Thank you for joining the Future Worlds consultation webinar. The webinar will start at 14:03.

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1 Open Networks Thank you for joining the Future Worlds consultation webinar. The webinar will start at 14:03. For audio please dial Please ensure that your microphone is switched to mute to avoid background noise and your camera is not in use. You may ask questions via the chat function throughout the webinar, where possible we will respond to these questions during the webinar. Please note that this webinar will be recorded and that the audio, chat messages and slides will be made available on our website. Should you want any further information regarding the Future Worlds consultation, please don t hesitate to get in touch with us at opennetworks@energynetworks.org. 1 Open Networks Future Worlds consultation

2 Energy Networks Association Open Networks Project Overview Jason Brogden Open Networks Project Director

3 Open Networks Open Networks (ON) is pan industry initiative that is laying the foundations of a smart, flexible energy system in the UK. Taking a whole system approach, ON looks at the transition to DSO that will create new markets and enable flexibility. ON is a key forum for addressing the challenges around evolving roles and responsibilities in the short, medium and long term. ON is a key initiative to deliver Government policy set out in the Ofgem and BEIS Smart Systems and Flexibility Plan, the Government s Industrial Strategy and the Clean Growth Plan We are working in collaboration with Ofgem, BEIS, 10 of UK and Ireland s electricity network operators and other key stakeholders from the industry 3

4 Collaborating Members 4

5 Open Networks Consultations Future Worlds Consultation (WS3 P5) 5

6 Introduction Future Worlds is the output of a substantial stakeholder engagement process to map and describe a number of potential future electricity networks ( Future Worlds ) capable of supporting the smart decentralised energy industry that the UK is transitioning towards. At this stage we do not seek to recommend any particular Future World but instead to understand them, creating a common view of how each works allowing informed debate and decisions to follow. 6

7 Today s webinar Overview of consultation, its aims and approach Background to the development of the future worlds and how we ve taken your feedback into account Description of the outputs of our work so far Our proposed next steps 7

8 Energy Networks Association Open Networks Future Worlds consultation Andy Wainwright Business Lead, Whole Electricity System, National Grid (ESO)

9 Overall aims of the consultation The Future Worlds consultation builds on the 2017 Commercial Principles paper, but considers all the functions of DSO rather than simply market models. Products 1&2: SGAM modelling In brings together many of the key products for the project in 2018 such that the overall aims of the consultation are; Obtain feedback on the future worlds developed and their associated SGAM models including whether we have reflected stakeholder interactions appropriately Product 6: Key enablers for Future Worlds Product 5: Future Worlds Consultation Product 3: Market agnostic DSO elements 9 Review draft criteria and proposed structure for the Impact Assessment Obtain feedback on both key enablers and market agnostic DSO elements to inform these products. Product 4: Assessment of Future Worlds

10 Timeline for workstream 10

11 Consultation approach The Future Worlds consultation document High level document summarising the worlds from a stakeholder perspective Intended audience; Stakeholders who want a high level view of our work Feedback via consultation responses The EATL modelling summary Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs Intended audience; Stakeholders who want to understand the future worlds in detail The Models Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail Intended audience; Stakeholders who value being able to explore and critique the SGAM models World A World B World C World D World E 11

12 Consultation areas The Future Worlds The Smart Grid Architecture Model The principle of neutral market facilitation Stakeholder insights A description of the five Future Worlds A high level summary of the methodology employed to build the Smart Grid Architecture Models An overview of why the principle of neutral market facilitation is important Key stakeholder insights for each of the 23 actors described in the models Assessing the Worlds Our intended approach to impact assessment modelling of the worlds inviting your views Key enablers for the Future A description of the key enablers needed to deliver the future worlds Proposed next steps A summary of our proposed next steps including our work on least regrets analysis 12

13 Introducing the Worlds World A: DSO coordinates a world where the DSO takes a central role for all distribution connected parties acting as the neutral market facilitator for all DER and provides services on a locational basis to the ESO World B: Co-ordinated DSO - ESO procurement and dispatch a world where DSO and ESO work together to efficiently manage networks through co-ordinated procurement and dispatch of flexibility resource. World C: Price driven flexibility a world where changes developed through Ofgem s reform of electricity network access and forward-looking charges have improved access arrangements and forward looking signals for customers. This world has been built with flexibility arrangements as described in World B, but it is recognised that charging and access developments could be similarly progressed in other worlds. World D: ESO coordinates a world where the ESO takes a central role in the procurement and dispatch of flexibility services as the neutral market facilitator for DER with DSO s informing the ESO of their requirements World E: Flexibility coordinator(s) a world where a national (or potentially regional) third party acts as the neutral market for DER providing efficient services to the ESO and/or DSO as required 13

14 Future Worlds Actors The consultation presents outcomes through the lens of the 23 stakeholder groups (referred to as actors) developed in these Worlds. 14

15 Future Worlds consultation Any questions? Please message via webex chat function 15

16 Developing the Worlds The Future Worlds have been developed from other Open Networks products; The market models described in the 2017 Commercial Principles paper Commercial Principles paper The DSO functions and activities The principle of neutral market facilitation We have also used stakeholder feedback from; Stakeholder feedback The Future Worlds DSO Functions The Commercial Principles paper The 2018 Open Networks work programme A series of industry workshops Principle of neutral market facilitation 16

17 The Principle of Neutral Market Facilitation The Future Worlds consider a range of parties who may facilitate flexibility markets in the future; Distribution System Operators (DSOs) National Grid in its role as Electricity System Operator (ESO) Third party organisations taking on the role of Flexibility Co-ordinators We believe that all parties facilitating flexibility markets will need to adopt the principle of neutral market facilitation 17

18 The DSO Functions System coordination Network operation Investment planning Connection & connection rights System defence & restoration Services / market facilitation Service optimisation Charging 18

19 How stakeholders helped develop the worlds Through a series of workshops the functions and activities in each world were discussed. Communication links for functions and activities between actors were defined to be recorded in the Smart Grid Architecture Model (SGAM) 19

20 What s in SGAM Through a series of layers, SGAM records the actors and the communication linkages between them. Each world is represented in a separate model This facilitates; comparison and assessment of the worlds Further development of the structure as required 20

21 Stakeholder Insights Through the workshops the key stakeholder groups (known as actors ) were identified. Following stakeholder feedback a focus area for the consultation has been describing the impact of the Future Worlds on each of these actors. We are interested in your feedback on these impacts. 21

22 Least Regrets Analysis Assessment of the five future worlds has identified areas of common functionality between the worlds These areas could present opportunities to implement aspects of smart grid now We are interested in your thoughts on this work to inform our next steps 22

23 Key Enablers for the Future We have identified a number of key enablers required to be developed to facilitate the Future Worlds. These enablers are required regardless of the world developed. We are interested in your views on this list and short term priorities for ensuring enablers are in place. Changes to industry structure: Regulatory changes Organisational changes Developing a market-based approach: Market engagement Contract requirements Funding Facilitating information and data exchange Communications infrastructure IT systems Network visibility and control 23

24 Next Steps 24

25 Future Worlds consultation Any questions? Please message via webex chat function 25

26 Energy Networks Association Webinar closing remarks Jason Brogden Open Networks Project Director

27 Impact Assessment; proposed timeline The Impact Assessment will be undertaken by independent consultants Mindful of timescales we are already progressing the consultant selection We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach 27

28 Impact assessment; draft criteria We are proposing to take an approach consistent with the HMT Green Book Through the Future Worlds consultation we are seeking your views on this approach and also the data sources to be used The Strategic Case Enhanced customer experience Greater environmental sustainability The Economic Case Financial benefits Whole system optimisation The Commercial Case The Financial Case The Management Case Industry structure & organisation Technical performance 28

29 How to get involved We are using a variety of means to reach out to stakeholders during the consultation period, which runs between 31st July 2018 and 25th September 2018 inclusive. Stakeholder Events Webinar 1-21st August 2018 Edinburgh - 29th August 2018 London - 3rd September 2018 Webinar 2-13th September 2018 Please visit the ENA Open Networks Future Worlds page for further information. You can respond to the consultation via ; opennetworks@energynetworks.org 29

30 Future Worlds consultation Any final questions? Please message via webex chat function 30

31 Additional Slides 31

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