UK Power Networks Innovation and future energy systems. Neil Madgwick & Giulia Privitera 3 March 2017

Transcription

1 UK Power Networks Innovation and future energy systems Neil Madgwick & Giulia Privitera 3 March 2017

2 Agenda 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

3 About UK Power Networks Measure % of industry Meter points 8.2m 28% Population served 20m 30% New connections 46,000 35% Distributed generation connected ( ) ED1 totex allowance (2012/13 prices) 3.7GW 25% 6,029m 25% Energy distributed 84.8TWh 28% Peak demand 16GW N/A Service area 29,250km 2 12% Underground network 139,000km 29% Overhead network 46,500km 15% Customer density 44 per km N/A 3

4 Great track record of performance A fundamental transformation getting the basics right The safest The most reliable UKPN DNO 1 DNO 2 DNO 3 DNO 4 DNO 5 DNO An employer of choice Lost time incidents/100 employees CI CML CML The lowest cost Average domestic distribution costs (DPCR5) 15/16 prices 105 UKPN NPG WPD SSEPD ENWL SPEN A good service provider The most innovative 100% success rate in innovation funding competitions Ofgem broad measure 4 4

5 Key forces influencing the future of our industry Distributed Generation & Energy Storage Local Energy Delivering your electricity Smart Meters and the connected home Micro generation / storage Electrification of heat and transport 5

6 Year Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Million Volume Capacity MW Changing external environment The pace and scale of change is increasing UK Power Networks Electric Vehicle Baseline 1.5 Forecast Formal Storage Applications - cumulative W/E 6 January , ,000 10,000 5, Year Formal Volume Formal Capacity Transmission System Operators (TSOs) will increasingly rely on distribution resources to manage the system 6

7 Scaling up to deliver 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) Coincident 1000% growth in inbound applications 7

8 DNO to DSO transition Passive DNO Ensuring backup Active DNO Managing a dynamic network Interaction Behaviour change Commercial change Capabilities DNO LCTs DSO Flexibility Asset owners Incremental / targeted at issues Community energy How to explore capabilities Whole system consideration 8

9 Our innovation strategy continues to be pivotal Technical Commercial Services ANM New technologies Interface with National Grid (TSO) DNO TSO Power electronics and fuel poverty Understanding smart grids Connecting more DG 2016 TDI Low Carbon London Flexible Plug and Play Smarter Network Storage Kent Active System Management FUN LV Energywise Transmission/Distribution Interface 9

10 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 7 out of 7 projects awarded funding 77m net savings to customers 62m funding awarded 10

11 UK Power Networks Innovation Portfolio Key learnings relevant to community energy Connection of renewables Smart meters Domestic and I&C Demand Side Response Energy efficiency Electric vehicles Electrification of heat / heat pumps Energy storage Domestic customer engagement 11 11

12 UK Power Networks Innovation Portfolio Flexible Plug and Play (FPP) Flexible connections of renewables 12 Low Carbon London Distributed generation, smart meters, domestic & T&C DSR, EVs, heat pumps Smarter Network Storage Large scale storage energywise Kent Active System Management (KASM) Validation of PV connection assessment tool Energy efficiency, smart meters domestic DSR with fuel poor customers Contingency analysis tool that facilitates connection of renewables Assess PV connections and impact on the network Domestic Energy Storage & Control Residential energy storage 12 12

13 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: Project cost: 5.49m ( 3.32m LCNF) Duration: 4 years ( ) explores how to support fuel poor customers and allow them to participate in energy saving and DSR opportunities supports DNOs both in shaping their engagement strategies and managing networks using flexible alternatives 13

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

15 Key Lessons Learnt 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

16 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 Project cost: 3.9m (3.4m from LCNF) Duration: 3 years ( ) 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. 16

17 Moving towards a Distribution System Operator Active DNO Managing a dynamic network Interaction Behaviour change Commercial change Capabilities Flexibility tender Flexible DG TDI 2.0 project LCTs DSO Community energy Flexibility Flexibility tender - this year we will run a tender to procure flexibility as an alternative to network capacity to optimise network investment decisions 17

18 Flexible DG Where we are now UK Power Networks now has the most connected generation capacity in the UK under active network management Flexible DG has supported: 111MW connected to EPN Over 20 generation sites 39.9MW 68.35MW 0.5MW Flexible DG is supporting the low carbon transition - enabling cheaper and faster connection of renewable energy - reducing the need to build new network 18

19 Flexible DG What we have announced 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 Extending our Flexible DG service across East Anglia - Target to cover the whole East Anglia by 2021 Continuing to expand our Flexible DG service 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

20 Transmission & Distribution Interface 2.0 TDI 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

21 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 21

22