agreement management – april 2016 markets document... · 2016. 4. 27. · capacity market webinar...

Capacity Market Webinar

Agreement Management – April 2016

Welcome

Matthew MagillCapacity Market Manager

Mark DuffieldEMR Delivery Manager

Tushar SinghCustomer Account Manager

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Webinar Etiquette

Calls on mute

Q&A’s when requested

Chat function in WebEx

Email us [email protected]

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mailto:[email protected]

Purpose for today...

To take you through the upcoming AgreementManagement milestones and Statement of Works.

Milestones include:

Financial Commitment milestone

6 monthly reporting of construction progress

This webinar is primarily aimed at Capacity Agreement holders or thosewith an interest in understanding the milestones for

New Build, Refurbishing, or Existing Generators, and / or Interconnectors

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Agenda

Item Presenter

Welcome

Capacity Market update on EMR Delivery Body Matthew Magill

Statement of Works Mark Duffield

Upcoming Agreement Management milestones Tushar Singh

Q&A

Key Messages, Next Steps and Quick Poll Matthew Magill

Close

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What is the Delivery Body doing at the moment?

Expanding the size of the team for an additional auction is goingwell

Interviewing for the enduring team

Finalising the specifications for the System Operator Proceduresfor Stress Events

Liaising with Stakeholders & Customers

Developing and Testing Systems

Talking to DECC about the outcomes of the consultations

Preparing for Ofgem’s Rules consultation

Running the ongoing Agreement Management activities

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Mark Duffield – EMR Delivery Manager

Statement of Works

Aims to manage the cumulative impact ofdistribution connected generators on the wholesystem, including the transmission system

Additional requirements / delays to connectionshave been triggered by recent volumes ofconnections in Wales and South of England

Significant numbers of Distribution connectedgenerators with a CM agreement for 2018 or2019

Action

Check with your DNO if impacted by Statement of Works, even if youalready have a connection agreement

Be aware if applying in this year’s auctions and planning on deferringprovision of a distribution connection agreement 8

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Agreement Management Milestones

Tushar Singh – CM Customer Account Manager

Financial Commitment Milestone

Financial Commitment Milestone – Rule 6.6

Au

cti

on

Ye

ar

CMU Type When(18 monthsafter theAuctionResults Day)

What you need to provide…

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14

T-4 New Build &

Refurbishing02/07/2016

Assessment by Independent Technical Expert (ITE)as per the Required Technical Standard stating

10% Capital Expenditure of the Total Project Spendhas been met

OR Sufficient financial resources to meet Total Project

Spend Capacity Provider has entered into a major contract

ALONG WITH Directors’ resolution to complete project on or

before start of Delivery Year Directors’ Certificate confirming sufficient financial

resources and validity of the contract entered into

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15

T-4 New Build &

Refurbishing22/06/2017

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Financial Commitment Milestone – Rule 6.6

CMU demonstratesthat it..

Delivery Body Settlement Body Applicant

Has successfully

met FinancialCommitment

Milestone

InformsSettlement Bodyand Applicant thatCredit Covershould bereturned.

Updates CapacityMarket Register

Returns CreditCover to theApplicant

Gets CreditCover back

Has not met

FinancialCommitment

Milestone

TriggersTerminationNotice processinforming theApplicant,Secretary ofState, Ofgem andSettlement Body

Issues invoice tothe Applicant forthe TerminationFee amount

Pays Terminationfee of £5000/MW

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6 Monthly Reports

6 Monthly Progress Update Reports – Rule 12.2

Au

cti

on

Ye

ar

CMU Type When(every 6 months fromAuction date tillSubstantial CompletionMilestone is achieved)


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14

T-4

New Build &Refurbishing

3rd report

18/06/2016

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15

T-4

New Build &Refurbishing

1st report

10/06/2016

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15

TA

New Build

1st report

27/07/2016

Progress Report including: Schedule of Construction

Milestone dates and materialchanges

Material changes to worksdescribed in the ConstructionPlan

Assessment from ITE Directors’ Certificate

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6 Monthly Progress Update Reports– Delivery Body Assessment

Assessment

■ EMR Delivery Body will ask for missing/unclear items or further clarifications

■ If expected date to achieve SCM is beyond the Delivery Year, a Remedial Plan willbe requested.

Remedial Plan – Rules 12.2.4 & 12.2.5

■ Should demonstrate the steps that can and will be taken to accelerate the buildprogram such that SCM is achieved by the start of the Delivery Year.

■ Must be accompanied by

■ A commentary from an Independent Technical Expert addressing whether theremedial plan is achievable; and

■ A certificate from 2 directors of the Capacity Provider stating that they believethe remedial plan is fair and achievable.

■ Must be provided as soon as reasonably practicable and within no more than 120days from the date of request.

■ Failure to provide a remedial plan will result in notification to the Secretary of Stateand Ofgem.

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Substantial Completion Milestone – Rule 6.7.2

CMU Type SCM should beachieved by…


New Build

Long Stop Date– 1 year after

start of theDelivery Year

Demonstrate that the: CMU is operational Physical generating capacity multiplied by

de-rating factor ≥ 90% of Capacity Obligation

Metering Assessment

Line Diagrams

Refurbishing

Long Stop Date– date of thestart of the

Delivery Year

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Matthew Magill, Capacity Market Manager

Key Messages

There is a lot of work to do between now and Prequalification

Statement of Works

Check with your DNO (if impacted by Statement of Works) even if youalready have a connection agreement

Be aware, if applying in this year’s auctions and planning on deferringprovision of a distribution connection agreement

Agreement Management milestones

Ensure you understand what is needed to achieve the FinancialCommitment, 6 Monthly Reporting and Substantial Completion Milestones

We are here to support you and understand there is a lot of uncertaintyhowever we can build on all of our lessons learnt

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Guidance Documents

https://www.emrdeliverybody.com/cm/home.aspx

Achieving the Financial Commitment Milestone

6 monthly progress reports

Substantial Completion Milestone

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https://www.emrdeliverybody.com/cm/home.aspxhttps://www.emrdeliverybody.com/Capacity Markets Document Library/Achieving the Financial Commitment Milestone.pdfhttps://www.emrdeliverybody.com/Capacity Markets Document Library/Achieving the Financial Commitment Milestone.pdfhttps://www.emrdeliverybody.com/Capacity Markets Document Library/Guidance on 6 Monthly Progress Reports Updated December 2015.pdfhttps://www.emrdeliverybody.com/Capacity Markets Document Library/Capacity Market - Meeting the Substantial Completion Milestone.pdf

Next Steps

If you have an Agreement and are not sure of the next steps,please let us know & a member of the Capacity Market team willcontact you to discuss your specific requirements

Slides will be made available

Hold the Dates

18 May – Amba Hotel, Charing Cross, London

28 or 30 June - Venue TBC, London

13 July - Amba Hotel, Charing Cross, London

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Contact us

[email protected]

https://www.emrdeliverybody.com/cm/home.aspx

https://twitter.com/EMRDeliveryBody

01926 655300

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Tell us what you think ….

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Slide Number 1�WelcomeWebinar EtiquettePurpose for today...AgendaWhat is the Delivery Body doing at the moment?Slide Number 7Statement of WorksSlide Number 9Financial Commitment MilestoneSlide Number 11Slide Number 126 Monthly ReportsSlide Number 146 Monthly Progress Update Reports �– Delivery Body AssessmentSlide Number 16Slide Number 17Key MessagesGuidance DocumentsNext StepsContact usTell us what you think ….