Meeting Minutes Gate 3 Liaison Group Meeting #16 Office, 20 th July, 2010 Attendance by Liaison Group Members or Approved Substitute Name Present Company / Organisation Member (M) or Substitute (S) Cathy Mannion Y M Paul Brandon N M John Lynch Y M Derek Lawler Y M Shane Maher Y M Tony Hearne Y ESB Networks M Paul Hickey N ESB Networks M Caitriona Diviney Y IWEA M Pat Blount Y Meitheal na Gaoithe M Seamus McCabe Y NOW Ireland M Erik O Donovan Y IBEC M Peter Coyle Y Marine Renewables Industry Assoc. M Grainne O Shea N ESB Power Generation M Brian Linton Y Viridian Power and Energy M Peter Hynes N Local Authority Representative M Carole Devlin Y Endesa Ireland S Fergal McParland Y M Fiona O Donnell Y ESB Networks M Rory Mullan Y Irish Grid Solutions M Additional Attendees Name Paul Hogan Philip O Donnell Eoin Kennedy Company / Organisation Page 1 of 14
Introduction and Approval of Minutes The chairperson Cathy Mannion opened the meeting and welcomed the attendees. The progress on open action items from the previous Group meeting (#15) was reviewed. Action items from meeting #15 which are completed / are listed in Appendix 2. These minutes, for meeting #16, now record new action items raised during meeting #16 and any decisions made, as well as ongoing action items from previous meetings. A. Standing Action Items The following are standing action items which apply to each meeting: No. Actions: Owner 1. Agenda: to circulate the agenda, together with the Monthly Project Status Report prior to each meeting. 2. Draft Meeting Minutes (for meeting on 20 th July 2010): Distribute, within 5 business days of the meeting, the draft unapproved minutes of the meeting to the Liaison Group members for comment. 3. Final Meeting Minutes: Distribute, within 12 business days of the meeting, the final approved minutes of the previous meeting. 4. Action Items: Review the action items as detailed in the minutes of the previous meeting. 5. Gate 3 Project Status: Monthly project status report to be provided by the to in advance of the distribution of the agenda. 6. Workstreams: will arrange for regular information updates to be provided at the Group meetings on workstreams which interrelate to the Gate 3 offer programme. B. Update on Gate 3 Offer Project All An update on the project status and progress, up to 20 th July 2010, was outlined by the System Operators () and the. The details of this update are recorded in the Monthly Gate 3 Project Status Update. Further details on the progress of specific tasks relating to the project are published in the updated plan for the Gate 3 offer project. Both of these are published on the s website and are also distributed to the Gate 3 Liaison Group members with these minutes. Key project updates are: The TSO work programme for offer issuance is on schedule Issuance of offers for H1 and H2 are underway DSO plans to issue 3 offers in H2 (primarily extensions) by the end of July. DSO is awaiting information from other Gate 3 applicants in order to complete issuance of their offers Where applicants are happy to receive non-contestable offers, without receiving any additional information on the contestable alternative, DSO will issue such noncontestable offers as per the original Gate 3 Offer schedule. Page 2 of 14
TSO will issue non-contestable offers and contestable offers for non-shared sub-groups as per original Gate 3 Offer schedule. Impact of distribution contestability on the offer programme has been provided to the and is being assessed Process for issuance by of indicative interim constraint estimate reports agreed published a decision paper on charging and rebating principles (/10/085) in mid-june 2010. plans to publish a consultation paper on capacity relocation (the relocation of generation facilities) in July RAs published a proposed decision (SEM-10-039) in June on the all-island harmonised TLAF arrangements. C. Constraints Reporting Update presented on the process for the issuance by of indicative interim constraint estimates [to be called Possible Generator Output Reductions (PGOR), as distinct from constraint estimates] to developers who wish to receive them. The underlying assumptions which feed into the model are substantial. The PGORs are being issued in advance of possibly more appropriate estimates following from policy decisions by the SEM Committee on SEM Scheduling & Dispatch. This may require the recalculation of constraint estimates based on different dispatch criteria and the possibility of (re)issue in 2011, subject to the final outcome of the workstream. 7. Publication of PGORs to confirm that it is happy with the letter and disclaimer proposed by. also to provide to industry representatives for information prior to issuing to customers. 8. Assumptions to consider the assumptions which input to the model for the calculation of the PGORs and revert to. It was broadly agreed by the Group that the assumed shallow connection dates should be included in the reports with a clear indication that they are only a best estimate at an early stage of the Gate 3 process. to confirm. 9. Next Update on Constraints Subject to the publication of the S&D proposed decision paper, to consider the possibility of an update on constraints at the next meeting or via a workshop if the initial impact of the proposed direction on Scheduling & Dispatch can be assessed at that time. 10. Issues Members to consider and communicate to & headline issues for the aforementioned update. & Industry new new Open Open Page 3 of 14
D. Contestability 11. Contestability: DSO invited industry to comment on whether they consider there are any inconsistencies between the revised Rules and Principles on Distribution Contestability provided to all Gate 3 applicants and Liaison Group member and the s direction 12. Contestability impact: to arrange a meeting with to discuss the impact on the schedule. 13. Contestability impact: Change request submitted to on 20 July. to review impact and the Change Request on foot of the introduction of distribution contestability. 14. Contestability impact: to make presentation on the impact on the offer schedule at the next meeting subject to speedy approval by of the change request. Industry Page 4 of 14
E. Offers & Offer Validity Period With regard to the issuance of offers, the System Operators confirmed that connection offers for a particular Area will not issue on the same day and could in some instances be quite a number of weeks apart, as offers will be ready to issue at different times. It was generally accepted by the members of the Liaison Group that as long as offers for the same subgroup issued close together and the end date for the Area was maintained this shouldn t be an issue. 15. Impact of deferred offer acceptance: Developers have the option of deferral of the acceptance of issued Gate 3 offers until official constraint estimates are received (post decision on Scheduling and Dispatch workstream). The will advise on whether the grouping of deferred offer acceptances in Gate 3 is likely to have a significant impact on connection delivery as a result of the build up of pending offers. 16. Impact of deferred offer acceptance: IWEA to engage with before next meeting to discuss. 17. Updated Application Forms DSO to confirm if updated application forms need to be provided by Distribution Applicants where the details of their application has changed. Furthermore the query raised related to whether a new-format form had to be provided, or whether the old form could be updated. Outcome: DSO have clarified that a new application form should be submitted, but failing this, DSO can accept a photocopy of an original application form that has been amended subject to conditions. Please refer to the Appendix (item k) for details. F. Application Fees and Staged Payments IWEA DSO Open Closed The System Operators and were previously requested to consider a reduction in application fees in light of the economic downturn. Invoices (for 2010) were issued by in January 2010 based on 2009 fees. Page 5 of 14
18. Application Fees Action: to publish revised application fees and to provide details of the arrangements for rebating of application fee income in excess of this approved level which has already been received. Status: Following the s decision to reduce application fees the are working through the administrative logistics of issuance of the rebates. Initial estimates are that it could take up to 6 weeks to process all of the rebates. to provide an update at the next meeting (24 August). G. Capacity Relocation The issue of the relocation of capacity was discussed at the February 2010 meeting. This occurs when a developer seeks to change the location of a project and/or integrate the project into another project in a different location. 19. Capacity Relocation Consultation & Enduring Solution, in consultation with the and the Liaison Group and as discussed at meeting #14, have decided to consult on the issue of capacity relocation so as to inform the in deciding an enduring solution for capacity relocation. This will include: The limited circumstances under which capacity relocation may be eligible (i.e. the rules) The conditions to be applied The have submitted proposed rules to taking account of comments from members. to look to publish a consultation paper as soon as possible and before the end of July. Open H. DSO Quotation Letter and TSO Interface Undertaking ESB Networks advised that in order to facilitate the timely issuance of offers to Area D, these offers will be issued based on the Quotation Letter template including an Interface Undertaking 1 for TSO previously circulated to the Liaison Group on 16 March. ESB Networks agreed in March to consider further input from IWEA or others on the template, and to re-issue the Area D offers should this lead to any modification of the aforementioned 1 Refer to the briefing note Briefing Note - TSO undertaking in DSO Connection Offer as distributed and published in association with the minutes of meeting # 13 (23 March 2010). Page 6 of 14
Interface Undertaking. ESB Networks and IWEA are continuing to engage on this issue. However a joint approach to may be required to resolve this issue. 20. Quotation Letter ESB Networks and IWEA to continue to engage further on this issue. IWEA indicated that most likely next step is for both parties to refer to for decision I. Gate 1, 2 & 3 Reinforcements ESB Networks /IWEA open Further studies have commenced on a comprehensive review of the deep reinforcements associated with Gate 1 and Gate 2 projects. were scheduled to issue an update to Gate 1 and Gate 2 projects on deep reinforcements associated with each project before the end of June. now plan to review the deep reinforcements associated with these projects and to provide the updated reinforcement information by September. Details on the arrangements for communication of these studies have yet to be finalised pending their completion. However, it is almost certain that the initial associated deep reinforcement information which is to be issued in conjunction with each offer will be in hardcopy format. A system for central electronic updating is being considered by for post-offer updates. 21. Gate 3 Reinforcements Eirgrid to firm up on a date for an industry workshop on deep reinforcements so as to provide the updated reinforcement information by September. to consider whether this could be combined with presentations to discuss constraints and scheduled firm access quantities. new J. Connection Offer Policy Paper (COPP) 22. Connection Offer Policy Paper (COPP) and to agree a timeline for COPP in advance of the next meeting. / new Page 7 of 14
K. First Stage Payments on Offer Acceptance - Offshore Seamus McCabe made a presentation at meeting #15 on the First Stage Payments (deposits) which will be due for payment by offshore developers on offer acceptance [refer to /10/090(f)]. IWEA asked (meeting #15) that an alternative proposal be considered to change the first stage payment terms to a flat 10K/MW for all projects IWEA s view is that both onshore and offshore projects should pay the first stage payment to secure their connection offer but that where this payment is paid in the absence of a REFIT scheme that these payments be made refundable if no REFIT scheme is in place within 18 months of payment. 23. Offshore: First Stage Payment invited other workable suggestions from industry to be considered in association with NOW and IWEA representations. 24. Offshore: First Stage Payments to consider the above representations whilst taking cognisance of recent policy decisions on this matter (/09/138). Industry open L. Feedback from Industry on Gate 3 Offers IWEA provided some feedback at meeting #15 on difficulties and lessons learned to-date from the Gate 3 offers issued to date. This includes some issues and actions as follows: new 25. Power Output Control Requirements There are new clauses in the distribution connection offer, section 16.4, on a TSO power output control mechanism for generators <5MW. IWEA suggested (meeting #15) that these need to be consulted-on with industry. These requirements/clauses have temporarily been removed from offers pending discussions between. open to write to the outlining the issues involved. 26. Power Output Control Requirements to provide clarification to any offers/projects already made with this clause. 27. RTU Cost The TSO RTU has increased in cost from 91,000 to 110,000. The 91,000 was included in connection offers as recently as November 2009. The list of equipment in the Page 8 of 14
approved schedule 2 of transmission costs and timelines could be expanded to include items such as this. explained that this was due to the original cost only being for equipment and upon review was found that additional costs for TSO time in commissioning and satellite uplinks had to be included. to provide breakdown of cost details to before next meeting (#17 on 24 August). 28. 38kV Wires - Uprate or Build DSO to present cost basis for uprating 38kV lines at meeting #17 (24 August). DSO M. Other Topics 29. Ongoing Quarterly Offer Modification Metrics Modification processing (timeline) statistics to be published by System Operators every quarter. The next update to the Liaison Group is due at end July 2010. 30. Grid25 Update confirmed that it was appropriate to update on a quarterly basis. open to propose the appropriate forum for continued periodic updates on Grid25. to propose to and Liaison Group the scope of the update/presentation and to confirm before meeting #17 that the next update can be made at the September meeting. N. Documents Distributed with these Minutes new The following documents are distributed with the minutes of meeting number 16: Agenda for Gate 3 Liaison Group No. 16 on 20-07-2010 Monthly Gate 3 Offer Project Status Report including Gate 3 inter-related workstreams; Project Plan showing project status on 20 th July 2010; Presentation from on Interim Constraints Issuing Process. (i.e. PGOR) All of the aforementioned documents will also be published on the s Gate 3 Liaison Group webpages. 2 Transmission Costs and Timelines (/09/077) Page 9 of 14
O. Next Meeting The next meeting (#17) is scheduled to take place on 24 th August at the office (date to be confirmed). The following is an initial proposal for the agenda: Review of open action items; Gate 3 monthly project status update to be provided by the ; to provide updates on workstreams which relate to the Gate 3 offer programme; impact on the offer schedule of Distribution contestability; cost basis for uprating 38kV lines; other agenda items to be proposed to and decided prior to the next meeting; The will send the formal proposed meeting agenda to the Group members at least ten days before the next meeting (as per the Liaison Group Terms of Reference) at which time additional agenda items can be proposed for consideration. Page 10 of 14
Appendix 1: Remote Action Items The following action items are open but are not due for consideration for some time. Hence they are recorded here as a placeholder and aide memoire. Target Date 31. Additional Constraint Reports Scenarios In addition and following completion of the generation of constraint estimates based on regular scenarios (i.e. following RAs decision on Scheduling & Dispatch) to consider the possibility of producing additional constraint estimates which may be relevant to particular groups. 32. Temporary Connections A rule-set is needed for temporary connections for Gate 3 generators. Issues relating to this topic were presented 3 and initial discussions were held at the 19 th January 2010 meeting. Open Q1 2011 Develop rules/principles to cater for Gate 3 temporary connections. Refer to minutes of meeting #11 and to slides from meeting #11. Further discussion and progress is contingent on the outcome of the Scheduling & Dispatch workstream. Open Q1 2011 Note that this applies to Gate 3 only and temporary connections for existing offers will be considered as per existing practices. 3 Refer to the presentation slide Temporary Connections- Gate 3 as distributed and published in association with the minutes of meeting # 11 on 19 th January 2010. Also refer to the minutes of the same meeting. Page 11 of 14
Appendix 2: Closed Action Items The following is the list of action items which have been resolved () since they were identified and actioned in the previous Group meeting (number 15), held on 1 st June 2010. a. Next Steps: Process for Publication of Interim Constraint Estimates (PGORs) to consider the process for issuing the estimates and to propose to the details of the arrangements. Outcome: completed as stated. Refer to the presentation entitled Interim Constraints Issuing Process which is published with these minutes. b. Contestability Lead Developer: Gearoid Quinn (ESB Networks) presented (meeting #15) on the role of the Lead Developer in the context of contestability and shared assets (refer to presentation slides published with these minutes). ESB Networks to develop the detail of the rules and principles. Outcome: ESB networks has developed a proposal entitled Role of the Lead Developer and the decision making process to facilitate distribution contestability. This DSO proposal [/10/090(d)] is published on the s website along with the material from meeting #15. ESB Networks Closed c. Contestability: The decision paper 4 on Transmission and Distribution contestability was published on 15 th April. ESB Networks presented options and an initial draft impact assessment to the Liaison Group (refer to the material published with these minutes). The System Operators will finalise the impact assessment and submit to for approval as per the approved change control process. ESB Networks invited comments from members. Outcome: Change request submitted to on 20 July. d. Contestability impact: IWEA grid committee to discuss and revert with comments. Outcome: completed as actioned. e. Application Fees decision and next steps The has reviewed the submissions to from the and the comments received from industry. has decided that a reduction of 8% in application fees will apply and will write to the SO s to formally communicate the details of its decision. IWEA Closed 4 Contestability for Distribution & Transmission Level Connections to the Electricity System ; Decision (-10-056) published on 15 th April 2010. Page 12 of 14
Outcome: Completed as stated. f. Capacity Relocation to assess current list of application requests and consider, by end July 2010, whether assuming these qualify 5 for relocation - there are likely to be any cases where any of these requests could be processed within Gate 3 without affecting offer timelines. Outcome: confirmed that there are no cases from the current list of applications where the requests could be processed within Gate 3. g. Capacity Relocation to send comments/queries on draft rules to. Outcome: completed as stated. h. Connection Offer Policy Paper (COPP) Fiona O Donnell presented at meeting #15 (on behalf of the ) an overview (/10/090e) of headline items which are to be addressed in the Connection Offer Policy Paper (COPP) being developed by the System Operators. ESB Networks invited comments from all members. Outcome: initial comments sent to by IWEA i. Offshore: First Stage Payments IWEA to send comments to. Outcome: IWEA s view is that both onshore and offshore projects should pay the first stage payment to secure their connection offer but that where this payment is paid in the absence of a REFIT scheme that these payments be made refundable if no REFIT scheme is in place within 18 months of payment. j. Standard for Wires Rory Mullan (RM) to communicate issues relating to the standard for wires. Outcome: Completed. To be dealt with under 38kV Wires topic. Industry IWEA RM 5 Qualification to be determined in accordance with the s decision on relocation of capacity Page 13 of 14
k. Updated Application Forms DSO to confirm if updated application forms need to be provided by Distribution Applicants where the details of their application has changed. Furthermore the query raised related to whether a new-format form had to be provided, or whether the old form could be updated. Outcome: DSO have clarified that: a new application form should be submitted, but failing this, DSO can accept a photocopy of an original application form that has been amended as long as: 1) any amendment is very clear 2) any amendment is initialled and dated, and 3) the amended application form is re-signed by the Customer (original signature is required) and re-dated. Copies of relevant documents including the application form(s) (original and modified) should be referred to in the "List of Application Documents and Correspondence" at Appendix 4 of the QL. In addition, please note that provision of the revised application form at a late stage in the process is not an opportunity to request any further changes. If, for example, the MEC completed in the form is not as per the basis for the studies carried out, then a further form with the correct MEC will be required. Any delays to providing such forms may result in a delay to issuing of the offer. DSO Closed Page 14 of 14