Eirgrid Announces DS3 Interim Arrangements Tender

  A tender was announced by the Irish TSO EirGrid which is set to be the first step in the transition to the new DS3 System Services Arrangements. The Central Procurement Process which will select the projects eligible to compete for DS3 System Services contracts, will open to industry on April 18th 2016 in anticipation of the Interim Regulated tariff going live in October of 2016. This is compulsory for all providers wishing to receive the interim regulated tariff for the delivery of System Services products and further compete in the competitive auction process. The Central Procurement notice will go out to tender on the Official Journal of the European Union (OJEU). Providing Units have 37 days to submit bids for a contract to supply 11/14 System Services to the TSO for the period of 1st October 2016 to 30th September 2017. Potential service providers will be required to detail their ability to deliver the DS3 services through a procurement exercise which will be the subject of further stakeholder engagement at the Bidders Forum which will take place on the 27th of April. Each Provider Unit must have an existing HAS contract, or show demonstrated experience of product provision in order to prove compliance. Bids after the deadline of 25th May will not be considered. Based on this approach the total pot available for System Services could potentially increase by approximately €20m, up from the current pot of approximately €50m. A separate tender will be used to establish the mechanisms by which the characteristics of new technologies can become “Proven” and “Measurable”. Qualification Trials will be used to measure the quality of provision of “fast” services i.e. FFR, FPFAPR, and DRR. Technology trials during the interim period will be open to all generators to prove the measurability of the fast services. Trials will also take place for new technology (storage, batteries, DSU etc) to prove their ability to provide all 14 products. It is expected that the maximum capacity of new technology projects for this trial will be 10 MW and a minimum set at 100 kW. Payments for both trials will be limited and are not expected to exceed €3m over the 2016/17 tariff year. The Qualification Trials will provide a great opportunity for new entrants to prove capability and measurability before the DS3 enduring arrangements beginning October 2017. If you are interested in discussing the services ElectroRoute can offer to maximise generator revenue through DS3, please contact the Client Services team for further information.