MINUTES OF THE JOINT GRID CODE REVIEW PANEL MEETING. Held at the Clarion Hotel, IFSC, Dublin. On 27 January 2010 at 1 pm

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MINUTES OF THE JOINT GRID CODE REVIEW PANEL MEETING Held at the Clarion Hotel, IFSC, Dublin On 27 January 2010 at 1 pm Present: Members/Alternates Jon O Sullivan Dick Lewis Tom McCartan Alan Kennedy Representing Chairman Adrian Henning As an observer for Dave Thornton As an advisor to Marie Hayden Arlene McGrath As secretary of the GCRP Mark Norton Simon Grimes Chevron Nolan Jim Cooke Cathal Martin ESB Customer Supply Coolkeeragh ESB Power Station SSE Renewables Brian Mongan AES Kilroot Power Limited As an alternate for Roger Casement Bronagh Luney Ger Harnett Patrick Liddy NIE Independent Suppliers Activation Energy Eamonn O Donoguue Tynagh Energy Ltd Observer Kieran Adams Huntstown Power Station Observer Gráinne O Shea Rónán Ó hógartaigh ESB PG ESB Networks Barry Sherry Endesa Ireland As alternate for Miguel Gonzalez Page 1 of 5

Jane McArdle SSE Renewables Brian McAuley SEMO As alternate for Liam Ryan John Lynch Munir Hassan Nick Molho CER Secretary of the GCRP CMcK as reflected in the General Conditions of the Grid Code Introduction to JGCRP meeting & Approval of Minutes 1. The Chairman welcomed Panel Members to the meeting and provided an overview of the agenda. 2. The Chairman reported that Garrett Blaney had resigned from the Joint Grid Code Review Panel. The Chairman noted that Garrett Blaney s insightfulness and wittiness will be sorely missed and on behalf of the panel he wished him well in his new capacity with the CER. 3. The JGCRP approved the minutes of the previous meeting held in Belfast on 24 th September. 4. The Chairman noted that there was still an outstanding action on the Regulatory Authorities (RAs) to give further thought to a formal arrangement for changes to the TSC that could potentially require a Grid Code change (item 6 of the minutes). MPID 194 Fail to Synchronise/Fail to Meet Minimum Stable Generation: Discussion on Key Principles Tom McCartan and Marie Hayden provided an overview of the proposed Grid Code changes set out in MPID 194 (attached to these minutes) and stressed that the were giving more thought to what should happen to units that synchronise early, so the current proposed changes should mainly be read from the perspective of late synchronisation. Summary of Concerns Member Comment Response Action Brian Mongan The wording at the end of the proposed SDC2.A.4.1.5 implied that generating units may be asked to synchronise again when they were in fact already synchronised (albeit late) and that this was not technically feasible. There is no objection to the principle of the proposal but does not want a requirement for generating units that synchronise late to have to resynchronise again. A concern is that the unit is asked to come off before it had stayed Maria Hayden and Tom McCartan will reconsider this. Jon O Sullivan recommended a definition for MoT. TSO to include a definition for MoT. Page 2 of 5

on for its Minimum on Time (MoT). Jim Cooke It is unclear what set of technical parameters a generating unit is judged against under the proposed changes, as there are different sets of technical parameters in Northern Ireland (some set out in the Harmonised Ancillary Services contracts and others set out in Appendix A to SDC1). Dick Lewis explained that a further explanation is required to clarify which sets of technical parameters are relevant in the Grid Code version of the proposal. to further clarify technical parameters. But based on discussion point is accepted subject to appropriate clarification. Marie Hayden explained that the technical characteristics in Ireland are those submitted in the TOD. Grainne O Shea The principle itself is reasonable however issues exist. The time windows for late synchronisation (-15/+5). A suggestion was made for the time window to be increased to 15 minutes, in particular given the higher penalties incurred but the Generators for late synchronisation. There are no tolerance bands associated with Failure to Reach MSG and the impact is quite harsh given a unit can loose start up costs, idle costs and all generation is then considered UI. There are a number of reasons why a unit may fail to reach MSG and these reasons should be distinguished. More time is needed to consider the fail to reach MSG. Tom McCartan explained that extending the window to +15 minutes would put the in a worse position than they are in at the moment,-15 +5 already exists in the Grid Code. It would increase the constraint costs borne by the TSO (and ultimately consumers) by having to dispatch another generating unit to compensate for the late synchronisation whilst still making a synchronisation payment to a generating unit that synchronised within 15 minutes following the original synchronisation time. Tom McCartan expressed that there was in fact a 20 min window for the units to synchronise 15 min early and 5 min late and that was being overlooked by the generators. to set out reasons for a failure to reach MSG. It was agreed by all Panel Members that a joint / consultation would be carried out with respect to the Failure to Synchronise and Failure to Reach MSG changes. to look at the concept of warm state. The Chairman concluded that whilst there was no disagreement with the points of principle in the proposed changes, there seem to be a disagreement as to whether the time window for late synchronisation Page 3 of 5

should be 5 or 15 minutes. The Chairman explained that the would make a recommendation that Generators should bear the costs of failing to synchronise within 5 minutes following the originally agreed time and that the RAs would have to take a view on this. Panel members agreed the band for Fail to Synchronise should be no more than -15 and +15 and they will be making such a recommendation to the RAs. John Lynch (CER) queried why a tolerance band was needed if the proposed wording already referred to achieving MSG in accordance with heat rates, which are themselves subject to time limits already. Marie Hayden agreed that referring to a tolerance band might be useful but it would require further thought and would have to be set as a tight period only. Dick Lewis Barry Sherry The proposed definitions refer to Sychronisation to the System and the term System is defined in bold. This term is not defined within the NI Grid Code. Following a failure to synchronise under the proposed Grid Code changes, a Generator would also be declared unavailable under SDC1. Marie Hayden confirmed this is the case however there is an element of discretion around this. It would not be possible for the to develop a detailed process in practice as the need a certain element of flexibility to manage the Transmission System efficiently. All agreed to remove this reference in the definitions which would remove the issue. Page 4 of 5

Summary of Actions Changes to the TSC: RAs Further thought to a formal arrangement for changes to the TSC that could potentially require a Grid Code change. Failure to Sychronise: Include a definition for Minimum on Time Failure to Sychronise/Reach MSG: Clarify technical parameters in NI Grid Code proposal. Failure to Reach MSG: Set out reasons for a failure to reach MSG. Failure to Reach MSG: Look at the concept of warmth state and a possible tolerance. Failure to Sychronise/Reach MSG: Remove reference to the word System in the proposed definitions. Consultation: /RAs It was agreed by all Panel Members that a joint / consultation would be carried out with respect to the Failure to Synchronise and Failure to Reach MSG changes Page 5 of 5