GB Queue Management - National Grid

User Seminar 

McGrigors 

Edinburgh & London 

9 & 11 September 2008

Introduction & Welcome 

Alison Kay 

Commercial Director, Transmission

Introductions 

� Alison Kay 

� Stuart Cook - Ofgem 

� Phil Collins 

� Chris Sambridge 

� Chris Newitt 

� Neil Carter

Overview of Day 

� Update on Transmission Access Review (TAR) 

� Discuss the Ofgem/BERR TAR Final Report 

� Introduce the Interim Measures 

� Provide update on progress with optimisation and advancement of 

projects 

• What’s driving the making of connection offers far into the future? 

� Provide updates on recent and ongoing developments

Transmission Access Review 

National Grid View 

Alison Kay 

Commercial Director, Transmission

Agenda 

� Introduction 

� Transmission Access Reform 

� Models 

� Working Group progress 

� Timescales

Introduction 

� European Union has recently agreed that by 2020 one-fifth 

of all Europe’s energy should come from renewable 

sources 

� In line with this, European Commission has proposed a 

target of 15% for UK 

� UK Government has stated its firm commitment to meeting 

its fair share of the European target 

� Achieving this could require renewable generators to 

provide between 30 and 40% of our electricity supplies 

� A significant proportion of our existing generation will also 

need to be replaced over the same period 

� Unprecedented challenge for electricity networks

How do we get there? 

Two issues to solve… 

1. Build more transmission 

capacity faster 

2. Allocate available 

transmission capacity 

more sensibly 

The proposals… 

1. “Strategic Investment” in 

transmission 

2a. Interim Connect & Manage 

2b. Transmission Access Reform

A different approach 

� National Grid has proposed a suite of framework changes 

that could be used to implement 3 access straw men 

� Why? 

� Consideration of all options more likely to result in the 

right answer 

� National Grid has organised these proposals into 3 

working groups which consider access (CUSC) and 

charging together 

� Why? 

2b. Transmission Access Reform 

� Concerns expressed by industry – difficult to discuss 

CUSC and charging issues in isolation

What’s wrong? 

� New generation can’t get timely access to the 

transmission system 

� GB queue stretching out beyond 2020 

� Closure uncertainty 


� May not be appropriate with increased volume of 

renewable generation 

� Characteristics of wind mean that sharing of 

capacity (between wind and conventional) 

much more important

What are the models? 

� Connect & manage 


� Firm connection date provided by SO in exchange for firm 

financial commitment 

� Operational costs caused when reinforcements cannot be 

completed are socialised 

� Evolutionary change 

� Flexible, cost-reflective short-term access regime 

� Finite, tradable long-term access rights 

� Capacity auctions 

� As evolutionary change, but long-term access rights are allocated 

by auction 

� All models get new generation connected more quickly 

� Different consequences for on-going regime

WG1: Short-term 

The Working Groups 

WG2: Long 

term 

WG3: Supporting 

changes 

CAP162: Entry 

overrun 

CUSC 

CAP161: SO release of 

short-term rights 

CAP163: Entry capacity 

sharing 

CAP165: Finite longterm 

entry rights 

CAP166: Entry 

capacity auctions 

Local only 

applications 

CAP164: Connect 

and manage 


Charging 

Methodology 

Ex post cost 

reflective charge 

Fixed price 

tariffs 

Auction resultant 

changes 

Zoning 

criteria 

Local asset 

charging 

TNUoS residual 

charge 

Other 

Capacity release 

methodology 

Zonal definition 

methodology

Progress 

� The good news…. 


� Significant commitment from industry participants 

� High level of engagement and expertise is moving 

thinking forward 

� But…. 

� Progressing 6 fundamental CUSC amendments and 

charging modifications in parallel is a huge task 

� More time is required to further develop and robustly 

assess the proposals 

� The working group timescales have been extended by 2 

months 

� This can be accommodated without jeopardising April 

2010 implementation date

Timeline 

2008 2009 

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 

18 March; High-level industry seminar 

10 April; Workshop on draft mods 

25 April; Raise CUSC mods 

29 April 

Transmission Charging Methodologies Forum (TCMF) 


22 August; TCMF 

CUSC Working Groups 

CUSC consultation period 

18 Dec; CUSC panel vote 

Amendment reports 

to Ofgem 

Charging Working Groups 

Charging consultations 

Charging conclusions 

reports to Ofgem

Questions?

Optimisation 

Chris Sambridge 

Customer Services

Agenda 

� The Purpose 

� Users Aspirations 

� Contracted Background 

� The Process 

� Contacting Users - Timeline 

� Recent Example

GB Queue Management 

� Panel Members 

� GBSO, 3 x TO, Ofgem 

� Purpose 

� Consider any requests to advance to an earlier 

connection date 

� Identification of any available transmission 

capacity 

� Identification of developers able to make use of 

available capacity 

� Management of the Offer process

Users Aspirations 

� User Quarterly Reports establish the status of each 

scheme in terms of; 

� Earliest date development could connect 

� Minimum MW able to connect 

� Phasing (if applicable) (MW and date for each phase) 

� Status of scheme (in planning, consented, plant 

purchase 

� All developers with a ConsAg submit directly to NGET 

� BELLA & “Small” parties submit via DNO 

� Can be amended at any time 

� NGET Passes to TO’s to determine availability of capacity

Users Aspirations (2) 

�User response to QRs 

� 175 Projects with ConsAgs 

� 40 QRs received 

� = ~23% 

N.B. Contractually NGET require a new QR each 

quarter

Contracted Background 

� NGET establish and maintain a Contracted Background-SYS data 

� Contracted Background used to identify spaces within localised 

boundaries 

� Construction Planning Assumptions (CPA) are updated following 

change in Contracted Background i.e. 

� New Agreements 

� Delays 

� Reductions in MW 

� Terminations 

� CPA sent to each TO 

� TO maintains boundary Capacity Schedules 

� TO reviews Capacity Schedule and Aspirational Background plus 

other transmission system data and conducts studies to determine 

capacity gaps.

GB Queue Management Panel - Process 

� Meeting held monthly 

� Gap analysis looks at connections year on year 

�To identify total capacity available 

�To identify number of Users ‘who can use it’ 

�To identify ‘who can’ connect & when starting 

from 2008/09

Contacting Users - Timeline 

� Quarterly Report submitted by TO/Developers/Users/DNOs 

in accordance with contracts 

� GBSO / TO Monthly Meeting QR+10 

� Users Contacted by GBSO MM+5 

� User Submits Mod App & Indemnity UC+15 

� Clock Start D+1 

� Offer Submitted by TO to GBSO CS+75 

� Offer Submitted by GBSO to Developer/User/DNO CS+90 

days 

� Offers may go interactive

Recent Example of Queue Management 

Full Full 

Pre B-D B-D dependant Post 2016


Akron 

Gordon Bush 

Lairg 

Fairburn 

Others 

Glendoe 

Others 

Others 



Akron 

Gordon Bush 

Lairg 

Fairburn 

Others 

Glendoe 

Others 

Others 



Glendoe 

Others 

Others 

Others 


Next steps 

Glendoe 

Others 

Others 

Others 


Questions?

Coffee 

Back at 11:05

Transmission Access Review 

Ofgem presentation at NGET user seminars 

9 September 2008 – Edinburgh 

11 September 2008 – London

GB transmission network will need to connect 

a substantial volume of new generation 

Existing arrangements are not fit for purpose. Significant queue of generators waiting to 

connect. Transmission investment lags behind generation investment 

• The existing GB transmission system connects c80GW of generation to meet 

around 60-65GW peak demand 

• To meet 2020 targets will require an additional 60GW+ of renewable capacity, 

the majority of which will be onshore and offshore wind, plus: 

– Thermal (fossil) backup plant given intermittency of wind; 

– Around 20GW of existing generation is expected to close by 2020 and 

distributed generation will also have an impact 

– There will also be new nuclear, gas and clean coal 

• Connections may be remote from the existing network resulting in potential 

planning difficulties 

Longer term targets create major uncertainties and challenges for Ofgem, HMG and 

companies . This isn’t just a renewables issue. Need for radical reform and innovation. 

32

The transmission access review package 

Planning & 

Incentives 

• TSOs to publish a major technical study by end of 2008. 

Brought together through ENSG 

• Ofgem to develop sharper incentives for TSOs, in particular, 

new investment incentives for TOs to take some of stranding 

risk (but with higher reward for timely & efficient investment) 

• Linked to ongoing review of SO incentives 

33


Planning & 

Incentives 

Enduring 

access 

arrangements 







• Amendment proposals on commercial arrangements and 

charging methodology 

• Modular approach, capable of delivering a range of different 

regimes 

• Possible implementation around April 2010 

34


Planning & 

Incentives 

Enduring 

access 

arrangements 

Short term 

measures (a 

form of 

“connect & 

manage”) 







• Amendment proposals on commercial arrangements and 

charging methodology 

• Modular approach, capable of delivering a range of different 

regimes 

• Possible implementation around April 2010 

• Improving management of existing “queue” of generators 

• Measures to release and utilise the full capacity of the system 

• Scope to connect more generation through limited 

derogations from security standards? Criteria include: 

Benefits > Costs. 

35

Derogation from GBSQSS – requests from licensees 

• Transmission licensees are obliged to comply with GBSQSS, unless the 

Authority directs otherwise 

• Where a licensee assesses that it is not in a position to comply, or 

compliance may result in an inefficient outcome either in short or longer 

term, it may submit a request to Ofgem for a derogation 

• Requests from licensees for derogation should include: 

– a clear description of the non-compliance and requested duration of derogation 

– a comprehensive, and where possible, quantitative assessment of the impacts of 

the non-compliance. For example for the interim measures for transmission 

access, this should include impacts on: 

• difference in generation profile 

• carbon emission 

• volume and costs of transmission constraints 

• other parties, such as operational restrictions on other generators 

• health and safety 

– proposal for restoring compliance (if appropriate) 

– a description of the reasonable alternative actions that have been considered 

36

Derogation from GBSQSS – evaluation by Ofgem 

• Each derogation request is assessed by Ofgem individually on its merits 

• In its assessment, Ofgem, having regard to its principal objective and its 

general duties, including our duties in respect of sustainable development, 

will consider the impact on: 

– Consumers: eg costs and/or security of their electricity supply 

– Competition: eg concerns about market power 

– Sustainable development: eg carbon emissions reduction through earlier 

connection of renewable generation 

– Health & safety: eg as advised by relevant government bodies 

– Other parties affected: eg the ability of the GBSO or DNOs to operate their 

systems 

• Ofgem’s assessment will also take into account: 

– Relevant precedent derogations already granted by Ofgem 

– The likelihood of similar derogation requests in the future 

– Allowances that have been made in current and previous price controls 

37

Derogation from GBSQSS – criteria and decision 

• Criteria for justifying a derogation are set out in the “Guidance on licence 

derogation requests” and include: 

– No significant risks or avoidable adverse impacts to the licensee, other licensees 

or connected customers 

– Robust, economic case from the applicant that supports the proposed action 

• The guidance note is being updated – Ofgem to consult on it shortly 

• A derogation may be granted with time limits or conditions in respect of 

the wider system 

• In the context of transmission access reform, the TSOs are expected to 

work with the users to identify opportunities to use derogation to achieve 

earlier connection of generation projects ahead of the introduction of 

reformed enduring access arrangements 

38

Implementing TAR – Interim Measures 

Phil Collins and Chris Newitt

Agenda 

� Current GB Queue 

� Communication of Project Status 

� Release of capacity 

� Interim measures 

� Improved GB Queue Management 

� Early implementation of 

� Access Sharing (CAP163) 

� SO Release of short term access (CAP161) 

� Interim Connect & Manage

MW 

GB Queue - Consents Status 

60000 

50000 

40000 

30000 

20000 

10000 

0 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2021 2022 

Year 

Constructed Under Construction Application Approved Under Consideration Scoping

Scotland Consents Status 

MW 

12000 

10000 

8000 

6000 

4000 

2000 

0 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 

Year 


GB Renewables - Consents Status 

MW 

18000 

16000 

14000 

12000 

10000 

8000 

6000 

4000 

2000 

0 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 

Year 

Renewable - Constructed Renewable - Under Construction Renewable - Application Approved 

Renewable - Under Consideration Renewable - Scoping

Scotland Renewable - Consents Status 

MW 

12000 

10000 

8000 

6000 

4000 

2000 

0 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 

Year 


Communication of Project Status 

� Achieved via Quarterly Reports 

� Submission rate currently ~23% 

� Considering making submission mandatory 

� Other incentives 

� Name & Shame/Fame 

� Contacting of senior management 

� Delaying opportunity to be advanced 

� Recognise need to improve TO Reports

Release of Capacity 

� Capacity released following change in Contracted 

Background i.e. 

� Delays 

� Reductions in MW 

� Terminations 

� CPA sent to each TO 

� TO maintains boundary Capacity Schedules 

� TO reviews Contracted and Aspirational Background 

plus other transmission system data to determine who 

can use the capacity the earliest.

Release of Capacity 

� CAP150 – Capacity Reduction Clause 

� CUSC Amendment submitted to allow timely 

release of capacity 

� Modification was approved earlier this year 

� ConsAgs currently being amended 

� Certain developers appear not to be progressing 

projects 

� Users will be contacted prior to receiving amended 

agreement

Capacity Recently Released 

� Fairwind Statkraft Orkney – 126MW 

� Perth (Dunan) – 38MW 

� Pairc – 156MW 

� Glendoe (advancing) 51.5MW 

� Projects to be identified at next optimisation 

meeting

Better GB Queue Management 

� Submission of project status 

� Use of CAP150 rights 

� Identification of capacity 

� Utilisation of other contractual rights 

� Ofgem invited to GB Queue Management 

meetings 

� Improved communication back to developers on 

request to advance 

� Reporting of progress to industry and Ofgem

Interim measures 

� The enduring access working groups will consider 

whether the following can be implemented by April 

2009: 

� SO release of short-term access rights 

(CAP161) 

� Entry capacity sharing (CAP163) 

2a. Interim connect & manage 

� National Grid has been working with Ofgem to 

define a process in which derogations from 

GBSQSS can be used to provide access ahead of 

the completion of certain reinforcements

Interim Connect & Manage 

� TAR Final Report identified scope to connect more 

generation through derogations from GBSQSS 

� Open letter released 8 September 2008 

� Short term measure only 

� Different to the Connect and Manage CUSC 

Amendment 

� Not limited to BCAs & BEGAs 

� Ofgem to develop guidance on requesting 

derogations 

� How much can this initiative deliver?

Interim Connect and Manage - How 

� Authority to consider requests on assessment of 

costs and benefits 

� Appropriate Cost Benefit Analysis 

(Costs

Interim Connect and Manage 

� Extension of current methodology 

� Allows projects to be considered where no or limited 

capacity is available 

� Projects need to have consents to be considered 

� Projects need to be able to demonstrate ability to advance 

� Developers need to work with GBSO/TOs 

� Identify project lead times 

� Minimise constraint costs 

� Identify possible connection options 

� Develop appropriate cost benefit

Interim Connect and Manage 

� GB Queue Management Methodology to be 

revised 

� Comments sought on clarity 

� Need to show progress as an industry 

� Methodology/guidance between TOs published 

� Approach developers who can build the soonest 

� Preferably within TAR implementation 

timescales 

� Progress reported to industry

Connection Only 

� Request for local works to be complete 

� Allows use of short term access products when 

connected 

� Need to have a BCA or a BEGA to be able to use 

short term products 

� May achieve the same as Interim Connect & 

Manage for some projects 

� Speak to Agreement Manager 

� Apply via a Modification Application

Lunch 

Back at 13:15

Industry Presentation 

Neil Carter 

System Development – South West Team 

National Grid

Capacity (GW) 

Existing and Planned Contracted Generation 

130 

120 

110 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Demand (GW) 

08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 

Year 

Biomass 

Offshore Wind 

Wind 

Hydro 

Pumped Storage 

Oil + AGT 

OCGT 

Coal + AGT 

CHP 

CCGT 

Interconnector 

Nuclear 

Demand

Potential Future Developments 

England and Wales 

1 – 4 GW 

0.5 – 2 GW 

0.5 – 2 GW 

TAN8 

R3 Offshore Wind 

Nuclear 

Interconnectors 

0.5 – 1 GW 0.5 – 1 GW 

5 – 15 GW 

� Further offshore wind 

leasing targeted to deliver 

25GW by 2020 

� Political will for nuclear 

replanting 

� EU directive for greater 

interconnection 

� Target of 30 – 40% 

generation from renewable 

(i.e. wind) sources could 

require a plant margin of 40 

– 60%* 

* Dependent on assumed contribution of wind to demand security at peak

Opportunities

Connection Restrictions 

� System Capacity – Issue as a result of project 

� Reinforcements and complexity 

� System access requirements 

� Consents – Outside NG control 

� Resources – Mainly within NG control

Reinforcement and Complexity 

� Designing an efficient and economic Transmission System 

is a complex task. Need to consider: 

� System resilience 

� Planned and unplanned outages 

� Lack of clarity regarding closures leading to potential 

over-investment (6 month notification) 

� Historic boundary capability margins have been squeezed 

and continue to be reduced 

� Combination of increasingly complex designs, tight 

construction programmes and new technology increases 

risk to security of supply

Thames Estuary:- existing network 

West Ham 

Hurst 

Rowdown 

Barking 

Littlebrook 

Bramford/ 

Braintree 

Tilbury 

West Thurrock 

Northfleet East 

Singlewell 

Rayleigh Main 

Kingsnorth 

Coryton 

Kemsley 

Canterbury 

North 

Grain

Example Complex Thames Estuary works 

West Ham 

Hurst 

Rowdown 

Barking 

Littlebrook 

West Thurrock 

Bramford/ 

Braintree 

Tilbury 

Northfleet East 

Singlewell 

Kingsnorth 

Rayleigh Main 

Coryton 

Kemsley 

Grain

System Access 

� ‘Outages’ are necessary to work on existing assets and to 

connect new assets 

� Outage planning and consenting timescales are used to 

determine connection date – now more likely to be outage 

system access. 

� Planning outages is a complex task: - 

� Planned outages can only be taken from March – 

October in any given year 

� Only limited outages can be taken at one time to 

ensure security of supply 

� Outage programme must account for maintenance and 

asset replacement activity (try to nest where possible) 

� For the worst case conductor systems, re-conductoring 

of existing circuits can be completed at a maximum 

rate of 3km per ‘line gang’/week.

Time scales for presently signed Generation and 

Demand Connections in South Wales 

2008 2009 2010 2011 2012 2013 2014 2015 2016 

RWE 

Npower 

Pembroke 

Stage 1 

1200MW 

April 

2010 

RWE 

Npower 

Pembroke 

Stage 2 

800MW 

October 

2010 

Severn 

Power 

Uskmouth 

850MW 

August 

2010 

Prenergy 

Power 

Margam 

350MW 

August 

2011 

WPD 

Swansea 

Demand 

630MW 

October 

2011 

Nuon UK 

Projects 

Rhigos 

299MW 

October 

2011 

PB Alt En 

Ltd 

Baglan-B 

Stage 1 

435MW 

October 

2014 

PB Alt En 

Ltd 

Baglan-B 

Stage 2 

435MW 

October 

2016

South Wales Outages Required to Deliver Contracted Position 

by 2016 

G 

RWE 

PEMB 

2GW 

PEMB 

400kV 

BPAE 

Phase 2 

425MW 

KEY 

G 

PREN 

350MW 

Outages 2008-10 




G 

G 

BAGB 

275kV 

BAGB 

520MW 

Dashed represents line 

outages associated with turn-in 

to new substation assets 

BPAE 

Phase 1 

425MW 

G 

MAGA 

275kV 

PYLE 

275kV 

SWAN 

400kV 

SWAN 

275kV 

RHIG 

299MW 

ABTH 

275kV 

G 

G 

G 

ABTH 

1455MW 

RHIG 

400kV 

CARE 

275kV 

AES BARRY 

(EMBEDED) 230MW 

UPPB 

275kV 

SEVERN 

POWER USKM 

850MW 363MW 

TREM 

275kV 

G G 

USKM 

275kV 

CILF 

400kV 

WHSO 

275kV 

RASS 

400kV 

IMPP 

400kV 

IROA 

275kV 

WALH 

400kV 

SOUTH 

WALES 

SYSTEM 

BOUNDARY 

Wye Valley 

and River 

Crossing 

River 

Severn 

Crossings 

SEAB 

400kV 

G 

MELK 

400kV 

SEAB 

1200MW

Consents, Wayleaves and Land Acquisition 

� Consents are necessary to construct new assets where 

existing permission does not exist 

� Before a planning application can be submitted, need EIA, 

FRA, contamination report, noise surveys, ecological etc. 

� Wayleaves need to be negotiated for OHL/Cables 

� Land must be obtained for substation compound 

extensions/Newbuild. 

� Uncertainty over timescales for existing process 

� Public enquiry 

� Appeals 

� CPO 

� Planning reform bill provides opportunity to improve 

transparency and targeted development

Resources 

� Global demand for resources increases difficultly in 

procurement of assets in a timely manner 

� Competing with development in the Middle East and Asia 

for plant and people 

� 3 year lead time for new SGT for example 

� 18 month lead time from firm commitment to delivery on 

site of GIS equipment 

� However, NG does not make firm commitment until 

consents are obtained. 

� This is to prevent assets being stranded should Planning 

not receive approval.

CAP167 

Definition of a threshold(s) associated a 

request for a Statement of Works

CAP167 

Defect 

� CUSC 6.5 requires compulsory request for Statement of 

Works in respect of proposed medium sized embedded 

generators 

� For proposed small generators (

CAP167 

Amendment proposal 

� Amend the CUSC to provide definitive clarification in the 

assessment of whether a small embedded project (or the 

aggregate effect of multiple projects) has a significant 

impact on the GB transmission system 

� Provide transparent criteria of whether a DNO is required 

to request a Statement of Works 

� Recommends that a CUSC Working Group is established 

to determine appropriate thresholds(s)

CAP167 

Current thoughts of the Working Group 

� Do not believe WG is positioned to determine accurate thresholds – 

GBSO is 

� Do not believe that MW thresholds should be hard-coded into the 

CUSC as this is inflexible 

� Recommend that an appropriate methodology and process is 

developed to determine MW thresholds which can be updated 

relatively simply 

� Currently considering two different sets of criteria upon which 

thresholds are based: 

� Original – Balancing Services cost and all works on transmission 

system 

� Alternative – does not take into account Balancing Services cost 

and only works on transmission system triggered by Small 

Embedded generators

CAP151-Transmission Works Register 

Chris Newitt

Background 

� CAP151 aimed to provide clearer information on 

dependencies between Generators and 

Transmission Reinforcements 

� Amendment approved March 2008 

� System went live 1 April 2008

The System 

� Access 2003 database 

� Available on request (e-mail circulation) 

� not everyone can use the Access 2003 file 

� Excel reports 

� Provided on the National Grid website 

� Excel reports truncate the information in cells 

� Word reports 

� Provided on the National Grid website 

� Word reports are not easily filtered

Future Developments 

� Develop CAP151 further 

� Deliver relevant information to users 

� What do you want to know? 

� Develop links with industry data sources to provide 

consistent information

Views Sought 

� Views welcomed on current solution and future 

developments 

� Send comments to: 

Sarah Bradford 

Customer Services, B3 

National Grid House 

Warwick 

CV34 6DA 

Sarah.bradford@uk.ngrid.com

Connecting for the Future 

Chris Newitt

Overview 

� National Grid are developing a report that will be 

published to the industry on a quarterly basis 

� Outline the current queue position and the make 

up of the queue i.e. consents status/plant type 

� It is designed to reduce the amount of ad-hoc data 

requests

What’s in it? 

� Information regarding the current contracted position 

illustrated by graphs and tables of figures 

� Supporting commentary explaining what the figures show 

� Maps illustrating the location, size and consents status of 

projects currently in the queue 

� Code and industry changes 

� Updates on progress made through Optimisation

When is it available? 

� First edition will be available during the first week 

of October 

� Published on the National Grid website every 

calendar quarter

That’s all folks!

GB Queue Management - National Grid

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