Welcome and Introduction – Simon Hobday (Osborne Clarke) (14:00 - 14:15) Beyond the national: how delivering net zero could affect people and places - Jim Skea (Chair of Scottish Just Transition Commission and Co-Chair of IPCC Working Group III) (14:15 - 14:35) Beyond the incumbents: building the markets for net zero - Chaired by James Watson (Osborne Clarke) (14:35 - 15:20) Elizabeth Allkins (Ovo Energy) - Domestic flexibility: Opportunities, barriers and benefits John Twomey (National Grid ESO) – Enabling new market opportunities Kyle Martin (LCP) – How the power market will change in a net zero world James Johnston (Piclo) - The future of DSO flexibility
Break (15:20 - 15:30) Beyond the current system: new innovations to deliver net zero - Chaired by Caroline Bragg (ADE) (15:30 - 16:10) Javier Cavada (Highview Power) - The role of long duration cryogenic energy storage Chris Cox (Cenex) - The emerging role of transport in local energy systems Claire Addison (Flexitricity) - Boosting real-time flexibility in the system Launch of ADE report "Let’s talk about Flex: Unlocking domestic energy flexibility“ - Rick Parfett (ADE) (16:10 - 16:20) Closing Remarks - Ian Calvert (ADE Director) (16:20 - 16:30)
Smart Energy Conference 2020 Delivering Net Zero without Breaking the Bank 29 April 2020 Jim Skea Keynote address
For the next two-three years, everything will be seen though one lens: How will it contribute to economic recovery from the current crisis? How fair will that recovery be?
Structure • How a “just transition” can contribute to the net zero goal • How to apply the concept of just transition in practice • Specific implications for energy efficiency/decentralised energy • Nothing on balancing mechanisms/flexibility markets (I can’t do that!)
Why a “just” transition? • Net zero implies “rapid, far - reaching and unprecedented changes in all aspects of society” • This won’t happen without social consent • The transition must be, and must be perceived to be, fair
The Scottish Just Transition Commission “The imperative of a just transition is that Governments design policies in a way that ensures the benefits of climate change action are shared widely, while the costs do not unfairly burden those least able to pay, or whose livelihoods are directly or indirectly at risk as the economy shifts and changes” Interim Report, February 2020
The Commission is to… Provide practical, realistic, affordable recommendations that will support Scottish Ministers to take action that will: • Maximise the economic and social opportunities that the move to a carbon-neutral economy by 2050 offers • Build on Scotland’s existing strengths and assets • Understand and mitigate risks that could arise in relation to regional cohesion, equalities, poverty (including fuel poverty), and a sustainable and inclusive labour market
The Commissioners come from: Scottish Trades Union Congress Prospect Union WWF Scotland Energy Action Scotland Spring Rise (industrial consultancy) SSE (utility) Oil and Gas Technology Centre 2050 Climate Group/Pale Dot Energy Quality Meat Scotland Universities of Strathclyde and Heriot-Watt
Not just about the supply side The Commission sees the application of just transition principles extending to: • people as consumers • communities - and the importance of “place“
Not just about future injustices Today’s world has its own injustices, and there are opportunities for a just transition to address these: • Energy poverty • Fair work • Land tenure
Emerging themes • The need for clear planning • Engagement and society’s expectations • Building equity into all climate policies from the start
Engagement • Guests at Commission meetings • Stakeholder workshops • Town-hall events • Focus Groups • Seminars • Public consultation
15 What does it mean for decentralised energy? Ingredients of net zero √ • Decarbonization of power X • Energy efficiency X • Electrification of demand….. X …. and carbon removal
16 Energy prices don’t help – should electricity consumers cover all decarbonisation costs?
17 05/05/2020 Skills, supply chains and labour markets • Incremental housing improvements won’t do • Energy efficiency and electrification imply deep retrofits • Not just counting jobs – the supply side of the labour market matters… ….skills, training, building up supply chains and trusted suppliers
05/05/2020 18 Fairness to consumers • Those in rural areas (a transport issue)! • Those using electricity for heating • Those in inefficient homes • Less credit- worthy consumers who can’t raise capital or must use pre-payment tariffs
19 05/05/2020 Conclusions • There will be a need for economic stimulus and investment in infrastructure for the long-term • Climate action has a role to play in economic recovery • The experience of, and recovery from, COVID-19 is likely to amplify concerns for planning, cooperation and fairness • But beware the fallout from high levels of public debt
Panel 1 - Beyond the incumbents: building the markets for net zero
DOMESTIC FLEXIBILITY: OPPORTUNITIES, BENEFITS AND BARRIERS ELIZABETH ALLKINS - OVO GROUP
OVO GROUP OVO RETAIL BRAND KALUZA CONSUMER BUSINESS B2C ENERGY B2B TECHNOLOGY PLATFORMS SERVICES + 5m CUSTOMERS 22
T HE CHALLENGE
GETTING READY FOR A PEAK THREAT DECARBONISED GRID REQUIRES MITIGATION The transition to a distributed energy network is happening The utilisation rate of renewable energy must be improved Flexibility and storage is proving to 104GW peak improve network management Transport 84GW 24GW Dispatchable 64GW generation Heating 36GW Flexible & smart home technologies can empower customers to be part 2020 peak 59GW Other of a democratised system 44GW 2020 2050 Source: Addition of EVs, smart heating and home National Grid Future Energy energy storage Scenario 2019
THE ROLE OF THE DOMESTIC CONSUMER
CUSTOMER PROPOSITIONS Consumer tariffs are simple and clear to understand
KALUZA’S APP GIVES CUSTOMERS CONTROL KALUZA |
INTELLIGENT ENERGY PLATFORM KALUZA’S FLEXIBILITY PLATFORM WHOLESALE MARKET DISTRIBUTION NETWORK TSO DISTRIBUTED CO 2 GENERATION T he Kaluza platform responds to real-time market signals and customer schedules - optimising EV charging on a minute-by-minute basis KALUZA | JOINING THE DOTS
THE OPPORTUNITY
FLEXIBILITY FIRST RESIDENTIAL FLEXIBILITY ALONE COULD SAVE UP TO £7BN/YEAR Residential flexibility will create whole system cost savings of £6.9bn. Electrification and decarbonisation will save £206 per household per year. Intelligent charging of electric vehicles will save up to £3.5bn. 25g/ kWh ● 25m EVS ● 21m electrically Source: ● heated homes - £6.9bn
IN PRACTICE DEMAND TURN DOWN FROM RESIDENTIAL BATTERIES 18th Feb 2020 100% Power State of (W) charge (%) 2,000 1,000 50% 0 -1,000 Power 31 State of charge 0% -2,000 00:00 04:00 08:00 12:00 16:00 20:00 00:00 @Kaluza_tech KALUZA | WPD Flexible Power
THE HURDLES
KEY MARKET ENABLERS FOR DOMESTIC FLEXIBILITY Smart charging, enabled by HHS, optimises against both network price signals and flexibility markets — creating value for consumers, while reducing costly investments to grid infrastructure SMART METERING AND HHS PRICE SIGNALS FOR FLEXIBILITY FLEXIBILITY MARKETS Smart metering and HH settlement expose all Price signals incentivise flexibility for smart Direct procurement of flexibility provides ● ● ● customers to price signals, incentivising device owners, enabled by smart metering and certainty for DSOs and TSOs when it’s domestic flexibility HHS needed Market-wide HHS levels the playing field for Strong, locational, real-time signals, reflecting Corrects imbalance or constraints left after ● ● ● consumers and suppliers network costs & constraints price signal optimisation TCR reform has weakened price signals, Requirements of emerging DSO markets ● ● hindering flexibility limit opportunities for domestic participants Access SCR developing & implementing price ● signals that encourage and reward domestic JOINING THE DOTS flexibility
Kaluza.com e lizabeth.allkins@ovoenergy.com THANK YOU! @Kaluza_tech Search ‘Kaluza ’
National Grid ESO enabling new market opportunities John Twomey Market Development Manager
A vision for the future • In April 2019, National Grid Electricity System Operator announced it will be able to fully operate the electricity system with zero carbon by 2025 • A whole system strategy that supports our ambitious target • Competition everywhere • The ESO is a trusted partner We will be leading the change to a greener and cleaner energy future! 36
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