UK Power Networks. Technology Watch (Smart) Networks Context & Innovation. 28 th April, 2015 David Boyer, Smart Networks Policy Lead

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1 UK Power Networks Technology Watch (Smart) Networks Context & Innovation 28 th April, 2015 David Boyer, Smart Networks Policy Lead

2 UK Power Networks Total % of industry End customers (millions) Service area (km2) Underground network (km) Overhead network (km) Energy distributed (TWh) Peak demand (MW) 8 28 % 29, % 134, % 47, % % 16,229 N/A New connections 130, % 2

3 UK Power Networks GENERATION TRANSMISSION DISTRIBUTION SUPPLY INDUSTRIAL COMMERCIAL RESIDENTIAL Largely funded by distribution use of system tariffs Own, operate, and maintain network assets Forecast capacity requirements and invest in the network as needed Connect all new network customers, based on charging methodology Maintain security of supply and respond to faults and major events 3

4 The Network Trilemma Role of Distribution Network Operators Facilitate the move to a low carbon energy sector in a cost-effective way Distribution networks are not designed to accommodate local renewable generation and low carbon demand Uncertainty about the location, timing and impact on the network of local generation and low carbon demand, and of smart grids. Distribution networks have large populations of aging assets & face new challenges but cannot simply raise prices to respond Response depends on Innovation RIIO-ED1 starts now with over a quarter billion in smart to be achieved 4

5 Smart Network Plan Embedding smart solutions into the business Objectives: To assess and communicate the results of innovation projects into the business To develop the policies, standards, and systems that will make smart solutions available, everyday tools for the business ED1 Smart Commitments Savings: Demand-Side Response 43.3m Flexible Generation Connections (customer) Existing Smart Practices 30m Dynamic Transformer Ratings 15m To implement these smart solutions and to continue to support and assess their performance Partial Discharge Monitoring 9m Smart LV Capacity 35.1m Smart OHL Capacity 8.6m Smart Metering 16.2

6 Innovation Portfolio Major projects 6

7 Our innovation focusses: Expand network Load & DG capacity Move demand to meet supply flexible services Release capacity through improving ratings Automate the network to improve resilience Monitor & reduce network fault level Improve control of voltage and reactive power Manage the health of network assets Use advanced condition-based analyses for targeting investment Deploy on-line & remote condition measurements Identify new condition indicators & trends Develop new materials and construction techniques Deliver capital investment & construction work Develop new materials and construction techniques Develop new ways of safely working live Enable modular designs and off-site commissioning Consider both civil and electrical design solutions Operate the network & manage faults More quickly locate & respond to faults Automate the network to improve resilience Reduce cost of vegetation management Reduce the cost of storm & major incident response Improve operational visibility of network state Improve customer service & integrate low carbon technologies Better understand low carbon tech behaviours and impacts Better forecast, identify, and track uptake trends Facilitate low carbon demand connections Facilitate low carbon generation connections Integrate these new solutions into BAU 7

8 Smart grid funding: Historically: Innovation Funding Incentive Low Carbon Networks Fund (Tier 1, Tier 2) Moving into RIIO-ED1: Network Innovation Allowance Network Innovation Competition Innovation Rollout Mechanism Network customer funded Fund lower TRL solutions must be innovative Unlocked by network companies Solutions must demonstrate clear need and positive business case Multiple other innovation & energy funds active Innovate UK, DECC, etc. Network customer/ user & developer supported 8

9 Summary Electricity networks face clear challenges There is now the need and the ability to innovate Essential that innovation is targeted, achieves meaningful savings for the network and network customers Business cases need to understand regulated environment Innovation funding will then support development & deployment 9

10 David Boyer