National Grid Plc · LSE:NG.

National Grid — Investor Presentation (April 2009)

106 slides from National Grid's investor presentation, Apr 9, 2009

  1. Slide 1: User Seminars 7th & 9th April 2009

    User Seminars 7th & 9th April 2009 - Macdonald Holyrood, Edinburgh - Thistle Westminster, London

  2. Slide 2: Introduction & Welcome

    Introduction & Welcome Chris Sambridge – Policy and Support Manager

  3. Slide 3: Welcome

    Welcome ‹ Health and Safety – fire alarm, fire exits, assembly point ‹ Mobile phones and Blackberrys ‹ Today’s format ‹ Q & A’s at end of each presentation ‹ Q & A’s published on web after both seminars 3

  4. Slide 4: Agenda

    Agenda 14:00 Introduction and Welcome GB Queue Management Update Constraint Management Update Locational BSUoS – Effects on Charging 16:00 Coffee Break Offshore Transmission Update Developing the Electricity Transmission System Summary and Close 17:30 approx. Networking opportunity over wine and can

  5. Slide 5: National Grid hosts - Edinburgh

    National Grid hosts - Edinburgh ‹ Duncan Burt – Customer Services Manager ‹ Les Jenkins – Customer Policy and Strategy Manager ‹ Chris Sambridge – Policy and Support Manager ‹ Mark Pearce – Electricity Customer Manager ‹ Nigel Fox – Charging & Revenue Manager ‹ John Greasley – GBSO Offshore Manager

  6. Slide 6: National Grid hosts - London

    National Grid hosts - London ‹ Duncan Burt – Customer Services Manager ‹ Les Jenkins – Customer Policy and Strategy Manager ‹ Chris Sambridge – Policy and Support Manager ‹ Mark Pearce – Electricity Customer Manager ‹ Nigel Fox – Charging & Revenue Manager ‹ John Greasley – GBSO Offshore Manager ‹ A

  7. Slide 7: GB Queue Management

    GB Queue Management Andrew Ford Customer Services Policy and Strategy

  8. Slide 8: GB Queue Management

    GB Queue Management Š GB Queue Management – Aims and Blockers. Š GB Queue Management Progress. Š TEC reduction review. Š CAP150. Š What does National Grid need from Users? 8

  9. Slide 9: GB Queue Management – what are we doing?

    GB Queue Management – what are we doing? Aims Š Replace sequential connection queue created at BETTA. Š Prevent Users retaining TEC they are unlikely to use. Š Connect ready, willing and able projects earlier. Š Utilisation of capacity – connect and manage via derogations. Š Interim initiatives to s

  10. Slide 10: GB Queue Management – what are we doing?

    GB Queue Management – what are we doing? Blockers Š Large influx of connection requests to a congested network. Š Planning Issues.  Extending reinforcement works e.g. Beauly-Denny.  Consents process. Š Uncertainty from developers in the queue.  Finance  Delays Š Regime does not allow for Strateg

  11. Slide 11: December 2008 position

    December 2008 position December 2008 Projects Invited to submit Modification Applications to 454 MW Advance Projects Unable to Advance 150 MW Requests Under review by Optimisation group 1600 MW Total—Projects that have requested advancement via 2200 MW the Quarterly report process 11

  12. Slide 12: April 2009 position

    April 2009 position April 2009 Projects with Offers issued during March and April 454 MW Further Projects identified for advancement 457 MW Projects Unable to Advance 1300 MW New requests under review by Optimisation group 200 MW Total—Projects that have requested advancement 2400 MW via the Quarter

  13. Slide 13: Firm/Non Firm Offers

    Firm/Non Firm Offers Scottish Hydro-Electric Scottish Power Transmission Transmission Limited Limited Total Agreement Type Firm Non Firm Firm Non Firm BCA 0 MW 390 MW 69 MW 0 MW 459 MW BELLA/BEGA 0 MW 366.5 MW 20 MW 0 MW 386.5 MW Small Embedded 0 MW 0 MW 65.5 MW 0 MW 65.MW Total 0 MW 756.5 MW 154.5

  14. Slide 14: Free TEC Reduction review

    Free TEC Reduction review Open letter to the Industry was published on National Grid website on 9th February 2009. ‹National Grid initiated this process as an initiative to promote the release of capacity. ‹Currently 10 enquiries and 1 formal request have been made, which National Grid are currently

  15. Slide 15: CAP 150 - Update

    CAP 150 - Update ‹ CAP150 was implemented on 16th May 2008, providing a framework for National Grid to monitor/reduce projects contracted capacity where the User is unable to make use of it by the contracted completion date. ‹ 13 projects were sent letters requesting clarification/evidence in March

  16. Slide 16: What do we need from Users?

    What do we need from Users? ‹ Users are requested to continue to submit Quarterly Reports with aspirational connection dates. ‹ National Grid values feedback and would request Users contact Chris Sambridge with any questions, suggestions or initiatives that may assist the GB Queue Management process

  17. Slide 17: Constraint Management Update

    Constraint Management Update Robert Smith Customer Services Electricity Codes

  18. Slide 18: Agenda

    Agenda Š Background Š Changes considered to manage constraints  Ofgem consultation – addressing market power concerns Š Progress on options taken forward  Category 5 System to Generator Operational Intertripping Scheme  Progress on Locational BSUoS  TO incentives  Administered BM prices Š Feedb

  19. Slide 19: Background

    Background al! J nationalgrid The power of action:

  20. Slide 20: Ofgem Open Letter to National Grid (Feb 09)

    Ofgem Open Letter to National Grid (Feb 09) Requests National Grid to conduct an urgent review to consider whether changes are required to existing commercial and charging arrangements for access to the GB transmission system 20

  21. Slide 21: Ofgem Letter

    Ofgem Letter Š Review should seek to address:  Options for reducing the level of constraint costs; and  Whether the current use of system charging mechanisms are equitable and appropriate 21

  22. Slide 22: Ofgem Letter - Timelines for the review

    Ofgem Letter Š Timelines for the review  Raise any proposals by the end of February 2009; or  Publish a report explaining why we consider the current arrangements and forecast level of constraints costs are consistent with all of our relevant statutory and licence obligations Š A link to our respo

  23. Slide 23: Trend in constraint costs

    Trend in constraint costs 300 250 BETTA Implementation 200 £m illio n s 150 100 50 0 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9* 2009/10* England & Wales Cheviot Scotland GB * Forecast information 23

  24. Slide 24: Historical trend in constraint costs

    Historical trend in constraint costs Š What is driving the recent increase?  Outages associated with new investment/connections  Outages associated with asset replacement  Derogation of B6 or ‘Cheviot’ boundary from requirement to comply with Security and Quality of Supply Standards (SQSS) 24

  25. Slide 25: Forecast of capacity shortfall

    Forecast of capacity shortfall Cheviot boundary capacity vs GB SQSS Required Capability 6000 5000 Transmission Capacity (MW) 4000 3000 2000 Best View Required Capability* 1000 Contracted Background Required Capability** Actual Capability 0 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014

  26. Slide 26: Derogated boundaries

    Derogated boundaries Š Why is non-compliance with SQSS a specific issue?  Significant constraint management actions required during intact network conditions ƒ Including significant utilisation of intertrips (where economic) to maximise boundary capability  Removes flexibility to schedule outages

  27. Slide 27: Agenda

    Agenda Š Background Š Changes considered to manage constraints  Ofgem consultation – addressing market power concerns Š Progress on options taken forward  Category 5 System to Generator Operational Intertripping Scheme  Progress on Locational BSUoS  TO incentives  Administered BM prices Š Feedb

  28. Slide 28: Managing Constraints Costs

    Managing Constraints Costs Š Volume  Clear issue on non-compliant boundary Š Price 28

  29. Slide 29: Managing Constraints Costs - Volume

    Managing Constraints Costs - Volume G=1000MW G=400MW What are the options available? D=400MW D=1000MW 1. Increase boundary limit • Build more capacity • SO-TO alignment of incentives Transfer = 600MW Boundary Limit = 400 MW Constraint = 200MW Constrained Zone Unconstrained Zone 29

  30. Slide 30: Managing Constraints Costs - Volume

    Managing Constraints Costs - Volume G=1000MW G=400MW What are the options available? D=400MW D=1000MW 1. Increase boundary limit • Build more capacity • SO-TO alignment of incentives Transfer = 600MW 2. Reduce flow Boundary Limit = 400 MW • TEC reduction • Auction to compliant levels Constraint = 20

  31. Slide 31: Managing Constraints Costs - Price

    Managing Constraints Costs - Price G=1000MW G=400MW What are the options available? D=400MW D=1000MW 1. Administered prices • Bids and Offers • Intertrips Transfer = 600MW • TEC buyback product Boundary Limit = 400 MW Constraint = 200MW Constrained Zone Unconstrained Zone 31

  32. Slide 32: Evaluation of options

    Evaluation of options Š Interaction with Transmission Access Reform Š Ease of implementation Š Efficiency of proposal Š Likely BSUoS cost savings Š Better meet licence objectives 32

  33. Slide 33: The options we proposed to take forward

    The options we proposed to take forward Š On derogated boundaries  Locational BSUoS  Administered prices for intertrips Š SO-TO aligned incentives Š For further consideration  Administered Balancing Mechanism prices during constraints 33

  34. Slide 34: Ofgem consultation – addressing market power concerns

    Ofgem consultation – addressing market power concerns Š Launched 30 March 2009 Š Responses by 8 May 2009 Š Considers three broad approaches to tackling issue of undue exploitation of market power  Licence condition;  Price capping; or  Divestment Š Preferred mechanism - licence condition 34

  35. Slide 35: Agenda

    Agenda Š Background Š Changes considered to manage constraints  Ofgem consultation – addressing market power concerns Š Progress on options taken forward  Category 5 System to Generator Operational Intertripping Scheme  Progress on Locational BSUoS  TO incentives  Administered BM prices Š Feedb

  36. Slide 36: Category 5 System to Generator Operational Intertripping Scheme

    Category 5 System to Generator Operational Intertripping Scheme

  37. Slide 37: Background

    Background Š National Grid proposing to introduce a new category of System to Generator Operational Intertripping Scheme Š Requires amendment to CUSC, Grid Code and Procurement Guidelines Š CUSC Amendment Proposal 170  Urgent status  http://www.nationalgrid.com/uk/Electricity/Codes/gridcode/consul

  38. Slide 38: Issue being addressed

    Issue being addressed At non-compliant transmission boundaries Š The need to take action to manage constraints is more onerous than at a compliant transmission boundary Š As such the use of intertrips (where economic) is a necessity rather than an occasional tool to maximise the flows across the bou

  39. Slide 39: Next steps

    Next steps Š CUSC & Grid Code Amendment Reports submitted to authority 25th March Š Procurement Guidelines consultation closes 9th April Š Note Ofgem have stated they intend to do a Regulatory Impact Assessment 39

  40. Slide 40: Locational Balancing Services Use of System (BSUoS)

    Locational Balancing Services Use of System (BSUoS) Charging Methodology Proposal

  41. Slide 41: Initial Thinking – B6 Transmission Capacity Shortfall

    Initial Thinking – B6 Transmission Capacity Shortfall Cheviot boundary capacity vs GB SQSS Required Capability 6000 5000 Transmission Capacity (MW) 4000 3000 2000 Best View Required Capability* 1000 Contracted Background Required Capability** Actual Capability 0 2007/08 2008/09 2009/10 2010/11 2011/

  42. Slide 42: Initial Thinking

    Initial Thinking Š TNUoS : Proxy for the long run cost of Transmission Access  Assumes SQSS compliance (assets have been built) Š BSUoS : Constraint costs  Should reflect the efficient level of build on a Compliant Network  Proxy for short run costs of transmission access for non compliant capaci

  43. Slide 43: Initial Thinking

    Initial Thinking Š TNUoS : Proxy for the long run cost of Transmission Access  Assumes SQSS compliance (assets have been built) Š BSUoS : Constraint costs  Should reflect the efficient level of build on a Compliant Network  Proxy for short run costs of transmission access for non compliant capaci

  44. Slide 44: Locational BSUoS: Proposal

    Locational BSUoS: Proposal Š BSUoS charges: two component parts;  Locational element reflecting the costs of constraints incurred through derogated boundary non compliance; and  A residual element incorporating the remaining costs. 44

  45. Slide 45: Locational BSUoS: Proposal

    Locational BSUoS: Proposal Š BSUoS charges: two component parts;  Locational element reflecting the costs of constraints incurred through derogated boundary non compliance; and  A residual element incorporating the remaining costs. Š Locational element is allocated to  all BMUs located behind the

  46. Slide 46: TNUoS Implications

    TNUoS Implications Š TNUoS: proxy for the Long Run cost of transmission access Š Locational Element of BSUoS: proxy for the Short Run cost of transmission access Š If Parties exposed to both BSUoS and TNUoS for all capacity effectively charged twice for non compliant proportion of access. Š TNUoS ch

  47. Slide 47: Comments requested

    Comments requested Š A few key areas we specifically would welcome views on  What impact do you feel Locational BSUoS will make on constraint costs?  What do you see as to the benefits and/or consequences of this proposed change (e.g. in respect of new generation connecting)?  Do you agree with N

  48. Slide 48: Timeline

    Timeline Š Responses to the consultation requested by no later than close of play on 20 April 2009 (date extended following explanatory note) Š Offering to meet bilaterally to discuss further http://www.nationalgrid.com/uk/Electricity/Charges/modifications/uscmc/ 48

  49. Slide 49: TO Incentives

    TO Incentives al! J nationalgrid The power of action:

  50. Slide 50: SO-TO aligned incentives

    SO-TO aligned incentives Efficient alignment of TO and SO financial drivers should help to reduce constraint costs over the medium and long term (1-7 years) by encouraging efficient and timely investment. In addition, such alignment should also lead to: Š Improvements in the way the TOs plan outages

  51. Slide 51: SO-TO aligned incentives – greater focus

    SO-TO aligned incentives – greater focus Long Term (5-7 years) and Medium term (1-5 years): Š Outage alignment Š Outage duration and timing Š Outage innovation Š Outage stability Š Capacity increases (short-term and enduring) Short term (within year): Š Re-optimisation 51

  52. Slide 52: National Grid – Proposed Way Forward

    National Grid – Proposed Way Forward Š Further work required  To select all key boundaries and circuits  To devise financial incentive  Expect to complete this in next few weeks Š In discussions with TOs and Ofgem on best way forward  TO licence amendment  SO-TO Code amendment Š Ofgem also requ

  53. Slide 53: Latest thoughts on administered BM prices

    Latest thoughts on administered BM prices

  54. Slide 54: Ofgem consultation

    Ofgem consultation Š Ofgem consultation on ‘Market Power Concerns’ looks wider than just administering BM prices Š Considers alternatives to pay-as-bid mechanism such as marginal cleared price Š Considers ex-ante regulation mechanism (e.g. due to constrained regions)  Mechanism to cap prices  Comp

  55. Slide 55: Agenda

    Agenda Š Background Š Changes considered to manage constraints  Ofgem consultation – addressing market power concerns Š Progress on options taken forward  Category 5 System to Generator Operational Intertripping Scheme  Progress on Locational BSUoS  TO incentives  Administered BM prices Š Feedb

  56. Slide 56: Feedback on our review

    Feedback on our review Š Concerns have been highlighted by some industry parties on the:  Lack of transparency in relation to constraint services required and costs  Not seeking new and more innovative ways of managing these constraint costs Š In relation to transparency we agree there are issues

  57. Slide 57: Agenda

    Agenda Š Background Š Changes considered to manage constraints  Ofgem consultation – addressing market power concerns Š Progress on options taken forward  Category 5 System to Generator Operational Intertripping Scheme  Progress on Locational BSUoS  TO incentives  Administered BM prices Š Feedb

  58. Slide 58: Summary

    Summary Š Increasing trend in constraint costs Š Volume issue on derogated boundaries Š Ofgem consulting on market power concerns  Not minded to progress administered BM prices at this stage Š Administered prices for CAT 5 intertrips raised and with Ofgem Š Locational BSUoS consultation closes on 2

  59. Slide 59: Locational BSUoS – Effects on Charging

    Locational BSUoS – Effects on Charging Nigel Fox Charging & Revenue Manager

  60. Slide 60: Agenda

    Agenda Š TNUoS Charging Š BSUoS Charging Š Examples 60

  61. Slide 61: TNUoS

    TNUoS zal J nationalgrid The power of action:

  62. Slide 62: Proposed changes to TNUoS tariffs

    Proposed changes to TNUoS tariffs If the cost of non-compliance (higher constraints) is reflected in a new locational BSUoS charge, TNUoS charges should be adjusted so that they only reflect the cost of compliant system Š Generation behind non-compliant boundaries scaled to compliant level Š Wider z

  63. Slide 63: Step 1: Calculate locational tariffs for non-compliant zones

    Step 1: Calculate locational tariffs for non-compliant zones All generation behind non-compliant boundary is uniformly scaled to a compliant level and the transport model is re-run A capacity scaling factor of ~79% is required 63

  64. Slide 64: Step 2: Combine locational tariffs for all zones in GB

    Step 2: Combine locational tariffs for all zones in GB The revised locational tariff is a combination of two generation backgrounds A TNUoS rebate of ~£22m 64

  65. Slide 65: Step 3: Recalculate residual tariff component

    Step 3: 3 Recalculate residual tariff component The revised residual is slightly larger to recover the drop in revenue that results from lower locational tariffs in non-compliant boundaries 65

  66. Slide 66: Resulting changes to wider generation TNUoS tariffs

    Resulting changes to wider generation TNUoS tariffs Non-Compliant Zones Compliant Zones 0.50 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 -0.50 -1.00 -1.50 -2.00 -2.50 -3.00 -3.50 B6 Boundary 66

  67. Slide 67: Mid-year implementation

    Mid-year implementation Changes to tariffs and charges will be made mid-year Š No change to:  a generator’s chargeable capacity  local generation charges  demand TNUoS tariffs Š Annual TNUoS liability is calculated on a prorated based for the tariffs that apply within the year Š Revised monthly c

  68. Slide 68: A simple example

    A simple example Initial liability Initial monthly charge calculated as calculated as normal normal i.e. i.e. the annual liability TEC x TNUoS1 charged in 12 equal Revised annual Implementation liability is changes tariffs in August of modification monthly instalments given by: Annual Liability Annu

  69. Slide 69: BSUoS

    BSUoS zal J nationalgrid The power of action:

  70. Slide 70: Allocation of Costs to Individual Parties

    Allocation of Costs to Individual Parties Locational BSUoS Element Š Allocated to all exporting BMU behind a derogated boundary Š Costs allocated based on BMU proportion of Total Metered Adjusted output behind boundary (QMadjij) Š QMadjij = The intended Metered Output of the BMU prior to interventio

  71. Slide 71: BSUoS Billing Changes

    BSUoS Billing Changes 300MWh PN Capping 50MWh 250MWh BMU Specific Constraint Action Final BMU Meter Adjusted PGBTs Volume 300MWh used in 50MWh Volumes 150MWh calculation of proportion of 200MWh Total Constraint Costs (if applicable) BOAs 50MWh 150MWh Final BMU Metered Volume 150MWh used in calculati

  72. Slide 72: Hypothetical examples

    GB SYS FIGURE A.1.3 GB GENERATION USE OF SYSTEM TARIFF ZONES 2007/08 400kV Substations Hypothetical examples 275kV Substations Dounreay 132kV Substations Thurso 400kV Circuits 1 Mybster 275kV Circuits 132kV Circuits Stornoway Cassley Dunbeath Major Generating Sites Lairg Including Pumped Storage THE

  73. Slide 73: Example in Scotland, TNUoS

    Example in Scotland, TNUoS Dexter power station has a TEC of 300MW and is located in Zone 5 (Argyll) at Nant 132kV substation Š TNUoS tariff = Wider Zonal tariff + Locational Substation tariff + Local cct tariff Under the current regime the following TNUoS charge will apply: Š £13.99/kW + £0.14/kW +

  74. Slide 74: Example in England & Wales, TNUoS

    Example in England & Wales, TNUoS Simmental power station has a TEC of 300MW and is located in Zone 14 (Midlands) at Leiston 132kV Š TNUoS tariff = Wider Zonal tariff + Locational Substation tariff + Local cct tariff Under the current regime the following TNUoS charge will apply: Š £2.11/kW + £0.30/

  75. Slide 75: Example for BSUoS - Assumptions

    Example for BSUoS - Assumptions Š Both power stations have an output of 1TWH under the current regime Š Under the proposal, Dexter ps has a final metered position of 0.8TWH with 0.2TWH of BMU specific constraint actions ly on Š B6 boundary constraints are £75m on a background of £975m total balancin

  76. Slide 76: Example in England & Wales, BSUoS

    Example in England & Wales, BSUoS Current Regime Š Simmental pays BSUoS based on £1.50/MWH and a chargeable volume of 1TWH Š Charge = £1.5m Under Proposal Š Charge = 1TWH @ Residual Charge of £1.38 = £1.380m BSUoS difference Š £120k reduction in charge Overall Position Š £96k extra TNUoS charge offs

  77. Slide 77: Example in England & Wales, Scotland

    Example in England & Wales, Scotland Current Regime Š Dexter pays BSUoS based on £1.50/MWH and a chargeable volume of 1TWH Š Charge = £1.5m ! e Under Proposal tiv Š Residual Charge = 0.8TWH @ residual tariff of £1.38 = £1.104m a tr Š Targeted Charge = 1TWH @ targeted tariff of £1.88 = £1.880m us Š T

  78. Slide 78: Summary

    Summary BSUoS TNUoS charges charges Constraint Adjusted based on Charge a compliant level + of TEC Cheviot Non-locational costs Boundary Residual adjusted to ensure Non-locational correct costs only revenue recovery 78

  79. Slide 79: Contacts

    Contacts Š 01926 654633 Š charging.enquiries@uk.ngrid.com 79

  80. Slide 80: Coffee Break

    Coffee Break 80 Back at 16:20 nationalgrid The power of action: yy,

  81. Slide 81: Offshore Transmission Update

    Offshore Transmission Update John Greasley GBSO Offshore Manager

  82. Slide 82: Offshore Transmission Update

    Offshore Transmission Update Competitive appointment of Offshore Transmission Owners Timescales: Š Go-active in June 2009 Š Transitional activities  Appointment of OFTOs for transitional sites (developers build)  Migration of current contractual relationships Š Go-live in June 2010 Offshore chargi

  83. Slide 83: Developing the Electricity Transmission System

    Developing the Electricity Transmission System John Greasley GBSO Offshore Manager

  84. Slide 84: Climate Change concerns drive targets

    Climate Change concerns drive targets 2050 GHG Target 2020 Scottish Renewables Target By 2020 50% of gross electricity consumption in Scotland derived from renewable sources. Interim Reduce CO2 emissions to 80% below 1990 levels by target of 31% by 2011. 2050. ic Our share of the 2020 m est Renewabl

  85. Slide 85: What are the implications of this?

    What are the implications of this? How do we source renewable energy? How do we source low carbon energy? For electricity: Š What generation mix is required? Š What transmission network is required to connect it all up? Š What market arrangements are required? Š How will the system be operated? How

  86. Slide 86: A roadmap to 2050

    A roadmap to 2050 Electricity Heat Transport Simple efficiency measures across all sectors Appliance Insulate Efficient engines & Efficiency/Smart Homes integrated transport Decarbonised Heat electricity fuels Pump zero-emission vehicles Decarbonised .heats new .& decarbonise Electricity… homes only

  87. Slide 87: Our different programmes of work

    Our different programmes of work Removing network constraints Meeting the operational challenge Scenario development Market requirements 87

  88. Slide 88: Initiatives in each area

    Initiatives in each area ENSG TAR Dealing with increased GBSQSS intermittency GB Queue Management Gone Green Will the market provide? 88

  89. Slide 89: Gone Green 2020

    Gone Green 2020 Plant closures B LE 5.5, 6% Š 12GW Coal & oil LCPD U SI 3.3, 3% P LA UT LY 34.1, 34% Š 7.5GW nuclear B ME G E GIN 29.1, 30% Š Some gas & additional coal T R EX LLEN Significant new renewable C HA 6.9, 7% 19.8, 20% Š 32 GW wind (21GW offshore & 11GW onshore) Gas Coal Nuclear Wind Othe

  90. Slide 90: Gone Green 2030

    Gone Green -2030 2030 Remaining coal and nuclear stations to be replaced 6.9, 6% 6.9, 6% Š 16GW of remaining coal 31.5, 30% Š 2.5GW nuclear (last two AGRs) 40.0, 38% Š 8GW of gas closures 10.9, 10% 10.6, 10% New low carbon generation required to meet CO2 Gas Coal Nuclear Wind Other Renew able Other

  91. Slide 91: Removing Network Constraints

    Removing Network Constraints Issues to solve… Our proposals… 1a. “Strategic Investment” in 1. Build more transmission transmission – Technical Studies capacity faster 1b. Regulatory Reform for Strategic Investment 2a. Transmission Access Reform 2. Allocate available transmission capacity more sensib

  92. Slide 92: ENSG Report

    ENSG Report Develop electricity generation and demand scenarios consistent with the EU Target for 15% of the UK’s energy to be produced from renewable sources by 2020 Identify and evaluate a range of potential electricity transmission network solutions that would be required to accommodate these sce

  93. Slide 93: ENSG approach

    ENSG approach Joint study with Scottish TOs Gone Green 2020 generation mix used Three scenarios for volume of Scottish renewables: Š 6.6GW (minimum to meet Scottish Gov’t target) Š 8GW Š 11.4GW Offshore generation (E&W) 21 – 25GW Constant UK renewable electricity in each case 93

  94. Slide 94: UK Strategic Investment – areas of focus

    UK Strategic Investment – areas of focus TRANSMISSION SYSTEM REINFORCEMENTS Dounreay Thurso Focus on Scotland Mybster REINFORCED NETWORK Stornoway Cassley Lairg Dunbeath THE SHETLAND ISLANDS 400kV Substations 275kV Substations Driven by onshore renewables Brora 400kV CIRCUITS Shin 275kV CIRCUITS Gru

  95. Slide 95: Reinforcements to Accommodate Increased Transfers from Scotland – 2020

    Reinforcements to Accommodate Increased Transfers from Scotland – 2020 HVDC circuit Re-conductor or re-insulate existing double circuit overhead line route Full re-build or new build double circuit overhead line route Series compensation (equipment located at terminal substations) The incremental re

  96. Slide 96: Range of Transfers Across B6 Boundary at Peak Demand

    Range of Transfers Across B6 Boundary at Peak Demand Based on Central Scenario of 11.4GW of Wind Generation in Scotland 96

  97. Slide 97: Proposed reinforcements

    Proposed reinforcements 97 nationalgrid The power of action: )

  98. Slide 98: Summary of proposed reinforcements

    Summary of proposed reinforcements 2008/09 TR A N SM IS SIO N S YSTEM A S AT 31st D E C EM BER 2007 400kV Sub stations 275kV S ubstations 132kV S ubstations 400kV C ircuits 275kV C ircuits 132kV C ircuits M ajor G enerating S ites Including P um ped Storage C onne cted at 400kV TH E S H ET LA N D IS

  99. Slide 99: Summary of proposed works

    Summary of proposed works 99 Cost Capacity of generation which can be accommodated (GW) Wind Nuclear Total North of Scotand Upgrade Scotland - Stage 1, 2015 Incremental Scottish Upgrade | 625 8 0 8 NA 1565 Western HVDC Link 760 Scotland - North of Scotand Upgrade 450 Stage 2,2018 | Eastern HVDC Link

  100. Slide 100: ENSG work – next steps

    ENSG work – next steps • Report agreed and published • Integration with National Policy Statements/National Planning Framework • 2030 addendum being produced • Funding for pre-construction engineering work for 2009/2010 • Enduring regulatory arrangements for strategic investment being developed 100

  101. Slide 101: The operational challenge

    The operational challenge High Level Overview SO Workstream established How we will operate the system From now out to 2030 How will security of supply be maintained? Requirements for balancing services Costs/volumes Tools and technology development Smart and storage are sub-elements of this work Sc

  102. Slide 102: Market Requirements

    Market Requirements High level overview of study assess the market implications of the ‘Gone Green’ world. working with other industry members facilitated by Poyry holistic ‘market overview’ Provides necessary actions to meet energy policy objectives Examples of the questions posed are; Will the mar

  103. Slide 103: Summary

    Summary Scenarios developed Vision for 2020 network developed Work progressing to deliver it Additional capacity will become available 103

  104. Slide 104: The Energy Policy Triangle - Summary

    The Energy Policy Triangle - Summary Sustainable Š The renewables roadmap to 2020 Š The CO2 roadmap to 2050 Sustainable Removing Affordable Network Constraints Š Concentrate on simple efficiency measures and Scenario innovative ‘smart’ solutions as opposed to always Market Development Meeting the Op

  105. Slide 105: Summary and Close

    Summary and Close Duncan Burt Customer Services Manager

  106. Slide 106: Feedback - Thank you

    Feedback We would be grateful if you could complete the feedback forms provided Thank you See you next time 106

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