charges

Based on the above scope of work and assumptions, the charges would be as follows:

an upfront payment of $12,500,000 to cover the costs of the capital works.

the monthly connection service charge for the provision of this connection service would be $24,085 from the commencement of the connection service. This monthly connection service charge would be adjusted annually by the Consumer Price Index and in accordance with the terms of the respective Connection Agreement. This annual charge assumes that the generator connection has resulted in a 5% increase to the capacity of the Shared Network to which they are connected.

Example 2 – 22kV Connection (5MW Connection)



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The following fees and charges are based on the below scope of works and assumptions and the connection arrangement depicted in Figure 2:

Scope of Work and Assumptions

Engineering, design, procurement and construction associated with the following scope:

Thermally upgrade 10kM of line from 50˚C to 80 ˚C;

Installation of appropriate switches as per AusNet Services Protection requirements;

Review and upgrade the protection on the feeder;

Review and change the distribution transformer taps on 60% of the subs on the feeder;

Power quality measurement one week before and after the connection of the generator;

The following assumptions have been considered:

a. Generator location of 10kM from the Zone Sub;

b. Backbone Feeder length – 20kM;

c. The following activities are excluded from this estimate: Easement acquisition, land owner negotiations, planning permits, environmental investigations and potential offset works and procurement of land. These activities would be the responsibility of the Connection Applicant.

d. Traffic management, vegetation clearing, access works and significant protection works occurring due to fault level increases are also excluded.

Enquiry Fee

Based on the above scope of work and assumptions, the enquiry fee for this example would be approximately $15,000.

Application Fee

Based on the above scope of work and assumptions, the application fee for this example would be approximately $65,000. This fee excludes any of AEMO’s costs.

Connection Service Charges

Based on the above scope of work and assumptions, the charges would be as follows:

an upfront payment of $2,990,000 to cover the costs of the capital works.

the monthly connection service charge for the provision of this connection service would be $1,454 from the commencement of the connection service. This monthly connection service charge would be adjusted annually by the Consumer Price Index and in accordance with the terms of the respective Connection Agreement. This annual charge assumes that the generator connection has resulted in a 5% increase to the capacity of the Shared Network to which they are connected.

6 MODEL CONNECTION AGREEMENTS

A model connection agreement for embedded generators is included in Appendix C for reference. This model agreement is typical for 200kW to 30MW embedded generation connections. Connection agreements will be negotiated on a case by case basis for embedded generators above 30MW.

7 RESOURCE REFERENCES

Document ID Document Title

SOP 33-05A Embedded Generator Connection Enquiry Form

SOP 33-05B Register of Completed Embedded Generation Projects



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8 APPENDICES

Appendix A – Typical tests for synchronous machines

Appendix B – Typical tests for non-synchronous machines

Appendix C – Model Agreement

9 SCHEDULE OF REVISIONS

Issue Date Author Details of Change

01 29/09/2014 Joanne Soysa First Issue

02 28/01/2015 Joanne Soysa Second Issue – incorporated changes highlighted by ClimateWorks Australia, the Property Council of Australia and Seed Advisory compliance monitoring project

003 13/02/2015 Preeti Arora Third Issue – incorporated changes highlighted by ClimateWorks Australia, the Property Council of Australia and Seed Advisory compliance monitoring project



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APPENDIX A. TYPICAL TESTS FOR SYNCHRONOUS MACHINES

To assist the applicant with the preparation of a commissioning plan, Table A1 outlines a number of typical tests that have been conducted on synchronous machines in the past. These tests are not mandatory; however, the results from these tests have been used in the past to demonstrate Registered Performance Standards.

Table A1: Typical tests for synchronous machines

Performance Standard Offline tests Online tests

S5.2.5.1 Not applicable

Vee Curve Tests

Capability Curve Tests

Online step response tests (into limiters)

S5.2.5.2 Quality of supply monitoring Quality of supply monitoring

S5.2.5.3 Secondary injection testing , CT and VT tests

On load protection tests







S5.2.5.7 Not applicable

Online step response tests

Full load rejection

Partial load rejection

S5.2.5.8 Secondary injection testing, CT and VT tests, CB timing tests






S5.2.5.11 Offline step response test Online step response tests

Partial/Full load rejection

S5.2.5.12 Model validation tests Model validation tests

Online step responses

S5.2.5.13

Offline step response tests

Open circuit saturation curve

V/f limiter tests

Online step response:

under excited

unity power factor

over excited

into limiters

S5.2.5.14 Not applicable Online step response tests

S5.2.6 SCADA commissioning tests SCADA commissioning tests

S5.2.7

Quality of supply

Power factor tests

Quality of supply

Power factor tests

Online protection tests

S5.2.8 Not applicable Not applicable



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APPENDIX B. TYPICAL TESTS FOR NON-SYNCHRONOUS MACHINES

To assist the applicant with the preparation of a commissioning plan, Table B1 outlines a number of typical tests that have been historically conducted on devices other than synchronous machines. These tests are not mandatory; however, the results from the tests have been used in the past to demonstrate Registered Performance Standards.

Table B1: Typical tests for other than synchronous machines

Performance Standard Offline tests Online tests

S5.2.5.1 Not applicable Operation at reactive power limits

S5.2.5.2 Quality of supply monitoring Quality of supply monitoring




On load protection test





S5.2.5.7 Not applicable Not applicable

S5.2.5.8 Secondary injection testing , CT and VT tests, CB timing tests






S5.2.5.11 Offline step response tests to determine frequency control

Model validation tests

Online step response tests to determine damping performance

Model validation tests

S5.2.5.12 Model validation tests Model validation tests

S5.2.5.13 Model validation tests Online step response tests at various generation and reactive power levels including into any limiters

S5.2.5.14 Not applicable Online step response tests

S5.2.6 SCADA commissioning tests SCADA commissioning tests

S5.2.7 Quality of supply

Power factor tests

Quality of supply

Power factor tests

Online protection tests

S5.2.8 Not applicable Not applicable



Issue 3 13/02/2015 33 of 33


APPENDIX C. MODEL CONNECTION AGREEMENTS


between

AusNet Electricity Services Pty Ltd

and

[#insert#]

for

Embedded Generator Connection

at

[#insert#]

Contents

1. Definitions and Interpretation 1

2. Term and Termination 6

3. Connection Services 6

4. Compliance 7

5. Emergency, Disconnection and Reconnection 9

6. Access 10

7. Protection, Control or Alarm Systems, Metering 10

8. Records 11

9. Charges 11

10. Goods and Services Tax 11

11. Credit Support 12

12. Force Majeure 14

13. Indemnities and Liabilities and Insurances 15

14. Non-Financial Default 16

15. Financial Default 17

16. Recovery and Other Payments on Termination 17

17. Dispute Resolution 18

18. Representations and Warranties 19

19. Notices 20

20. Confidential Information 21

21. General 21

Schedule 1 Addresses for Notices Schedule 2 Facilities and Performance Details of the Parties Schedule 3 Access Schedule 4 Monthly Charges Schedule 5 Credit Support Attachment 1 Single Line Diagram Attachment 2 Generator Performance Technical Data Attachment 3 Generator Specification Table Attachment 4 Site Layout

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CONNECTION AGREEMENT This Agreement is made on the day of 20.. Between AusNet Electricity Services Pty Ltd (ABN 91 064 651 118) of Level 31, 2 Southbank Boulevard, Southbank, Victoria, 3006 ("AusNet Services") and [#insert#] (ABN [#insert#] of [address], Victoria [post code] (“Customer") Recitals

A AusNet Services holds a Distribution Licence and is registered with AEMO as a network service provider under the Rules.

B The Customer operates a generation plant at [insert location], (the “Power Plant”). C The Customer [holds a Generation Licence and is registered as a Non-Scheduled Generator under the

Rules]/[has obtained an exemption from the requirement to be registered as a participant under the Rules, and will be exempt from the requirement to hold a Generation Licence pursuant to the “Electricity Industry Act 2000, Exemption Order Under Section 17, Order in Council”, dated 1 May 2002] [delete as appropriate].

D The Customer has requested that AusNet Services connect the Power Plant to its distribution system. E AusNet Services has agreed to connect the Power Plant in accordance with the arrangements

contained within this Agreement.

Operative provisions

1. Definitions and Interpretation

1.1 Definitions

In this Agreement, unless otherwise defined, italicised words and phrases have the meaning ascribed to them in the National Electricity Rules. Capitalised Words have the following meanings: “AEMO” means the Australian Energy Market Operator ABN 94 072 010 327;

“Affected Party” means the Party whose ability to perform its obligations under this Agreement is affected by an Event of Force Majeure;

“Agreed Capability” is as set out in Item 12 of Schedule 2 or other capability agreed by the parties in writing;

“Agreement” means this agreement including the recitals, Schedules, Annexures and Attachments (if any);

“Applicable Regulatory Laws” includes all and any acts, rules, codes, licences, other laws, statutes, regulations, proclamations, decrees, orders, notices, directions, tariffs, sub rules, by laws, ordinances and guidelines made by an Authority as amended from time to time and, for the avoidance of doubt, includes:

(a) the Electricity Industry Act 2000 (Vic);

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(b) the Electricity Safety Act 1998 (Vic) and associated regulations and rules of practice;

(c) the Electricity Safety (Network Assets) Regulations 1999 and its subordinate rules;

(d) the Electricity Industry (Residual Provisions) Act 1993 (Vic);

(e) the National Electricity Law; and includes all and any acts, rules, codes, licences, other laws, statutes, regulations, proclamations, decrees, orders, notices, directions, tariffs, sub rules, by laws, ordinances and guidelines made by an Authority as amended from time to time and, for the avoidance of doubt, includes:

(f) the Rules;

and any other law, regulations, rules, licences or orders relevant to the subject matter of this Agreement;

“Authority” means any government or regulatory department, body, instrumentality, minister, agency or other authority (including the Jurisdictional Regulator);

“Bank Bill Rate” means the bank bill standard rate defined to be equal to:

(a) the “bid rate” (rounded up to four decimal places) quoted on the page entitled “BBSY” of the Reuters monitor system at or about 10:00 am on any Business Day for bank accepted bills of exchange which have a tenor of 30 days; or

(b) if the Bank Bill Rate cannot be determined in accordance with paragraph (a) of this definition, the rate percent per annum agreed by the parties in good faith to be the appropriate rate having regard to comparable indices then available in the current bill market, and in default of agreement within 14 days, the rate nominated by AusNet Services as an appropriate rate;

“Business Day” means a day (not being a Saturday or Sunday) on which banks are open for general banking business in Melbourne;

“Commencement Date” means the date that the parties execute this Agreement;

“Communication” means a notice, agreement, consent, direction, representation, advice, statement or other communication required or given pursuant to or in connection with this Agreement;

“Connection Assets” means the AusNet Services assets described in Item 6 of Schedule 2;

“Connection Services” means the connection services described at Item 7 of Schedule 2;

“Connection Point” means the connection point described at item 14 of Schedule 2;

“Control” means having the capacity to determine, directly or indirectly, the outcome of decisions about the business activities of a person or entity, whether through statutory authority, contract or otherwise;

“Customer Site” means each of the sites owned, leased or licensed by the Customer and used for the operation of the Customer’s Facilities;

“Distribution Licence” means AusNet Services’ licence to distribute and supply electricity under the Applicable Regulatory Laws;

“Electricity Customer Metering Code” means the Electricity Customer Metering Code as published by the Essential Services Commission on their website and as may be amended from time to time;

“Electricity Distribution Code” means the Electricity Distribution Code as published by the Essential Services Commission on their website as amended from time to time;

“Embedded Generator” has a meaning as defined in the Electricity Customer Metering Code;

“Event of Default” means a breach of a term or condition of this Agreement, not being a Financial Default, by a Party (“Party in Default”) having or reasonably expected to have, a material adverse effect on the other Party’s (“Party Not in Default”) ability to obtain and enjoy the rights or benefits of the Party Not in Default under this Agreement or comply with any law, rule or licence;

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“Event of Force Majeure” means any event or circumstance not within the reasonable control of a Party and not caused by an Event of Default in respect of that Party, including without limiting the generality of the nature of those events or circumstances:

(a) acts of God, including earthquakes, floods, washouts, landslides, lightning, storms, and the elements;

(b) strikes, lockouts, bans, slowdowns or other industrial disturbances affecting the relevant industry nationally and not caused by any action of the Party seeking to rely on the Event of Force Majeure;

(c) acts of enemy, wars, blockades or insurrections disturbances, arrest and restraint of rulers and peoples

(d) fire or explosion;

(e) epidemic or quarantine;

(f) order of any court or the order, act, or omission or failure to act of any Government Agency having jurisdiction;

(g) any native title claim, or

(h) terrorism;

“Facilities” means:

(a) in respect of AusNet Services, the facilities or equipment which are installed, operated and maintained by AusNet Services up to the Connection Point to provide the Connection Services; and

(b) in respect of the Customer, the Power Plant and associated equipment that could impact on the Power Plant, internal load required of the Power Plant or operation of the Power Plant up to the Connection Point;

“Financial Default” means failure by the Customer to pay any amount payable under this Agreement to AusNet Services when due;

“Generation Licence” means the Customer’s licence to generate electricity under the Electricity Industry Act 2000 (Vic);

“Government Agency” means:

(a) a government, whether federal, state, territorial or local;

(b) a department, office or minister of a government acting in that capacity; or

(c) a commission, delegate, instrumentality, agency, board, or other governmental, semi-governmental, judicial, administrative, monetary or fiscal authority, whether statutory or not;

“GST Act” means the A New Tax System (Goods and Services Tax) Act 1999 (Cth);

“Insolvency Event” means:

(a) a receiver, manager, receiver and manager, trustee, administrator (including an administrator appointed by the Regulator), controller (within the meaning of section 419(3) of the Corporations Act) or similar officer is appointed in respect of a party or any asset of a party;

(b) a liquidator or provisional liquidator is appointed in respect of a party;

(c) any application (not being an application withdrawn or dismissed within 5 Business Days) is made to a court for an order, or an order is made or a resolution is passed, for the purpose of:

(i) appointing a person referred to in paragraph (a) or (b);

(ii) winding up a party; or

(iii) proposing or implementing a scheme of arrangement in respect of a party;

(d) a moratorium of any debts of a party or an official assignment or a composition or an arrangement (formal or informal) with a party's creditors or any similar proceeding or arrangement by which the

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assets of that party are subjected conditionally or unconditionally to the control of the party's creditors is ordered, declared or agreed to, or is applied for and the application is not withdrawn or dismissed within 5 Business Days; or

(e) a party becomes, or admits in writing that it is, or is declared to be, or is deemed under any applicable law to be, insolvent or unable to pay its debts;

“Jurisdictional Regulator” means, in respect of a matter, the person who is the jurisdictional regulator for that matter for the State of Victoria for the purposes of the National Electricity Law;

“Maintenance Coordination Process” means the process described in Item 11 of Schedule 2;

“Monthly Charge” means the amount that is charged by AusNet Services monthly in arrears for the provision of Connection Services and is calculated in accordance with Schedule 4;

“National Electricity Law” means the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 (SA), as adopted by the National Electricity (Victoria) Act 2005 (Vic);

“Non-Defaulting Party” has the meaning given in the definition of Financial Default;

“Operating Protocol” means the operating protocols and procedures for the operation of protection, control and alarm systems as agreed by the Parties under Item 9 and Item 11 of Schedule 2;

“Outage Event” means:

(a) an event during which any of AusNet Services' Facilities are out of service for any reason and as a result of which AusNet Services fails to provide any or all of the Connection Services; or

(b) an event where Customer’s Facilities are out of service for any reason and as a result of which AusNet Services is unable to provide any or all of the Connection Services;

“Parties” means AusNet Services and Customer and "Party" means any one or both of the Parties as the context requires;

“Party in Default” has the meaning given in the definition of Event of Default;

“Party Not in Default” has the meaning given in the definition of Event of Default;

“Performance Obligation” means any obligation imposed on a Party by this Agreement;

“Power Plant” means the generator and associated facilities as described in Attachment 1, 2 and 3;

“Related Body Corporate” and “Related Entity” each have the meaning given in the to those terms in the Corporations Act 2001 (Cth);

“Representative” means, in relation to a Party, an employee, agent, trustee, permitted assignee, liquidator, administrator, Related Body Corporate of that Party, or any other person authorised in writing by the Party to act as its representative in connection with this Agreement;

“Required Credit Support Amount” is the sum specified in Item 1 of Schedule 5;

“RTU” means the remote terminal unit associated with SCADA;

“SCADA” means Supervisory Control And Data Acquisition;

“Service and Installation Rules” means the Victorian Distributor’s technical requirement referred to the Electricity Distribution Code that meet all Legislative and Code requirements for the supply and metering related aspects of any connection to the Victorian electricity supply networks;

“Site” means the AusNet Services Site and/or the Customer Site, as applicable;

“AusNet Services Site” means each of the sites owned, leased or licensed by AusNet Services and used for the provision of the Connection Services to the Customer;

“TUOS” means the transmission network use of system charges approved from time to time by the Jurisdictional Regulator;

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“Unexpired Costs of Embedded Investment” means the written down value of assets installed by AusNet Services specifically for the provision of the Connection Services (other than assets installed at the Customer’s cost) and as are recorded in AusNet Services' audited accounts; and

“ZSB” means a zone substation.

1.2 Interpretation

In this Agreement, unless the context otherwise requires:

(a) a reference:

(i) to the singular includes the plural and vice versa;

(ii) to a gender includes all genders;

(iii) to a document (including this Agreement) is a reference to that document (including any schedules and annexures) as amended, consolidated, supplemented, novated or replaced;

(iv) to an agreement includes any undertaking, representation, deed, agreement or legally enforceable arrangement or understanding whether written or not;

(v) to a Party means a party to this Agreement;

(vi) to an item, Recital, clause, Schedule or Annexure is to an item, Recital, clause, Schedule or Annexure of or to this Agreement;

(vii) to a notice means a notice, approval, demand, request, nomination or other communication given by one Party to another under or in connection with this Agreement;

(viii) to a person (including a Party) includes:

(A) an individual, company, other body corporate, association, partnership, firm, joint venture, trust or Government Agency;

(B) the person's successors, permitted assigns, substitutes, executors and administrators; and

(C) a reference to the representative member of the GST group to which the person belongs to the extent that the representative member has assumed rights, entitlements, benefits, obligations and liabilities which would remain with the person if the person were not a member of a GST group;

(ix) to a law includes any legislation, judgment, rule of common law or equity or rule of any

applicable stock exchange, and is a reference to that law as amended, consolidated, supplemented or replaced and includes a reference to any regulation, by-law or other subordinate legislation;

(x) to proceedings includes litigation, arbitration and investigation;

(xi) to a judgment includes an order, injunction, decree, determination or award of any court or tribunal;

(xii) to time is to Melbourne time; and

(xiii) the words "including" or "includes" means "including, but not limited to", or "includes, without limitation" respectively.

(b) Where a word or phrase is defined, its other grammatical forms have a corresponding meaning.

(c) Headings are for convenience only and do not affect interpretation of this Agreement.

(d) If a payment or other act must (but for this clause) be made or done on a day that is not a Business Day, then it must be made or done on the next Business Day.

(e) If a period must be calculated from, after or before a day or the day of an act or event, it must be calculated excluding that day.

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(f) This Agreement may not be construed adversely to a party only because that party was responsible for preparing it.

2. Term and Termination

2.1 Continuing Agreement

This Agreement shall commence on the Commencement Date and, will continue until it is terminated by agreement of the Parties, or in accordance with clause 2.2. 2.2 Termination

(a) AusNet Services may terminate this Agreement upon the occurrence of:

(i) an Event of Default on the part of the Customer, in accordance with clause 14.2(b)(ii);

(ii) a Financial Default in the manner set out in clause 15; or

(iii) an extended Event of Force Majeure, as contemplated by clause 12.5.

(b) This Agreement will automatically terminate if:

(i) the Power Plant is decommissioned with the intention that it will not produce any further power;

(ii) the Customer [no longer holds a Generation Licence]/[is no longer exempt from obtaining a Generator Licence in accordance with “Electricity Industry Act 2000, Exemption Order Under Section 17, Order in Council”, date of effect 1 May 2002]; [delete as appropriate]

(iii) the Customer [is no longer registered]/[is no longer exempted from the requirement to register] under the Rules in respect to its ownership, control or operation of the Power Plant. [delete as appropriate]

(c) AusNet Services may terminate this Agreement by 3 months notice in writing if:

(i) there is a change in Applicable Regulatory Laws that adversely affects the ability of AusNet Services to deliver the Connection Services; or

(ii) the Power Plant has ceased to be utilised by the Customer for a period of at least 6 months.

2.3 Amendments of Certain Technical or Operational Arrangements

The Parties agree that, where any issues are required to be specified in this Agreement by the Applicable Regulatory Laws which have not been so specified herein, the minimum standards stipulated as applicable to their respective Facilities by the Applicable Regulatory Laws or relevant Australian Standards shall be deemed to have been specified in this Agreement until such time as the Parties agree to amend this Agreement to address such standards.

3. Connection Services

3.1 Connection Services

AusNet Services shall use its reasonable endeavours to provide the Customer the Connection Services in accordance with this Agreement from the date that AusNet Services notifies the Customer that the Connection Services are available for use. 3.2 Acceptance of Services by the Customer

The Customer:

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(a) may export electricity through the Connection Point, up to the Agreed Capability at all times but only to the extent that the transfer of electricity from the Power Plant would not render the distribution system unstable;

(b) shall give AusNet Services not less than 6 months’ notice of its desire for AusNet Services to permanently disconnect the Customer's Facilities from the distribution system and the parties must follow any procedures, which may be prescribed by the Jurisdictional Regulator or under the Rules, applicable to such permanent disconnection.

3.3 Network Augmentation

Nothing in this Agreement limits AusNet Services' rights to augment its distribution system or connect other customers to its distribution system. 3.4 Customer Obligations

The Customer must:

(a) ensure the Power Plant is operated in accordance with Attachment 2 and Attachment 3;

(b) ensure the Power Plant is inspected and maintained in accordance with the manufacturer’s instructions and specifications by an appropriately qualified person, with a view to ensuring that it remains safe and functional;

(c) ensure that any electrical work performed on or in relation to the Power Plant is undertaken by a licensed electrical contractor lawfully permitted to do such work;

(d) comply with any reasonable requirements of AusNet Services in relation to the installation of additional equipment on or in connection with the Power Plant that AusNet Services considers necessary to ensure the safe and reliable operation of the distribution system;

(e) advise AusNet Services immediately if the Customer [no longer holds a Generation Licence]/[is no longer exempt from the requirement to hold a Generation Licence]; [delete as appropriate]

(f) advise AusNet Services immediately if the Customer is [no longer registered]/[required to register] [delete as appropriate] under the Rules due to its ownership, operation or control of the Power Plant; and

(g) advise AusNet Services prior to altering or decommissioning the Power Plant.

4. Compliance

4.1 Compliance Obligation

(a) The Parties must comply with the Applicable Regulatory Laws;

(b) The Customer must maintain and operate all equipment that forms part of its Facility in accordance with:

(i) relevant laws;

(ii) the requirements of the Applicable Regulatory Laws;

(iii) good electricity industry practice and applicable Australian Standards; and

(iv) the Electricity Distribution Code.

4.2 Inconsistent

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Where the provisions of this Agreement or any right, power or obligation of a Party to this Agreement is inconsistent with the Applicable Regulatory Laws, or any other applicable law, the provisions of this Agreement will prevail to the extent of any inconsistency except where any such provisions of Applicable Regulatory Law, Derogation, or any other applicable law are mandatory and cannot be varied by agreement between the Parties. Any such mandatory provisions are deemed to be incorporated into this Agreement and the provisions of this Agreement are negated or varied only to the extent of any such inconsistency. 4.3 Performance Standards

If a Government Agency or an Applicable Regulatory Law prescribes a standard for the performance of an act then nothing will require a Party to perform or procure the performance of that act at a standard higher than that prescribed for that act by any Government Agency or Applicable Regulatory Law unless specifically provided for in this Agreement. 4.4 No Breach

(a) Where there is a conflict or inconsistency between a provision of this Agreement and a mandatory provision of the Rules, or other Applicable Regulatory Laws that cannot be contracted out of, a failure to comply with an obligation under this Agreement resulting from compliance with a conflicting mandatory provision of the Rules, or other Applicable Regulatory Laws, does not give rise to a breach of this Agreement and neither Party may terminate, seek compensation or exercise any remedy relating to a failure to comply with that other obligation.

(b) If a Party becomes aware of any non-compliance or the potential for non-compliance as described in clause 4.4(a), that Party must notify the other Party of any such non-compliance or potential non-compliance as soon as practicable. The Parties agree that where an inconsistency is identified, each Party will work in good faith to negotiate such changes to this Agreement that are necessary to overcome the inconsistency.

4.5 Operating Protocol

The Parties must comply with the Operating Protocol, that includes but is not limited to the following:

(a) operational responsibilities of the Parties;

(b) practical arrangements for access;

(c) procedures for the operation of protection, control and alarm systems as agreed by the Parties under Item 9 and Item 11 of Schedule 2;

(d) information provision requirements, and the related processes and systems, including incident reporting and arrangements for special investigations;

(e) operational voice and data communications requirements;

(f) practical arrangements for co-ordination, scheduling and utilisation of outages;

(g) the practical arrangements if any for co-ordination of maintenance activities; and

(h) any other matters contemplated by this Agreement (including the Schedules and Attachments).

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5. Emergency, Disconnection and Reconnection

5.1 Emergency Action

If, in the reasonable opinion of either Party:

(a) the provision or acceptance of Connection Services; or

(b) or the condition or method of operation of the distribution system, the Power Plant or the Facilities of either Party

poses an immediate threat of injury or material damage to any person or to the distribution system, the Power Plant, the Facilities of either Party or the assets of any other person (“Emergency”), AusNet Services shall be entitled to:

(c) disconnect the Connection Point;

(d) enter the Sites of the other Party; or

(e) take any other reasonable action,

if it is necessary to do so to avoid or address the threat of such injury or damage, and the Party will, as soon as practicable, notify the other Party of the nature of the Emergency, the action which it has taken and, if a disconnection has been effected, the Facilities which were disconnected and the likely duration of the disconnection. 5.2 Disconnection

Without limiting the operation of clause 5.1, AusNet Services may disconnect the Connection Point if, in the reasonable opinion of AusNet Services, AusNet Services’ ability to supply electricity to its customers is or may be at risk and disconnection is necessary or desirable to remove the risk. 5.3 Reconnection

AusNet Services shall restore the disconnected Connection Point, as soon as is reasonably practicable after:

(a) the threat of injury or damage having been removed, if the disconnection was made in accordance with clause 5.1;

(b) the risk to AusNet Services’ ability to supply its customers having been removed, if the disconnection was made in accordance with clause 5.2;

(c) being permitted or directed under the relevant Applicable Regulatory Laws;

(d) becoming aware or being notified that the relevant Event of Default has been cured, if the disconnection was made in accordance with clause 14.2; or

(e) becoming aware or being notified that the relevant Financial Default has been cured, if the disconnection was made in accordance with clause 15.3.

in accordance with the Applicable Regulatory Laws. 5.4 Interruption of Supply

AusNet Services may interrupt the Connection Services at any time for the following reasons:

(a) planned maintenance, repair, or augmentation of the distribution system;

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(b) unplanned maintenance or repair of the distribution system in circumstances where, in the opinion of AusNet Services, the Customer’s electrical installation or the distribution system poses an immediate threat of injury or material damage to any person, property or the distribution system;

(c) to shed energy because the total demand for electricity at the relevant time exceeds the total supply available;

(d) as required by AEMO or the system operator;

(e) the installation of a new supply to another customer;

(f) in the case of an emergency; or

(g) to restore supply to a customer.

5.5 Release

AusNet Services will not be liable to the Customer for, and to the maximum extent possible under any Applicable Regulatory Laws the Customer will release and hold harmless AusNet Services in respect of, any damage or loss sustained by the Customer (or any of its Related Entities) as a result of AusNet Services exercising its rights under this clause 5. This clause will survive any termination of this Agreement.

6. Access

(a) The Customer agrees that AusNet Services may enter and remain on the Customer’s premises from time to time in order to perform the obligations the parties in accordance with the terms of this Agreement.

(b) If they have not already done so, each Party agrees to negotiate in good faith procedures for access to the other Party’s Sites in accordance with Schedule 3 as soon as reasonably practicable after the Commencement Date.

7. Protection, Control or Alarm Systems, Metering

7.1 Protection, Control and Alarm Systems

(a) The Customer shall provide and operate protection, control and alarm systems in accordance with Item 9 of Schedule 2.

(b) The Customer acknowledges and agrees that other customers connecting to the distribution system may require the Customer to upgrade its protection, control and alarm systems from time to time.

(c) The Customer acknowledges and agrees that such an upgrade is the sole responsibility, and will be at the sole cost, of the Customer.

7.2 Remote Operations Systems

Either Party may install or keep installed (as the case requires), use, maintain, modify and operate remote operations equipment in or on the other Party’s site and in accordance with the remote operations procedures detailed in Item 9 of Schedule 2. 7.3 Metering

(a) The Customer must have a metering installation installed and maintained to measure and record the amount of electrical energy exported and imported at the Connection Point. The metering installation must be located as near as practicable to the Connection Point.

(b) It is acknowledged by the parties that the Power Plant may or may not be an Embedded Generator as defined in the Electricity Customer Metering Code.

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(c) Notwithstanding clause 7.3(b), the Parties agree that the provisions of the Electricity Customer Metering Code will apply to the Customer as if the Customer were a “Customer” for the purposes of that Code and the metrology procedure will apply to the Customer as they apply to an Embedded Generator.

8. Records

8.1 Type of Records

In addition to the requirements under the Rules, each Party ("the Recording Party") must maintain such records, data and other information as are required under Item 10 of Schedule 2 (“Records”). 8.2 Form and Retention

The Records may be maintained in writing or electronically. The Recording Party shall maintain the Records for the period detailed in Item 10 of Schedule 2.

9. Charges

9.1 Avoided Transmission Use of System Charges

(a) In accordance with clauses 5.5(h) and 5.5(i) of the Rules, in the event that generation by the Customer results in avoided Customer TUOS charges, AusNet Services must pass through to the Customer such amounts calculated in accordance with the Rules.

(b) Unless otherwise provided in the Rules, AusNet Services will annually calculate any charges due in respect of avoided Customer TUOS and request that the Customer raise an invoice for the amount due as calculated under the Rules.

9.2 Monthly Charges

(a) AusNet Services may render a monthly tax invoice specifying the Monthly Charge (calculated in accordance with Schedule 4) for Connection Services after the first day of the month that follows the month to which the Monthly Charge applies.

(b) The Customer shall pay the invoiced amount under clause 9.3(a) into the bank account nominated by AusNet Services within 20 Business Days of receiving the tax invoice.

(c) If any invoice, or part thereof, is disputed by the Customer, the Customer must pay the amount of the disputed amount by the due date and any such dispute is to be resolved in accordance with clause 17.

10. Goods and Services Tax

10.1 In this clause (and any other clause which refers to it) the terms GST, supply, recipient, tax invoice, taxable supply, consideration, adjustment note and input tax credits have the meaning given in section 195-1 of the GST Act.

10.2 The Parties acknowledge that unless explicitly stated otherwise, all consideration payable (or to be provided)

under or in connection with this Agreement is expressed on a GST exclusive basis. Where a GST liability is imposed on a Party that makes a taxable supply (the “Supplier”) in respect of any taxable supply made under or in connection with this Agreement, the recipient of the taxable supply must pay to the Supplier an additional amount equal to the GST payable by the Supplier, on or for the taxable supply on the due date for payment (or provision) of the relevant consideration provided that the recipient has been issued with a valid tax invoice (or adjustment note, if applicable) relating to that GST liability.

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10.3 Without prejudice to clause 10.2, the following principles apply in calculating the quantum or timing of any

consideration payable for the purposes of this Agreement:

(a) if the consideration payable (including by way of reimbursement or indemnification) is calculated by reference to any costs, expenses or other liability (“Liability”) incurred by a Participant (“Payee”), the relevant consideration is the actual Liability incurred by the Payee less the amount of any input tax credit which the Payee is entitled to claim in respect of that Liability. The Payee will be assumed to be entitled to claim full input tax credits unless it demonstrates that its entitlement is otherwise;

(b) if the consideration payable is a reimbursement or indemnification of a loss determined by reference to revenue earned, the consideration shall be the revenue which would have been earned net of GST;

(c) if the supplier is liable to pay GST in respect of any taxable supply made in accordance with this Agreement prior to the date that the consideration for that supply is required to be paid by the recipient, the recipient shall pay an amount equal to the GST payable by the supplier in respect of that taxable supply within seven (7) days of the date on which the supplier advises the recipient the GST is payable; and

(d) if any value is required to be determined for the purposes of this Agreement, then that value is to be determined on a GST exclusive basis.

11. Credit Support

11.1 Customer to procure undertaking

AusNet Services may request the Customer to procure an undertaking under clause 11.2 only if, at the time of the request:

(a) the Customer cannot demonstrate:

(i) that it has an unqualified Standard & Poor’s credit rating of at least BBB- or its equivalent from another recognised credit reporting agency reasonably acceptable to AusNet Services (an “Acceptable Credit Rating”); or

(ii) that the performance of the Customer’s payment obligations under clause 9 of this Agreement are guaranteed (on terms acceptable to AusNet Services) by another entity who has an Acceptable Credit Rating (“Guarantor”); or

(b) within the previous 12 months, (or where the Commencement Date occurs within the previous 12 months, since the Commencement Date) the Customer has failed to pay in full:

(i) three invoices within the required time for payment of each invoice;

(ii) two consecutive invoices within the required time for payment for each invoice;

(iii) one invoice within 25 Business Days the required time for payment for that invoice; or

(iv) any undisputed amounts owing by the Customer to AusNet Services in respect of the provision of Connection Services in the period prior to the Commencement Date, are not paid in full within 30 days of the Commencement Date,

provided that nothing in clause 11.1(b) shall permit AusNet Services to require an undertaking under clause 11.2 where the Customer has failed to pay the invoice or invoices or a relevant part of the invoices due to a bona fide dispute under clause 17.

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11.2 Undertaking

The Customer must provide to AusNet Services, within 10 Business Days after a request under clause 11.1, an unconditional undertaking (“Credit Support”) in favour of AusNet Services substantially in the form of item 2 of Schedule 5 (or such other form as agreed by the Parties), issued by either an Australian bank or any other financial institution approved by AusNet Services which is capable of paying the Credit Support in Melbourne upon demand, to secure the due and punctual performance of the Customer’s obligations to pay AusNet Services amounts owed under this Agreement. 11.3 Amount of Credit Support

The Credit Support procured by the Customer under clause 11.2 must be for an amount requested by AusNet Services, not exceeding the Required Credit Support Amount. 11.4 Customer to adjust the Credit Support amount

If at any time during the term of this Agreement the aggregate amount of uncalled Credit Support held by AusNet Services in accordance with this clause 10 is less than 90% of the Required Credit Support Amount, the Customer must, on request by AusNet Services, within 10 Business Days, increase the amount of the Credit Support (as appropriate) to the Required Credit Support Amount. 11.5 AusNet Services to reduce Credit Support Amount

If at any time during the term of this Agreement the aggregate amount of uncalled Credit Support held by AusNet Services in accordance with this clause 10 is more than 110% of the Required Credit Support Amount, AusNet Services must upon request by the Customer and in conjunction with the Customer, do all things necessary to reduce the aggregate amount of uncalled Credit Support held by AusNet Services to the Required Credit Support Amount. 11.6 Set-off

(a) AusNet Services may only set off from, apply or draw on the Credit Support (as the case may be) where:

(i) the Customer has failed to pay any amount due and owing by the Customer to AusNet Services under this Agreement at any time 3 Business Days after giving notice to the Customer that it intends to set off, apply or draw on the Credit Support; and

(ii) there is no bona fide dispute outstanding in accordance with clause 17 in relation to the Customer’s liability to pay those charges.

(b) The exercise of any rights of set off by AusNet Services under this clause does not prejudice any other right of recovery which AusNet Services has in respect of any outstanding amount owed by the Customer.

11.7 Balance of Credit Support to be paid to Customer

Any balance of the Credit Support outstanding after payment of all amounts owing by the Customer to AusNet Services under this Agreement shall be paid to the Customer (or cancelled or returned to the Customer, as appropriate) following termination of this Agreement. 11.8 No injunction

The Customer must not take any steps to seek an injunction or otherwise restrain:

(a) any issuer of the Credit Support from paying AusNet Services pursuant to the Credit Support;

(b) AusNet Services from taking any steps for the purposes of making a demand against the Credit Support; or

(c) AusNet Services using the money obtained in the calling of the Credit Support,

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where AusNet Services has acted in accordance with this clause 11. 11.9 Customer may request release

At the end of 6 months after the date on which Credit Support was originally requested under clause 11.2 and at the end of any 6 month period thereafter (or as otherwise agreed by the parties), the Customer may request the release of the Credit Support, and AusNet Services must release the Credit Support, if the Customer shows that, at that date, none of the criteria identified in clause 11.1 apply. 11.10 AusNet Services may disclose existence of Credit Support

The Customer acknowledges that AusNet Services may disclose to its financiers or regulators that it has required or called upon Credit Support provided by the Customer under this clause 11.

12. Force Majeure

12.1 Effect on Performance of Obligation

(a) Subject to clause 12.2(b) and to an Affected Party's compliance with its obligations under clause 12.3, if an Affected Party is unable, wholly or in part, to perform on time and as required any obligation (not being an obligation to pay money) under this Agreement by reason of the occurrence of an Event of Force Majeure, that obligation ("Affected Obligation") shall be suspended, but only to the extent that the Affected Party is actually prevented from performing the Affected Obligation by that Event of Force Majeure.

(b) Suspension of any Affected Obligations pursuant to clause 12.1(a) will not affect any rights or obligations which may have accrued prior to such suspension or, if the Event of Force Majeure affects only some Affected Obligations, any other obligations or rights of the Parties.

(c) The period of suspension under clause 12.1(a) of the Affected Obligation of the Affected Party will exclude any delay in the Affected Party's performance of those Affected Obligations which is attributable to a failure by the Affected Party to comply with clause 12.3(a).

12.2 Obligation to Notify

If an Affected Party reasonably considers that a circumstance has arisen which constitutes or is likely to constitute or result in an Event of Force Majeure in relation to it, the Parties shall act in accordance with the following procedure:

(a) As soon as reasonably practicable following the occurrence of an Event of Force Majeure (but not later than 5 Business Days following the date on which the Affected Party became aware of the occurrence of the circumstance), the Affected Party will give to the other Party a notice containing full particulars of the Event of Force Majeure including its nature and likely duration, the obligations affected by it and the nature and extent of its effect on those obligations, and will notify the other Party of any changes to the particulars of the Event of Force Majeure.

(b) After a notice is given, the Parties will consult in good faith to assess the Event of Force Majeure and possible ways in which the Event of Force Majeure might be avoided, or its effect mitigated, having regard to each Party's rights and obligations under any relevant agreement to which it is a Party.

(c) After a notice is given, the Affected Party must keep the other Party informed both at reasonable intervals and upon request by the other Party, as soon as practicable following the receipt of that request of:

(i) the Affected Party's estimate of the likely duration of the Event of Force Majeure;

(ii) the action taken, and the action proposed to be taken, by the Affected Party in complying with its obligations under clause 12.3.

(iii) the successful mitigation or minimisation of the effects of that Event of Force Majeure; and

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(iv) any other matter which the other Party may reasonably request in connection with the occurrence of the Event of Force Majeure and the matters referred to in clause 12.2(c) (i), (ii) and (iii).

12.3 Obligation to Mitigate

(a) If an Event of Force Majeure occurs, the Affected Party shall as soon as practicable after the occurrence of that Event of Force Majeure , subject to clause 12.3(c), use all reasonable endeavours (including incurring any reasonable expenditure of funds and rescheduling labour and resources) to avoid or remove an Event of Force Majeure and to mitigate the consequences of that Event of Force Majeure and minimise any resulting delay in the performance of the Affected Obligation and the other Party will cooperate and give such assistance as the Affected Party may reasonably request in connection with the Event of Force Majeure.

(b) The period of suspension under clause 12.3(a) shall be reduced by the same period of time that the Affected Party's inability to perform the Affected Obligation is reasonably attributable to a failure by the Affected Party to comply with clause 12.3(a).

(c) During the period of suspension of any Affected Obligation of the Affected Party under Clause 12.2 the other Party may (but need not) make alternative arrangements for the performance, whether by another person or otherwise, of any obligation so suspended without incurring any liability to the Affected Party and the Affected Party will have no liability to such Party.

(d) Nothing in this clause 12 requires the Affected Party to settle any industrial dispute otherwise than as is commercially reasonable and no delay in making any settlement will deprive the Affected Party of the benefit of clause 12.1 provided that the Affected Party has complied with relevant industrial orders and awards.

(e) The Affected Party shall bear the onus of proving that it has complied with its obligations under clause 12.3(a).

12.4 End of Event of Force Majeure

An Affected Party will as soon as practicable give notice to the other Party of the end of each Event of Force Majeure the subject of a notice and must as soon as reasonably possible after the end of that Event of Force Majeure resume performance of any Performance Obligation suspended as a result of it. 12.5 Termination for Extended Force Majeure

If an Event of Force Majeure, the subject of a notice, is continuing to have the effect described in clause 12.2(a) on the date which is twelve (12) months after the date of service of the notice for the Event of Force Majeure, the Party which is not the Affected Party may terminate this Agreement on one month's prior notice to the Affected Party, provided that:

(a) such Event of Force Majeure has not ceased before the end of that notice period; and

(b) the Affected Party has failed to comply with its obligations under clause 12.3.

12.6 Force Majeure Events

The occurrence of an Event of Force Majeure shall not extend the term of this Agreement.

13. Indemnities and Liabilities and Insurances

13.1 Subject to any undertaking or warranty expressly provided by AusNet Services under this Agreement, any and all implied warranties or undertakings regarding AusNet Services’ provision of the Connection Services, whether implied by law, custom or otherwise, is excluded to the fullest extent permitted by law.

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13.2 The Customer must indemnify and keep indemnified AusNet Services against all actions, proceedings, claims, demands, costs, damages, loss and expenses of whatsoever nature which may be brought against AusNet Services (or its Related Entities), or which AusNet Services (or its Related Entities) may pay, sustain or incur by reason of or in any way relating to, concerning or affecting this Agreement, caused by the wilful misconduct, or negligence of, or breach of this Agreement or of statutory duties by, the Customer or any representative agent or contractor of the Customer.

13.3 The indemnity provided in clause 13.2 is reduced proportionately to the extent that such actions, proceedings,

claims, demands, costs, damages, loss and expenses of whatsoever nature, are caused directly by the wilful misconduct or negligence of AusNet Services or any representative agent or contractor of AusNet Services.

13.4 AusNet Services shall not be liable in any circumstances for any claim, loss, costs or expense which the

Customer may sustain or incur as a consequence of the unavailability of part or all of the Connection Services during an Outage Event.

13.5 Notwithstanding any other provision in this Agreement neither party will be liable to the other, by way of

indemnity or by reason of breach or this Agreement or in tort or otherwise for any claim, loss, cost or expense in the nature of loss of profits, business, anticipated savings or for any other indirect or consequential loss of any nature.

13.6 While this Agreement remains in force, the Customer must maintain all necessary insurance policies to an

adequate level of cover in respect of this Agreement, which as a minimum must include the following:

(a) public liability insurance of not less than $20 million per event;

(b) professional indemnity insurance of not less than $10 million per event;

(c) workers compensation insurance covering liability to employees under the laws of their place of employment as required by law; and

(d) motor vehicle third party personal injury and property damage insurance to a minimum of $20 million.

14. Non-Financial Default

14.1 Default Notice

If an Event of Default occurs, the Party Not in Default must notify the Party in Default of the Event of Default by issuing an the Event of Default Notice (“Event of Default Notice”). 14.2 Remedies

Subject to clause 17, if the Party in Default does not cure the Event of Default within 45 Business Days of the Party in Default receiving an Event of Default Notice, then:

(a) the Party Not in Default may give the Party in Default written notice that it proposes to exercise its rights under this clause 14 (in this clause called a “Remedy Notice”); and

(b) If the Party in Default does not cure the Event of Default within:

(i) 45 Business Days of the Party in Default receiving the Remedy Notice, if the Party Not in Default is AusNet Services, the Party Not in Default may disconnect the Connection Point, or, if the Party Not in Default is the Customer, may take such other action as the Customer thinks fit; and

(ii) 90 Business Days of the Party in Default receiving the Remedy Notice, if the Party Not in Default is AusNet Services, the Party Not in Default may dismantle the Connection Point and

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terminate this Agreement on the expiry of the period or, if the Party Not in Default is the Customer, may take such other action as the Customer thinks fit.

15. Financial Default

15.1 Financial Default Notice

If a Financial Default occurs, AusNet Services may give the Customer written notice specifying the Financial Default (“Financial Default Notice”). 15.2 Default Interest

(a) The Customer shall pay to AusNet Services interest on any amount which is the subject of a Financial Default. Interest shall:

(i) accrue daily at the Bank Bill Rate on the relevant day plus 2%, from the date on which the amount became due and payable until the Financial Default is cured;

(ii) be payable on the first Business Day of each month;

(iii) be calculated on actual days elapsed and a 365 day year; and

(iv) be capitalised on the first Business Day after the due date for payment of such interest if not paid when due.

(b) The Customer's obligation to pay the outstanding amount in relation to a Financial Default on the date it becomes due for payment shall not be affected by paragraph 15.2(a).

15.3 Remedies

If the Customer does not cure a Financial Default within 15 Business Days of the Customer receiving a Financial Default Notice, then AusNet Services may exercise any, or any combination of, the following remedies:

(a) AusNet Services may sue the Customer for recovery of the debt represented by the Financial Default, together with any interest owing in relation to the Financial Default under clause 15.2 and any expenses, cost, losses and damage (other than payment of interest) incurred by AusNet Services as a result of the Financial Default; and

(b) AusNet Services may:

(i) give the Customer written notice that it proposes to exercise its rights under paragraph 15.3(b)(ii); and/or

(ii) if the Customer does not cure the Financial Default within:

(A) 30 Business Days of the Customer receiving the notice referred to in paragraph 15.3(b)(i), disconnect the Connection Point; and

(B) 75 Business Days of the Customer receiving the notice referred to in paragraph 15.3(b)(i), dismantle the Connection Point, and terminate this Agreement by written notice.

16. Recovery and Other Payments on Termination

16.1 Conditions for Recovery

If this Agreement is terminated for any reason then the Customer shall pay AusNet Services the Unexpired Costs of Embedded Investment in accordance with the provisions of this clause 16, together with AusNet Services’ reasonable costs of decommissioning AusNet Services’ Facilities.

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16.2 Statement of Estimate

Where this Agreement is terminated, AusNet Services shall give the Customer a statement setting out its estimate of the Unexpired Costs of Embedded Investment as at the termination date of this Agreement. 16.3 Appointment of Valuer

(a) Within 10 Business Days after the termination date of this Agreement, AusNet Services and the Customer shall jointly select and instruct a reasonably qualified and experienced valuer (whose cost shall be shared equally between the parties) to review AusNet Services’ audited accounts and independently determine the amount of the Unexpired Costs of Embedded Investment. The valuer shall be required to report as to the amount of those costs to each of the Parties no later than 30 Business Days following the date of the valuer’s appointment under this clause 16.3. Each of the Parties shall provide to the valuer such information as the valuer may reasonably require for the valuer to determine such costs.

(b) If either Party disagrees with any of the conclusions of the valuer, the disagreeing Party may give the other Party notice of that disagreement within 15 Business Days of the date on which the valuer reports to the Parties. If that disagreement cannot be resolved by the Parties, the disagreement shall be resolved in accordance with clause17.

16.4 When Payable

The amount payable by the Customer pursuant to clause 16.1 shall be either the amount determined by the valuer pursuant to clause 16.3(a), the amount agreed by the Parties pursuant to clause 16.3(b), or the amount determined pursuant to clause 17, together with interest on that amount calculated at the Bank Bill Rate plus 2% for each day from the termination date of this Agreement until the amount plus any accrued interest on that amount is paid and be calculated on actual days elapsed and a 365 day year and shall be payable on the later of 10 Business Days after:

(a) the date on which the valuer reports to the Parties pursuant to clause 16.3(a); or

(b) any disagreement notified by one Party to the other pursuant to clause 16.3(b) is resolved.

16.5 Other Payments

Within 30 days prior to and following the termination date of this Agreement, either Party may invoice the other Party for any amount (other than that referred to in clause 16.1) owed by the other Party under this Agreement. The invoiced amount must be paid within 15 Business Days of it being received or, if the invoice is disputed by the recipient, within 15 Business Days of the dispute being resolved. Clause 15.2(a) shall apply to any amount which remains unpaid on its due date, and the amount together with accrued interest may be sued for as a debt owed to the invoicing Party.

17. Dispute Resolution

17.1 Disputes

Unless otherwise specified, if any dispute arising in connection with this Agreement cannot be settled by negotiation between the representatives of the Parties referred to in Schedule 1 within a reasonable period then either Party may declare that a dispute exists (“Dispute”). 17.2 Discussions between the Parties

(a) All Disputes which fall within the scope of Chapter 8 of the National Electricity Rules will be resolved in accordance with the National Electricity Rules.

(b) Subject to clause 17.5, if a Dispute arises which cannot be resolved in accordance with clause 17.2(a), the Dispute must be referred to the appropriate senior manager of each of AusNet Services and the Customer for resolution.

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(c) If the Dispute is not resolved by the senior managers within 2 Business Days of such referral, the Dispute must be referred to a panel (in this clause 17 called the “Panel”) for resolution.

(d) The Panel in respect of a Dispute will consist of a general manager of each of AusNet Services and the Customer nominated by each of AusNet Services and the Customer respectively. Each Party must make such nomination within 3 Business Days of the referral to the Panel in accordance with clause 17.2(c).

(e) If the Dispute is not resolved by the Panel within 20 Business Days of such referral, the Panel must, within 5 Business Days, refer the Dispute to resolution by the Chief Executive Officer of AusNet Services and the Chief Executive Officer (or equivalent) of the Customer (in this clause 17 called the “Executive Panel”).

(f) If the Dispute is not resolved by the Executive Panel within 10 Business Days of such referral, either Party may commence legal proceedings.

17.3 Procedure

(a) If a Dispute is referred to the Panel or the Executive Panel, the Panel or the Executive Panel, as the case may be, must meet to resolve the Dispute (unless the Panel or the Executive Panel agrees to resolve the Dispute without the need for a meeting).

(b) The Panel and the Executive Panel will determine their own procedures for meetings.

(c) Decisions of the Panel or the Executive Panel may only be made by unanimous agreement of the members of the Panel or the Executive Panel, as the case may be.

(d) Any decision of the Panel or the Executive Panel is binding on the Parties.

17.4 Condition Precedent to Litigation

A Party must not commence legal proceedings in respect of a Dispute unless:

(a) the Dispute has first been referred to the Panel and Executive Panel; and

(b) the Panel or Executive Panel has not met before the expiry of the time period in clause 17.2(e) or clause 17.2(f) respectively.

17.5 Performance of Obligations Pending Resolution of Dispute

(a) Subject to clause 17.5(c), prior to the resolution of a Dispute, the Parties must continue to perform their respective obligations under this Agreement insofar as those obligations are not the subject matter of the Dispute.

(b) Nothing in this clause will prevent a Party from choosing to perform an obligation which is the subject matter of the Dispute.

(c) Pending the resolution of the Dispute, whether or not the Dispute relates to the payment of money, each Party must pay all amounts under this Agreement (including any amounts the subject of an invoice) when due in accordance with the express terms of this Agreement without regard to the Dispute.

17.6 Urgent relief Nothing in this clause 17 will prevent either Party from seeking injunctive relief from a court of competent jurisdiction where monetary damages would not be an adequate remedy.

18. Representations and Warranties

18.1 Representations and Warranties

Each Party to this Agreement represents and warrants that:

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(a) it is incorporated or established and validly existing;

(b) it has full power, authority and legal right to execute, deliver and perform its obligations under this Agreement;

(c) execution of and performance of that Party’s obligations under this Agreement will not amount to a breach of any contractual or other obligation owed by that Party to a third party; and

(d) as at the date of this Agreement an Insolvency Event is not subsisting in respect of that Party.

18.2 Indemnities and Warranties

Each and every indemnity and warranty in this Agreement is a continuing obligation, separate and independent from the other obligations of the Parties and survive the termination or expiration of this Agreement for any reason whatsoever. It is not necessary for a Party to incur expense or make payment before enforcing a right of indemnity conferred by this Agreement. 18.3 No Other Representations or Warranties

Each Party acknowledges that by entering into this Agreement it has not relied on any representations or warranties about its subject matter except as provided in this Agreement.

19. Notices

19.1 Unless otherwise agreed by the Parties, a notice, consent, approval or other communication (each a Notice) under this Agreement shall be in writing, signed by or on behalf of the Party giving it, addressed to the other Party's representative as specified in Schedule 1 and:

(a) delivered;

(b) sent by pre-paid mail;

(c) transmitted by facsimile; or

(d) transmitted electronically.

19.2 A Notice given to a person in accordance with this clause is treated as having been given and received:

(a) if delivered to a person’s address, on the day of delivery if prior to 5:00 pm on a Business Day, otherwise on the next Business Day;

(b) if sent by pre-paid mail, on the third Business Day after posting;

(c) if transmitted by facsimile and a correct and complete transmission report is received, on the day of transmission if the transmission report states that the transmission was completed before 5.00 pm on a Business Day, otherwise on the next Business Day; or

(d) if transmitted electronically, on the day of transmission if the information technology system of the person giving the notice states that the transmission was completed before 5.00 pm on a Business Day, otherwise on the next Business Day.

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20. Confidential Information

20.1 The information contained in this Agreement and any information disclosed by either Party under or pursuant to this Agreement, is confidential and must not be disclosed to any third party without the prior written consent of the other Party, such consent not to be unreasonably withheld.

20.2 This does not apply when the information is required to be disclosed:

(a) by law, pursuant to any regulatory instruments, Authority, court order or pursuant to any stock exchange listing rules;

(b) to legal advisers, auditors or other consultants of either Party in connection with this Agreement, who are bound by obligations of confidentiality equivalent to the Parties' obligations under clause 20.1;

(c) by a Party to its banks, or other financial institutions on condition that such banks or financial institutions agree previously in writing to keep the same confidential;

(d) to a Related Body Corporate of the disclosing Party on condition that such Related Body Corporate agrees previously in writing to keep the same confidential; or

(e) to a bona fide intending purchaser of all or part of the business of the disclosing Party including (in the case of AusNet Services) AusNet Services' distribution system or (in the case of the Customer) the Power Plant on condition that such intending purchaser agrees previously in writing to keep the same confidential.

21. General

21.1 Waiver

The non-exercise of or delay in exercising any power or right of a Party does not operate as a waiver of that power or right, nor does any single exercise of a power or right preclude any other or further exercise of it or the exercise of any other power or right. A power or right may only be waived in writing, signed by the Party to be bound by the waiver. 21.2 Variation / Amendment

Any variation or amendment to this Agreement must be in writing and signed by both Parties. 21.3 Attorneys

Each attorney who executes this Agreement on behalf of a Party declares that the attorney has no notice of the revocation or suspension by the grantor or in any manner of the power of attorney under the authority of which the attorney executes this Agreement. 21.4 Counterparts

This Agreement may be executed in any number of counterparts and all of those counterparts taken together constitute one and the same instrument. 21.5 Further Assurance

Each Party agrees, at its own expense, at the request of the other Party, to do everything reasonably necessary to give effect to this Agreement and the transactions contemplated by it, including, but not limited to, the execution of documents. 21.6 Entire Agreement

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This Agreement constitutes the entire Agreement of the Parties about its subject matter and any previous agreements, understandings and negotiations on that subject matter cease to have any effect. 21.7 Assignment

(a) The Customer must not assign, novate or otherwise dispose of its rights or obligations under this Agreement without the prior written consent of AusNet Services, which consent must not be unreasonably withheld.

(b) AusNet Services may at its sole discretion, and only after providing the Customer written notice, assign, transfer or novate this Agreement to any person who acquires the right to own, operate or control the distribution system.

21.8 Remedies Cumulative

The rights, powers and remedies provided in this Agreement are cumulative with and not exclusive of the rights, powers or remedies provided by law independently of this Agreement. 21.9 Cost and Expenses

Each Party must pay its own reasonable costs incurred in the negotiation, preparation and completion of this Agreement. 21.10 Schedules

The Schedules form part of this Agreement and in the event of inconsistency, the Schedules will prevail over the other terms of this Agreement. 21.11 Survival

Clauses 5.5, 13, 18, 19 and 20 shall survive termination of this Agreement. 21.12 Governing Law

This Agreement is governed by the law in force in the State of Victoria. 21.13 Submission to Jurisdiction

The parties submit to the non-exclusive jurisdiction of the courts of the State of Victoria and any courts which may hear appeals from those courts in respect of any proceedings in connection with this Agreement. 21.14 Invalid or unenforceable provisions

If a provision of this Agreement is invalid or unenforceable in a jurisdiction:

(a) it is to be read down or severed in that jurisdiction to the extent of the invalidity or unenforceability; and

(b) that fact does not affect the validity or enforceability of that provision in another jurisdiction or the remaining provisions.

21.15 Successors and assigns

This Agreement is binding on, and has effect for the benefit of, the Parties and their respective successors and permitted assigns.

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Executed as an agreement Signed for and on behalf of ) AusNet Electricity Services Pty Ltd ABN 91 064 651 118

) )

by its duly authorised representative ) in the presence of: ) Signature of witness Signature of authorised representative Name of witness Name of authorised representative (please print) (please print)

Date: ____________________________________ Signed for and on behalf of ) [#insert#] ABN [#insert#]

) )

by its duly authorised representative ) in the presence of: ) Signature of witness Signature of authorised representative Name of witness Name of authorised representative (please print) (please print)

Date: ___________________________________

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Schedule 1

Addresses for Notices

Item 1 AusNet Services: AusNet Services’ Representative: Name: Title: Address: Telephone: Facsimile: Email: Item 2 Customer: Customer’s Representative: Name: Title: Address: Victoria Telephone: (03) Facsimile: (03) Email:

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Schedule 2

Facilities and Performance Details of the Parties

Item 1 Responsibilities of the Parties AusNet Services will provide and maintain its assets up to the Connection Point to meet its obligations under all Applicable Regulatory Laws. The Customer will comply with the Service and Installation Rules and all Applicable Regulatory Laws. Item 2 Operation Services AusNet Services, when able, shall disconnect the Connection Point through the remote operated HV switch upon request of the Customer as specified in the Operating Protocol. Item 3 Emergency attendance and advice response The Customer shall ensure 24 hour availability of a suitably trained high voltage operator to undertake switching operations on the high voltage assets as required by AusNet Services for the purpose of inspection of HV metering transformers, load shedding, routine maintenance and emergency repair of the incoming high voltage supply cable. Emergency attendance contact details are specified in the Operating Protocol. AusNet Services shall attend any relevant Customer Site in the event of an Emergency (as defined in clause 5.1) as soon as practicable. Item 4 Maintenance of the Power Plant protection equipment The Customer will maintain its Facilities in good order to ensure that any malfunction will not create a hazard or cause interference to AusNet Services’ distribution system. The Customer shall provide and maintain a written maintenance proposal for the main incoming circuit breaker. The Customer shall also provide and maintain the Power Plant protection equipment. AusNet Services will maintain its Facilities in accordance with its established maintenance procedures. Item 5 AusNet Services Facilities AusNet Services' Facilities are the facilities used to supply the Connection Services Item 6 Connection Assets The AusNet Services Facilities up to the Connection Point. Item 7 Connection Services entry service up to the Agreed Capability. Item 8 Power System Performance and Quality of Supply Data AusNet Services will provide a standard of reliability and availability of supply that can be expected by load customers connected to the distribution system as required to meet its obligations to the jurisdictional regulator.

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When requested by AusNet Services the Customer is to provide a weatherproof location and access to the Customer’s Site and protection secondary terminals for the installation of power quality measurement instruments or other test equipment for the duration of power quality testing as determined by AusNet Services. The Customer:

(a) shall ensure that its Facilities comply with the Electricity Distribution Code, including but not limited to supply frequency, negative sequence voltage, harmonics, flicker, fault level and inductive interference;

(b) should not cause the deterioration of voltage quality to AusNet Services’ customers and to the extent that the Customer causes the voltage quality to not meet the requirements of the Electricity Distribution Code, then the Customer is responsible for ensuring that the voltage quality is rectified so as to meet the requirements of the Electricity Distribution Code as soon as practicable. In this instance, AusNet Services may disconnect the Customer until the issue is rectified;

(c) shall ensure that operating its generating unit(s) does not cause fault levels in the distribution system to exceed system design fault levels. The system design fault level for a 22 kV system 13.1 is kA

Item 9 Protection, Control and Alarm Systems The parties will seek to agree operating protocols and procedures for the operation of the protection, control and alarm systems as soon as practicable after execution of this Agreement. Customer Details

(a) Protection, Control and Alarm Systems (Refer clause 7.1)

The Customer shall ensure that:

(i) its Facilities comply with the Electricity Distribution Code and AusNet Services’ Protection Requirements of Embedded Generators Policy; and

(ii) the synchronism check facility is carried out at the generator site and is the sole responsibility of the Customer.

The protection scheme at the Customer’s Facility needs to be able to detect and clear all types of faults on the AusNet Services incoming feeder. The Customer must have facility to cover the failure of the incomer CB and relay failure. (b) If the generator protection ceases to operate in accordance with this Agreement:

(i) the Customer will immediately cease to generate,

(ii) notify AusNet Services, and

(iii) rectify the problem

Item 10 Records

(a) Types of Records (clause 8.1)

The Customer shall maintain records of:

(i) The Customer’s operating procedures.

(ii) Maintenance records for the Power Plant including protection equipment and circuit breakers.

(b) Retention period (clause 8.2)

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Records are to be maintained for a minimum of seven years. Item 11 Maintenance Coordination Process (clause 13.2) The Operating Protocol as agreed between the parties within 30 days of the Commencement Date. Item 12 Agreed Capability entry service up to [XXXX] kVA.

Item 13 Customer’s Facilities and Connection Assets Attachment 1: Single Line Diagram

Attachment 2: Generator Performance Technical Data

Attachment 3: Generator Specification Table

Attachment 4: Site Layout

Item 14 Connection Point [#insert definition of connection point#].

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Schedule 3

Access

(a) The Parties agree to jointly and co-operatively develop detailed procedures for access to each of the other Party's Sites. Each Party shall be entitled to access its Facilities in or on the Site of the other Party to carry out work at all reasonable times on reasonable prior notice being given.

(b) The jointly developed access procedures shall take due notice of and include the following issues:

(i) Restriction on access rights;

(ii) Access notice;

(iii) Emergency access;

(iv) Obligation during access;

(v) Non interference in the operation of the parties;

(vi) Site safety procedures (including induction where appropriate);

(vii) Relevant occupational health and safety considerations;

(viii) Industrial relations matter; and

(ix) Reimbursement of reasonable costs for loss and damage.

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Schedule 4

Monthly Charges

(a) The Customer will pay a monthly charge of $XXXXX for the provision of the Connection Services (Monthly Charge). The Monthly Charge will be adjusted annually on the review date, being XXXXX of each year, by the Consumer Price Index, Australia (all groups, Melbourne) (“CPI”), according to the percentage movement in the CPI from that published at the end of the previous XXXXX quarter. The initial escalation to be applied on XXXXXX will reflect the CPI for the period XXXXX to XXXXX.

(b) Where clause 12 (Force Majeure) applies, the Monthly Charge in a given month will be reduced by multiplying the full amount of the fixed Monthly Charge otherwise due for the month by the FM Adjustment Factor where:

FM Adjustment Factor = 1 – (total duration of Events of Force Majeure in hours divided by the total number of hours in month)

(c) Payments for avoided Customer TUOS charges will be made on presentation of a tax invoice based on presentation of information provided where applicable under clause 9.1.

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Schedule 5

Credit Support

1 Required Credit Support Amount (Clause 11.3)

[To be inserted]

2 Approved Form of Unconditional Undertaking (Clause 11.2)

At the request of ……………………………………….. (the “Customer") and in consideration of AusNet Electricity Services Pty Ltd (ABN 91 064 651 118) (“AusNet Services") accepting this undertaking in respect of the contract for the provision of connection services and other related services between the Customer and AusNet Services dated ……………("Connection Agreement") ................................................ ABN ................................................ ("the Financial Institution") unconditionally undertakes to pay on demand any sum or sums which may from time to time be demanded by AusNet Services to a maximum aggregate sum of $................(.........................................).

The undertaking is to continue until notification has been received from AusNet Services that the sum is no longer required by AusNet Services or until this undertaking is returned to the Financial Institution or until payment to AusNet Services by the Financial Institution of the whole of the sum or such part as AusNet Services may require.

Should the Financial Institution be notified in writing, purporting to be signed by ................................. for and on behalf of AusNet Services that AusNet Services desires payment to be made of the whole or any part or parts of the sum, it is unconditionally agreed that the Financial Institution will make the payment or payments to AusNet Services forthwith without reference to the Customer and notwithstanding any notice given by the Customer not to pay same.

Provided always that the Financial Institution may at any time without being required so to do pay to AusNet Services the sum of $............... (......................................) less any amount or amounts it may previously have paid under this undertaking or such lesser sum as may be required and specified by AusNet Services and thereupon the liability of the Financial Institution hereunder shall immediately cease.

DATED at .................. this .............. day of .........................20..................

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Attachment 1 Single Line Diagram

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Attachment 2 Generator Performance Technical Data

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Attachment 3 Generator Specification Table

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Attachment 4 Site Layout

guidelines for the connection of embedded generators

Documents