This document is the Replacement Reserve (RR) Schedule Methodology Document. Section T of the Balancing and Settlement Code (BSC) requires the BSC Panel to establish this document (and subsequently have it in force at all times), for the purpose of settling Replacement Reserve (RR) delivered by Balancing Service Providers (BSPs) in Great Britain (GB).

<div data-id="1-1.1" style="text-align:justify">1.1 Background</div>

<div data-id="1-1.2" style="text-align:justify">1.2 What is Project TERRE?</div>

<div data-id="1-1.3" style="text-align:justify">1.3 Why does the BSC require an <u class='defined-term'>RR Schedule</u>?</div>

<div data-id="1-1.4-1.4.1" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">1.4.1 Setting the baseline for settlement of subsequent BOAs</div>

<div data-id="1-1.4-1.4.2" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">1.4.2 Calculation of Balancing Energy <u class='defined-term'>Deviation Volume</u>s</div>

<div data-id="1-1.4-1.4.3" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">1.4.3 Determination of Non-Delivery Volumes and Non-Delivery Charges</div>

<div data-id="1-1.4-1.4.4" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">1.4.4 Determination of Imbalance Prices</div>

<div data-id="1-1.4-1.4.5" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">1.4.5 Adjustment of Energy Imbalance Volumes</div>

<div data-id="1-1.4" style="text-align:justify">1.4 What is the <u class='defined-term'>RR Schedule</u> used for in <u class='defined-term'>Settlement</u>?</div>

<div data-id="1" style="text-align:justify">1 INTRODUCTION</div>

<div data-id="2-2.1" style="text-align:justify">2.1 General Principles</div>

<div data-id="2-2.2" style="text-align:justify">2.2 Principles relating to ramps</div>

<div data-id="2" style="text-align:justify">2 PRINCIPLES UNDERLYING THE RR SCHEDULE METHODOLOGY</div>

<div data-id="3-3.1" style="text-align:justify">3.1 Inputs and Outputs</div>

<div data-id="3-3.2-3.2.1" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.2.1 Treatment of Discontinuities in the RR Baseline</div>

<div data-id="3-3.2" style="text-align:justify">3.2 Process for testing a candidate ramp duration</div>

<div data-id="3-3.3-3.3.1" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.1 Step 1 – Derive RR Baseline</div>

<div data-id="3-3.3-3.3.2" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.2 Step 2 – Create Ramps of Ten Minutes or Less (where possible)</div>

<div data-id="3-3.3-3.3.3" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.3 Step 3 – Create An Initial Ramp of 11 to 30 minutes (where possible)</div>

<div data-id="3-3.3-3.3.4" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.4 Step 4 – Create A Final Ramp</div>

<div data-id="3-3.3-3.3.5" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.5 Step 5 – Create a straight ramp (without reference to Run-Up or Run-Down Rates)</div>

<div data-id="3-3.3-3.3.6" style="margin-left:0.59in;text-align:justify;text-indent:-0.59in">3.3.6 Step 6 – Collate the <u class='defined-term'>RR Schedule</u></div>

<div data-id="3-3.3" style="text-align:justify">3.3 Procedure for Constructing <u class='defined-term'>RR Schedule</u></div>

<div data-id="3" style="text-align:justify">3 <u class='defined-term'>RR Schedule</u> Methodology</div>

<div data-id="4" style="text-align:justify">4 PROCESS FOR AMENDING THIS METHODOLOGY</div>

<div data-id="appendix-1--definitions-and-terms" style="text-align:justify">APPENDIX 1 – DEFINITIONS AND TERMS</div>

<div data-id="step-1--determine-the-profile-pt-to-which-the-ramp-must-be-added" style="text-align:justify">STEP 1 – Determine the profile P(t) to which the ramp must be added</div>

<div data-id="step2a--model-an-upwards-ramp" style="text-align:justify">STEP2A – Model an Upwards Ramp</div>

<div data-id="step2b--model-a-downwards-ramp" style="text-align:justify">STEP2B – Model a Downwards Ramp</div>

<div data-id="step-3--assess-the-candidate-ramp" style="text-align:justify">STEP 3 – Assess the candidate ramp</div>

<div data-id="appendix-2--detailed-logic-for-testing-candidate-ramp-duration" style="text-align:justify">APPENDIX 2 – DETAILED LOGIC FOR TESTING CANDIDATE RAMP DURATION</div>

CONTENTS

Replacement Reserve Schedule Methodology V2.0

Defined Terms

Cross-references