UK Power Networks Becoming a Next Generation DNO. Nick Heyward

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1 UK Power Networks Becoming a Next Generation DNO Nick Heyward

2 About UK Power Networks UK Power Networks is a Distribution Network Operator (DNO), providing power to a quarter of the UK s population through its electricity distribution networks 3.5 million customers 96,000 km of network 6.6 GW Maximum Demand 2.3 million customers 37,000 km of network 5.2 GW Maximum Demand EPN LPN SPN 2.2 million customers 52,000 km of network 4.0 GW Maximum Demand

3 Future Challenges / Opportunities Climate & Energy Landscape Sharp increases in deployments of distribution-connected generation Carbon Plan obligations are changing the mix of generation to more intermittent sources Increases in decentralised generation can cause bi-directional power flows and voltage regulation issues but visibility is limited Increase in electricity demand due to electrification of heat and transport, drives the need for significant levels of distribution network reinforcement % Higher Peak Demand Source; Ofgem;

4 Future Challenges / Opportunities Economic Situation Ageing Assets Slow economic growth softens demand for electricity, reducing pressure on load-related investment We re all in this together - Expectations for greater efficiency and protecting energy bill price rises 10yr boom in installations Large and long-life asset population reaching end of designed life Skills gap as a significant fraction of the workforce approaches retirement

5 Future Challenges / Opportunities Changing Customer Expectations Customer satisfaction is more than good network performance Is your organisation Flawsome?

6 Future Challenges / Opportunities The Need for Smart Grids An electricity power system which can significantly integrate the actions of all users connected to it generators, consumers, and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies. Smart grids are needed to avoid significant investment in networks, but also: Reduce the impact on customer bills Reduce the level of disruption through street-works To ensure carbon targets can be met Maintain UK economic competitiveness

7 DNO to DSO (Distribution System Operator)

8 UK Power Network s Approach to Innovation Smart Urban Low Voltage Network Low Carbon London Case study: Smarter Network Storage Case study: Distribution Network Visibility Flexible Plug & Play For more info:

9 Case Study: Distribution Network Visibility 1/2 Distribution Network Visibility - Improving usability of our operational data Valuable data remained underutilised due to challenges in extracting and processing PI Database LEIGHTON BUZZARD PRIMARY LBUZ_T111KV_AMPS Eng Ave Value Before LEIGHTON BUZZARD PRIMARY LBUZ_TRAN1_VOLT Eng Ave Value LEIGHTON BUZZARD PRIMARY LBUZ_T211KV_AMPS Eng Ave Value LEIGHTON BUZZARD PRIMARY LBUZ_TRAN2_VOLT Eng Ave Value SUNDON 33KV SU33_LBUZZ1_AMPS Eng A Value 01-Jan-09 00:00: Jan-09 00:30: Jan-09 01:00: Jan-09 01:30: Jan-09 02:00: Jan-09 02:30: Jan-09 03:00: Jan-09 03:30: Jan-09 04:00: Jan-09 04:30: Jan-09 05:00: Jan-09 05:30: Jan-09 06:00: Jan-09 06:30: Jan-09 07:00:

10 Case Study: Distribution Network Visibility 2/2 DNV Tool Developed and in use by the business After

11 Case Study: Smarter Network Storage 1/2 Core Aims: Install 6MW / 10MWh advanced lithium-ion storage system Demonstrate multi-purpose application of storage across full value chain Assess and quantify the business models for storage Develop novel optimisation and control systems Develop novel commercial arrangements to enable the shared use 13.2m LCN funding awarded in Nov m investment by UK Power Networks Visualisation

12 Smart Optimisation & Control System (SOCS) Also in conjunction with:

13 Benefits of Innovation The journey to a next-generation DNO will take time, and there is much uncertainty to navigate Wide-range of solutions needed, to avoid closing doors But our innovation is providing real benefits: Increased deployments and demonstrations of smart solutions have been key to gaining confidence in the use of these as real alternatives We have built 135 million of savings into our recent RIIO business plan, based on technology-innovation We are in the early stages of transformation much to do!

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