Energy Networks Association Open Networks Future Worlds Stakeholder Event

Transcription

1 Energy Networks Association Open Networks Future Worlds Stakeholder Event London 3 rd September 2018

2 Welcome & Introduction Nigel Turvey ENA Open Networks Project Chair

3 Housekeeping Amenities Both male and female toilets can be found in the corridor. Emergency Exit Fire escape door is located in the corridor. Signage can be found above entrance. There are no scheduled fire alarms for today. Should there be an emergency, the alarm will sound and instructions will be give via the PA system. Wifi Login: ENA Wireless Password: R0ut3rEn3rgy! Tea & Coffee Tea, coffee and biscuits can be found next to reception or the members area. 3 If you require any further information, wish to take part in the consultation or are interested in hearing more about the ENA Open Networks Project, please us at opennetworks@energynetworks.org.

4 Slido Slido is an interactive platform we are using for our Q&A segments and general feedback. You are able to ask questions via Slido at any point throughout the presentation and we will address as many of them as possible at the end of each session. If you wish to ask a question verbally, please wait until the allotted Q&A segment. Link Website: App/Google Play store search and download: Sli.do Event code #ENAFutureWorlds (non-case sensitive) Login Full name Password ENA (case sensitive) Feedback Poll We are taking feedback on Slido, which is in the form of a poll, which you are able to access within the app/website. Please leave your rating and feedback before you depart to ensure we can improve the effectiveness at future events. 4

5 Introduction Open Networks Project Nigel Turvey ENA Open Networks Project Chair

6 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 6

7 Collaborating Members 7

8 Objectives & Timeline The objectives of the Open Networks Project are to: 1. Develop improved T-D processes around connections, planning, shared TSO/DSO services and operation 2. Assess the gaps between the experience our customers currently receive and what they would like and identify any further changes to close the gaps within the context of level playing field and common T & D approach 3. Develop a more detailed view of the required transition from DNO to DSO including the impacts on existing organisation capability 4. Consider the charging requirements of enduring electricity transmission/distribution systems 8

9 Stakeholder Engagement Undertaken 4 consultations & planned another 2 Published our material on ENA website 4 webinars and 2 focus groups completed with stakeholders 9

10 Workstream 1 T-D Process Sotiris Georgiopoulos UK Power Networks

11 T D Process (WS1) Focussing on whole system approaches across T and D to put in place improved investment and operational planning processes. Building on Phase 1 work e.g. DER Services. Benefits: DER service opportunities Input to Whole System Investment Better information for stakeholders Ongoing network reliability WS1 Products 1 Investment Processes 2 DER Services Procurement 3 Industry Framework Interactions 4 Reliability Standards & Emergency Requirements 5 Whole System FES 6 Regional Service Requirements 7 ANM Information 8 System Wide Resource Register 9 TSO-DSO Transmission Impacts 10 Facilitating Connections Current Practice for Flexible Resources 11 Facilitating Connections Action Plan and Report 12 TSO/DSO & DER Data Requirements 13 Operational Data & Control Architectures 11

12 Workstream 2 Customer Experience Jason Brogden ENA Open Networks Project Director

13 Customer Experience WS2 Products 1 Good Practice ahead of Connection Applications 2 Management of Capacity 3 Explanation of Terms & Definitions 4 Information on Flexibility Services 5 Good Practice Following Connection Applications 6 Guidance on Post Connection Changes 7 Provision of Constraint Information Product Updates Improve information for customers to support network connection and service provision Benefits: Enhanced information on connections & services More consistent customer experience Better practice across Network Operators Improved use of capacity 13

14 Workstream 3 DSO Transition Stewart Reid Scottish & Southern Electricity Networks

15 DSO Transition Develop and model DSO functionality Proposed implementation plan and no regrets DSO actions Impact Assessment of different DSO models Independently reviewed Build evidence base to provide to policy-makers Benefits: Articulation of DSO value Early implementation of key areas of DSO functionality to benefit customers More consistent DNO practice WS3 Products 1 SGAM Modelling of DSOs and DER Procurement 2 Further SGAM Modelling of DSO Functionality 3 Market Agnostic DSO Elements 4 Independent Impact Assessment of Models 5 DSO Model Validation & Review Including Public Consultation 6 Key Enablers for DSO 7 Further Trials to Address Gaps in DSO Functionality 8 Preferred DSO Models & Proposed Implementation Plan 15

16 Workstream 4 Network Charging Paul McGimpsey SP Energy Networks

17 Network Charging Support Ofgem s CFF (Charging Futures Forum) and related Task Forces. Support Ofgem s CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery. Provide support on charging to the wider Open Networks project. Develop recommendations to remove inefficient signals in charging and remuneration of TSO/DSO services. WS4 have contributed significantly to the delivery of the Electricity Network Access & Forward Looking Charges: Final Report and Conclusions report delivered under the CFF Task Forces. 17

18 Coffee Break

19 Ofgem Perspective Edwin Tammas-Williams Ofgem

20 The energy transition and network company regulation Our regulatory stances What will underpin Ofgem s approach Promoting effective competition to deliver for consumers Driving value in monopoly activities through competition and incentive regulation Supporting innovation in technologies, systems and business models Managing risk for efficient and sustainable energy Protecting the interests of consumers in vulnerable situations RPI-X RIIO 1 RIIO-2 and beyond 20

21 The challenge The energy landscape is changing, but how it is changing is uncertain

22 The challenge There are many perspectives on how to achieve this: from evolution to revolution. 22

23 What the challenge means for us 1. Change is necessary 2. The nature and speed of that change is highly uncertain so reforms must be resilient 3. Policy and regulatory changes (radical or otherwise) require a comprehensive evidence base a) Stakeholder expertise is critical b) Building on sound analysis is needed c) A wide range of perspectives adds value. 23

24 ENA Future Worlds consultation Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes We want the outputs to be as useful as possible, therefore engagement with the process is essential Ensure the analysis provided meaningful Fully consider impacts on a broad range of stakeholders Ensure wider perspectives on roles and delivering functions are taken into account 24

25 Ofgem perspective The energy system is changing, and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value There are currently hugely divergent perspectives on what the right arrangements look like This consultation is part of the evidence base we will use to inform our regulatory design, and thus we urge stakeholders to engage 25

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27 Consultation Overview & How to get Involved Andy Wainwright National Grid ESO

28 Future Worlds 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. 28

29 Overall aims 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 workstream 3 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 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 29

30 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 30

31 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 31

32 How to get involved We using a variety of means to reach out to stakeholders during the consultation period, which will run between 31st July 2018 and 25th September 2018 inclusive. Stakeholder Events Webinar 1-21st August 2018 Edinburgh - 29th August 2018 Webinar 2-13th September 2018 London - 3rd September 2018 Please visit the ENA Open Networks Future Worlds page for further information. You can respond to the consultation via ; opennetworks@energynetworks.org 32

33 Introduction to SGAM Modelling The 5 Future Worlds Actors in the Future Worlds Tim Manandhar UKPN

34 Introduction to SGAM Modelling Smart Grid Architecture Modelling Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO. Commercial Principles Paper (2017) Consulted industry on commercial principles to promote flexibility markets and potential market models. Future Worlds Consultation The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex electricity system and break it down into is individual parts. It is three dimensional which allows complex aspects of the electrical network to be considered from a variety of perspectives 34

35 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 35

36 Five Future Worlds 36

37 The Future Worlds - Consultation Questions 37

38 Stakeholder Insights Following stakeholder feedback a significant part of this consultation is devoted to describing the impact of each of the future worlds on each identified stakeholder group. We are interested in your thoughts on the material presented and the approach we have taken. 38

39 Stakeholder Insights - Consultation Questions 39

40 Principles of Neutral Market Facilitation Steve Atkins Scottish & Southern Electricity Networks

41 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 Coordinators We believe that all parties facilitating flexibility markets will need to adopt the principle of neutral market facilitation 41

42 Principles of Neutral market Facilitation- Consultation Questions 42

43 Stakeholder Insights Helen Stack Centrica

44 Stakeholder Insights Charles Wood Energy UK

45 Q&A Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive) 45

46 Lunch

47 The Smart Grid Architecture Model & Demo (SGAM) Manuel Castro & Mark Sprawson EA Technology

48 Why we used SGAM methodology The purpose of the SGAM modelling is twofold: firstly, to compare and contrast the five future worlds, and secondly to act as a base model for DNOs to build their required architectures, interfaces and business processes around for the DSO transition. To enable detailed comparison of the future worlds, the interactions between actors are captured and categorised as part of the SGAM work. Not all the layers have been populated at this point. There are more inputs required from trials and as the modelling becomes more detailed, it is more appropriate that each network organisation models their particular system specifically to account for regional differences. 48

49 How the SGAM Model was built The model was built using a top down approach through a series of industry workshops, starting with the main functions of a DSO as a neutral market facilitator DSO Functions System Coordination Network Operation Investment Planning Connections & Connections Rights System Defence and Restoration Service/Market Facilitation Service Optimisation Charging 49

50 How the SGAM Models are presented Full models available online as interactive webpages Can navigate by function or by actor Understand data flows and interactions between different actors in different worlds 50

51 Demonstration of Models 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 51

52 52 The Smart Grid Architecture Model- Consultation Questions

53 Least Regrets Elements Steve Atkins Scottish & Southern Electricity Networks

54 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 54

55 Areas of no regrets by function 100% Proport ionob of least -regret s across 5 worlds 80% 60% 40% 20% 0% System Coordination Network Operation Investment Planning Connections and Connection Rights System Defence and Restoration Services and Market Facilitation Service Optimisation Charging Areas of no regrets tend to be aligned with achieving whole-system objectives through long-term planning establishing regulatory frameworks 55

56 Areas of no regrets by function Function System Coordination Network Operation Investment Planning Connections and Connection Rights System Defence and Restoration Services and Market Facilitation Service Optimisation Charging Key areas of no regrets Coordinated outage planning Regulatory framework for flexibility service provision Flexibility compliance to activation/dispatch signals Development of network stability mechanism Outage requests Real-time network monitoring for thermal and voltage excursions Activation of flexibilities and smart grid solutions Traditional investment planning Quality of supply planning standards Regulatory development of standard connection agreements for flexibility Recovery of unused connection capacity Black Start Islanding Voltage reduction Assess requirements for flexibility services Procure and activate flexibility Conflict mitigation and resolution Regulatory framework for market failure and last resort measures Arrangements for activation of last resort measures Development of smart grid solutions Exchange of information to determine market charges Access charges for flexibility resources 56 56

57 Least Regrets Analysis- Consultation Questions 57

58 Q&A Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive) 58

59 Coffee Break

60 Assessing the Worlds Ross Thompson UK Power Networks

61 Assessing the worlds Purpose The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy/ regulatory thinking. Approach Employing independent, external resources to assist with assessing each world against the agreed criteria. Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate, evidence for conclusions will be documented. Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible. 61

62 Assessing the worlds draft assessment criteria 1. Strategic case - How well does each model address the case for change? Enhanced Customer experience Choice, Fairness, Affordability, Confidence and Trust Greater environmental sustainability Facilitating greater energy efficiency, decarbonisation of electricity generation and heat/transport and more electricity consumed closer to point of generation i.e. lower losses 2. Economic case - How efficiently does each model address the case for change? Financial benefits Cost of implementation vs benefits, Cost of operation vs benefits and Expected benefits Whole system optimisation Supports whole system optimisation, Optimises locally, Brings more flexibility into the system, Manages conflicts, Avoids duplication and Exploits synergies 62

63 Assessing the worlds draft assessment criteria 3. Commercial case - How deliverable is each model are the markets viable and regulation appropriate? Market viability and Appropriate regulation 4. Financial case - How viable are the funding arrangements for each model? Regulatory funding and Market facilitation 5. Management case - How viable/achievable is each model in terms of complexity and alignment of responsibilities/actions with roles? Industry structure and organisation Rules and regulation, Facilitates neutral, Complexity, Implementation and Future proof Technical performance Safety risk, Service reliability and availability, Security, Resilience and recoverability and Clear dischargeable accountability for technical performance 63

64 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 64

65 Assessing the Worlds - Consultation Questions 65

66 Key Enablers for the Future Alan Collinson SP Energy Networks

67 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 67

68 Changes to Industry Structure Regulatory changes (guiding principles) Promotion of effective markets & competition Customer choice, customer control Cost-reflective, realising value, level playing field Smart Grids & Flexibility Smart technologies, technical & commercial innovation Secure, affordable, sustainable energy system Organisational changes Closer internal interactions Closer DSO-ESO interactions Closer interactions with customers 68

69 Developing a Market-based Approach Market Engagement Raise awareness Increase participation Increase market liquidity Increase competition Contract Requirements Technical requirements & specifications Open access for all potential providers Payment mechanisms Quantification of service delivery Settlement arrangements Funding 69

70 Facilitating Information and Data Exchange Communications & IT Systems More data, faster, reliable, quality Internal, External, Public Integrated solution (IT & OT) Cyber security Data analytics, forecasting Network Visibility & Control Monitoring of the secondary (LV) network Smart meter data Network automation, remote control 70

71 Key Enablers- Consultation Questions 71

72 Proposed Next Steps Andy Wainwright National Grid ESO

73 Next Steps DSO definition & functions DSO functions Commercial Principles paper 2017 work programme Development phase SGAM modelling Key Enablers Future Worlds consultation Refining SGAM & key enablers Impact assessment Least regrets analysis Review phase Final conclusions Evidence pack for BEIS and Ofgem Impact assessment consultation 73

74 Q&A Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive) 74

75 Final Comments and Conclusions Nigel Turvey ENA Open Networks Project Chair

76 Wrap Up The opportunities and implications of these Future Worlds are significant societally, commercially and technically, and we recognise it is important that to get responses from a wide variety of interested parties, to inform the further development of these Future Worlds. We welcome all feedback on our work. In the main consultation document we ask a number of questions and would value your thoughts. Responses to the consultation can be ed to opennetworks@energynetworks.org. All responses must be submitted to ENA by 18:00 on 25th September We welcome feedback from all our stakeholders. If you have any comments that you would like to share, please feel free to submit them to opennetworks@energynetworks.org. 76

77 Feedback Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive) 77

78 Additional Slides 78

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