Energy Networks Association Open Networks Project 2019 Workplan Webinar. February 13 th :30 pm

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1 Energy Networks Association Open Networks Project 2019 Workplan Webinar February 13 th :30 pm

2 Open Networks 2019 Workplan Webinar 2 Thank you for joining the Open Networks: 2019 Workplan webinar. This webinar will commence at 3:33PM. If you are unable to play the audio through your device, you can also dial in by calling and entering access code when prompted. Please ensure that your microphone is switched to mute to avoid background noise and your camera in not in use. You may ask questions via Q&A function (as opposed to the chat function) throughout the webinar. We will address as many of these as possible at the end of the presentation. Please note that this webinar will be recorded and that the audio, chat messages (anonymised) and slides will be made available on our website. Should you want further information about the Open Networks project, please don t hesitate to get in touch with us at opennetworks@energynetworks.org The consultation closes on 22nd February Please send your responses electronically to opennetworks@energynetworks.org

3 Webinar Outline Open Networks Project Background & Consultation Purpose (10 mins) Jason Brogden (ENA) Workstream 1A, 1B (10 mins) Jason Brodgen (ENA) & Ian Povey (ENWL) Questions (5 mins) Workstream 2, 3 (10 mins) Jim Cardwell (NPG) & Stewart Reid (SSEN) Questions (5 mins) Workstream 4, 5 (10 mins) Mark Herring (NG ESO) & Jason Brogden (ENA) Implementation & Consultation Questions followed by Q&A (10 mins) Jason Brogden (ENA) 3

4 Open Networks Delivering a Smart Grid ENA s Open Networks Project is a major energy industry initiative that will transform the way that both local Distribution Networks and national Transmission Networks will operate and work for customers. This is being driven by the 3Ds; digitisation, decentralisation and decarbonisation The Open Networks Project will help customers connect and realise value; as well as reducing cost for consumers through more cost effective planning The Open Networks Project 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 taking a learn-by-doing approach; we are using innovation funding to trial and test aspects of the various future electricity system options 4 Short Animation that can be found at:

5 Collaborating Members 5

6 Project Development & New Benefits onwards DSO definition & improvement principles Detailed DSO assessment & improvement development Support policy decisions and improvement implementation Regulatory enactment & implementation Secure, reliable electricity to homes and businesses. Smarter electricity system that keeps network costs down for the public More control and choice for public over how they use electricity Easier for business customers to connect to the grid More competitive market opportunities for businesses 6

7 Consultation Purpose Be transparent on the 2019 workplan for Open Networks to progress objectives and customer benefits We have established the project to be adaptable and feedback will be used to: Prioritise the work to be carried out in Phase 3. Add further products to the Phase 3 programme if needed or defer proposed products from the Phase 3 programme if these do not address priority areas of work. Adjust the detailed scope and timing of products. Adjust the proposed stakeholder engagement, communication and consultation plans. 7

8 2019 Workplan Charging Futures Forum Smart Systems & Flex Plan Least Regrets Elements Whole Energy System thinking New areas of development based on 2018 products 2019 Scope WS3 Roadmap Implementation of completed 2018 products Roll-over of 2018 products Q Consultation Feedback 8

9 2019 Workplan Short-term improvements separated from longer term DSO Transition to focus on making improvements now Split into 3 workstreams to ensure scope manageable 9

10 2019 Workplan Number of key dependencies to be managed closely, including: Ofgem s Significant Code Review of network charging and access; Energy Data Taskforce; Trials. 10

11 2019 Priorities We will be ensuring we focus on key priorities: Opening Flexibility Markets Progressing the pathway to future DSO Implementing least regret short term changes that benefit customers We will be ensuring that we focus on these key priorities Please provide us feedback with your view on this There are a lot of parallel initiatives calling on similar resources (e.g. RIIO2, Charging reforms, Open Networks) which is a risk to progress 11

12 Proposed Consultations Product Description Launch Timing Overall Project Future Workplan & Prioritisation for 2019 Jan 19 WS3 DSO Transition P1 Impact Assessment Early Mar 19 WS1A Flexibility Services P1 DSO Services Market Principles Jun 19 WS1B Whole Electricity System Planning & T-D Data Exchange N/A WS2 Customer Information Provision & Connections P2 Queue Management Aug 19 WS4 Whole Energy Systems Dependent on scoping work We thought 1 per quarter struck a good balance for stakeholders Conscious of consultation fatigue We could reduce or add more, subject to our resourcing let us know Potential additional consultations commercial arrangements or procurement processes for flexibility 12

13 Energy Networks Association Workstream 1A Flexibility Services

14 DSO Services Process for Standardisation & Improvement Also developing how we can facilitate other markets in addition to directly procured DSO services 14

15 2019 Deliverables WS1A Products Timescale 1 Flexibility Market Principles Jan 19 Jun 19 2 DSO Services Procurement Jan 19 Aug 19 Processes 3 DSO Services Dispatch and Jul 19 Oct 19 Settlement Processes 4 DSO Services Commercial Jan 19 Dec 19 Arrangements 5 DSO Services Conflict Jan 19 Dec 19 Management & Cooptimisation 6 Facilitation of new markets Jul 19 Dec 19 Consult on more than Principles? Important to engage with stakeholders through development 15

16 Learn-By-Doing: Flexibility Projects The Open Networks project is taking a learn-by-doing approach National Grid/UKPN: Power Potential (formerly TDI 2.0) Reactive power market from DER for Transmission voltages via DNO WPD: Flexible Power Online platform for procuring flexibility services Centrica/WPD: Cornwall Local Energy Market Virtual marketplace that will provide participants with a platform to buy and sell energy and flexibility both to the grid and the wholesale energy market Various: Piclo Map based platform for displaying and procuring network constraints and registering flexibility services 16

17 Energy Networks Association Workstream 1B Whole Electricity System Planning & T-D Data Exchange

18 2019 Deliverables WS1B Products Timescale 1 Investment Planning Jan 19 Dec 19 2 Whole Electricity System FES Jan 19 Dec 19 3 Real time data exchange & Jul 19 Dec 19 Forecasting 4 Data exchange in planning timescales Jan 19 Dec 19 Progressing work started in 2018 Whole electricity system approach to optimise T-D to benefit customers Whole System FES will set building blocks and levers to use in both ESO FES and DNO FES developments Regional Development Programmes key input learn by doing 18

19 Energy Networks Association Workstream 2 Customer Information Provision & Connections

20 Improvements Along the Lifecycle build on

21 2019 Deliverables WS2 Products Timescale 1 System Wide Resource Jan 19 Dec 19 Register Detailed Design and Early Implementation 2 Queue Management Jan 19 Dec 19 3 Interactivity Jan 19 Dec 19 4 Connections Agreement Review Jun 19 Jul 19 Common web-page at ENA, then develop consolidated requirements for System Wide Resource Register Answer Issue 1.6 from Smart Systems and Flexibility Plan for Queue Management Looking to bring forward timing 21

22 Queue Management Example Consulting on flexing milestones and approaches to queue management Need to address how securities and cancellation charges might vary for parties moving up/down the queue 22

23 System Wide Resource Register DER availability information enables the increased deployment of customer flexibility to benefit the system centralised signposting at ENA; decision on further development of any centralised register 23

24 Energy Networks Association Workstream 3 DSO Transition

25 Current Status of Modelling and Impact Assessment 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 Output provides evidence for BEIS and Ofgem Impact assessment consultation WE ARE HERE 25

26 DSO Transition Development

27 2019 Deliverables WS3 Products Timescale 1 Impact Assessment 2018 Sep 19 2 Consolidate Future World Jun 19 Sep 19 Characteristics 3 Key Enablers & Decisions Sep 19 Dec 19 required 4 Review DSO Transition Sep 19 Dec 19 Roadmap 5 Identify Future World Sep 19 Dec 19 Elements to Trial 6 Further Modelling Sep 19 onwards Objective to develop a detailed view on the pathways for the DSO transition and provide evidence base to support regulatory and policy decision making 27

28 Energy Networks Association Workstream 4 Whole Energy Systems

29 Whole Energy Systems Our 2017 definition of Whole Energy System and work to date has been electricity network focused whilst recognising cross-vector information exchange and opportunities. Reflecting on stakeholder views, ONP has initiated the Whole Energy Systems workstream in 2019 to consider a more integrated approach extending to other energy vectors including gas, heat, transport, waste and water. A key question to address is whether more cost effective decisions for planning or operation could be made by electricity networks and other infrastructure providers if a whole energy systems view was taken into account (e.g. could there be more effective investment in gas infrastructure to alleviate a potentially expensive constraint in electricity infrastructure). This is a 3 month scoping exercise to see whether there is value to deliver for customers and to package up any relevant work for delivery through External stakeholders part of the workstream scoping exercise to ensure wider industry views input 29

30 Energy Networks Association Workstream 5 Communications and Stakeholder Management

31 Communications Items Ref Product Timeline/ 1 ENA organised breakfast briefing events, to be held at ENA s offices frequency Quarterly up to 2 a year Target audience Energy sector, think-tanks, policymakers, trade & national media 2 ENA sponsored Westminster panel events or private dinners, to be held at external venues and in partnership with appropriate external organisations 3 Webinars to provide opportunities for the wider stakeholder community to feed into appropriate Open Networks consultations and products. 4 Content for PR/PA work (e.g. think-tank research, polling) to help create media stories on Open Networks related issues 5 Online media-buying (advertising) to promote Open Networks events, webinars & consultations on key websites (e.g. trade press) 7 Drop-in stand/exhibition at industry events (e.g. LCNI, Power Responsive, DNO events) 8 Social media collateral (animations, infographics) to promote Open Networks 9 Communications and engagement strategy development Quarterly up to 2 a year In line with Workstream consultations and product timelines Energy sector, think-tanks, policymakers, Government, MPs & researchers, trade & national media Energy sector, policymakers 3 per year Energy industry, think-tanks, policymakers, Government, MPs & researchers, trade & national media Co-ordinated around key announcements Up to 4 a year Quarterly up to 4 7 day campaigns a year. Material repurpose and reused in addition to that Annual Energy industry, think-tanks, policymakers, Government, MPs & researchers, trade & national media Energy industry, think-tanks, policymakers Energy industry, think-tanks, policymakers, Government, MPs & researchers, trade & national media ENA, ENA members, ON Steering Group 31

32 Energy Networks Association Monitoring Implementation

33 Monitoring Rollout of Practices Monitor rollout of practices based on 2018 products across network companies to have visibility of progress: WS2 P1 (Good Practice ahead of Connection Applications) 2018 WS2 P4 (Information on Flexibility Services) 2018 WS2 P5 (Good Practice Following Connection Applications) 2018 WS2 P6 (Guidance on Post Connection Changes) 2018 WS2 P7 (Provision of Constraint Information) 2017 (Information on Distribution Connections Options) 2018 WS1 P7 (ANM Information) - Monitor methodology to assess curtailment and evaluate ANM system reliability WS1 P2 (DER Services) - Monitor across procurement processes, issues and lessons learned Highlight key recommendations from the work done to date in a single location that DNOs may wish to include in their ICE plans to further demonstrate progress and improvements to customers.

34 Energy Networks Association Conclusion & Consultation Questions

35 Consultation Questions 1. Which specific areas of 2019 work or Products are most important to you and why? 2. Are there any other areas of work or Products you would like to see included in the Open Networks Phase 3 workplan and if yes, why and how should they be prioritised compared with other work? 3. Should any areas of work or Products be removed or deferred and if yes, why? 4. Do you agree with the proposed Products for wider consultation and what other work should be consulted on and why? 5. Do you agree with the defined Dependencies, have we prioritised dependencies inappropriately or are there any missing? 6. Is one consultation per quarter a suitable number and frequency, can you only support fewer or would you rather see more? 7. Do you agree with the proposed Whole Energy Systems Workstream 4 and can you please provide any relevant Whole Energy Systems projects, initiatives or views that you would like considered as part of that new workstream? 8. How would you like to provide input to the Open Networks Project and be kept informed of developments? 9. In what ways might the Open Networks Project improve the way it consults with stakeholders, beyond the Stakeholder Advisory Group? 10. Do you feel the Open Networks Project has held enough stakeholder engagement events in 2018? What type of events would you like to see more of in 2019? 35

36 Energy Networks Association Questions & Answers The consultation closes on 22 nd February Please send your responses electronically to