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Scottish Islands Renewable Project Grid Access Study

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Scottish Islands Renewable Project Grid Access Study SCOTTISH ISLANDS RENEWABLE PROJECT GRID ACCESS STUDY PREPARED FOR THE SCOTTISH GOVERNMENT AND THE DEPARTMENT OF ENERGY AND CLIMATE CHANGE Author(s): Helen Snodin Verifier: Marc Smeed, Jeff Fodiak Approver: Helen Snodin ISSUED 15 APRIL 2014 REP 1374/001/001E Xero Energy Limited REP 1374/001/001E DOCUMENT HISTORY V AUTH VERF APPR DATE NOTES A HMS HMS 20/02/2014 Working draft issue to steering group B HMS HMS 07/03/2014 Second draft to steering group C HMS MRS HMS 28/03/2014 Final draft to steering group D HMS JSF HMS 04/04/2014 Minor amendments following comments E HMS HMS 15/04/2014 Comments on executive summary NOTES This document and any accompanying documents are authorised by Xero Energy Limited to be distributed to the public without restrictions. Xero Energy Limited does not accept responsibility for the application or use made of information or advice supplied. Such responsibility remains with the client. Enquiries should be directed to Xero Energy Limited, 60 Elliot Street, Glasgow G3 8DZ, UK. Xero Energy Limited Registered as No. SC313697 in Scotland, at 2/1A, 2 Parkgrove Terrace, Glasgow G3 7SD, UK i Xero Energy Limited REP 1374/001/001E TABLE OF CONTENTS Document History........................................................................................................................ i Notes ........................................................................................................................................... i Table of Contents ....................................................................................................................... ii Acronyms ................................................................................................................................... iv Executive Summary ................................................................................................................... vi 1 Introduction ........................................................................................................................1 1.1 Report structure .........................................................................................................1 1.2 The connections .........................................................................................................2 1.3 Transmission responsibilities ......................................................................................5 1.4 Distribution responsibilities ........................................................................................5 2 Grid connection process .....................................................................................................6 2.1 Getting a connection offer .........................................................................................6 2.2 Aggregating developer demand .................................................................................8 2.3 Needs case ..................................................................................................................8 2.4 Summary .....................................................................................................................9 3 Operation of the grid ....................................................................................................... 10 3.1 Grid balancing .......................................................................................................... 10 3.2 Single circuit connections ........................................................................................ 10 3.3 Constraint management schemes ........................................................................... 11 3.4 Summary .................................................................................................................. 11 4 Policies and regulations ................................................................................................... 12 4.1 Funding the island connections ............................................................................... 12 4.2 Building and owning the island connections ........................................................... 15 4.3 Generator charges for the island connections ........................................................ 17 4.3.1 Underwriting .................................................................................................... 17 4.3.2 TNUoS .............................................................................................................. 18 4.4 Government policy .................................................................................................. 21 4.4.1 Section 185 ...................................................................................................... 21 4.4.2 Island CfDs ....................................................................................................... 22 4.5 Summary .................................................................................................................. 23 5 Evidence base – Orkney .................................................................................................. 24 5.1 Reinforcement plans ............................................................................................... 24 5.2 Generation ............................................................................................................... 25 5.2.1 Existing generation .......................................................................................... 25 5.2.2 Generation agreements................................................................................... 28 5.3 Underwriting............................................................................................................ 30 5.4 TNUoS ...................................................................................................................... 33 5.5 Access rights ............................................................................................................ 33 5.6 Cost Benefit Analysis ............................................................................................... 34 5.6.1 Potential benefits ............................................................................................ 34 5.6.2 Orkney factors ................................................................................................. 36 5.6.3 Timing of cost benefit analysis ........................................................................ 36 5.7 Summary .................................................................................................................. 37 6 Evidence base – Western Isles ........................................................................................ 38 6.1 Reinforcement plans ............................................................................................... 38 6.2 Generation ............................................................................................................... 39 6.2.1 Existing generation .......................................................................................... 39 6.2.2 Generation agreements................................................................................... 39 6.3 Underwriting............................................................................................................ 42 6.4 TNUoS ...................................................................................................................... 43 ii Xero Energy Limited REP 1374/001/001E 6.5 Cost Benefit Analysis ............................................................................................... 44 6.5.1 Western Isles factors ....................................................................................... 44 6.6 Summary .................................................................................................................. 45 7 Evidence base – Shetland ................................................................................................ 46 7.1 Reinforcement plans ............................................................................................... 46 7.2 Generation ............................................................................................................... 47 7.2.1 Existing generation .......................................................................................... 47 7.2.2 Generation agreements................................................................................... 48 7.3 Underwriting............................................................................................................ 50 7.4 TNUoS ...................................................................................................................... 52 7.5 Access rights ............................................................................................................ 52 7.6 Cost benefit analysis ................................................................................................ 53 7.6.1 Shetland factors ............................................................................................... 53 7.7 Summary .................................................................................................................. 54 8 Evidence base – potential solutions ................................................................................ 55 8.1 Grid connection co-ordination ................................................................................ 55 8.1.1 Mid Wales .......................................................................................................
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