Information Pack. Embedded Generators 5MW. Should you have any questions in relation to Information Pack, please contact us:

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1 Embedded Generators 5MW Should you have any questions in relation to, please contact us: - LCC@energex.com.au Phone

2 Introduction Embedded generation, is defined as electricity generation directly connected to a Network Operator s distribution network as opposed to a transmission network. Generally, embedded generation consist of one or a combination of engine driven or inverter energy systems installed at the customer s premises for the purposes of providing: An Alternative standby/emergency energy source in the event of a network failure; or As a supplementary electricity supply; or for the purposes of load reduction. This information pack has been developed under clause 5.3A of the National Electricity Rules (Rules) to assist customers with the connection of their generating units to Energex s distribution network. The information pack only applies to those customers who are eligible to use clause 5.3A of the Rules, in general, where your generating unit has a nameplate rating of 5 MW. To improve the clarity and transparency of the connection process and allow the connection applicant to participate more effectively in this process, Energex has developed this information pack. Following are the key things discussed in this information pack: the connection process and the requirements; examples of relevant costs; technical requirements relevant to the assessment of an Application to Connect including single line diagrams of our preferred connection arrangements, schematic diagrams of protection and control systems and; how to make a Connection Enquiry and an Application to Connect to our distribution network. Registration of Embedded Generator 5MW It is important to note that under the requirements of the National Electricity Rules, an embedded generator with aggregate name plate rating of greater than 5MW must register as a Generator unless an exemption is obtained from the Australian Energy Market Operator (AEMO). A standing exemption from registration generally applies to generating systems with an aggregate nameplate rating less than 5MW, however you should consult with AEMO to confirm requirements.

3 Connection of an Embedded Generator 5 MW Summary of Connection Process The connection process involves separate stages with defined outcomes and timeframes: Preliminary enquiry stage The intent of the preliminary enquiry stage is to provide general, high level information and any project specific information that the Distribution Network Service Provider (DNSP) has at hand that may help the connection applicant understand its connection options. Detailed enquiry stage Following the receipt of the preliminary response, connection applicants would have more available information to allow them to assess their business case and determine the appropriate next steps. Note: an enquiry fee may be required at this stage A summary and outline of the purpose of each stage of the Connection Process is shown below. Connection Enquiry Preliminary Response Detailed Response Application & Offer Construct & Commission The Connection Enquiry stage consists of two response stages Preliminary and Detailed Response. The intent of the preliminary enquiry stage is to provide general, high level information and any project specific information that the Energex has at hand that may help the connection applicant understand its connection options. Energex will respond within 15 business days but may not necessary undertake detailed design or technical analysis of the connection application No fees are applicable The intent of this response is to provide you with a detailed, in depth analysis on your proposed project, and information to enable you to move towards progressing to an Application. A Detailed Response will be provided by Energex within 30 business days or as agreed with the customer or their authorised representative Fee may be quoted The purpose of the Application & Offer Stage is to asses your Application to Connect and provide you with a negotiated offer to connect your embedded generator to Energex's distribution network. Energex will prepare an offer to connect at a date no later than four months from the date of receipt of the application to connect. The purpose of the Construct and Commission Stage is construct the infrastructure to enable of connection of your embedded generator to Energex's distribution network Energex will audit your construction and provide acceptance via testing and commissioning

4 Process Flowchart for an Embedded Generator 5MW Connection Applicant Energex Preliminary Connection Enquiry Response to Preliminary Connection Enquiry Detailed Connection Enquiry Response to Connection Enquiry Design of Substation Construction Drawings. And detailed design of Connection Assets by external service provider for Customer Design & Construct Review and Approve Substation Construction Drawings/Detailed Design of Connection Assets Connection Application Design Connection Assets (if DNSP Design & Construct) Prepare Connection Contract Offer and contract Accepted Letter of Offer & Contract Contract Executed Customer D&C DNSP D&C Engage Project Manager & Construction Contractor Notify DNSP on Completion of Construction & Testing Audit Substation Construction & Conduit Installation Construction Completed (DNSP Design & Construct) Audit Construction Rectification of Defects Commission Connection Asset Provide Certificate of Completion Package Accept Connection Asset (Certificate of Acceptance)

5 Detailed Process for an Embedded Generator 5MW Connection Enquiry Under Clause 5A, a new two-stage connection enquiry process has been introduced which consists of a preliminary enquiry stage followed by detailed enquiry stage. With agreement from Energex, connection applicant may skip the preliminary enquiry step. Otherwise, Energex will provide a preliminary enquiry response within 15 business days. The detailed enquiry response is to be completed within 30 Business days. These timeframes to provide enquiry responses are extendable upon mutual agreement. Energex will charge an enquiry fee for preparing a detailed enquiry response. Any fees charged to recover the reasonable costs incurred by Energex to prepare a detailed enquiry response. Lodging a Preliminary Enquiry Please provide the following information: Complete form 1593 connection enquiry for Embedded Generators Provide details of the type of Embedded Generator Connection, e.g., Diesel Standby Generation, Cogeneration, Solar PV etc. Provide rating/size and type of embedded generation. Total load of site without generation connected (MW and MVA). Capacity of the generation including individual units (MW and MVA output). Advice if intending to export to the grid. If exporting to grid, provide the expected energy exported (MWh per month) and operating hours. For existing customers, provide NMI. For new customers, provide NMI if available. Single line diagram Provide the target date for connection. Energex Response to Preliminary Enquiry Energex will provide a response based on the information provided as follows: A schematic diagram of the assets to be installed, which will indicate the dedicated connection assets that the customer will be required to fund and the shared or network assets Energex will install to provide the capacity to make the connection. The diagram will identify proposed network coupling point(s) to connect the connection assets to the network. Basic lead-time to make connection available. Any other information set out in Schedule 5.4A of the Rules (such as technical information about Energex s distribution network, relevant access standards and whether any proposed services may be contestable Outline the next step in the process.

6 The preliminary response may not be appropriate to use for budget or final timing purposes. Key Timeframes: Within 5 business days of receiving the Connection Enquiry, Energex will acknowledge your enquiry and advise you in writing whether or not your enquiry is complete. Energex will specify any deficiencies, and may require you to provide additional information Within 15 business days of receipt (unless you have elected to skip the Preliminary Response stage), Energex will provide a Preliminary Response which contains the information set out in Schedule 5.4A of the Rules Lodging a Detailed Connection Enquiry Please provide the following information: Complete all mandatory fields on the Embedded Generation Enquiry form (Form 1519) Fill out and attach Request for Generator Information (Form 1551) for mechanical generators, and Request for PV/Inverter Information (Form 1552) for solar generators. Provide your proposed target date for connection of electricity supply. Provide site construction drawings of the proposed substation, conduits and pits and associated building/site drawings to Energex standards. Any requirements for relocation of existing mains, or installation of underground mains in lieu of existing overhead mains. Details of any risks to the project, e.g., environmental concerns such as vegetation, acid sulphate soils etc. If you have more than one option to be considered, please provide the same amount of detail for each option as above. If you have decided to design and construct the Connection Assets using Energex rated service providers, please attach the preliminary copy of the consultant s works plan. Note that if the submitted information is not sufficient for Energex to provide a Detailed Enquiry Response, Energex will consider the Enquiry to be non-compliant. Energex will request the outstanding or additional information to make the Enquiry compliant. Energex Response to a Detailed Connection Enquiry Energex will provide one or more options in regard to installing both Network and Connection Assets for provision of generator connection. Energex will quote the preliminary fees required to proceed with an Application to Connect. On request Energex will provide preliminary cost for the construction of the Connection Assets. Fault level contribution of the generator at full generation showing fault level increases at other relevant adjacent connection points.

7 Technical requirements and performance standards e.g.; power transfer capability A schematic diagram of the assets to be installed, which will indicate the dedicated connection assets that the customer will be required to fund the design and construction of the connection assets. The diagram will identify proposed network coupling point(s) to connect the connection assets to the network. Key Timeframes Within 5 business days of receiving the request for a Detailed Response, and all additional information identified in the Preliminary Response, Energex will provide written acknowledge the receipt of your request. Within 10 business days of receiving the information above, and it is incomplete in a material respect, Energex will advise in writing of the deficiency and what is required to address it. Connection Application and Offer Connection Application After considering the information provided by Energex in the detailed enquiry response, the Connection Applicant may make an Application for Network Connection Services in accordance with clause and 5.3.4A of the NER. The Connection Applicant must pay the application fee and include the information specified in the Application for Network Connection Services Form and as requested in the Detailed Enquiry Response previously issued by Energex. Key Timeframes Within 5 business days of receiving the request for Application to Connect, Energex will provide written acknowledge the receipt of your request. If your application to connect is incomplete in a material respect, Energex will, within 10 business days of receiving your application to connect, advise you of the deficiency and the steps required to address it. Energex cannot proceed with your application to connect until we have received this information. Connection Application Assessment: Energex considers many factors at each stage of the connection enquiry and connection application process in order to fully assess your connection application. Some of the key factors considered are mentioned below: Geographic location and capacity of the nearby power system assets to support the provision of generator connection Assessment of key technical requirements and performance standards including protection and power quality impacts Ability to meet the project timeframes Statutory approvals required and community impacts Ownership of relevant connection assets including identification of connection point and coupling point Bond or financial security required to minimise Energex s commercial risk exposure

8 Connection Offer Following the receipt of a compliant Application for Network Connection Services and in accordance with the time period specified in the preliminary program, Energex in accordance with clause 5.3.6(a) of the NER must provide an Offer for Network Connection Services to the Connection Applicant. The Offer for Network Connection Services shall contain the proposed terms and conditions for connection to the network and may include a connection contract. The Offer for Network Connection Services shall also include details of the site specific performance Standards, estimated network charges and technical requirements and ENERGEX Connection Charges payable by the Connection Applicant shall be included in the offer. Both Energex and the Connection Applicant are entitled to negotiate with each other in respect to any matters relevant to the connection or supply of electricity. Key Timeframes The Offer to Connect will be made within 4 months of the date of receipt of the Application to Connect and the associated Application Fee has been paid Construction and Commissioning Before the commencement of construction, Energex will enter into a connection agreement with the connection applicant. The construction activities will involve installation of electrical infrastructure, testing and commissioning. Commissioning works will commence prior to energisation of the embedded generator connection. A retail contract with retailer is also required to be finalised prior to connection being energised. Prior to energising or commissioning any HV equipment, a detailed step by step commissioning procedure must be submitted to Energex for approval. Energex needs to ensure that appropriate tests have been completed on all high voltage equipment before it can be safely energised. A detailed Schedule of precommissioning tests will be developed for each embedded generator Commissioning tests must be carried out in accordance with good industry practice. The Connection Applicant and Energex must use their best endeavours to cooperate with each other and coordinate the testing and commissioning of all HV assets. The commissioning tests required may vary depending on the size and type of generator and the location, and may include the following: Ensuring Synchronising tests Proving correct operation of all protection schemes required earth fault protection Proving functionality of communication systems Power Quality testing including harmonics Services offered by Energex Services offered by Energex are generally classified into two categories: a) Standard Control Services and b) Alternative Control Services. In relation to your Embedded Generation project, list of services that Energex can provide is listed below: Some services are contestable and you have the option of either nominating Energex or external Energex rate contractor for provision of these services. List of Energex rated contractors can be provided to you if requested. If Energex is providing the service, and the service qualifies as a chargeable service we will provide you with a quote tailored to your needs. Upon acceptance of the quote, we will issue you with an invoice which will be payable prior to commencement of work.

9 Service Description Conducted By Fee Provision of feasibility advice, specification and standards Energex or an Energex approved service provider Provision of Preliminary Response Provision of detailed response Indicative Network Charges Design Audit Provision of early information to assist customers in early viability assessment of their projects. May include, but is not limited to: Provision of an indication of general costs involved in construction Advice about unregulated assets (e.g. Customer ownership models) Provision of relevant technical information about Energex s network including guidance on how customers may meet the requirements listed under S5.4A of the NER Identification of other parties Energex deems necessary to be involved in the planning of the connection Provision of technical information such as Fault level, Reverse power flow compatibility checks. Provision of estimated costs for preferred connection option Advice on SCADA, Communications & Protection. Advice on Community, environmental and property aspects/approvals. Provision of indicative Sitespecific network charges connection option Review/audit of design prepared by external consultants Site Inspection Reasonable expenses as required in order to determine the nature of a connection service sought May be either during Application Stage, or beforehand Design and construction of connection assets Shared network augmentation required for Provision of costs associated with connection assets Upgrade of shared network to accommodate embedded Energex Energex Energex Energex Energex or an Energex approved service providers Energex or Energex approved service providers Energex Depending on the information required, you may be charged a fee(to be quoted) No separate fee applicable Fee to be quoted No separate fee applicable Fee to be quoted Fee to be quoted Fee to be quoted Fee to be quoted

10 an Embedded generator connection generator connection Appendix A Chapter 5 Requirements Chapter 5 NER Requirement Description Information 5.3A.3(2) Single line diagrams of the DNSPs preferred connection arrangements and a range of other possible connection agreements for integration of an embedded generating unit, showing the connection point, the point of coming coupling, the embedded generating unit(s), load(s), meter(s), circuit breaker(s) and isolator (s). Energex s preferred connection arrangements are pictured below Additional information & diagrams can be found in the Large Customer Connection Manual document. Information can also be found in the Energex Standard for the Connection of Embedded Generator 5MW. Both documents are available on Energex website. Single Line Diagrams for Example A and Example B

11 Typical Examples Type of Fee Costs(incl GST) Example A Connection Enquiry Fee Detailed $30k to $40k Response Application fee $5k to $9k Example B Connection Enquiry Fee Detailed $50k to $60k Response Application fee $12k to $15k Note: The cost provided above in the examples A and B doesn t include the design and construction costs. These costs are assessed case by case basis and are dependent on the scope and division of responsibility of works. Chapter 5 NER Requirement Description Information 5.3A.3(3) Sample schematic diagram of the protection system relevant to the connection of an embedded generating unit to the distribution network, showing the protection system and control system, including all relevant current circuits, relay potential circuits, alarm and monitoring circuits, back up systems and parameters of protection and control system elements. 5.3A.3(4) 5.3A.3(5) 5.3A.3(6) Worked examples of connection services charges, enquiry and application fees for the connection of embedded generating units, based on the preferred and possible connection arrangements set out in paragraph(b)(2). Details of any minimum access standards or plant standards the Distribution Network Service Provider considers are applicable to embedded generating units and generating units Technical requirements relevant to the process of a Connection Enquiry or an Application to Connect, including information of the type, but not limited to: (i) protection systems and protection schemes; (ii) fault level management principles; (iii) reactive power capability and power factor correction; (iv) power quality and how limits are allocated; (v) responses to frequency and voltage disturbances; (vi) voltage control and regulation; (vii) remote monitoring equipment, control and communication requirements; (viii) earthing requirements and other relevant safety requirements (ix) circumstances in which Annex C of the Customer Standard for Embedded Generation (Exceeding 5MW) outlines the typical protection schemes (via schematics) relevant to the connection of an embedded generator to the Energex distribution network. Please refer below: Information related to access standards can be found in section 5.3 of the Standard for Embedded Generator >5MW. This information details the Automatic access standards, Minimum access standards and Negotiated access standards. Information regarding the technical requirements relevant to an enquiry or application for an embedded generator are outlined in Standard for Embedded Generation 5 MW. This information includes, but is not limited to the protection and control system arrangements required, fault level management principles, power quality, frequency and voltage disturbances, voltage control and regulation and power factor.

12 5.3A.3(7) augmentation may be required to facilitate integration of an embedded generating unit into the network; and (x) commissioning and testing requirements Model connection agreements used by that Distribution service provider Energex s connection agreement applicable to Embedded Generators can be found on the Energex website

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