Energynetworks.org 1 PRESENTED BY MARÍA ISABEL LIENDO, SCOTTISH POWER, ON BEHALF OF WORKSTREAM 2 Cost and Benefit allocation to DG under the CDCM 11 December.

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Presentation transcript:

energynetworks.org 1 PRESENTED BY MARÍA ISABEL LIENDO, SCOTTISH POWER, ON BEHALF OF WORKSTREAM 2 Cost and Benefit allocation to DG under the CDCM 11 December 2008

energynetworks.org 2 Background One of the main drives for the SoC project is to develop cost-reflective charges which recognise the benefits that DG bring to the network. Ofgem’s Appendix 2 guidelines: implementation HV/LV: Assignation of F-factors DG yardsticks Interaction with EHV charging

energynetworks.org 3 Assignation of “F” factors Depends on type of generation: intermittent or non- intermittent For non-intermittent generation, F-factor depends on the number of units For intermittent generation, F-factor depends on the “persistence” time (the period of continuous generation assumed to be needed for system security). ER P2/6 identifies 5 types of non-intermittent generation and 2 types of intermittent generation. Tariff per voltage level  need for a balance between simplicity and cost reflectivity.

energynetworks.org 4 F-factors, non-intermittent generation WS2 initial proposals for non-intermittent generation Group non-CHP generators and assign F-factor of CCGT CHP generators assigned F-factors of gas turbine CHP

energynetworks.org 5 F-factors, intermittent generation WS2 initial proposals for intermittent generation P2/6 demand group thresholds are ignored (para 1.55) Persistence value equivalent to “switching” (3 hours) Tidal, wave, photovoltaic… (?)

energynetworks.org 6 DG yardsticks Under this proposal, generation is considered to offset demand and provide benefits by deferring reinforcements at higher voltage levels Does this apply at the voltage of connection too?

energynetworks.org 7 Consideration to be given to: F-factors. Right balance simplicity (number of tariffs) vs cost- reflectivity? Should the group consider fuel type instead of technology (for non-intermittent generators)? Is the grouping of the technologies correct? For the DG yardsticks, should the benefits at the level of connection be considered too?

energynetworks.org 8 Interaction with EHV charging Application of ER P2/6 at EHV and HV/LV for pricing is different. For EHV, Ofgem’s guidelines specify that “the level of demand expected to contribute to network security as set out in ER P2/6”. For generators in a Demand Group > 12 MW there is no benefit, as no contribution to system security Persistence factor assumed greater than “pricing” assumptions for HV/LV. Whereas for HV/LV, Ofgem’s guidelines specify that any P2/6 thresholds should be ignored.

energynetworks.org 9 Is it acceptable to have potential cross-voltage pricing signals? Possible solutions Consideration to be given to: