Access and Connection processes for Renewable Units: Experiences from Red Eléctrica de España

1. Access and Connection processes for Renewable Units: Experiences from Red Eléctrica de España Istambul March 2011

2. Recent modifications of regulation for Special Regime Generation (SRG) Recently, Nationalregulationorientedto control of generationtobeconnected per year, securingeconomic and technicalsustainability • RD1578/2008 for Solar FV, extending RD661 objectives with quotas of 500-400 MW per yearwith progressive reduction of tariffs • emphasis on roof plants over floor plants • RDL6/2009 for the rest of SRG, establishing quotas per year for plants to be commissioned (upto ≈ 2,5 GW Solar Thermal in 2013; upto ≈ 23 GW Wind in 2012), demonstrating some pre-requisites: • Access and connection authorization issued by REE or distribution company • Administrative authorization for power plants > 100 kW • License for Commissioning • Deposit of a bank guarantee (for wind: 20€/kW; for Solar Thermal: 100€/kW) • Financial resources at least for 50% of the total • Purchase -or contract- at least for 50% of the equipment • Authorisation for gas access and water supply (when applicable)

3. Capacity of the Transmission Network for Generators: General: No grid capacity reserve or preference derives from temporal precedence. Possible production constraints are to be solved by market mechanisms No connection limitation: Newcomers may degrade the production possibilities of existing or previously foreseen Less barriers but more uncertainty  tendency to overinstallation Special Regime Generation Priority at dispatch, subject to system security operation risk Congestions motivate system development  ineffective planning Connection limitation according to zonal studies from OS Development and Access to the Network 3

4. Network Access and Connection: Transmission grid development implications from RES units • Number of Access applications very over some transmission nodes evacuation capacity • Regional limits for installing new generation • Wind farms building time much shorter than needed for network developments necessary for connection • Permissions for new generation (via Regional Administration) easier to get than network reinforcement ones

5. Interaction between Grid Planning and Access to the grid applications • Grid Planning • REE carries out planning studies and proposals • National Goverment (with Regional Administrations): approve the grid development plan • Every 4 years, new planning horizon (10 years) • Binding (unlike indicative planning for generation) • Access to the grid • Regulated continuous process by which REE assess the acceptability of non-transmission facilities applications Studies for SRG Integration • The actual development of the grid (authorization, construction and commissioning) takes from 1 to more than 10 years

6. SRG Integration Studies A new perspective is introduced From ¿What capacity of integration ?  To ¿Which conditions and requisites would be needed to maximizesecure integration of SRG (RES) and achieve the foreseen objectives? Regulation Proposals Bulk System or Coverage Studies (Single Bus System Adequacy Studies) Estimation of OperationConditions Zonal connection capacity in MW Grid Studies

7. Capacity Studies • Assessment of generation limitsto preserve adequacy and security of power system, according to planning and operation criteria, applied to an horizon within the current medium term grid development plan • Adequacy: Assessment of generation limits by nodes and zones, reflecting structural grid capacity • Steady State Behaviour (load flow contingency analysis) • Short-circuit power (5% Scc, for non dispatchable fluctuant generation) • Security: Validation of previously concluded limits by nodes and zones • Dynamic behaviour (stability after short-circuit) • Design criteria: buses with sufficient meshing, minimum magnitud for generation, …..

8. Development and Access to the Network for Renewable Generators (RES): Connection Capacity Preserving the security of supply requires to avoid persistent constraints from RES units in order to: • Limit the operational risk associated to the solution of constraints and the security guarantee, specially considering the dispatch priority • Enable a coherent and efficient grid development • This calls for establishing connection capacities by zone associated to grid development plans which may avoid permanent constraints

9. Access and Connection : Overview • Procedures for Access and connection are managed by REE, as System Operator and and Transmission owner. Main Features: • REE carries out capacity studies at nodal and regional levels  Capacity of Connection • Regional Administrations identify Coordinator (C) and generators • C accomplish Access and Connection Procedures  Connection Authorisation • Connection Authorisation enables Administrative Authorisation • Administrative Authorisation enables Connection Contract with Transco • Administrative process (*) different according to Regions • Recently, new nationalregulationorientedto control of generationtobeconnected per year, securingeconomic and technicalsustainability (NationalAdministration)

10. Access and Connection : Overview Procedures Access Application (m = month) Connection to Transmission >>> SO (REE) Connection to Distribution (> 10 MW.) > DO> SO (REE) REE issues a report evaluating access feasibility, fulfilling system security criteria Connection Application >>> Trans.Co. Agent submits engineering Project and Programme Trans.Co. elaborates Report of Technical Conditions for Connection SO (REE) supervises and issues a report Agent < TECHNICAL ACCESS CONTRACT> Transmission Company 2m 1m 1m 10

11. Access approach for special generation • REE carries out Regional studies assessing capacity connection for generation (depending on energy source and technology), which are sent and presented to Regional Adm. • Individual Applications: Access reply is informative not valid for connection procedure • Regional Adm. Identify (*) generators according and nominates Coordinator • Coordinator submits access application with the aggregation of individual plants sharing connection point and facilities • REE replies according to the Regional study, accomplishing access procedure and enabling to start and accomplish connection procedure: Connection Authorisation • Connection Authorisation enables Administrative Authorisation • Administrative Authorisation enables Access Technical Contract with Transco • Administrative process (*) different according to Region 11

12. Regulation for connection and Administrative Authorisation for Special Regime (renewable) units Bank Guarantee to cover TSO access + connection management expenses Electrical Procedures Special Regime Register (Spanish Industry Ministry) An additional bank Guarantee is required by National Administration Regional administrative Authorization Application Access Coordinated Application Access Connection Administrative Authorisation Connection Contract Previous Inscr. In Register AuthorisationPESp Requirements Production Control Checks Definitive Inscription (after 85% of objective  final date) Report by SO: Acess, connection, integrat. at Control Center and Operating procedures fulfillment Commissioning Certificate Commissioning GUARANTEE CANCELATION 12

13. Grid development WIND POWER: High presence in transmission (>60%, contrary to other systems with high penetration) and expected to increase SOLAR POWER: TS.- Majoritary in transmission (≈ 80%) FV.- Minoritary in transmission(≈ 5% of existing; few new plans) 13

14. Main challenges: Grid Development • RES generation does not avoid distribution grid but requires transmission expansion, where the majority of Wind Power (>60%) and Solar Thermal (>80%) is expected. RES is a relevant motivation in the current Plan: • new lines and reinforcements for avoiding constrains operation • facilities associated to physical connection New substations and bays: Some 100 buses in 220 kV and 50 in 400 kV H2016 Approved may08. Reviewed 2010 ≈ 8,000 M€ • Particular significance: Spain-France interconnection

15. Existing Substation New substation as in/out of existing line New bay TransGrid New bay Connection Facilities (no TransGrid) Transmission grid development implications • Cost Allocation of New Facilities ¿transmission border and who pays what?

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