Quicker and more cost effective connection of renewable generation

Transcription

1 Quicker and more cost effective connection of renewable generation Session 1a: Flexible Connections for DG Customers Laura Hannant UK Power Networks

2 Our process for developing commercial offers Stakeholder Engagement Principles of Access Flexible Connection Offer Development of Offer 2

3 Customer feedback for the development of a curtailed connection Certainty Transparency Financial benefits 3

4 Defining the Principles of Access is key to setting a suitable commercial framework Constraint Constraint Curtail generators in order of date of application Curtail generators equally Curtailed generation Un-curtailed generation Source: FPP SDRC 9.2 * *UK Power Networks, Principle of Access, SDRC 9.2 for the Flexible Plug and Play LCNF project,

5 We assessed the solutions against 5 criteria Criteria of Assessment: What are we optimising? Key Criteria Pro Rata Last In First Out Network Efficiency More efficient Could lead to capacity underutilisation Fairness Assigns curtailment equally Assigns as first come first serve Simplicity Requires a new framework Simple implementation Learning Has not been implemented in UK Extensive experience Certainty Open-ended in terms of defining the worst case scenario Insulates from impact of future connectees 5

6 Capacity Quota providing certainty for pro-rata Curtailment levels (MWh/yr) will increase as more capacity connects, increasing generators lost revenues We set the quota at the level where the cost of curtailment is equal to or exceeds the cost of reinforcement Source: FPP SDRC 9.2 * *UK Power Networks, Principle of Access, SDRC 9.2 for the Flexible Plug and Play LCNF project,

7 Percentage Curtailment Understanding differences and impact of principles of access on network utilisation 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 33.5MW Pro-rata (sharing) curtailment should allow more generation to connect dependant on assumptions Once you begin offering you cannot change the principles of access Generators Source: FPP SDRC 9.7 * All LIFO Pro-rata quota then LIFO *UK Power Networks, Quicker and more cost effective connections of renewable generation to the distribution network using a flexible approach, SDRC 9.7 for the Flexible Plug and Play LCNF project,

8 Outcomes against the 5 key criteria Key Criteria Pro Rata Last In First Out Network Efficiency Fairness Simplicity Could lead into capacity Pro-rata More efficient can be more efficient depending on assumptions underutilisation The allocation of curtailment is more fair under pro-rata and this has been Assigns curtailment equally Assigns as first come first serve supported by the project The implementation has been fairly simple once the initial documentation Requires a new framework Simple implementation to support the offer was created. Learning Pro-rata Has not is been a suitable implemented alternative in UK solution Extensive experience Certainty Open-ended in terms of defining Insulates from impact of future Pro-rata can provide a very good degree of certainty when a quota is used the worst case scenario connectees Limitations Can only be used on simpler constraints Can be used on more complex constraints 8

9 Clear and transparent information are an integrated part of the commercial framework Flexible Plug and Play Briefing Document CURTAILMENT STUDY CONNECTION AGREEMENT Terms & Conditions Connection Offer 9

10 FPP trial area outcomes 40 FPP offers sent 36 offers March Grid 33.5MW Quota 13 offers March Grid 46 MW 54 customers engaged Total offers Peterborough 15 offers accepted 2 offers Peterborough 8.25 MW MW 15 ACCEPTED FLEXIBLE CONNECTIONS MW enabled to date 5 customers electrically connected 10

11 Benefits of Flexible Plug and Play 37% Percentage of customers accepted the offer in % higher than BAU generation offers 44 million Of benefits already delivered in connection cost savings compared to business as usual ( 38m when including the cost of ANM and curtailment) 194k Average cost per MW of generation to accept 29 weeks Estimated time saved from installing and connecting the Flexible DG customer 11

12 FPP vs. BAU project acceptance rates Total quotations made compared to offers accepted for businessas-usual and FPP commercial offerings Source: FPP SDRC 9.7 * *UK Power Networks, Quicker and more cost effective connections of renewable generation to the distribution network using a flexible approach, SDRC 9.7 for the Flexible Plug and Play LCNF project,

13 Benefits of Flexible Plug and Play 37% Percentage of customers accepted the offer in % higher than BAU generation offers 44 million Of benefits already delivered in connection cost savings compared to business as usual ( 38m when including the cost of ANM and curtailment) 194k Average cost per MW of generation to accept 29 weeks Estimated time saved from installing and connecting the Flexible DG customer 13

14 m FPP vs. BAU offer including ANM and curtailment The total cost of a flexible connection and business-as-usual connection offer Source: FPP SDRC 9.7 * Generators BAU offer FPP offer incl curtailment Savings *UK Power Networks, Quicker and more cost effective connections of renewable generation to the distribution network using a flexible approach, SDRC 9.7 for the Flexible Plug and Play LCNF project,

15 Benefits of Flexible Plug and Play 37% Percentage of customers accepted the offer in % higher than BAU generation offers 44 million Of benefits already delivered in connection cost savings compared to business as usual ( 38m when including the cost of ANM and curtailment) 194k Average cost per MW of generation to accept 29 weeks Estimated time saved from installing and connecting the Flexible DG customer 15

16 Cost per MW ( '000's) FPP accepted offers cost per MW Cost per MW of the FPP offer Source: FPP SDRC 9.7 * Generator *UK Power Networks, Quicker and more cost effective connections of renewable generation to the distribution network using a flexible approach, SDRC 9.7 for the Flexible Plug and Play LCNF project,

17 Benefits of Flexible Plug and Play 37% Percentage of customers accepted the offer in % higher than BAU generation offers 44 million Of benefits already delivered in connection cost savings compared to business as usual ( 38m when including the cost of ANM and curtailment) 194k Average cost per MW of generation to accept 29 weeks Estimated time saved from installing and connecting the Flexible DG customer 17

18 Number of weeks FPP accepted offers delivery timescales Generators Source: FPP SDRC 9.7 * BAU Connection Estimate FPP Connection Estimate *UK Power Networks, Quicker and more cost effective connections of renewable generation to the distribution network using a flexible approach, SDRC 9.7 for the Flexible Plug and Play LCNF project,

19 Key achievements of Flexible Plug and Play Engaged with 50+ DG developers Interviewed 20 Commissioned RF mesh wireless network for wide area comms Trialled two DG access principles: LIFO and Pro rata capacity quota Integrated and commissioned smart devices across 12 sites Made 40 connection offers: 15 accepted, 54.4MW enabled, 44m savings Developed analysis tool for investment options in DG dominated networks Installed and commissioned first quad-booster at 33kV Deployed IEC for interoperability between solution components Successful deployment of new commercial arrangements and interoperable smart grid components to deliver faster and cheaper DG connections For more information visit ukpowernetworks.co.uk/innovation 19