Flexibility Forum 15 th January 2020 London
Session 3: Future Opportunities and Local Flexibility Nick Harvey Daniel Auty Sam Wevers
Pathfinders: The story so far… 15 th January 2020
System needs are changing The system is increasingly more complex to operate due to the growth in: • interconnectors, • solar panels, • electricity storage, • electric vehicles, • smart/micro grids etc. Balancing service needs are increasing as a result with greater extremes and more volatility in requirement. 4
Voltage management is increasingly challenging • Costs and utilisation are increasing • There is a significant difference in absorption and injection of MVArs. • Trends suggests that costs will continue to rise £330 million in last three years spent on managing voltage 5
Our ambition is to broaden the NOA in terms of needs and participants Pathfinder projects: High voltage Stability Range of Constraints Future NOA system needs Expand to broader set of needs Broader needs and wider participants RIIO-2: End of life assets Connection wider Current NOA works Wider participants Boundary flow TO solutions Number of participants 6
By 2021, new high-level planning process We will assess a wider range of system needs Outline future Assess system Recommend most Identify energy needs efficient solution solutions scenarios (FES) (ETYS) (NOA) TOs provide solutions to boundary needs Tenders for solutions for voltage, stability, and thermal Will publish tender constraint solutions results during year, in addition to annual NOA System Operability document Framework Market participants, (SOF) DNOs and TOs can all 7 compete
Pathfinder projects
We’re taking a learning by doing approach, through our pathfinders Develop Run tenders Learn Embed Assess need processes 9
Progress & Acting on Feedback How have we engaged stakeholders on this journey? How we’re RFI Feedback Processes Received responding • Flexibility to adapt to • RFI comments. • Submissions from feedback in short potential providers • 1:1 engagement. timescales, making shapes contract • Reactions to tender changes in response. and market design. launches provide both • Staying true to • Learning is positive and challenging requirements. incorporated to feedback. design. 10
Overview of pathfinder projects Develop a methodology for the articulation and assessment High Voltage of regional transmission voltage needs including: Pathfinder • Develop processes for the development, submission and assessment of market, DNO and TO solutions • Ensure consideration of a wide range of options, including market services and asset build to identify the most economically efficient set of solutions • Develop capability and process for Cost Benefit Analysis for non-MW solutions Included methodology in 2019/20 NOA methodology RFI and tender for long-term service in Mersey area published. • We are currently in the technical assessment phase of 11 the LT Mersey Voltage Tender
Overview of pathfinder projects Explore benefits of NOA type approach to system stability Stability Pathfinder • Stability of voltage, frequency and the ability of a network user to stay connected under normal conditions, during a fault and after a fault Define ESO requirements for an area Develop and test process to obtain and evaluate options to meet the requirements set out, through technical and economic assessment Develop a methodology for inclusion in the NOA methodology for 2020/21 RFI in summer 2019 Phase 1 tender released 05 th November 2019 Phase 2 tender planned March 2020 12
Overview of pathfinder projects We aimed to promote network competition and procure a Constraint long-term product to alleviate network constraints by Management focusing on a wider pool of solutions Pathfinder Our webinar was held on 13th May across the industry We continued the network and market studies based on our needs and external stakeholders’ feedback We launched RFI/market engagement on 17 th Dec 2019. This remains open until 28 th Feb 2020 Future steps: • Second webinar planned 22 nd Jan 2020 • 2020 Q2: Launch tender for constraint management 13
Progress What has been delivered so far? Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 2020/21 Tender Opens Contract Award Contracts Start ST Mersey 14 Oct 17 Jan 08 Nov Voltage Tender Closes Tender Commercial and Testing Period Technical Assessment Tender Opens Return Tech Data Contract Award Contracts Start LT Mersey 25 Nov 07 Feb 24 Apr 28 Feb 13 Dec April 2022 Voltage Tender Closes Submit Tech Data Pennine Process Tender Tender Commercial Technical Assessment (from Jun ’20 for Apr ‘23 start) phase 1 phase 2 Assessment Tender Results Tender Opens Contracts Start between April 2020 Stability Phase 1 31 Jan 05 Nov and April 2021 17 Jan Tender Closes Assess Tender Period ment EOI Feasibility Contracts Contract Award Note: Phase 2 Timeline is being reviewed. Stability Jan ‘20 from Apr ‘20 Phase 2 Mar ‘20 Dec ‘20 Start Oct ‘20 The following is what was presented in Tender Opens April Tender Closes October but will flex based on Phase 1 2023 feedback and tender extension EOI Tender , Feasibility and Assessment Constraint Note: Final publication date for the RFI is Mngt RFI Tender Process TBC subject to approval but is targeting mid- 14 December
Flexibility Forum 15 th January 2020 Dan Auty In partnership with In partnership with
Black Start from Distributed Energy Resources How can we incorporate DERs into Black Start strategy? • To reduce carbon emissions • To reduce costs to consumers • To accelerate restoration time scales
Look out for............ Power Engineering & Trials – milestone report published 31/07/2019 Ofgem Paper project deliverable ReStart Customer Connection Seminar 05/11/2019 Glasgow presenting/roundtabl e Procurement & Compliance – milestone report published 08/11/2019 Ofgem paper project deliverable Organisational Systems & Telecommunication – milestone report published 08/11/2019 Ofgem paper project deliverable Project Managers Annual Report – published 31/12/2019 Ofgem paper project deliverable ReStart Annual Conference 30/01/2020 London registration open
Stakeholder Engagement Stakeholder Advisory Panel Other projects/ BEIS initiatives Suppliers, manufacture Stakeholder Joint Radio rs and engagement Company service providers Energy Networks Strategic Black Start Telecommun participants ications OFCOM Group (ENSTG) 18
Project Milestone (10) - Timeline Project Timeline Dec 2019 Oct 2020 31 st Dec 2021 Process for Project Managers 2 nd Oct 2020 30 th Sept 8 th Nov 2019 Report Final YR Restoration Project 2021 Project PMO Milestone 2 Defined Project Milestone 1 31 Dec 2019 OST Milestone Oct 2020 Aug 2021 OST Project 20 th Dec 2021 3 OST Manager 31 st July Project Control Systems Report Milestone 6 2019 PMO YR 1 Designed PET Report PET Distributed ReStart 31 st Mar 2022 Dec 2021 Sept 2020 Project Milestone 8 th Nov 2019 20 th Dec 2021 10 Project 31 st July Project Power Engineering Live Trials Final Proposals 2 nd Oct Milestone 7 - Milestone 9 ALL 2020 31 st Dec 2020 2020 P&C P&C Project Project Nov 2019 Project Dec 2021 Milestone 5 Milestone 8 Managers PET P&C Report End to End Procurement Design PMO YR 2
Report on viability of restoration from DERs - Overview Assessment of Black Start from DER viability was based on the 10 case The Issues Register studies, under 3 main areas Red/Amber/Green Status to indicate degree of challenge 1) DER (anchor & additional) - Survey of all case study DER (capability and resilience) posed (Appendix L – Issues ▪ Technical issues – e.g. What control modes do they utilise/have e.g. MW, frequency, power Register) factor, voltage? Block load capability? ▪ Resilience issues – e.g. What’s your resilience timeline?, what’s required to make self - starting/maintain operability? 2) Distribution Network ▪ Power system studies – Voltage profile/step change, reactive capability & transformer energisation. Fault level & protection ▪ Resilience – Substations safe to energise after a black out? E.g. are protection and control systems available? Steven’s Croft biomass 3) Distribution Island power station 45MW , Lockerbie ▪ Discussed issues such as low fault level, low inertia, 33kV voltage control... (Chapelcross case study) ▪ Discussed role of automation with initiating, maintaining, growing ,and synchronising a power island. ▪ Discussed options for initial energisation strategies and wider strategies to expand the island
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