The EU Medium Combustion Plant Directive (MCPD) – what it could mean for your generators and DSR

© EnerNOC, Inc. All rights reserved. www.enernoc.com
23rd November 2017
EU MCPD – What Could It Mean For Me?

1© EnerNOC, Inc. All rights reserved. www.enernoc.com
EnerNOC – an Enel Group Company
We are one of largest energy companies in the world, leader in installed renewable capacity globally.
>38GW of
installed
renewable
capacity
~7GW of dispatchable
demand response
Turn-key battery
storage provider
EV charging specialist
-------------- Internet of Things optimisation platforms ---------------

EnerNOC by the Numbers
Since 2001, we’re the pioneer and global leader in demand response.
14 years’ experience
executing DR
Delivering 50+ DR
programmes
102% delivery rate
since 2006
24x365 global operations
centre in Dublin, Ireland
6.8 GW dispatchable capacity
managed across 14,000+ sites
Leeds and London
Offices
Active in 9 countries
Founding member of European
and UKDR trade associations

Agenda
You’ll walk away with the answers to these three key questions in the next 20 minutes.
 What is the EU Medium Combustion Plant Directive (MCPD)?
 How will it affect you as an owner / operator of a diesel backup generator?
 What are your choices for DSR?

HEADLINE:
Because of the DEFRA interpretation of the
EU MCDP, all diesel owners will need to
comply and report (and possibly clean their
engines), eventually.
For DSR/DSM participation, entering into a
DSR agreement after 31st October 2017 will
affect your date of compliance, effectively
shutting out new DSR contracts and TRIAD
avoidance with engines unless they have
extensive emissions controls.
Everything above subject to size of engine, install date, emissions,
and date of when the DSR contract was secured by your
aggregator (among other things…)

Current Diesel Generation in the Market
 STOR
– Estimated that 70% is diesel
 Capacity Market
– TA1, EA – estimated that 50% was diesel
– TA2 – 0% diesel (by TA2 rules)
– Expected that T-1 and T-4 moving forward
would have been home for backup diesels
 Still possible under certain
circumstances
 TRIAD Avoidance
– G59
 Diesel Farms
It comprises much of the MW market share, but not all…

MCPD / DEFRA Timeline
Two years (minus two days) in the making…
• MCPD passed
by EU
Parliament
25 November
2015
• DEFRA tasked
with ensuring
UK compliance
2016-2017
• Effective date
of EU MCPD
• UK regulations
stricter than EU
19 December
2017
• Compliance
deadlines for
impacted
generators
2019 or 2025
or 2030

SO WHAT?

Key Regulations
 Multiple dates for compliance based on choices you make
 Different rules and regulations based on size of your on-site Thermal Input
 Key Limits on NOx (Nitric Oxide) – which becomes Nitric Dioxide (nasty brown gas)
 Key Limits on SOx (Sulfur Oxide) – a.k.a. “the acid rain” chemical

So What?
DEFINED as EXCLUDED
– May run your engine for no more than
500 hours a year for ANY purpose
– May run your engine for no more than 50
hours a year for testing ONLY
– Ambiguity: What if I “test” during a likely
TRIAD HH?
 Buyer beware…
 Three compliance dates:
– 1/1/2019, 1/1/2025, 1/1/2030
 SOx regulations can likely be met with low
sulphur fuels
 NOx regulations are much harder to
comply with
– If you can’t meet the NOx regulations,
you can choose to be excluded
If you want to still participate in DSR,
choose a different path….

What Should I Do?
More paperwork… to know your gensets.
GENERATOR INFO ENGINE INFO
Genset participates in NG programme? (Y / N) Make:
Make: Model:
Model: Serial Number:
Serial Number: Manufacture Date:
Installation Date: Engine Size and Rating Unit (e.g. kW or hp)
Genset Type
(e.g. internal combustion engine, turbine, boiler, etc.): Start up Type (individual vs parallel/combined startup)
Rated kW / Nameplate Capacity: Maximum engine heat input (kW or MJ/hr)
Primary Fuel Type
(e.g. diesel, natural gas, propane, etc.): Maximum fuel consumption rate (Litres per hour)
Purpose of generator:
(e.g. emergency backup, CHP) Photo of nameplate provided? (Y/N)
Photo of nameplate provided? (Y/N)

Key Questions:
When do you
need to comply?
Can I do
DSR/TRIAD?
Tranche A?
Tranche B?
Are you located
in England or
Wales?
What is the
Thermal Input of
all engines on
site?
What are your
NOx emissions?
Are you subject
to a NEW
balancing
services
agreement?
Do I run for
blackout and
testing only?
Do I run my
engine for DSR /
TRIADs?
What type of fuel
do I use?
When was my
engine installed?

What does this mean for DSR / TRIAD participation?
Capacity Market
T-4 vs. T-1 (critical distinction)
You CAN participate, if you:
- Participate with an aggregator who has
secured capacity in a T-4 for 2018/19,
2019/20 or 2020/21
- Are less than 5 MW thermal input
- Emit less than 500 mg NOx/Nm3
If you do this, your date for compliance will
be accelerated to 1/1/2025.
TRIADs
You CAN continue to use your engines for
TRIAD avoidance if you:
- Do NOT participate in any NEW balancing
services (i.e., new STOR, T-1)
- Do plan to comply with emissions standards
by 1/1/2025
- Do NOT run more than 500 hours annually
Your date for compliance will be 1/1/2025 or
1/1/2030, depending on the size of your
Thermal Input on-site (and if you participate
in a Grid Programme)

Aggregator
2016 TA
Awarded
2017 EA
Awarded
2017 TA
Awarded
2018 T-4
Cleared MW
2019 T-4
Cleared MW
2020 Cleared
MW
PRICE per kW/year 27.50£ 6.95£ 45.00£ 19.40£ 18.00£ 22.50£
British Gas 4 40
E.On 10 36 63 165
EDF 10 9 10
Endeco 3 70 70
Energy Pool 23 25 26 5
EnerNOC 65 87 217 500
Flexitricity 36 58 163 183 220
Kiwi 137 60 232
Limejump
Origami 10
Scottish Power 4
Smartest 20 40 87
SSE 43
De-Rated CM Positions - Selected Market Participants

Confused Yet?
Here’s what you should do to keep your business ahead of this curve.
 Talk to your aggregator / energy partner
– We (ENOC) have experience in the US
with upgrading engines to meet new
emissions compliance
 Make management aware of the pending
regulations
 Determine the financial benefit of DSR
participation and/or Triad participation
 Anticipate future costs and budget for
emissions controls

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