FUEL MIX DISCLOSURE

29 October 2015

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Fuel Mix Disclosure - History

• Article 3(6) of the Internal Market Directive (Directive 2003/54/EC)• Final customers must see overall Fuel Mix & Individual

Mix & related Environmental Info

• Transposed as Regulation 25 of S.I. 60 of 2005

• RES Directive 2009/28/EC

• No connection between National Targets & Fuel Mix Disclosure

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Fuel Mix Disclosure – Relevant Papers

• Decision Paper SEM-11-095 (Enduring Decision)• Consultation Paper SEM-11-058

Related Papers:• Decision Paper CER/11/82

• Supervisory Framework for Administration of Guarantees of Origin

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Fuel Mix Disclosure - Objectives

• Increase market transparency

• Comply with consumers’ rights

• Enable consumers to make informed decisions

• Educate consumers and stimulate electricity generation

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Sample FMD Label on Customer Bill

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Fuel Mix Disclosure - Overview

• SEMO completes the calculation on an annual basis

• Required to calculate• All Island Fuel Mix• Individual Supplier Mixes and• Emissions Factors

• Suppliers submit declarations and ‘claim’ generators (Both in-market and out-of-market)

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Fuel Mix Categories

• Coal• Natural Gas• Peat• Renewables• Oil• Nuclear• ‘Other’

• Any fuel less than 1% classed as ‘Other’

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All Island Fuel Mix 2014

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Emissions Factors

• SEMO calculate an emissions factor for each thermal fuel type

• Data is sourced from EPA (Ireland) and DOE (Northern Ireland)

• SEMO applies emissions factors to Supplier mixes to calculate each Supplier’s emissions factor

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Fuel Mix Disclosure Calculation Methodology

• Calculation based on:• Guarantees of Origin (including Imports)• PSO PPAs in Ireland• Generator Attributes• EU Residual applied to remaining demand

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GO Certificates – What is a GO

• Guarantee of Origin• 1 MWh value• Guarantee that electricity has been produced from

a renewable source• Examples of renewable sources:

Wind, Solar, Ocean Energy, Biomass, Hydropower, Landfill Gas, Aerothermal, Geothermal, Hydrothermal

• Purpose of GO: to be used in FMD• In ROI, GO scheme is administered by SEMO• In NI, GO scheme is administered by Ofgem

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GO Certificates in Fuel Mix Disclosure

• Legislation came into effect 28th March 2011 S.I. 147

• ROI Scheme only

• Issued from 2011 onwards

• GOs for Year X are valid for use in the FMD calculation for Year X or Year X + 1

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Imported GO Certificates

• Ensure REGOs are ‘Retired’ by the end of March each year

• Done through Ofgem Registry

• Participants can import GO from a number of European countries via the AIB trading hub, SEMO must be informed prior to initiating import

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GO Imports have increased steadily over the last few years.

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• Ireland became a member of the Association of Issuing Bodies (AIB) on May 19th 2015

• Members can connect to the AIB trading hub

• Facilitates efficient trading of GOs between members

• For more information on the AIB and its members: http://www.aib-net.org/portal/page/portal/AIB_HOME

AIB Membership

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Interaction Fuel Mix and GOs

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Generator Attribute Pack

• In order to claim non Renewable generation:

• Complete the pack

• Generator advises which Supplier the attributes should be assigned to

• Latest Generator Attribute Pack is available from the FMD Page on the SEMO website : http://www.semo.com/guaranteesoforigin/Pages/fuelmix.aspx

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Supplier Declarations

• Supplier may present the information as an All Island Fuel Mix

• However, submission must be done per supplier licence

• Supplier must declare that:• Information provided is true and accurate• Valid contracts/PPAs/Relevant

Arrangements/Intermediary Arrangements are in place

• Claimed GOs will only be used in this Fuel Mix Disclosure period

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Supplier Declaration Form

• The latest Supplier Declaration form is available on the FMD Page on the SEMO website: http://www.sem-o.com/guaranteesoforigin/Pages/fuelmix.aspx

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Fuel Mix Disclosure Calculation Methodology

Supplier Claims GOs (including imported GOs) + PSO PPA contracts + Generator Attributes

Residual Mix Total Energy (SEM + out-of-SEM) - exported GOs - Supplier Claims (excluding imported GOs) + EU Residual Mix (as applied to unassigned energy based on movement of GOs)

Overall Mix Residual Mix + Supplier Claims

Supplier Mix [(Settlement Net Demand – Within SEM Claims) * Residual Mix] + Supplier Claims (including Out-of-SEM)+ Adjustment for unused PSO Generation (ROI only)

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Fuel Mix Disclosure Calculation Methodology

Loss Factors Single Loss Factor applied to all demand: representing the difference between Generation (adjusted for Net IC flow) and demand - (adjust up)

Imports/Exports Imported GOs + Exported GOs (EU residual applied to any unassigned generation based on this movement)

Other Category Under 1% of total Generation

Emissions Factors Calculated by SEMO and applied to Supplier’s Mix

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Fuel Mix Disclosure Calculation Methodology

Supplier Submission Deadline 31st of March

Publication Timeline 30th of June

Data onto bills Two months after publication (overseen by CER)

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FMD Timeline

The latest FMD Timeline is available from the SEMO website via the following link: http://www.sem-o.com/guaranteesoforigin/Pages/fuelmix.aspx