Low Carbon Networks Fund Review and Synthesis

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1 Low Carbon Networks Fund Review and Synthesis Damien Frame Keith Bell and Stephen McArthur University of Strathclyde

2 The Low Carbon Network Fund 500m 5 Years Ofgem DNOs Electricity Networks must facilitate the take up of low carbon and energy saving initiatives Innovation help DNOs understand how they provide security of supply at value for money and facilitate transition to the low carbon economy

3 The Need for Review and Synthesis LCN Fund projects should provide valuable learning for the wider energy industry and other parties - Ofgem 41 Tier 1 Projects 23 Tier 2 Projects CLNR and Low Carbon London have published over 100 learning papers alone Our Motivation: Significant learning and data has been generated from a large volume of project activity, with variation in the way outcomes had been reported, published and disseminated The stake holder community would benefit from categorisation and synthesis of the learning to inform future activities and research

4 Methodology Research Questions: What are the main themes of learning that have emerged from LCNF activities? What is the accumulated learning for specific solutions/technology from these themes? Which solutions are closest to Business As Usual? Network Monitoring Network Management Systems Planning Tools End Use Monitoring Voltage Control Power Flow Management Autonomous Control Coordinated Control Policies and Standards Commercial Arrangements Fault Level and Protection Dynamic Asset Rating Power Quality Distribution Transmission Interaction Identifying Learning Themes Demand Profiles ICT EV HP CHP PV DG Flexible Demand Storage Network Assets Framework for categorising projects Assessing progress towards Business as Usual What does the evidence published indicate for BAU?

5 Project Register Learning Topic Context Objective Motivation Title DNO Budget ( m) Tier Start Date End Date Progress Close Down Report Issued Trial Evaluation of Domestic Demand Management Solutions (DDMS) SSEPD 0.28 Tier1 Sep 10 Aug % Yes Voltage Level Distribution Network Visibility 0.25 Tier1 Sep 10 Nov % Yes HV/LV Interconnection of and NGC SCADA systems Tier1 Nov 10 Dec % Yes EHV/HV/LV The 'Bidoyng' Smart Fuse ENWL 0.44 Tier1 Dec 10 Dec % Yes LV Customer Led Network Revolution 31 Tier2 Dec 10 Dec % yes HV/LV Low Carbon London 28 Tier2 Dec 10 Dec % yes HV/LV LV Network Templates 7.8 Tier2 Dec 10 Jul % yes LV LV

6 Categorising Projects Context (what) Demand Profiles ICT EV HP CHP PV DG Flexible Demand Storage Network Assets Learning Topic (how) Network Monitoring Network Management Systems Planning Tools End Use Monitoring Voltage Control Power Flow Management Autonomous Control Learning Topic (how) Coordinated Control Policies and Standards Commercial Arrangements Fault Level and Protection Dynamic Asset Power Rating Quality Distribution Transmission Interaction Coordinated Control

7 Mapping Project Activity Demand Profiles ICT EV HP CHP PV DG Flexible Demand Storage Network Assets Network Monitoring Network Management Systems Planning Tools End Use Monitoring Voltage Control Power Flow Management Autonomous Control Coordinated Control Policies and Standards Commercial Arrangements Fault Level and Protection Dynamic Asset Rating Power Quality Distribution Transmission Interaction

8 Identifying Themes for Synthesis Storage Flexible Demand DG Connection Network Assets Visibility

9 Assessing Business As Usual Based only on review of LCNF publications not of RIIO ED1 submissions or DNO interviews a successful LCNF project is one that generates robust evidence that allows a decision to be made on whether the innovation is ready for consideration as a BAU option to be deployed where appropriate or, indeed, whether the innovation has in fact insufficient benefit and should not be adopted by the DNO Strong Evidence Indications Against Inconclusive Indications For Strong Evidence For Against

10

11 Synthesis Themes Network Visibility Battery Storage Network Assets Connection of DG Flexible Demand

12 Battery Storage LCNF trials present a general picture of early exploration and identification of barriers Valuable field experience has been gained Several technical challenges were reported parasitic load and SOC estimation in particular Commercial, Regulatory and Legal Barriers have been significant Costs currently outweigh the demonstrated benefits BAU Progress Innovation Large Scale Storage Small Scale Storage DNO SSEPD SSEPD

13 Battery Storage Large scale storage may be an attractive, flexible solution for DNOs if it can be contracted from 3rd parties This finding is reflected by recent DNO tenders for flexibility ; however, within LCNF projects, a viable business case for 3rd party storage operators providing services to the DNO remains to be demonstrated Small scale storage may become an attractive solution as a DNO owned asset as technical understanding and control methods develop; however, costs are currently prohibitive Future innovation efforts should be focussed on these two operational models, particularly the benefits smaller scale distributed storage may provide as part of a coordinated control architecture

14 Flexible Demand I&C Flexible Demand has been demonstrated successfully further work is required for Residential Demand Trials on I&C load control show significant benefits close to BAU Innovation Voltage Control I&C flexible connection I&C call-off Residential ToU Residential Appliance Control Residential LCT Control DNO ENW ENW SSEPD* Limited network benefits were observed from residential tariffs or direct control BAU Progress SSEPD * SSEPD s NTVV is testing control of I&C building management systems and is yet to close and report fully LCT flexibility is much greater than existing residential load

15 Flexible Demand Voltage Management and Flexible Load Connections should be considered as BAU options by all DNOs Collaborative efforts to establish industry best practice for I&C DSR should be undertaken addressing: The geographical nature of DSR requirement The best methods of contracting DSR Improved understanding of reliability and appropriate planning methods New methods of harnessing the potential of residential demand response should remain an innovation priority in parallel with efforts to establish the necessary frameworks with suppliers to enable DNOs to access this resource. LCT direct control should remain an innovation priority, developing the technical and commercial understanding of such solutions in addition to the development of appropriate planning tools in readiness for the manifestation of significant LCT adoption

16 Connection of DG LCNF projects have focussed on developing the flexible connection of DG This should now be a BAU option for all DNOs Commercial LIFO dominates Pro-rata suitable in certain scenarios Templates, planning tools and stakeholder engagement process are now well developed Technical The ANM solution has matured Predominately stand-alone, autonomous solutions Understanding of DG contribution to security of supply has progressed BAU Progress Innovation Managed DG connections DNO SPEN * *The SPEN ARC project is testing more innovative ANM arrangements and is yet to close and report fully

17 Network Assets Voltage Control Primary Substations Voltage reduction effective for increasing headroom has good BAU potential Enhanced AVC via relay upgrade, additional control capability and enabling remote configuration, allows improved autonomous control and is a key enabler for area coordinated voltage control Secondary substation OLTC has been shown to release significant legroom but CBA vs LV reinforcement is uncertain BAU Progress Innovation Voltage Reduction Primacy AVC coordinated control Secondary substation OLTC HV/LV Regulators Switched Capacitors DNO ENW SPEN ENW ENW SPEN

18 Network Assets Voltage Control Suggested approaches to voltage reduction vary between DNOs: A permanent reduction of 1% Seasonal reduction up to 3% Autonomous control by Load Drop Compensation up to 3% Coordinated control by wide area control scheme LCNF results indicate the coordinated control of multiple devices across the network enables full value (network capacity) to be realised; however, this has only been partially demonstrated and is deemed difficult and too complex at present Enhanced voltage control functionality for primary substations should be considered as a standard deployment as a key enabler for future voltage management strategies Further innovation for voltage management should focus on the required coordination and control architectures rather than approached from a kittesting perspective

19 Network Assets Ratings RTTR has good potential to release capacity, but bespoke ratings may be sufficient! OHL RTTR Significant potential for rating uplift has been demonstrated A strong case for widespread application at 33kV Innovation Topic 132kV OHL RTTR 33kV OHL RTTR 11kV OHL RTTR Underground Cable RTTR Transformer RTTR DNO SPEN SPEN SPEN * * Transformer RTTR Good potential for uplift for primary transformers BAU Progress * The methods for OHL RTTR tested by projects were deemed unsuitable for wider deployment, contrary to the results from methods trialled by other projects

20 Network Assets Ratings Results reveal that in general, static ratings are not always conservative and RTTR can be less than the static rating much more often the small probability expected by the existing standards. Average uplift for 33kV OHL is in the order of 10-15%. There are conflicting conclusions on the issue of sheltering for 33kV OHL RTTR. RTTR for primary transformers was shown to enable 30% increase in peak loading above nameplate by modelling in one project, however trials were limited to 10% by other asset capacity issues. Other projects had less conclusive results, however, in general, results suggest an uplift of 10% is achievable. RTTR for 11kV OHL, underground cables and distribution transformers requires further work some benefits have been observed, but issues such as rapid variability and improved thermal modelling need to be addressed.

21 Network Assets Interconnection 33kV Interconnection minimal benefit demonstrated from trials 11kV Interconnection significant potential for cost-effective release of network capacity LV Interconnection key trials yet to close and report BAU Progress Innovation 33kV Interconnection 11kV Interconnection LV Interconnection Quadrature Booster DNO SPEN

22 Network Visibility BAU Progress Innovation Topic Enhanced Network Monitoring New Planning Methods using Secondary Substation Load Smart Meter Data use for Planning and Design New Planning Methods for LCT New Planning Methods for PV Enhanced Network Visualisation DNO SSEPD SPEN ENW SPEN ENW SSEPD SSEPD SPEN SSEPD SPEN ENW

23 Network Visibility Although deployment is a BAU process, there is no strong business case for enhanced network monitoring alone; it is an enabler for other innovation or to remove uncertainty caused by LCT penetration Strategies for staged deployment of network monitoring and optimal use of network data approaches and recommendations vary between DNOs The improved understanding of load from several projects indicates that additional capacity can be released under existing planning methods and policy; however, results vary between projects The primary application of smart meters is periodic updating of load profiles Findings on LCT ADMD and planning profiles are from relatively small sample sets further work to characterise LCT demand for robust planning will be necessary as deployments increase. A consensus appears to be building on PV output diversity and updates to planning policy that can release immediate capacity Detailed distribution network modelling has encountered many challenges including: accuracy of asset records, translation of asset records into suitable data formats, integration of new tools into existing systems and databases, availability of suitable commercial packages for new analysis requirements Distribution System State Estimation (DSSE) has been tested further work is required to improve functionality and improve accuracy.

24 Conclusions The learning from LCNF projects undoubtedly leaves the DNOs in Britain with a better understanding of the challenges and potential solutions for networks during the low carbon transition Identifying clear messages from the programme as a whole has been a challenging task - for full value to be taken from innovation funding learning, trials need to produce quality evidence that is regularly consolidated. Ideally, we would like to see: Ofgem agreeing and implementing a suitable knowledge capture framework Requests for innovation funding aligning with this framework to specifically identify the knowledge gaps they intend to address, the proposed research methodology and the evidence their project will expect to generate. It is essential that DNOs continue to consider and evaluate novel technologies and methods that can be applied in planning or operation of their networks and benefit network users and now build on the LCNF learning to develop innovation strategies that are based on a strategic vision, or architecture, of future distribution system operation

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