RP7 Stakeholder Consultation WEB - Flipbook - Page 32
We also acknowledge that to build
new substations or upgrade existing
substations can be a lengthy process
and can in some cases take several
years.
Q13. We therefore seek your
opinion on which of the options
below we should adopt in RP7.
1)We do not include any
conventional allowances in
our baseline RP7 plan but
rather ‘wait and see’ which
substations generators are
seeking connection at. Once
we have sufficient certainty
around these locations we
seek allowances from the Utility
Regulator via an uncertainty
mechanism. In the interim we
will endeavour to allow the
connection of some additional
generation via a managed
connection arrangement9.
Under this arrangement
generators are able to connect
to the network without incurring
lengthy delays in return for
occasionally reduced access to
the network. We do however,
acknowledge that this is only
a short-term solution. This
option has least risk in terms
of short-term stranded assets;
however, considering the length
of time required to build out
substations, is more likely to put
at risk the achievement of 80%
RES-e by 2030 and may result
in customers unable to obtain
generation connection offers in
the short term.
2)Include conventional allowances
in our baseline RP7 plan to
upgrade substations which
currently have no or low
capacity and wait and see where
generators are likely to connect
at other substations. Once we
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have sufficient certainty at these
locations we seek allowances
from the Utility Regulator via an
uncertainty mechanism. In the
interim we will endeavour to
allow the connection of some
additional generation at these
substations via a managed
connection arrangement.
This option has higher risk in
terms of short-term stranded
assets, albeit it is unlikely that
this additional capacity will
not be utilised in the medium
and longer term. This option
reduces the risk that the network
becomes a blocker to the 80%
RES-e target. Our baseline
plan currently includes costs
to reflect this approach. We
estimate that this will represent
an annual cost of 95 pence to
the average domestic customer
during the RP7 period. For our
commercial customers this
represents an annual amount
between £4 for a small business
and £59 for a medium business.
3)Forecast where likely generation
is going to connect, identify
constraints now and include the
allowances within our baseline
RP7 allowances. This option
presents the highest risk of
short-term stranded assets but
similar to option 2 it is unlikely
that this additional capacity will
not be utilised in the medium
and longer term. This option
presents the least risk that the
network becomes a blocker
to the 80% RES-e target. We
estimate that the additional
cost of this option annually to
the average domestic customer
would be 15 pence. For our
commercial customers this
represents an annual increase
between 63 pence for a small
business and £9 for a medium
business.
Subject to managed connections being deemed technically viable.
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Northern Ireland Electricty Networks
