Renewables Integration Status Report March 2017 Alternative Connection Application and Offer Process Proposal Decision Paper 31 May 2016 Table of Contents 1. Introduction ................................................................................................................. 3 1.1. NIE Networks .......................................................................................................... 3 1.2. SONI....................................................................................................................... 4 1.3. Transmission Interface Arrangements .................................................................... 4 2. Renewable Generation ............................................................................................... 6 2.1 Connection Application and Offer Process Update ........................................................ 6 2.2 Renewable Generation Status ...................................................................................... 7 3. Transmission Projects ................................................................................................ 9 3.1 Transmission Development ........................................................................................... 9 3.2 400 kV North-South Interconnector ............................................................................... 9 3.3 Clusters....................................................................................................................... 10 4. System Operation ..................................................................................................... 12 3.4 Load Forecasting ........................................................................................................ 12 3.5 Integrating Solar Generation ....................................................................................... 12 3.6 Levels of Uncontrollable Generation ........................................................................... 12 5. Status of Projects ..................................................................................................... 15 6.1. Projects in Construction ........................................................................................ 15 6.2. Projects in Pre-Construction ................................................................................. 17 6.3. Projects in Development ....................................................................................... 19 6.4. Projects Indicative Schedule ................................................................................. 21 6. Appendix 1 ................................................................................................................ 22 Renewables Integration – Status Report – March 2017 Page 2 1. Introduction This paper has been jointly prepared by SONI and NIE Networks to provide an update on the status of the integration of renewable generation onto the Northern Ireland power system. The focus of the paper is to update interested parties on grid infrastructure developments required to integrate renewable generation onto the transmission and distribution systems. The structure of this report is set out as follows. Section 2 provides an update on the Connection Application and Offer Process as well as an update on the levels of renewable generation connected and seeking to connect to the Northern Ireland power system. Section 3 provides an update on the grid developments on the transmission system that are required to facilitate the connection of renewable generation in Northern Ireland. Section 4 provides an update on system operation in relation to increasing levels of renewable generation on the power system. Section 5 provides an update on the individual projects that are being progressed by SONI and NIE Networks. This section provides a brief overview of the roles and responsibilities of SONI and NIE Networks and how we work together. 1.1. NIE Networks NIE Networks is the asset owner of both the Transmission and Distribution Systems in Northern Ireland and is regulated by means of a transmission licence and a distribution licence. NIE Networks therefore acts as a Distribution Network Operator (DNO) and a Transmission Owner (TO). The licences require NIE Networks to: plan, develop, maintain and operate the Distribution System; and maintain the Transmission System. In their role as DNO, NIE Networks is subject to a statutory duty to connect (with some specific exceptions) and is required to offer terms to customers for new connections, or for modification of existing connections, to the Distribution System in accordance with their distribution licence. The DNO is responsible for defining the connection arrangements and identifying any reinforcement works on the Distribution System required to facilitate connection to the Distribution System. Renewables Integration – Status Report – March 2017 Page 3 The DNO also: specifies the terms under which new or modified connections to the Distribution System are to be constructed in a connection offer letter; monitors compliance of customers’ equipment connected to, or to be connected to, the Distribution System with the Distribution Code and the Electricity Safety, Quality and Continuity Regulation (Northern Ireland) 2012; and informs SONI of the requirement for a transmission assessment to facilitate connections to the Distribution System in line with obligations under the Transmission Interface Arrangements (TIA). 1.2. SONI SONI is the Transmission System Operator (TSO) in Northern Ireland and is regulated by means of a transmission licence. The licence requires SONI to plan, operate and co- ordinate/direct the flow of electricity onto and over the Transmission System. In accordance with their licence, the TSO is required to offer terms to customers for new connections, or for modification of existing connections, to the Transmission System. The TSO is responsible for defining the connection arrangements, including any reinforcement works on the Transmission System required to facilitate connection to the Transmission System and Distribution System. The TSO is also responsible for: ensuring that new or modified connections to the Transmission System are constructed in accordance with the terms set out in the accepted connection offer letter; ensuring that customers’ equipment connected to, or to be connected to, the Transmission System and Distribution System complies with the Grid Code; and planning, designing and obtaining consents for any reinforcement works on the Transmission System required to facilitate connections to the Distribution System. 1.3. Transmission Interface Arrangements The arrangements between SONI and NIE Networks in its role as TO, with respect to the co-ordination of their respective licence obligations, are set out in the Transmission Interface Arrangements (TIA). The TIA also sets out obligations on NIE Networks in its role as DNO relating to distribution connections requiring works to be carried out on the Transmission System. Renewables Integration – Status Report – March 2017 Page 4 These arrangements have been in place since the start of the Single Electricity Market (SEM) in 2007 and have been updated to reflect the transfer of the transmission planning function from NIE Networks in their role as TO to SONI on 1 May 2014. In addition SONI and NIE Networks are required under Article 12 of The Electricity (Northern Ireland) Order 1992 to develop and maintain efficient, co-ordinated and economical electricity Transmission and Distribution Systems. Therefore the TSO and the DNO must ensure that any modifications or expansions to the Transmission and Distribution Systems are efficient, co-ordinated and economical and this includes grid development to facilitate new generation connections. Renewables Integration – Status Report – March 2017 Page 5 2. Renewable Generation 2.1 Connection Application and Offer Process Update Following a consultation process with industry stakeholders on an Alternative Connection Application and Offer Process, SONI and NIE Networks issued a Decision Paper1 in May 2016. The Decision Paper outlined SONI and NIE Networks approach to processing connection applications in the more immediate term and in the longer term. These approaches are referred to as Phase 1 and Phase 2 respectively. The objective of Phase 1 is to release connection offers that will allow for optimal and efficient use of existing grid capacity by ensuring that projects more certain of proceeding are granted access to remaining scarce network capacity. NIE Networks and SONI believe that Phase 1 aligns with important industry views, and our obligations under licence and under legislation. Phase 1 was implemented from June 2016. The basis of Phase 1 process is to couple the strong support from industry that generation projects with planning permission demonstrate more commitment and are much more certain to connect than those that do not have planning permission with the equally strong support to prioritise the issue of connection offers to applications where there is remaining grid capacity or where the application has minimal impact on the system. SONI and NIE Networks believe that the approach adopted, which reflects our respective licence and legislative obligations, ensures the most efficient use of remaining capacity on the grid, provides a mechanism which would allow further use of existing capacity through the concept of ‘over-installation’ and enables a level of ‘zero export’