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Grid Issues Charles Davies Commercial Director, National Grid Company British Wind Energy Association 17-18 April 2002.

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Presentation on theme: "Grid Issues Charles Davies Commercial Director, National Grid Company British Wind Energy Association 17-18 April 2002."— Presentation transcript:

1 Grid Issues Charles Davies Commercial Director, National Grid Company British Wind Energy Association 17-18 April 2002

2 Outline  Overview  National Grid obligations  Reinforcements  Commercial/regulatory/charging issues

3 N ational Grid Obligations  owner & operator of high voltage transmission system in England & Wales  offer connection to anyone who applies (within 3 months)  offer use of system to anyone who applies (within 28 days)  charge on the basis of approved charging principles  wind generators treated like any other generator - but is tailoring needed?

4 Generic Transmission Connection Generation Circuit Grid Substation Generation Spur Deeper Infrastructure Generation OwnedShallow Connection Charge TNUoS Tariff

5 National Grid Obligations - Issues  If connection interface is onshore, then existing procedures address:  direct transmission connection; or  ‘use of system’ if distribution connected  However, do obligations extend offshore? If so  are connections regulated or not?  are charging principles same as onshore?

6 ACS Power Flow Pattern for 2003/04 generation demand SCOTLAND UPPER NORTH NORTH MIDLANDS CENTRAL ESTUARY SOUTH WESTFRANCE B1 B2 B3 B7 B9 2200 30553356 1948614056 94968190 57162736 1976 11973044 13238 24983 4956 1899 7329 8635 1847

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8 Reinforcement - Issues  Potentially significant costs (UK studies in progress)  Basis of investment  Contractual?  Strategic?  Market determined? (Tx Access?)  Timing/consents  Reinforce then connect?  Connect then reinforce?

9 Commercial, Regulatory & Charging  Shallow connection (for transmission):  minimum capital cost scheme  charges based on scheme specific costs  sharing with subsequent users  Deeper infrastructure:  guarantees sought from connectees  but costs shared via TNUoS tariff

10 Connection - Issues  Individual transmission connections expensive for wind developments  Sharing connections reduces costs to connectees  Is there a role for National Grid in finding partners?  Are changes to connection charging principles needed? – connection tariff – shallower boundary

11 System Infrastructure Charges  Based on contracted developments  locationally based tariff – reflects incremental network reinforcement costs on both demand and generation who use capacity  capacity-based charges – highest registered capacity of directly connected generator – triad demand contribution (basis of embedded benefit)  Future review likely (eg. Tx Access)

12 Conclusions  Wind can get access to the transmission network now  Potential benefits in tailoring processes to achieve necessary connection sharing  Need to clarify off-shore ground-rules  Significant challenges from access review  Constructive dialogue underway  “Getting Connected Guide” see www.nationalgrid.com/uk/library/

13 National Grid UK overview Scotland France Key Statistics 2001 Installed Capacity67.9 GW Max Demand 53.2 GW Energy Supplied303 TWh Route km 7650 km No. of Substations 300


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