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OUTLINE

TRANSACTION AND INDUSTRY REVIEW CONFERENCE NIGERIAN POWER SECTOR REFORM: AN OVERVIEW OF TCN AGREEMENTS. OUTLINE. INTRODUCTION CONNECTION AND INTERFACE AGREEMENT USE OF TRANSMISSION NETWORK AGREEMENT ANCILLARY SERVICES AGREEMENT CONCLUSION. INTRODUCTION. Applicable contracts:

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OUTLINE

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  1. TRANSACTION AND INDUSTRY REVIEW CONFERENCE NIGERIAN POWER SECTOR REFORM:AN OVERVIEW OF TCN AGREEMENTS

  2. OUTLINE • INTRODUCTION • CONNECTION AND INTERFACE AGREEMENT • USE OF TRANSMISSION NETWORK AGREEMENT • ANCILLARY SERVICES AGREEMENT • CONCLUSION

  3. INTRODUCTION Applicable contracts: • Connection and Interface Agreement (CIA) • Use of Transmission Network System Agreement (TUOS) • Ancillary Services Agreement (ASA)

  4. CONNECTION AND INTERFACE AGREEMENT (CIA) CIA • A framework further to which site specific Agreements will be executed • Relates to the rights and obligations of parties to connect to the Transmission Network System. • Executed between TCN as Service Providers and Users of Transmission Network System. • Applies to user(s) who: • has a direct connection of at least 11kv network supply; or • an export or import capacity of at least 1mw.

  5. CIA CONT’D Key provisions • Charges (Clause 7 of the CIA): - to bedetermined periodically between TSP and NERC. - payment made on or before end of the first month of a new calendar year. - Payment shall be made once annually or as agreed by parties.

  6. CIA CONT’D • Right of access (Clause 11) - unhindered access granted to equipment of another party upon reasonable notification (except in emergencies). - This right extends to nominated third parties and contractors. • Commercial and tariff metering (Clause 22 ) - Shall be exclusively for registering the quantity of energy that passes across the connection point. - Only NERC licenced personnel are authorised to install, operate and maintain such meters.

  7. CIA CONT’D • Interface management Parties to jointly nominate an interface manager to oversee the implementation and maintenance of the interface management on the connection site. • Other key provisions • Connection and energisation, • Metering • Modifications • Operational metering • Restriction on title holders right • Relocation • De-energisation and disclosure • Decommissioning • Dispute Resolution.

  8. USE OF TRANSMISSION NETWORK AGREEMENT (TUOS) • TUOS • Relates to the rights and obligations of parties arising from the use of the Transmission Network System. • Applies to user(s) whose equipment has: • a direct connection of at least 11kV network supply; or • an export or import capacity of at least 50 kV A.

  9. TUOS CONT’D Key provisions of TUOS • Charges (Clause 8) - Right to use arises only upon payment of the Transmission Network Charge. - The charge shall be an annual payment prorated on a monthly basis. - Based on agreement of parties it may also include one-off charges. - The User is mandated to provide a security cover which will be resorted to in the event of User’s default. - The security cover shall be determined and approved by NERC.

  10. TUOS CONT’D • Safety Rules (Clause 13): - Parties mandated to provide copies of their safety rules and local safety instructions to each other. - The SO and User are mandated to each appoint a Safety Coordinator to oversee safety precautions whenever work on the network • De-energisation & disconnection (Clause 14): - material breach by a User that will entitle the TSP to de-energise the User’s apparatus. - If the breach is not remedied for a period of 6 months, TSP may declare such breach an event of default which may lead to termination and disconnection of the User’s apparatus.

  11. TUOS CONT’D • Assignment and sub-contracting (Clause 26): - Assignment by parties of rights and obligations must first be approved by both NERC and the other party. - TCN has the right to novate its rights and obligations to an Independent System Operator. • Other key provisions: • Operations • Right of access • Dispute resolution • Terms and termination • Force majeure -

  12. PRE-TRANSITION RESERVE AND FREQUENCY CONTROL CONTRACT (ANCILLARY SERVICES AGREEMENT) ANCILLARY SERVICES AGREEMENT • Relates to the provision of certain ancillary services that are key to overall system stability. • These services include: • Operating reserve • Frequency regulation • Voltage regulation • Black start capability - Grid Code mandates the SO to procure the above ancillary services. - The SO is the buyer and the Service provider is the seller of the ancillary service.

  13. ANCILLARY SERVICE AGREEMENT CONT’D Key provisions of ASA • Reserve capability • Reserve instruction • Operational information flow • Burden of proof- • Frequency control • Price - • Reserve provided • Taxes • Payment

  14. CONCLUSION THANK YOU

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