Energy Networks Association Open Networks Future Worlds Stakeholder Event Edinburgh 29 th August 2018
Welcome & Introduction Nigel Turvey ENA Open Networks Project Chair
Housekeeping Wifi: -Radisson_Guest Password: N/A – tick the box to accept the term & conditions and click on Connect. Fire Alarms: There are no fire alarms scheduled for today. Emergency Procedure: Leave via nearest emergency exit and meet at the assembly point (Crown Square on Niddry Street) First Aid: Please dial 5555 or alert nearest member of the hotel team. Bathrooms: Public toilets are located on the ground floor. Coffee breaks/Lunch: Tea/Coffee and lunch will be provided during the scheduled breaks 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 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) 4
Introduction | Open Networks Project Jason Brogden ENA Open Networks Project Director
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 Jason Brogden ENA Open Networks Project Director
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 Jim Cardwell Northern Powergrid
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 Paul McGimpsey SP Energy Networks
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
Stakeholder Insights Why the DSO transition is important for Scotland Simon Gill | Scottish Government
The Scottish Energy Strategy …. 2030 Whole System targets Principle for the energy strategy Our 2050 vision
… and policy across Scottish Government Energy Efficient Scotland “by 2040 our homes and buildings are warmer, greener and more efficient” Programme for Government “phase out the need for new Scottish Climate Change Plan petrol and diesel cars and vans by “an emissions reduction of 66% compared 2032” to baseline levels by 2032”
Why the current System needs to change… Around 60% of our distribution networks are constrained for new generation connections Source: Rory Telford, University of Strathclyde, 2017
Why the current System needs to change… In the next few years we may see a need to control domestic EV charging to managed constraints in the ‘last mile’ of the distribution network
Why the current System needs to change… Network costs represented 28% of the average GB electricity bill in 2017 1 When local generation is We will need new providers of flexibly to manage constrained linking with and minimise new network costs and act as local demand can reduce providers of reserve energy costs electricity Energy The Bill Network Environ- Transaction Supplier Wholesale Risk Costs VAT Costs mental Costs costs Profits Costs Projects which engage consumers and develop ‘smart’ local energy can help reduce costs in several areas of the bill 1 Source: Ofgem https://www.ofgem.gov.uk/data-portal/breakdown-electricity-bill
DNOs vs DSO and the future world’s consultation The DNO plans, owns and operates the network itself but has little influence over how customers of the networks behave. With a DSO model that changes – but who should run the local markets and coordinate the actions on consumers?
Why your input is important … Scotland has experience that should inform the DSO debate: Energy Those with Intensive existing Industry with Local Network based experience of specific Community Authorities Innovation ANM or other demand Groups trialling LHEES Projects flexible patterns and connections options for flexibly
Do Respond to Future Worlds…. - Respond to this consultation to help build the evidence base. - Answer the questions where you have meaningful input - Provide context about how and why you need flexibly and what flexibility you could provide to the network Provide feedback on any other areas of work you - feel the project should be considering and any potential blockers to the evolving energy landscape. Highlight where you need to help engage in this - debate in the future simon.gill@gov.scot
Consultation Overview & How to get Involved Andy Wainwright National Grid ESO
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