Common use of EMBEDDED GENERATION Clause in Contracts

EMBEDDED GENERATION. The Supplier agrees that, in relation to purchase by it of generation from a Customer: such generation shall be subject to agreement between the Supplier and the relevant Customer on the terms of such sale and purchase; it shall offer reasonable terms for such purchase where requested to do so by the Authority or a Customer; the invoicing options offered under any such arrangements shall allow for the payments for excess generation to be included as a credit on the Customer’s invoice under any Customer Contract; all equivalent generation non-energy components will be passed through at the relevant cost or benefit; and the Supplier will provide the following options: an export arrangement using the Supplier's standard business processes; and pricing the power using a Day Ahead Index agreed between the Parties (each acting reasonably), and that, under each pricing option, the equivalent generation value on a site by site basis can be included as a line item on the relevant supply invoice. In order to effect the agreement of the Parties set out in Paragraph 11.6 in relation to Embedded Generation, the Parties will comply with the provisions of, and prices for Contract Blocks will be fixed in accordance with, Annex 3. [ Note: Schedule 3, and Annexes, will be amended should this be required to ensure that the Supplier’s Award Questionnaire Response on the relevant issues is reflected in contractual form. The Supplier’s response to those questions dealing with innovation may be particularly relevant. ] This Annex 1 sets out the mechanism by which the Authority and the Supplier can agree to fix the price of a Contract Block through a Linked Transaction pursuant to an Indirect PPA and fix the price of equivalent volumes in the Purchase Shape. The Supplier may inform the Authority that: it is a party to or intends to become a party to an agreement which it wishes to be treated as an Indirect PPA; and that it wishes to enter into a Linked Transaction with the Authority in respect of a specified Linked Block of a specified Export Type; and the Authority may, at its sole discretion, consent to this. The Authority may request the Supplier to offer: an Indirect PPA; and a Linked Transaction in respect of a specified Linked Block of a Specified Export Type. The following principles will be reflected in the terms and conditions of any Linked Transaction for non-intermittent generation: a half hourly generation forecast will be provided by the Supplier; the Supplier will, acting reasonably, translate this forecast into Contract Blocks at the NBP and notify the Authority and generator of this (taking into account any increase to forecast metered volumes for Distribution Losses and Transmission Losses); a fixed £/MWh price at NBP proposed by the Supplier, and as agreed by the Authority at its discretion, will apply both for the payments for the metered export and for the purpose of the price to be fixed in respect of the relevant Contract Blocks under this Agreement; generation in excess of the Contract Block NBP Volume (as determined in accordance with the process described in paragraph 4.2) will be sold on to the N2EX Day Ahead Hourly Auction and any shortfall volume will be purchased on the N2EX Day Ahead Hourly Auction; and terms in relation to tolerance fees, if applicable, will be agreed on a case by case basis in relation to each Indirect PPA. This may include provision for compensation by the generator in relation to failure to notify of unplanned outages. The following principles will be reflected in the terms and conditions of any Linked Export Transaction for intermittent generation: the Supplier will determine a reasonable Contract Block size based on the capacity of the generator and forecast output; the Authority will determine an Index to apply both for the payments to the generator for the metered export and for the purpose of the price to be fixed hereunder; the relevant Index is subject to a deduction in the Linked Transaction to reflect the imbalance risk to the Authority; the price to be fixed hereunder shall be the relevant Index Price; and generation in excess of the Contract Block NBP Volume (as determined in accordance with the process described in paragraph 5.1) will be sold on to the N2EX Day Ahead Hourly Auction and any shortfall volume will be purchased on the N2EX Day Ahead Hourly Auction. Without prejudice to any other provision in this Framework Agreement in relation to audit, the Supplier will provide meter details and any other assistance to the Authority to allow the Authority or an appointed auditor to independently monitor and verify generator performance and price paid for generation. The Parties may enter into a Linked Transaction for a Contract Block only if the Indirect PPA relates to Contract Blocks of the same volume, and which relate to the same complete Month, complete Quarter or other complete relevant period as the relevant Contract Block (“Corresponding Block”). The Supplier shall take delivery of electricity under each Indirect PPA at the NBP. The export meter volume delivered under each Indirect PPA shall be adjusted by applying the applicable distribution losses, transmission losses and GSP Group Correction Factors (as defined in the BSC) to the generator’s metered volume. If, following notification pursuant to Paragraph 2, the Authority wishes to enter into the relevant Linked Transaction, or following any notification pursuant to Paragraph 3: the Authority shall send a signed Linked Confirmation in respect of the Linked Transaction to the Supplier; and the Linked Transaction shall take effect only if the Supplier receives a signed Linked Confirmation from the Authority by 4:00pm on the day on which the Supplier received the request pursuant to Paragraph 2, or consent pursuant to Paragraph 2. The Supplier shall: obtain the Authority’s prior written consent before terminating all of part of an Indirect PPA or a Corresponding Block; and where the Authority has so consented, promptly notify the Authority in writing of any such termination. If one or more Customer and/or the Authority suffers an financial loss as a result of any breach or termination of an Indirect PPA, whether on a ▇▇▇▇-to-market basis or otherwise, the Supplier shall pay to the Authority an amount equal to the aggregate of all such financial losses of Customers and the Authority. The Authority shall in no circumstances be liable to, or be required to compensate, the Supplier in connection with any losses suffered or incurred by the Supplier directly or indirectly as a result of any breach, termination, default, performance or non-performance of or under any Indirect PPA. Each Party shall comply with the terms and conditions of each Linked Export Transaction. The Supplier shall procure that the generator under each Indirect PPA complies with the terms and conditions of that Indirect PPA. The price of a Contract Block supplied under an Indirect PPA shall be calculated in accordance with the following formula: Where: N is the number of Settlement Periods the relevant Month RV is the relevant electrical output value for each Settlement Period calculated as (REONBP x Linked Export Contract Price) DV is the Deviation Settlement Price for each Settlement Period calculated as: - where REONBP is greater than FN, (REONBP – FN) x Settlement Sell Price - where REONBP is less than FN, (FN - REONBP) x Settlement Buy Price FN is the volume of the Contract Blocks in the most recent nomination of Contract Blocks made by the Supplier in accordance with the terms of the relevant PPA TF is any tolerance fee payable in respect of each Settlement Period OA is any other adjustment or reconciliation to the sum calculated in accordance with this Paragraph 14 and to which the Authority, in its absolute discretion, agrees in writing V volumes of the Contract Blocks translated pursuant to Paragraph 4.2. Dated………………………………….. Signed……………………………………………. Duly authorised on behalf of [Supplier] Signed………………………………… Duly authorised on behalf of the Minister for the Cabinet Office as represented by Crown Commercial Service Dated…………………………….. Signed…………………………………. Duly authorised on behalf of [Supplier] Signed………………………………….. Duly authorised on behalf of the Minister for the Cabinet Office as represented by Crown Commercial Service Where a Customer generates electricity on its own Site(s), such Site(s) is/are connected to the Distribution Network and that Customer wishes to export electricity which it does not consume to the National Distribution Network, the Supplier shall buy that exported electricity where requested to do so by the Customer.

EMBEDDED GENERATION. The Supplier agrees that, in relation to purchase by it of generation from a Customer: such generation shall be subject to agreement between the Supplier and the relevant Customer on the terms of such sale and purchase; it shall offer reasonable terms for such purchase where requested to do so by the Authority or a Customer; the invoicing options offered under any such arrangements shall allow for the payments for excess generation to be included as a credit on the Customer’s invoice under any Customer Contract; all equivalent generation non-energy components will be passed through at the relevant cost or benefit; and the Supplier will provide the following options: an export arrangement using the Supplier's standard business processes; and pricing the power using a Day Ahead Index agreed between the Parties (each acting reasonably), and that, under each pricing option, the equivalent generation value on a site by site basis can be included as a line item on the relevant supply invoice. In order to effect the agreement of the Parties set out in Paragraph 11.6 in relation to Embedded Generation, the Parties will comply with the provisions of, and prices for Contract Blocks will be fixed in accordance with, Annex 38. [ Note: Schedule 3, and Annexes, will be amended should this be required to ensure that the Supplier’s Award Questionnaire Response on the relevant issues is reflected in contractual form. The Supplier’s response to those questions dealing with innovation may be particularly relevant. ] This Annex 1 sets On or before entering into a New Direct PPA the Authority shall notify the Supplier of the information set out in Paragraph 1.2 in relation to that New Direct PPA. The information referred to in Paragraph 1.1 is: the mechanism by name of the Generator; the location and description of the Facility, including its fuel or technology type, its actual or anticipated Net Capacity, the Delivery Point and whether it is a baseload (having an expected or actual load factor of 0.8 or greater) or intermittent Facility; the anticipated or actual dates on which the Facility will commence, or has commenced, commissioning and commercial operations and the date upon which the relevant New Direct PPA is expected to expire (if such expiry is during the Term); the anticipated date from which the Supplier is required to purchase electricity under the New Direct PPA; the prices at which the Authority has agreed to purchase the Relevant Electrical Output: during the Commissioning Period (which will be determined based on the Commissioning Payment Calculation, but with such changes as are necessary to take into account differences between the Existing Direct PPA and the Supplier can agree relevant New Direct PPA. Such changes may include, without limitation, inclusion of ROC Payments where ROCs are to fix be purchased under the price relevant New Direct PPA), where relevant; after the Commissioning Period (which will be determined based on the Post-Commissioning Payment Calculation, but with such changes as are necessary to take into account differences between the Existing Direct PPA and the relevant New Direct PPA. Such changes may include, without limitation, inclusion of ROC Payments where ROCs are to be purchased under the relevant New Direct PPA), where relevant; (in £ per MWh), or on the basis of a Contract Block through a Linked Transaction pursuant to an Indirect PPA relevant Published Index, on and fix after the price Commercial Operations Date (being the Export Power Price); the fixed proportion (which may be 100%) of equivalent volumes in the Purchase Shape. The Supplier may inform Electrical Output of the Facility that the Authority that: it is a party has agreed to or intends to become a party to an agreement which it wishes purchase from the Generator; whether ROCs, LECs, REGOs and New Benefits are to be treated as an Indirect PPApurchased; and that it wishes to enter into a Linked Transaction with the Authority in respect of a specified Linked Block of a specified Export Type; Embedded Benefit Percentage, ROC Percentage, LEC Percentage, ▇▇▇▇ Percentage, Recycling Percentage and the Authority may, at its sole discretion, consent New Benefit Percentage to this. The Authority may request the Supplier to offer: an Indirect PPA; and a Linked Transaction in respect of a specified Linked Block of a Specified Export Type. The following principles will be reflected in the terms and conditions of any Linked Transaction for non-intermittent generation: a half hourly generation forecast will be provided by the Supplierapply; the Supplier will, acting reasonably, translate this forecast into Contract Blocks at the NBP and notify the Authority and generator definition of this (taking into account any increase to forecast metered volumes for Distribution Losses and Transmission Losses); a fixed £/MWh price at NBP proposed by the Supplier, and as agreed by the Authority at its discretion, will apply both for the payments for the metered export and for the purpose of the price to be fixed “Outage” in respect of the relevant Contract Blocks under this Agreement; generation in excess of the Contract Block NBP Volume (as determined in accordance with the process described in paragraph 4.2) will be sold on to the N2EX Day Ahead Hourly Auction and any shortfall volume will be purchased on the N2EX Day Ahead Hourly Auction; and terms in relation to tolerance fees, if applicable, will be agreed on a case by case basis in relation to each Indirect PPA. This may include provision for compensation by the generator in relation to failure to notify of unplanned outages. The following principles will be reflected in the terms and conditions of any Linked Export Transaction for intermittent generation: the Supplier will determine a reasonable Contract Block size based on the capacity of the generator and forecast outputFacility; the Authority will determine parameters outside of which an Index updated forecast must be provided pursuant to apply both for the payments to the generator for the metered export and for the purpose Paragraph 3.5 of the price to be fixed hereunderAnnex 7; the relevant Index is subject to a deduction in the Linked Transaction to reflect the imbalance risk to the Authority; the price to be fixed hereunder shall be the relevant Index Price; and generation in excess of the Contract Block NBP Volume (as determined in accordance with the process described in paragraph 5.1) will be sold on to the N2EX Day Ahead Hourly Auction and any shortfall volume will be purchased on the N2EX Day Ahead Hourly Auction. Without prejudice to any other provision in this Framework Agreement in relation to audit, the Supplier will provide meter details and any other assistance to the Authority to allow the Authority or an appointed auditor to independently monitor and verify generator performance and price paid for generation. The Parties may enter into a Linked Transaction for a Contract Block only if the Indirect PPA relates to Contract Blocks of the same volume, and which relate to the same complete Month, complete Quarter or other complete relevant period as the relevant Contract Block (“Corresponding Block”). The Supplier shall take delivery of electricity under each Indirect PPA at the NBP. The export meter volume delivered under each Indirect PPA shall be adjusted information reasonably requested by applying the applicable distribution losses, transmission losses and GSP Group Correction Factors (as defined in the BSC) to the generator’s metered volume. If, following notification pursuant to Paragraph 2, the Authority wishes to enter into the relevant Linked Transaction, or following any notification pursuant to Paragraph 3: the Authority shall send a signed Linked Confirmation in respect of the Linked Transaction to the Supplier; and the Linked Transaction shall take effect only if the Supplier receives a signed Linked Confirmation from the Authority by 4:00pm on the day on which the Supplier received the request pursuant to Paragraph 2, or consent pursuant to Paragraph 2. The Supplier shall: obtain the Authority’s prior written consent before terminating all of part of an Indirect PPA or a Corresponding Block; and where the Authority has so consented, promptly notify the Authority in writing of any such termination. If one or more Customer and/or the Authority suffers an financial loss as a result of any breach or termination of an Indirect PPA, whether on a ▇▇▇▇-to-market basis or otherwise, the Supplier shall pay to the Authority an amount equal to the aggregate of all such financial losses of Customers and the Authority. The Authority shall in no circumstances be liable to, or be required to compensate, the Supplier in connection with any losses suffered or incurred by the Supplier directly or indirectly as a result of any breach, termination, default, performance or non-performance of or under any Indirect PPA. Each Party shall comply with the terms and conditions of each Linked Export Transaction. The Supplier shall procure that the generator under each Indirect PPA complies with the terms and conditions of that Indirect PPA. The price of a Contract Block supplied under an Indirect PPA shall be calculated in accordance with the following formula: Where: N is the number of Settlement Periods the relevant Month RV is the relevant electrical output value for each Settlement Period calculated as (REONBP x Linked Export Contract Price) DV is the Deviation Settlement Price for each Settlement Period calculated as: - where REONBP is greater than FN, (REONBP – FN) x Settlement Sell Price - where REONBP is less than FN, (FN - REONBP) x Settlement Buy Price FN is the volume of the Contract Blocks in the most recent nomination of Contract Blocks made by the Supplier in accordance with the terms of the relevant PPA TF is any tolerance fee payable in respect of each Settlement Period OA is any other adjustment or reconciliation to the sum calculated in accordance with this Paragraph 14 and to which the Authority, in its absolute discretion, agrees in writing V volumes of the Contract Blocks translated pursuant to Paragraph 4.2. Dated………………………………….. Signed……………………………………………. Duly authorised on behalf of [Supplier] Signed………………………………… Duly authorised on behalf of the Minister for the Cabinet Office as represented by Crown Commercial Service Dated…………………………….. Signed…………………………………. Duly authorised on behalf of [Supplier] Signed………………………………….. Duly authorised on behalf of the Minister for the Cabinet Office as represented by Crown Commercial Service Where a Customer generates electricity on its own Site(s), such Site(s) is/are connected to the Distribution Network and that Customer wishes to export electricity which it does not consume to the National Distribution Network, the Supplier shall buy that exported electricity where requested to do so by the Customer.