Energy Networks Association Open Networks Future Worlds - PowerPoint PPT Presentation

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

Welcome & Introduction Nigel Turvey ENA Open Networks Project Chair

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. Attendance Sheet Please sign the attendance sheet located in the far corner before departing. 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 email us at opennetworks@energynetworks.org. 3

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: www.slido.com – 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

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

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

Collaborating Members 7

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

Stakeholder Engagement 5 8 40 Published our Undertaken 4 4 webinars and 2 focus groups material on ENA consultations & completed with stakeholders planned another 2 website 9

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

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

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

Customer Experience Improve information for WS2 Products customers to support network 1 Good Practice ahead of Connection connection and service provision Applications Benefits: 2 Management of Capacity • Explanation of ‘Terms’ & ‘Definitions’ Enhanced information on 3 connections & services 4 Information on Flexibility Services • More consistent customer 5 Good Practice Following Connection experience Applications 6 Guidance on Post Connection Changes • Better practice across Network Operators 7 Provision of Constraint Information • Improved use of capacity 8 2017 Product Updates 13

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

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

Workstream 4 | Network Charging Nigel Turvey ENA Open Networks Project Chair

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. • http://www.chargingfutures.com/media/1203/access-and-flc-final-report- and-conclusions.pdf 17

Coffee Break

Ofgem Perspective Edwin Tammas-Williams Ofgem

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

The challenge The energy landscape is changing, but how it is changing is uncertain 2004 2016 21

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

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

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

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

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

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