CRE Presentation on Emerging Technology Guidance

6th June 2016

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According to articles 66 to 70 on Emerging Technologies

Within 6 months of the entry into force of the RfG NC, manufacturers of Type A PGM may submit an application to the NRA, means:

17th of November 2016 : Deadline for the application

By 12 months of the entry into force, the NRA shall decide, in coordination with all the other regulatory authorities of a synchronous area, which power generating modules, if any, should be classified as an emerging technology, which means :

17th of May 2017 : Deadline for the NRAs of a synchronous area to give their decision on the list of PGM classified as “Emerging Technologies”

Emerging Technologies - Timeline

Therefore, CRE produced a Guidance Document allowing manufacturers to submit their applications in France by the 17th of November 2016

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Context

Overview of the European context

• Reminder of the Regulation (EC) 714/2009 providing the establishment of Network Codes

Presentation of the RfG Network Code

• Adoption by the Member States (26th June 2015) and entry into force of the Code (17th May 2016)

• Exhaustive and non-exhaustives requirements for new Power Generating Modules (PGM)applicable by Type of PGM (Type A, B, C and D)

• Possibility to apply the Code to existing PGM

• Provisions on derogations and emerging technologies classification

Objective : to explain to manufacturers where do the European Network Codes and the key provisions of the RfG NC come from (in France, few manufacturers are present in the National Stakeholder Committee which was set up for the implementation of the RfG NC)

Guidance document - Context

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Emerging technologies process

Reminder of deadline to apply to be classified as emerging technology according to article 68(1) (17th November 2016)

Reminder of the criteria which must be met in order to be eligible for the classification as emerging technology according to article 66 and clarification on these criteria

Reminder of deadline for the NRAs of a synchronous area to give their decision on the list of PGM classified as emerging technologies according to article 69 (17th May 2016)

Monitoring sales volumes and withdrawal of classification as emerging technologies according to article 70

• every two months an update of the sales in the Member State must be sent to the NRA

Guidance document - Process

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Emerging technologies criteria

According to Article 66(2), in order to be eligible to apply to be classified as an emerging technology, the PGM must meet all three of following criteria :

• The PGM must be of Type A (ie 800 W to 1 MW);

• The PGM technology must be commercially available ; and

• The accumulated sales of the PGM technology within a synchronous area at the time of application for classification as an emerging technology do not exceed 25 % of the maximum level of cumulative maximum capacity established pursuant to Article 67(1).

Guidance document – Criteria (1/4)

Emerging technologies criteria – clarifications

According to Article 66(2), to be eligible to apply to be classified as an emerging technology, the PGM must meet all three of following criteria :

• The PGM must be of Type A (ie 800 W to 1 MW);

• The PGM technology must be commercially available ; and

• The accumulated sales of the PGM technology within a synchronous area at the time of application for classification as an emerging technology do not exceed 25 % of the maximum level of cumulative maximum capacity established pursuant to Article 67(1).

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Guidance document – Criteria (2/4)

Power range for a Type A

Threshold between Type A and B can be defined in each country but can’t exceed 1 MW. This treshold is not completely defined in France, therefore, all PGM in the power range [800 W to 1 MW [ will meet this criteria at the time of application.

Main provisions applicable to a Type A

Minimum time periods for which a power generating module has to be capable of operating on different frequencies (Article 13.1)Active power frequency response capability of power generating modules in LFSM-O (Article 13.2)Maximum power capability reduction with falling frequency (Article 13.5)

Definition of a PGM

Reminder of the definition from the RfG NC

Emerging technologies criteria – clarifications

According to Article 66(2), to be eligible to apply to be classified as an emerging technology, the PGM must meet all three of following criteria :

• The PGM must be of Type A (ie 800 W to 1 MW);

• The PGM technology must be commercially available ; and

• The accumulated sales of the PGM technology within a synchronous area at the time of application for classification as an emerging technology do not exceed 25 % of the maximum level of cumulative maximum capacity established pursuant to Article 67(1).

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Guidance document – Criteria (3/4)

PGM commercially available

between a commercially available PGM technology and a cumulative level of sales which must not exceed a certain volume, the window of opportunity for application is small

Mature technology could be considered

To extend the window, we propose to consider the PGM technology reaching a level of 8 on the Technology ReadinessLevels and which expect to becommercially available at the end of the year

Emerging technologies criteria – clarifications

According to Article 66(2), to be eligible to apply to be classified as an emerging technology, the PGM must meet all three of following criteria :

• The PGM must be of Type A (ie 800 W to 1 MW);

• The PGM technology must be commercially available ; and

• The accumulated sales of the PGM technology within a synchronous area at the time of application for classification as an emerging technology do not exceed 25 % of the maximum level of cumulative maximum capacity established pursuant to Article 67(1).

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Guidance document – Criteria (4/4)

Maximum level of cumulative maximum capacity established pursuant to Article 67(1)

0.1 % of the annual maximum load in 2014 in the synchronous area : 406 MW for Continental Europe

25% of the maximum level at the time of application

25% of 406 MW = 101,5 MW is the maximum accumulated sales of a PGM within Continental Europe which could apply for classification as an emerging technology at the time of application

Maximum level by country pursuant to Article 67(2)

Maximum capacity for Emerging technologies for CE x (net generation in FR / net generation in CE)406 MW * (541,2 TWh / 2513,5 TWh) = 87,4 MW maximum level for France

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Question 1 : What type of emerging technology does your company develops and / or sell ? Please give us any useful additional information (ie micro CHP with sterling engine)

Need to have a sufficient level of detail about the technology to identify different categories

Question 2 : In your opinion, and in light of eligibility criteria, should your technology beclassified as emerging technology and thereby contravene the requirements of the RfGcode? If so, please answer the following questions.

Save manufacturers having to answer other questions if they already know that their technology is not eligible

Question 3 : What is the electric power of the unit sold or close to commercialisation ? If you have multiple ranges of production units, please provide the power for each of the units sold.

Get the electrical power of the PGM sold and identify if there are several ranges (references number)

Guidance document - Questionnaire (1/2)

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Question 4 : Can or is your technology already sold on the market? If your technologyis nearing commercialisation, please indicate the level of maturity of your technology as well as the projected release date ?

Have an indication about the availability of the technology on the market

Question 5 : If your technology is already commercialised, which is, in megawatts , total sales volumes in the synchronous area* ? In metropolitan France ?

Have sales volumes at both synchronous and national area to know if the application meet the volumes criteria

Question 6 : Could the commercial development of your technology be disrupted if itdoes not contravene transiently with the technical requirements of the RfG code ? Please specify the requirements that are in your opinion the most difficult to comply withand the impact this could have on your business ?

Identify which technology is most needed to get this classification given that volumes are limited

Guidance document - Questionnaire (2/2)

* Countries of the Continental Europe synchronous area are listed

in the Guidance Document

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Publication of the Guidance Document

15th April : First draft sent to the National Stakeholder Committee

12th September to 17th November : publication of the Guidance Document

30th June : approval of the document at CRE

April May June July Aug. Sept. Oct. Nov. Dec.

17th November to 17th May : CRE shall decide, in

coordination with all the other NRAs of a

synchronous area, which PGM, if any, should

be classified as an emerging technology

May 17

Publication

of the

Guidance

Document

…

Deadline for

application

6 months after

entry into force

Deadline for

the decision

12 months

after entry

into force

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Annex – maximum volume allowed

Synchronous area Maximum

volume

permitted

25% of the maximum level at

the time of application (one of

the criteria to be eligible)

Net Generation (needed

for the maximum

volume by country)

Continental Europe 406 MW 101,5 MW 2513,5 TWh

Great Britain 58 MW 14,5 MW 363,6 TWh

Nordic 62,2 MW 15,55 MW 359 TWh

Ireland + Northern

Ireland

6,32 MW 1,58 MW 32,5 TWh

Baltic 4,66 MW 1,16 MW 20,1 TWh

Example to calculate the maximum volume allowed in France (according to Article 67(2))

Max volume FR = Max volume SA * (Net Generation FR / Net Generation SA

= 406 * (541,2 / 2513,5)

= 87,4 MW

Statistical Factsheet 2014 ENTSOE