Connection to the Electricity Grid 2. Electricity Connection Agreement with TSO Licence Condition: This Licence is Mandatory. Electricity Connection Agreement with the TSO Name of Form: Application for Connection to the Electricity Transmission System Generators Required if: If a CHP facility is seeking to connect to the transmission system. CHP facility's seeking connection of less than 20MW size may wish to consider a connection to the distribution system first. Available From: Download the Application Form Here >> Connection Offer Process - Guidance Notes >>   This form is also available from: Eirgrid: The Connection Offer Process Submit To: The Transmission System Operator (TSO) Application Fee: Fees vary according to the demand capacity and generation capacity of the connection, and whether any shallow works are required. The schedule of fee rates is set out in section 4.1 of the Guidance Notes. View the Guidance Notes >> Accompanying information required Two signed copies of the ESBNG standard confidentiality agreement First instalment (€7,000 inc VAT) of the application fee When to submit: Once you have received Budget Quotation letter and associated estimated costs. Average Length of Time taken for the application to be processed: TSO will make a connection offer within 70 days of receipt and acceptance of a completed application form The offer will be valid for a period of 70 business days from the date of issue of the connection / quotation offer Available Guidance: Connection Offer Process - Guidance Notes >>   Applicants have the facility to explore connection options with ESB National Grid (ESBNR) prior to submitting a connection application. ESBNR offers a fee-based 'pre-feasibility study' service designed to explore connection opportunities without engaging in the Connection Offer process if required.   1. Electricity Connection Agreement with Distribution System Operator 2. Electricity Connection Agreement with Transmission System Operator

FURTHER INFORMATION:

Transmission Connected CHP Facilities

An application for connection to the transmission system is made by submitting an application to the TSO, together with two signed confidentiality agreements, together with two signed confidentiality agreements and the first instalment of €7,000 of the application fee. The second instalment will depend on the capacity of the development and whether shallow connection works will be involved. Details of application fees are set out in the Process for Connection to the Transmission System in Ireland issued by ESB National Grid on the 16 June 2003.

The TSO will make a connection offer within 70 business days from receipt and acceptance of a completed application, except in the case of complex connections. The connection offer will comprise an offer letter which sets out relevant charges and a standard form Connection Agreement. The connection offer is valid for a period of 70 business days from the date of issue of the offer letter.

In order to accept a connection offer, the generator will have to provide a signed copy of the Connection Agreement, pay the first instalment of the Connection Charges (equal to 10%) and provide a Connection Charges Bond for the remainder of the Connection Charges, an MEC Capacity Bond can be drawn down if the applicant city Bond equal to €10,000 per MW of contracted capacity and possibly also an MIC Capacity Bond. The MEC Capacity Bond can be drawn down if the applicant's generation plant has not passed all capacity tests or the applicant fails to submit a Capacity Certificate.

Payment of Connection and Use of System Charges

Transmission connection charges in Ireland are based on a shallow rather than a deep connection charging policy. (CER Direction CER/23/12) As an incentive for the ESB National Grid to complete the necessary deep reinforcement works, generators are granted "deemed firm" access to the system after prescribed time periods, after which the generators will be paid constraint payments if they are constrained off (i.e. the site is given permission and access to export its entire generating capacity to the network. If the network cannot take the full amount, company will be paid a 'constraints payment'). CER Direction CER/01/72: "Firm and Non-Firm Access to the Transmission System"

CHP producers largely pay connection and use of system charges on the basis of the predominant use being made of networks. If a CHP producer's maximum import capacity (MIC) exceeds its maximum export capacity (MEC), then connection and capacity charges are levied on its MIC, on the same basis as a final customer. CER Direction CER/03/237: "Network Charges for Autoproducers and CHP Producers". If a CHP producer's MEC exceeds its MIC, then connection and capacity charges are levied on its MEC, on the same basis as a generator. (Excluding costs required in relation to the provision of export meters which must be paid for in full)

However, certain other transmission usage and system charges are payable in respect of any net electricity imports and all electrical exports, save that where a CHP Producer connected to the distribution system has an MEC of less than 10 megawatts, that person shall not be charged generator related Transmission Use of System Charges.

• subject to certain limited exceptions, all connection offers shall be made within 70 business days of receipt of a complete application and all connection offers shall be valid for a period of 70 business days;
• there shall be a single combined queuing system for all generator connection applications in the application process;
• all transmission offers issued from 14th May 2004 shall not be required to place a connection charges bond and will be subject to a schedule of payment of 25% of shallow connection costs on Offer Acceptance, 50% on Consents Issue Date, and 25% on Connection Works completion;
• all connection applicants shall pay application fees and modification fees; · all connection applicants shall be required to post a Capacity Bond of €10,000 per megawatt as a condition precedent to offer acceptance;
• a validity period of 36 months shall apply from execution of the transmission connection agreement to the Transmission Shallow Operational Date or execution of the distribution connection agreement to the Final Energisation date; and
• transmission connected generators less than or equal to 10 megawatts and distribution connected generators shall post a Decommissioning and Reinstatement Bond (D&R Bond) on Year 15 following commissioning of the generation unit (or units) or two years prior to decommissioning, whichever is the earlier. Transmission connected generators above 10 megawatts shall post a D&R Bond on notification of the decommissioning of the generation unit or units as required by the Grid Code.