Common use of Participation Process Clause in Contracts

Participation Process. DER must have completed the Mandatory Technical Trials to participate in Wave 2. The process for participation in Wave 2 is similar to that for Wave 1, with the key difference being that this Wave introduces competition among participants, with each specifying both an availability price and a utilisation price. Therefore, the situation may arise where DER might have made themselves available but, depending on the combination of bid prices and effectiveness, would not be selected by the DERMS when it receives service procurement request from National Grid. The process for tendering of reactive power service is summarised in Figure 3. As with Wave 1, DER will indicate their availability for the Reactive service in three steps: 1. Through the use of the DER PQ capability chart and Connection Agreement limits. If the DER wishes to offer less than the full Reactive range of their asset they can do so via the web interface. The Q offering implied by the expected operating level must be non-zero for the bid to be valid. 2. By submitting a forecast of the MW expected operating level for each half-hour period in Service Windows (of the following day) into which the DER wishes to bid. 3. By indicating their willingness to offer Reactive Power services to the DERMS (e.g. via a ‘tick box’). In Wave 2 there is an additional step, which is that for each Service Window, DER need to indicate an availability price (£/MVar/hr) and a utilisation price (£/MVarh) for Reactive power. If successful, DER will receive payment on a pay-as-bid basis. A zero price would be a valid input. In choosing to offer the Reactive Service, a Participant, if successful, is committing to allow the DERMS to control the DER unit on instruction from National Grid within the operating range defined by the PQ capability chart (whether that is the original technical PQ capability or the updated chart to reflect a more limited range, if applicable). If successful in the tender, the availability payment received by the DER will be based on the Maximum Reactive Range. The Maximum Reactive Range is determined as the point where the Reactive Range is greatest on the PQ capability curve. This is independent of the operating point. The availability payment associated with each Service Window is given in Schedule 2 of the Power Potential DER Framework Agreement. However, the actual Reactive Service availability will be a function of the outturn MW Operating level (see Figure 4). The Expected MW Operating level submitted by DER will be used to calculate their nominal reactive output and hence the reactive range expected to be available for reactive power dispatch. This expected reactive range will be used to build the availability stack and hence by National Grid to assess availability and effective price. The expected MW operating level, provided by the DER should represent an honest and accurate forecast, but the intention is not to apply any Performance Factor adjustment tied to MW inaccuracies occurring during the trial (although Performance Factor adjustments linked to absolute availability can be incurred). The Active Power operating level between forecast and outturn will be reviewed as part of the trial and learning using to inform the development of future reactive power services.

Participation Process. DER must have completed the Mandatory Technical Trials to participate in Wave 2. The process for participation in Wave 2 is similar to that for Wave 1, with the key difference being that this Wave introduces competition among participants, with each specifying both an availability price and a utilisation price. Therefore, the situation may arise where DER might have made themselves available but, depending on the combination of bid prices and effectiveness, would not be selected by the DERMS when it receives service procurement request from National Grid. The process for tendering of reactive power service is summarised in Figure 3. As with Wave 1, DER will indicate their availability for the Reactive service in three steps: 1. Through the use of the DER PQ capability chart and Connection Agreement limits. If the DER wishes to offer less than the full Reactive range of their asset they can do so via the web interface. The Q offering implied by the expected operating level must be non-zero for the bid to be valid. 2. By submitting a forecast of the MW expected operating level for each half-hour period in Service Windows (of the following day) into which the DER wishes to bid. 3. By indicating their willingness to offer Reactive Power services to the DERMS for the duration of a Service Window (e.g. via a ‘tick box’). By default, the DERMS will assume that DER are not available unless instructed by the DER. This instruction can come via the web interface or a bulk upload mechanism that allows DERs to offer availability over a longer period. When the DERMS collates offers, the last instruction by the DER (whether via bulk upload or web interface) will be deemed the actual availability offer of the DER. In Wave 2 there is an additional step, which is that for each Service Window, DER need to indicate an availability price (£/MVar/hr) and a utilisation price (£/MVarh) for Reactive power. If successful, DER will receive payment on a pay-as-bid basis. A zero price would be a valid input. In choosing to offer the Reactive Service, a Participant, if successful, is committing to allow the DERMS to control the DER unit on instruction from National Grid within the operating range defined by the PQ capability chart (whether that is the original technical PQ capability or the updated chart to reflect a more limited range, if applicable). If successful in the tender, the availability payment received by the DER will be based on the Maximum Reactive Range. The Maximum Reactive Range is determined as the point where the Reactive Range is greatest on the PQ capability curve. This is independent of the operating point. The availability payment associated with each Service Window is given in Schedule 2 of the Power Potential DER Framework Agreement. However, the actual Reactive Service availability will be a function of the outturn MW Operating level (see Figure 4). The Expected MW Operating level submitted by DER will be used to calculate their nominal reactive output and hence the reactive range expected to be available for reactive power dispatch. This expected reactive range will be used to build the availability stack and hence by National Grid to assess availability and effective price. The expected MW operating level, provided by the DER should represent an honest and accurate forecast, but the intention is not to apply any Performance Factor adjustment tied to MW inaccuracies occurring during the trial (although Performance Factor adjustments linked to absolute availability can be incurred). The Active Power operating level between forecast and outturn will be reviewed as part of the trial and learning using to inform the development of future reactive power services.