1. Accelerating Renewable Connections Stakeholder Workshop Scotsman Hotel, Edinburgh 30 th June 2015 Presented by Euan Norris Senior Project Manager, Future Networks Tel: +44 (0)141 614 1964 Email: euan.norris@scottishpower.com

2. 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

3. ARC – Project Update & Progress Launch of Live Pilot On-Line Curtailment Assessment Tool Feedback & Question AOCB

4. £8.4M Low Carbon Network Funded Trial that commenced January 2013 & 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

5. Voltage Constraint Voltage Constraint Thermal Constraint Thermal Constraint Fault Level Constraint Fault Level Constraint Consequence of Operating a Passive Distribution Network Distribution Network Transmission Based Constraints

6. Introducing the UK’s largest single Actively Managed Wind Farm Connection As a RIIO focused business, our commercial expertise and passion for technical innovation is helping SP Energy Networks to achieve new levels of efficiency, resilience and value for money. One recent example is the successful commissioning of the UK’s largest single Actively Managed Connection (AMC). The 48MW connection at Aikengall Wind Farm is the latest delivery from for our standout Accelerating Renewable Connections (ARC) Project. This important AMC will enable the live trial of the newly installed infrastructure at Dunbar Grid Supply Point, the first of three live demonstration sites. Colin Taylor, Engineering Services Director welcomed the news stating; “This exciting deliverable will allow us to meet our obligations to connect renewable generation in a timely and efficient manner for our customers, stakeholders and communities well into the future. This major milestone brings tangible benefits and is an excellent team delivery; I look forward now to commissioning further Actively Managed Connections as part of our business as usual connection solutions.” Regards Colin

7. 7 ~1.3km Traditional Solution 1.3km of new wood pole overhead line Cost - £160k Traditional Solution 1.3km of new wood pole overhead line Cost - £160k Smart Solution Installation of Active Network Management Cost - £12k Smart Solution Installation of Active Network Management Cost - £12k Voltage limitation Maximum export 12kVA

9. Pre-Energisation Typical Day Maximum Voltage – 249V Minimum Voltage – 232V Average Voltage – 243V Maximum Power – 126kW (Import) Minimum Power– 7.8kW (Import) Average Power – 36kW (Import) Wind 17.9-24.0 (Gusts 30) mph (Mid/High Production) Voltage Limit (253 volts) Voltage Power Demand Standhill Farm Energy Profile

10. Post-Energisation @ 153kW Voltage Limit (253 volts) Voltage Reverse Power Flow (Wind Generation Low Production) Maximum Voltage – 249V Minimum Voltage – 238V Average Voltage – 244V Maximum Power – 148kW (Export) Minimum Power– 100kW (Export) Average Power – 121.5kW (Export) Standhill Farm Energy Profile

11. Post-Energisation Simulated @ 163kW Limit Voltage Reverse Power Flow Wind 3.6-7.5 mph (Low Production) Maximum Voltage – 249V Minimum Voltage – 238V Average Voltage – 244V Maximum Voltage – 253V Minimum Voltage – 236V Average Voltage – 244V Limit Maximum Power – 141kW (Export) Maximum Power– 98kW (Import) Average Power – 77kW (Export) Loss of Generator G59 Power Shift of 165kW (Wind Generation High Production) Voltage Standhill Farm Energy Profile

12. Max Gen 156MW Min Demand 11MW Constraint 1 Constraint 2 57.97MVA Traditional Solution Two Additional 90MVA Transformers Time to Build - 7 years Cost - £20M Traditional Solution Two Additional 90MVA Transformers Time to Build - 7 years Cost - £20M Smart Solution Installation of Active Network Management Time to Build – 6 month Cost - £0.5M Constrained 3-5% of time Smart Solution Installation of Active Network Management Time to Build – 6 month Cost - £0.5M Constrained 3-5% of time 3 New Generators - 51MW

13. Number of BHA Properties: 1753 Gas and Solid Fuel Heating: 1189 (68%) Electric Heating: 545 (31%) Heat Pump: 19 (1%) Proposed 3.8kW Roof PV: 749 (43%) Worst Performing Energy Audit: 432 (25%)

14. INTERNAL IMPLEMENTATION Policies Standard Techniques Specifications Procurement Legal Agreements Curtailment Tools/Assessments Training Packs Business Sign-Off Support for Frontline Staff External Facing Changes Transfer of Ownership Conversion from Project into BaU INTERNAL IMPLEMENTATION Policies Standard Techniques Specifications Procurement Legal Agreements Curtailment Tools/Assessments Training Packs Business Sign-Off Support for Frontline Staff External Facing Changes Transfer of Ownership Conversion from Project into BaU Review of Design Policy Roll-out of new Design Techniques/Tools Testing of complementary equipment Installation of Network Monitors to support increase capacity for renewables Delivery of Community Generation Project Review of Design Policy Roll-out of new Design Techniques/Tools Testing of complementary equipment Installation of Network Monitors to support increase capacity for renewables Delivery of Community Generation Project

15. ✓ Two-stage commercial offer for connections where transmission impact is identified – ANM to Firm Connection Commercial agreement will include detailed forecast of expected constraints – DG developers will have base data available to them Position in LIFO Stack confirmed as part of connection agreement Generators will be obliged to respond to curtailment signal, three strikes and you’re out! (or in reality will be off until further notice) No constraint payment applicable, benefits to generators accrued up front! One-size commercial offering does not fit all… innovative solutions! ✓ ✓ ✓ ✓ ✓

16. GB System Operator (NGET) – Receiver of Services Transmission Connected Customers Constraint Management – Balancing Mechanism via Bi-lateral Contracts Energy Balancing – Balancing Mechanism & Energy Trading Reactive Power – Grid Code >50MW tendered service Soft De-loading – Commercial Service Fault Ride Through – Grid Code >50MW Post Fault Recovery – Grid Code >50MW Demand Side Response (DSR) Current Embedded Services Sole to GB TSO: Frequency Response STOR Triad Management Voltage Optimisation Constraint Management Reactive Power/Voltage Support Soft Deloading Fault Ride Through Post Fault Recovery Fault Level Management DSO DNO

17. Thank You & Questions Presented by Euan Norris Senior Project Manager, Future Networks Tel: +44 (0)141 614 1964 Email: euan.norris@scottishpower.com

18. On-Line Curtailment Assessment Tool Stakeholder Workshop Scotsman Hotel, Edinburgh 30 th June 2015 Presented by Euan Norris Senior Project Manager, Future Networks Tel: +44 (0)141 614 1964 Email: euan.norris@scottishpower.com

19. Create an on-line tool that can be used by customers to understand how ANM can facilitate network capacity for their individual project ahead of formal application Provide customers with available network capacity to assist in planning new generation projects Provide up to date and accurate information on the network Provide enough information to enable customers to make an informed decision on the feasibility on their project

22. Continue development of tool Remaining circuits within trial area to be mapped (60 in total) Roll out into Business as Usual Include all circuits to cover SPEN’s network as ANM is rolled out Incorporate feedback from Live Pilot

23. Thank You & Questions Presented by Euan Norris Senior Project Manager, Future Networks Tel: +44 (0)141 614 1964 Email: euan.norris@scottishpower.com