Common use of Trial GO / NO GO decision Clause in Contracts

Trial GO / NO GO decision. Whilst it is expected that the Power Potential trial will proceed as planned, the Project Steering Committee may deem it necessary to halt the project if it cannot deliver on its core objectives. With respect to DER participation, this decision would focus on two indicators: 1. Sufficient participation, defined as having at least 7 participants signed up to the project 2. Sufficient effect, defined as expecting to see at least 40MVar of Reactive Power availability across the GSPs. The project will also consider business readiness to deliver the Trial and the readiness of the technical solution. From a technical perspective, we track detailed progress of the overall build and test of the DERMS solution and its system integration, and we will use our mailing list to inform our stakeholders, including participating DER, of the technical progress. In October 2018, the project decided to adopt a staged approach to delivery of the DERMS solution – starting with an Interim Solution followed by the DERMS Full Solution. The Interim Solution is sufficient to start Wave 1, but would not support the whole Trial. The DERMS Interim Solution provides a technical demonstration of key aspects of the infrastructure including communication from National Grid’s systems to DERMS to UKPN’s network management system to RTUs and DER controllers and in reverse. DER providers will still use the web interface to enter their availability data. We have committed to inform DER of the project’s progress, including development of the DERMS and as a minimum, reporting on the following development milestones: 1. the build of the individual components of the DERMS Interim Solution is complete by 21st Dec ‘18 2. the ‘Factory/System Acceptance Test’ (FAT/SAT) for the DERMS solution is complete i.e. the system is working in UKPN’s cloud-based test environment by 4th Feb ‘19 3. the ‘Site Integration Test’ (SIT) for the solution is complete i.e. end-to-end system test on a pre-production environment by 25th Mar ‘19 4. the ‘Operational Acceptance Test’ (OAT) for the solution is complete on our live systems 22nd Apr ‘19, before the two-week period for Mandatory Technical Trials beginning 13th May ‘19. Expected dates for these are also included in APPENDIX 1 – Indicative Market Trial Calendar. Similar dates will be published for the DERMS Full Solution. If any of these criteria are not met, the Steering Committee may decide not to start the trial. The project’s formal ‘GO / NO GO’ decision will be made at the end of March 2019, with reference to the DER participation and Site Integration Test criteria set out above (alongside business readiness). This will be our ‘GO’ decision to confirm the start of Trials (alongside business and customer readiness), and we expect this to be 6 weeks before the Mandatory Technical Trials begin. In the event that the Power Potential trial does not go ahead, if Providers have successfully commissioned, they will be eligible for compensation for direct costs incurred up to 100% of the total Participation Payment. Compensation will be calculated on an open book basis, and Providers will be asked to produce evidence of costs incurred for upgrades required as a direct result of intending to participate in the Power Potential trials. Once the level of compensation has been agreed, DER will need to invoice UK Power Networks in order to receive payment.

Trial GO / NO GO decision. Whilst it is expected that the Power Potential trial will proceed as planned, the Project Steering Committee may deem it necessary to halt the project if it cannot deliver on its core objectives. With respect to DER participation, this decision would focus on two indicators: 1. Sufficient participation, defined as having at least 7 participants signed up to the project 2. Sufficient effect, defined as expecting to see at least 40MVar of Reactive Power availability across the GSPs. The project will also consider business readiness to deliver the Trial and the readiness of the technical solution. From a technical perspective, we track detailed progress of the overall build and test of the DERMS solution and its system integration, and we will use our mailing list to inform our stakeholders, including participating DER, of the technical progress. In October 2018, the project decided to adopt We will follow a staged approach to delivery of the DERMS solution – starting with an Interim Solution followed by the DERMS Full Solution. The Interim Solution is sufficient to start Wave 1, but would not support the whole Trial. The DERMS Interim Solution provides a technical demonstration of key aspects of the infrastructure including communication from National Grid’s systems to DERMS to UKPN’s network management system to RTUs and DER controllers and in reverse. DER providers will still use the web interface to enter their availability data. We have committed to inform DER of the project’s progress, including development of the DERMS and as a minimum, reporting on the following development milestonesstages: 1. the all DERMS build of the individual components of the DERMS Interim Solution is strands are complete for one GSP by 21st Dec ‘1801/11/18 2. the ‘Factory/System Acceptance Test’ (FAT/SAT) for the DERMS solution is complete i.e. the system is working for one GSP in UKPN’s cloud-based test environment by 4th Feb ‘1905/12/18 3. the first ‘Site Integration Test’ (SIT) for the solution is complete i.e. end-to-end system test on a pre-production environment by 25th Mar ‘1925/01/19 4. the ‘Operational Acceptance Test’ (OAT) for the solution is complete on our live systems 22nd Apr ‘25th Feb 19, shortly before the two-two week period for Mandatory Technical Trials beginning 13th May ‘19. by 08/03/19 Expected dates for these are also included in APPENDIX 1 – Indicative Market Trial Calendar. Similar dates will be published for the DERMS Full Solution. If any of these criteria are not met, the Steering Committee may decide not to start the trial. The project’s formal ‘“GO / NO GO’ ” decision will be made at the end of March January 2019, with reference to the DER participation and Site Integration Test criteria set out above (alongside business readiness). This will be our ‘GO’ decision to confirm the start of Trials (alongside business and customer readiness), and we expect this to be 6 weeks before the Mandatory Technical Trials begin. In the event that the Power Potential trial does not go ahead, if Providers have successfully commissioned, they will be eligible for compensation for direct costs incurred up to 100% of the total Participation Payment. Compensation will be calculated on an open book basis, and Providers will be asked to produce evidence of costs incurred for upgrades required as a direct result of intending to participate in the Power Potential trials. Once the level of compensation has been agreed, DER will need to invoice UK Power Networks in order to receive payment.