ARODGDTI Overview

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VIEWS ON ACCESS REFORM Phil Baker 2 February
2007
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Priorities

• Minimise grid access-related barriers to the
  deployment of renewables
• Maximise the utilisation of network assets, both
  transmission distribution
• Maintain the reliability integrity of the
  electricity networks

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Government Targets (1)

• Likely to require up to 10GW of wind generation
  to meet 2010 target
• need about 6GW in Scotland?
• Potential shortfall - could be larger than
  necessary
• Need to resolve queue issues and ensure that
• projects able to proceed are allowed to do so
• access reallocated in time
• anticipate queue attrition?

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Government Targets (2)

• Require around 20GW of connections to meet 2020
  aspiration a significant challenge
• Need to maximise the utilisation of available
  transmission capacity
• Can existing arrangements cope?

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Maximise Use of Available Capacity

• Work by Centre for DG SE concluded that
• different technologies drive transmission
  investment differently
• conventional renewable generation should share
  available transmission capacity
• Centres work also points to
• lower transmission charges for wind
• difficulties with the current arrangements in
  terms of TEC
• need for additional short term products and
  information to allow increased utilisation of
  available capacity

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Beyond 2010

• 20GW of renewable generation implies notional
  plant margin of approx 50
• Sharing available transmission capacity seems
  inevitable.
• Existing access methodology (TEC) at odds with
  concept of sharing capacity?
• Need for mechanisms that allow more generation to
  connect and share access
• trading mechanisms?
• administered solution?
• Whatever we do, need for a transparent process
  that gives confidence to both existing and new
  players

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Need to Develop Consensus on Way Forward

• DTI working closely with Ofgem and the GBSO
• Good to see ARODG in action again
• Good to see industry coming forward with proposals