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Orkney Active Network Management system Session 1 Commercial Stakeholders and the commercial drivers for Active Network Management (ANM)

Alec Morrison Transmission Development, Island Networks Investment

Stakeholders & drivers 1 Learning Outcomes

• Identification of the main stakeholders and their interests

• Understand the available options to create additional capacity

2 Stakeholders & drivers Lesson Content

• The Network • The Challenge • Stakeholders Identification / Interactive Session • The Solution • The Results • Lessons Learnt

3 Stakeholders & drivers The Orkney Network

Westray

Sanday

Rousay

Burgar Hill

Shapinsay

Stromness

Kirkwall

North Hoy SCORRADALE

St Marys

Flotta

Lyness

4 Stakeholders & drivers The Orkney Network Wind farm with rating in MW

2.7MW

• 6 miles off north coast of Single turbine with rating in MW 9.95MW SANDAY Open 0.9MW point Marine Energy with rating in MW • EDAY 11,500 customers Fossil Fuel generator Tidal 4MW STRONSAY with rating in MW 0.9MW

• Min/Max demand: 6/31 MW BURGAR HILL 15.3 MW 2.55 MW Potential Constrained Cable 0.9MW • 33 kV submarine cables: 2 x 0.9MW 0.9MW 4.5 MW e n li

d e n 20 MW import/export i a r t s Constrained cable n o C 0.9MW • Existing generation a mix of Diesel 15MW 0.9MW

wind, wave and gas Wave 7MW

SCORRADALE ST MARYS NORTH HOY 0.85 MW

LYNESS 11kV circuit 0.9MW 33kV circuit 2.0 MW Gas 10.5MW 33kV interconnector to Scotland 33/11kV sub station

Map by Martin Lee 1992 to 2011

5 Stakeholders & drivers The Challenge

• High renewable potential – wind & marine

• Continued interest from generator developers seeking to connect

• High cost of reinforcement

Who are the other stakeholders in Orkney and what are their interests?

6 Stakeholders & drivers Stakeholder Identification

• Generators • SHEPD • (OIC) • Local community • Banks • Government bodies • Ofgem • Demand customers • Academia • SHETL / NGET

7 Stakeholders & drivers Stakeholder Analysis

Generators 3 6 9 SHEPD

Government Bodies SHETL

Local Community Influence OIC 2 4 6

Demand Customers Ofgem

Banks

Academia 1 2 3

Interest

88 Stakeholders & drivers Interactive Session

• Discuss in your groups where stakeholders should be placed in the matrix

• We will then ask each group to feedback their respective score for each stakeholder

9 Stakeholders & drivers The Solution

• What are the available options to create additional capacity?

– Reinforcement Distribution FIRM Transmission

– Inter-tripping NON FIRM

– Active Network Management NEW NON FIRM

1010 Stakeholders & drivers Why Active Network Management?

• Met customer expectations – Timely deployment Need – Economic ‘reinforcement’ option • Innovative solution with wider applications • Price Control funding available Solution Funding

1111 Stakeholders & drivers The Results…………………

12 Stakeholders & drivers Average scores

• Average scores from 5 groups of delegates at Knowledge Sharing Event , 18 May 2012 Stakeholder Influence Interest Ofgem 3 3 Shepd 3 3 Generator 3 3 Banks 2 2 Orkney Islands Council 2 3 Local community 2 2 Government 1 2 Academia 2 3 SHETL 2 2 Demand customers 1 1

• Photos of the groups’ completed matrices follow

13 Stakeholders & drivers The Results…………………

14 Stakeholders & drivers 15 Stakeholders & drivers 16 Stakeholders & drivers 17 Stakeholders & drivers 18 Stakeholders & drivers Lessons Learnt

• Recognise the diverse views of stakeholders, but don’t lose sight of the end goal – generator connections

• Stakeholders need a forum/voice (Steering Group)

• Look beyond the traditional means of reinforcement

• Maintain close ties with academia. Relationship with University of Strathclyde was the catalyst and major enabler

19 Stakeholders & drivers The End Lesson 1

20 Stakeholders & drivers