uk power networks powerpoint · pdf filegreat track record of performance ... cumulative w/e 6...

UK Power Networks

Innovation and future energy systems

Neil Madgwick & Giulia Privitera

3 March 2017

2016. UK Power Networks. All rights reserved

• Key forces influencing future energy systems

• The changing role of the Distribution Network Operator

• Why innovation is key and how it relates to community energy

• Transition to a Distribution System Operator

• Flexible services

2

Agenda


About UK Power Networks

3

Measure % of industry

Meter points 8.2m 28%

Population served 20m 30%

New connections 46,000 35%

Distributed generation

connected (2010-2015)3.7GW 25%

ED1 totex allowance

(2012/13 prices)£6,029m 25%

Energy distributed 84.8TWh 28%

Peak demand 16GW N/A

Service area 29,250km2 12%

Underground network 139,000km 29%

Overhead network 46,500km 15%

Customer density 44 per km N/A


4

Great track record of performance

A fundamental transformation – getting the basics rightAn employer of choice

The most innovative

100% success rate in

innovation funding

competitions

0.05 0.07 0.080.12

0.20.25

0.47

0

0.1

0.2

0.3

0.4

0.5

UKPN DNO 1 DNO 2 DNO 3 DNO 4 DNO 5 DNO 6

The safest

Lost time incidents/100 employees

69

39

78

30

-

20

40

60

80

100

2010 2011 2012 2013 2014 2015 2016

The most reliable

CI CML CML

76 81 87 89 84

105

0

20

40

60

80

100

120

UKPN NPG WPD SSEPD ENWL SPEN

The lowest cost

Average domestic distribution costs (DPCR5) 15/16 prices

7.6

8.18.4 8.5

7.0

7.5

8.0

8.5

9.0

2013 2014 2015 2016

A good service provider

Ofgem broad measure 4


Key forces influencing the future of our industry

• Distributed Generation &

Energy Storage

• Local Energy

• Smart Meters and the

connected home

• Micro generation / storage

• Electrification of heat and

transport

Delivering your electricity

5

2016. UK Power Networks. All rights reserved 6

Changing external environment

0

0.5

1

1.5

Year

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

Mill

ion

Year

UK Power Networks Electric Vehicle Baseline Forecast

675

12,107

-

5,000

10,000

15,000

0

200

400

600

800

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Cap

acit

y M

W

Vo

lum

e

Formal Storage Applications - cumulative W/E 6 January 2017

Formal Volume Formal Capacity

The pace and scale of change is increasing

Transmission System Operators (TSOs) will increasingly rely on distribution resources to manage the system


Scaling up to deliver

Coincident 1000% growth in inbound applications

Distributed Generation (DG) refers

to a productive generator connection

to an electricity distribution network.

Most common generation sources:

• wind turbines

• solar panels/PV

• combined heat and power (CHP)


DNO to DSO transition

DNO

DSOLCTs

Community energy

Flexibility

Interaction

Active DNOPassive DNO

Ensuring backup Managing a dynamic network

• Asset owners

• Incremental / targeted at issues• How to explore capabilities

• Whole system consideration

Behaviour

change

Commercial

change

Capabilities

8


Our innovation strategy continues to be pivotal

Technical Commercial Services

2011 2012 2013 2014 2015 2016

Low Carbon

London

Flexible Plug

and Play

Smarter

Network Storage

Kent Active

System ManagementFUN LV

EnergywiseTransmission/Distribution

Interface

Understanding

smart grids

Power electronics

and fuel poverty

2016

TDI

Connecting

more DG

ANMNew

technologies

Interface with

National Grid

(TSO)

DNO TSO

9


Journey to Innovation

UK Power Networks is the UK’s most innovative DNO

Our business has:

• The most innovative solutions in our business of any DNO

delivering savings in 2015/16

• Delivered the most net savings to customers in 2015/16,

including FDG

• Been successful in every one of the seven projects it has

bid for funding – the only DNO with a 100% success rate

• Been awarded the most competitive innovation funding of

any DNO

• Delivered LCL, FPP, SNS, FUN-LV and energywise all to

be recognised, award winning projects

11 solutions

in BAU

£77m net savings to customers

7 out of 7 projects awarded funding

£62m funding awarded

2016. UK Power Networks. All rights reserved11 11

UK Power Networks’ Innovation Portfolio

Key learnings relevant to community energy

Connection of

renewablesSmart meters

Domestic and I&C

Demand Side ResponseEnergy efficiency

Electric vehiclesElectrification of

heat / heat pumpsEnergy storage

Domestic customer

engagement

2016. UK Power Networks. All rights reserved12 12

Flexible Plug and Play (FPP)

Flexible connections of renewables

Low Carbon LondonDistributed generation,

smart meters, domestic & T&C DSR, EVs, heat pumps

Smarter Network Storage Large scale storage

energywiseEnergy efficiency, smart

meters domestic DSR with fuel poor customers

Kent Active System Management (KASM)

Contingency analysis tool that facilitates connection of

renewables

Validation of PV connectionassessment tool

Assess PV connections and impact on the network

Domestic Energy Storage& Control

Residential energy storage

UK Power Networks’ Innovation Portfolio12


13

Project cost: £5.49m (£3.32m LCNF)Duration: 4 years (2014 - 2017)

Recognised on the international stage with the Community Energy Award at the European Utility Industry Awards 2016

Pioneering ways for DNOs to work collaboratively with energy suppliers and the local trusted organisations to deliver appropriate services to communities of low income households who may be struggling with their energy bills:

• explores how to support fuel poor customers and allow them to participate in energy saving and DSRopportunities

• supports DNOs both in shaping their engagement strategies and managing networks using flexible alternatives


Partnering with highly respected local community organisations was very effective in ensuring successful, inclusive recruitment

We have recruited 500+ social tenants in Tower Hamlets and delivered smart meters and energy efficiency devices, providing insight to the industry on how best to engage with the fuel poor.


Ensuring the transition to a smart system is inclusive to those that are hard to reach:

Consider a tailored approached for those that are most difficult to engage;

A local approach to target ethnic minorities living in specific areas or hard to reach communities;

identify who are the organisations or individuals trusted by specific demographic segments and

what are the messages that resonate with them;

Work in partnership with trusted intermediaries or with champions with local intelligence and

language skills;

Consider face-to-face engagement to communicate to consumers the benefits they may realise

if they opt in to new energy schemes; and

Local champions delivering the key messages

Key Lessons Learnt


Kent Active System Management (KASM)

Objective: Facilitate future connection of DG and manage curtailment of existing DG efficiently

How: Contingency analysis software to maximise DG capacity

16

Project cost: £3.9m (3.4m from LCNF)Duration: 3 years (2015 - 2017)

Improved transmission and distribution interface Load and generation forecasting tool Contingency analysis tool Develop forecasting tools that can be used to run the distribution

network closer to its limits.


Moving towards a Distribution System Operator

Flexibility tender

Flexible DG

TDI 2.0 project

DSOLCTs

Community energy

Flexibility

Interaction

Active DNO

Managing a dynamic network

Behaviour

change

Commercial

change

Capabilities

Flexibility tender

- this year we will run a tender to

procure flexibility as an alternative

to network capacity to optimise

network investment decisions


Flexible DG is supporting the low carbon transition - enabling cheaper and faster connection of renewable energy

- reducing the need to build new network

Flexible DG has supported:

39.9MW 68.35MW

• 111MW connected to EPN

• Over 20 generation sites

Flexible DGWhere we are now

UK Power Networks now has the most connected generation capacity in the UK

under active network management

0.5MW


Extending our Flexible DG service across East Anglia

- Target to cover the whole East Anglia by 2021

In January 2017 we announced the opening of large parts of Norfolk and Cambridgeshire, part of Waveney in north Suffolk and in Maldon and part of Rochford in mid-Essex

Last year we extended Flexible DG to our South East network and a large area between Worthing in Sussex and Margate in Kent, will be open for applications in June 2017

Continuing to expand our Flexible DG service

Flexible DGWhat we have announced


Transmission & Distribution Interface 2.0TDI 2.0 project

We are working in partnership with National Grid to• unlock network capacity• coordinate resources on the distribution network to offer solutions to transmission

constraint• create markets for whole system optimisation

Potential benefits of a reactive power market in the South East: can deliver over 3.7GW of additional generation capacity in the area by 2050 can reduce the need to build additional electricity infrastructure if introduced nationwide, it could save consumers more than £400m by 2050

New market opportunities for distribution customers- Look out for news on application in June 2017


Summary

• UK Power Networks has enabled unprecedented growth in commercial DG

• Innovation continues to be pivotal

• We have captured extensive learnings that are relevant to community energy

through our innovation portfolio

• We are keen to trial new technologies and new ways of doing things as we

transition to a new role as a Distribution Systems Operator (DSO)

• Flexibility procurement, ANM roll-out and DSO-TSO interface are fey areas of

focus

uk power networks powerpoint · pdf filegreat track record of performance ... cumulative w/e 6...

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