Renewable & CHP Generators

: A suppliers perspective

Presentation

by

Steve Armitage

Tel. 0113 289 5369

e-mail: steve.armitage@yeg.co.uk

Agenda - large generators

• NETA Objectives

• NETA to date

• Supplier issues

• How you can help?

• Trading Options

• Renewable Generators

• Energy Management Centre

• Summary

NETA Objectives

• Meet the needs of the customer with respect to price, choice, quality and security of supply

• Enable the demand to be met efficiently and economically

• Enable costs and risks to be reduced and shared efficiently

• Promote competition in energy markets

NETA to date

• Imbalance prices volatility• Extreme system buy/sell prices• High imbalance surplus• PX & Balancing Mechanism prices difficult

to predict• Market prices increasing• Limited demand side participation• Lights still on!

Supplier issues

• NETA penalises Imbalance • Costs higher than anticipated• Imbalance surplus • Lack of GSP Demand limits no. of trading

partners• Unable to unlock CCL value• Renewable obligation• Complex trading arrangements

How you can help?

• Be clear as to what you want• Be clear as to plant capability• Collate & share historic data:

– Site details, MPAN, voltage, hh profile

• Provide generation forecasts (& deviation from)

• Estimate variation from generation forecasts

• Peaking, Standby, Base load or spill CHP, Renewable

• Trading Options:– Independent Trading– Trading through others– Non Party Generation (SVA)

• Contract duration

Trading Options

Trading Options

• SVA - Fixed Prices, Variable Prices

• CVA - Fixed Prices, Variable Prices, Trading

• Participation in balancing mechanism/PX

• Optionality

• Expect – low prices for un-predictability– imbalance pass through

• Ancillary Services

• Supply

Renewable Generators

• Market short - targets high

• Predictable/flexible

• Imbalance still an issue

• Notify non generation in advance

• ROC

• Trade ROC in addition to energy

• Long term contracts available

• Balancing Ancillary Services– “Insurance Policies” to assist NGC in

balancing the Grid in real-time

• Standing or “Fast” Reserve

• Frequency Response

• Others: warming contracts (contingency reserve), voltage constraints, reactive power

Ancillary Services

Energy Management Centre

Primary role to Balance parties energy position

Services on offer:• Registration of BM Units• Submission of Final Physical Notifications (FPN’s)• Submission of bids & offers into the Power

Exchange &

Balancing Mechanism• Facilitate NGC Ancillary Services• Posting of ECVN’s & MVRN’s• Gas - Trading & Optimisation

Summary

• Losers? – Unpredictable/inflexible generators?– Base load generation?

• Winners? – Flexible Users– Risk takers

• Meeting the challenge