Accelerating Renewable Connections Stakeholder Workshop Scotsman Hotel, Edinburgh 26 th June 2014 Presented by Euan Norris Senior Project Manager, Future Networks Tel: +44 (0)

Iberdrola ScottishPower ScottishPower Retail and Generation ScottishPower Renewables SP Energy Networks Onshore and Marine Projects UKOffshore Projects WorldwideManagement of electricity networkSeparate company, separate brandingPower stationsElectricity and Gas tariffs to customers Who Are We?

Agenda Accelerating Renewable Connections (ARC Project) Progress To Date Principles Of Access & Proposed Commercial Arrangements Development of On-Line Curtailment Tool (Live Demo) Feedback & Next Steps

ARC Overview & Aims £8.4M Low Carbon Network Funded Trial that commenced January 2014 & will last 4-years until December 2016 Key deliverable is to facilitate improved access to the distribution network to connect renewable generation Accelerate the time to connect new generation projects Enabled connections to be facilitated around constraints on the network, at both Distribution & Transmission voltages Create an enduring process and learning that can be rolled out across SP Energy Networks

Progress To Date Completion of FAT testing for the enablement of 3 GSPs Active Network Management control infrastructure installed at Dunbar GSP, final commissioning & testing being undertaken Agreement reached to install ANM control at existing distributed generator (Management of N-1 constraint) Positive engagement with NGET to accelerate connection of distributed generation delayed by transmission constraints Development of Prototype On-Line Curtailment Tool Establishment of SP Energy Networks Business As Usual transition team – targeting ANM into BaU during 2015

Principles Of Access Method of allocating curtailment between multiple generators Must be; Fair, Transparent & Bankable for generators Last In First Off (LIFO) Pro-Rata

Establishing the LIFO Stack! What is the fairest way? Receipt of Planning Following Connection

Commercial Terms – Key Features Two-Stage Commercial Offer for connections where transmission impact is identified – Commercial agreement will provide forecast of annualised constraints – non binding! Position in LIFO stack confirmed as part of agreement Annual administration charge to be part of Actively Managed constraint management scheme Three-strikes and your out! Generators must undertake to respond to curtailment signal No constraint payments, communications infrastructure responsibility of generator to procure & install

Stakeholder Survey Questions Question 1 Do you agree with SP Energy Networks proposal to constrain actively managed generators via the LIFO stack? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 2 How should a generator’s position in the LIFO stack be established? 1.Following receipt of planning consent 2.Upon connection to the Network 3.When connection agreement is signed 4.Don’t Know

Stakeholder Survey Questions Question 3 Do you support the proposal for a two-stage connection agreement for those generators affected by transmission constraints to enable distributed generation to connect ahead of completed reinforcements? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 4 Do you believe that Project ARC will improve what SP Energy Networks does to facilitate connection to the grid? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 5 Previously 67% of delegates voted that SPEN does not currently provide enough information about available network capacity to assist developers in planning new generation projects, do you believe that the proposed on-line capacity tool will improve this? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 6 Would you support connections offers being withdrawn by SPEN if planning consent was not achieved within a specified timescale and for that capacity to be made available for those projects more advanced in progressing towards connection? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 7 SPEN receives around 40 connection applications per week, of only 10% are accepted, would you support an up-front connection fee that would be deducted from the final connection cost? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 8 Do you think SPEN provides enough detailed breakdown of its charges in its quotation and offer letters ? 1.Very Detailed 2.Quite Detailed 3.Don’t Know 4.Not Very Detailed 5.Not At All Detailed

Stakeholder Survey Questions Question 9 Would you support a visit from SPEN for connection offers over £250k to talk you through the connection offer and breakdown of costs? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 10 Do recognise SP Energy Networks as a separate brand and company from that of energy supplier Scottish Power Energy Retail? 1.Strongly 2.Slightly 3.Don’t Know 4.No 5.They are the same company

Stakeholder Survey Questions Question 11 What do you think of the overall customer service provided by SPEN when connecting Distributed generation? 1.Excellent 2.Good 3.Don’t Know 4.Room for Improvement 5.Poor

Stakeholder Survey Questions Question 12 What do you think of the overall approach and service provided by the ARC team to date in developing an Actively Managed connections? 1.Excellent 2.Good 3.Don’t Know 4.Room for Improvement 5.Poor

Stakeholder Survey Questions Question 13 Are the objectives of the ARC project clearly understood and effectively communicated? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against

Stakeholder Survey Questions Question 13 Do believe that the roll out of Active Network Management across our network should be a main focus of SP Energy Networks? 1.Strongly Support 2.Might Support 3.Don’t Know 4.Slightly Against 5.Strongly Against