FUEL MIX DISCLOSURE 29 October 2015 Fuel Mix

FUEL MIX DISCLOSURE 29 October 2015

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 2

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 3

Fuel Mix Disclosure - Objectives • Increase market transparency • Comply with consumers’ rights • Enable consumers to make informed decisions • Educate consumers and stimulate electricity generation 4

Sample FMD Label on Customer Bill 5

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) 6

Fuel Mix Categories • • Coal Natural Gas Peat Renewables Oil Nuclear ‘Other’ • Any fuel less than 1% classed as ‘Other’ 7

All Island Fuel Mix 2014 8

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 9

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 10

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 11

GO Certificates in Fuel Mix Disclosure • Legislation came into effect 28 th 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 + 1 12

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 13

GO Imports have increased steadily over the last few years. 14

AIB Membership • Ireland became a member of the Association of Issuing Bodies (AIB) on May 19 th 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 15

Interaction Fuel Mix and GOs 16

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 17

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 18

Supplier Declaration Form • The latest Supplier Declaration form is available on the FMD Page on the SEMO website: http: //www. semo. com/guaranteesoforigin/Pages/fuelmix. aspx 19

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) 20

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 21

Fuel Mix Disclosure Calculation Methodology Supplier Submission Deadline 31 st of March Publication Timeline 30 th of June Data onto bills Two months after publication (overseen by CER) 22

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 23