Application to Orkney Sample Clauses

Application to Orkney. Deliverable D7.1 showed that energy regulation is mainly decided at national level in the UK [251]. Scotland’s competence in this field is very limited and Orkney enjoys no particular regime. However, there is potential, mainly driven by grid constraints and “a thirst for local supply arrangements”[252]. Based on this analysis, applying the existing legal regime in the UK to Orkney to further develop the SMILE project activities may translate as follows. It may be possible to group local distributed flexibility sources, for example, inside the same ANM zone, as explained in section 3.4.1, inside a licence-exempt company potentially engaged in generation, distribution and supply. This would allow for a VIU controlling up to 10 MW of generation and distributing and supplying a maximum of 2.5 MW at a time to domestic consumers and possibly an additional 2.5 MW to non-domestic consumers (such as businesses or shared services sites). Otherwise, it will depend on the local unbundled DSO (SSEN) to operate such a grid. In order to operate as a microgrid, the main obstacle is still islanding and the provision of flexibility services – other than maximising self-consumption and limiting curtailments, as is already done – given the small size of these installations. Indeed, in the existing network codes, islanding through the formation of power islands providing black-start services and the provision of ancillary services is limited to type C and D PGMs, and are thus reserved for generation capacities higher than 10 MW. Yet, at distribution level, the DNO (SSEN) can agree with local actors on the conditions for islanding in order to maintain supply, but only in case of an outage. Finally, rules regulating Orkney’s market are evolving. Ofgem has, for example, conditionally authorised the construction of a new 220 MW transmission cable from Orkney to mainland Scotland, which is significantly more than the current connection capacity of 40 MW. The condition involves the need to demonstrate by the end of 2021 that at least 135 MW of new generation capacity will be connected to the grid in Orkney relatively soon [253]. However, this is unlikely to fully solve the existing curtailment issues given that congestion mostly arises within Orkney’s grid. Such a development will not hamper the local market for flexibility but it will reinforce the importance of electricity exports to mainland for generation installed in Orkney and may logically reduce the interest in creating mic...
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Related to Application to Orkney

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