WORKSHOP 1EXTENDED RESERVE (AUFLS)

Afternoon session - design of the operational phase

2 & 3 September

2015

2

OPERATIONAL PHASE

Key to success: Efficiently maintain the extended reserve block percentages within given bounds at all times across the North Island (this includes during outages or load changes)

This leads to a key question: How?

3

HIGH LEVEL OPTIONS

• Option A – Central management by service providerso The provider (you) has the obligation to notify a central party of extended

reserve outages or load changeso Central party to identify replacement load at demand unit level for extended

reserve, provider to arm

• Option B – Devolved management by extended reserve providerso The provider has the obligation to maintain the required provision levels of

extended reserve, within percentage min and max levelo Provider to identify replacement load

4

OPTIONS DESCRIBED

• Initial selectiono How the initial selection is done?

• Obligation on providerso What are you required to do?

• Role of central parties

5

INITIAL SELECTION

The tables on following pages indicate the differences between the two high level options

Option A – Central Management Option B – Devolved Management

Same selection process for both:

• Providers provide data

• ERM produces draft procurement schedule

Initial implementation same for both (different terms and conditions)

Same selection process for both

• Providers provide data

• ERM produces draft procurement schedule

Initial implementation same for both (different terms and conditions)

6

OBLIGATION ON PROVIDERS

Option A – Central Management Option B – Devolved Management

Relates to individual demand units Maintain your provision within limits

Provider to notify central party of change in demand units

Central party to select replacement demand units and coordinate changes

Central party to maintain a register

Provider coordinate changes in demand units

Provider to maintain a register

Yearly compliance checks Yearly compliance checks

7

ROLE OF CENTRAL PARTIES

Option A – Central Management Option B – Devolved Management

Obligations managed through central party updating the ER Schedule and SERO

No role for central parties - obligation on the providers

Central party to receive outage notifications and assess against tolerances

No role for central parties - internal assessment against tolerances by provider

Central party to select replacement and instruct a provider to replace

No role for central parties - provider to manage the mix of demand units

Compliance checks Compliance checks

8

GROUP EXERCISES

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GROUP EXERCISES• Breakout into your companies (or if you are a sole representative of

your company, please find a group)• Complete each section of the worksheet

o 1 worksheet per company• Ask questions - project team members are keen to hear of any

questions you may have• Report back to the wider group at the end of each section

o Nominate a spokesperson• Hand in worksheets at the end

Note: Your responses are sought as independent technical advice. Company names will not be recorded.