Networks Association Open Networks Project Delivering the Internet - PowerPoint PPT Presentation

Energy Networks Association Open Networks Project Delivering the Internet of Energy

General 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.  No alarm tests scheduled 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. Correspondence  If you would like to receive information about the Open Networks Project or have any feedback you would like to submit, please get in touch with us at opennetworks@energynetworks.org. 2

Energy Networks Association Delivering the Internet of Energy Nigel Turvey, Chair, Open Networks Steering Group

2018 Objectives 1. Develop improved transmission and distribution processes around connections, planning, shared ESO-DSO services and operation Assess the gaps between our customers’ 2. current experience and their expectations, and identify any further changes to close those gaps 3. Develop a more detailed view of the required transition to DSO, including the impacts on existing organisational capability 4. Consider the charging requirements of enduring electricity transmission and distribution systems 4

2018 Achievements: Future Worlds • Flagship outcome of 2018 work • Consultation on five ‘Future World’ scenarios • Wide-ranging industry consultation - received over 50 responses • Basis for major 2019 impact assessment (inc cost-benefit analysis) of smart grid models • Consultation on results in Q1 2019 • Moving forward with ‘least regret’ options to speed up DSO roll-out • Expectation that pathway to DSO delivery will evolve over time as knowledge of the networks increases • Key to this delivery is defining and learning from network trials, particularly trials on opening markets for flexibility services 5

2018 Achievements: ENA Flexibility Commitment • Launched in December 2018 by all six of Britain’s Distribution Network Operators • Commitment to open up requirements for building significant new electricity network infrastructure • Covers all new relevant projects of significant value • DNOs will openly test the market for those projects • Will help open up new opportunities for flexibility services to compete with and complement traditional forms of energy network infrastructure 6

Other 2018 Achievements • Published of new, standardised set of active power flexibility services which could be procured by the DSO • Defined potential data requirements for a system-wide resource register for distributed generation • Improved grid connection processes • Consultation on flexibility in the connections queue • Published an industry T&Cs reference document • Begun developing a roadmap for further improvements to investment planning processes. • Published a review of current versions of the distribution and transmission security planning standards. • Implemented of the Transmission Impact Assessment process • Developed of Whole System Future Energy Scenarios framework 7

2018: You Said, We Did • More opportunities for engagement : We held more dissemination events, workshops, forums and webinars, along with ongoing engagement with the Advisory Group • More time to respond : Increased our standard consultation window from four to six weeks; and allowed eight weeks for responses to the Future Worlds consultation • Improved transparency : We increased social media activity, public events and the frequency of the Open Networks Project newsletter • More access to Project materials : Uploaded newly published project materials on to the ENA website and ensure regular contact 8

2019: The biggest year yet for Open Networks… Build on the Project’s focus on the whole electricity system by 1. looking across the energy system at gas, heat, transport and waste 2. Play a vital role in enabling the growth of flexibility services markets at a local, regional and national level 3. Coordinate energy network systems development 4. Deliver best practice guidance 5. Develop the evidence base for decisions about the future 6. Continue to play a vital role in supporting the delivery of the government’s Industrial and Clean Growth Strategies 9

Looking ahead: 2019 Work plan consultation Webinar on 13 th February • Consultation closes 22 nd February • • Feedback will be used to: – Prioritise the work to be carried out in Phase 3 – Add further products to the Phase 3 programme if needed or defer proposed products if these do not address priority areas of work – Adjust detailed scope and timing – Adjust the proposed stakeholder engagement, communication and consultation plans. 10

Consultation Areas 11

OFFICIAL Future of system operation: a(n emerging) Government view David Capper, Head of Electricity Systems 26 April 2018

Distribution system operation What have we said? It is one of our actions in the Smart Systems & Flexibility Plan to encourage distribution system operation. Two-stage process: IMPLEMENTATION I. Opening networks to competition STARTED • We expect DNOs to more actively manage their networks, open up network requirements to innovative technologies and enable market-based solutions as alternatives to network reinforcement • We will expect them to take adequate measures to address any potential and perceived conflicts of interest. • We will take legislative powers to introduce competition MOSTLY IN II. Optimise across D and T to deliver whole system objectives DEVELOPMENT • We expect networks to develop a joined up approach to system planning, and to share data on future network requirements and system operation with each other and third parties. • Effective arrangements to enable efficient system decisions and operation across boundary 13

What might a market driven approach look like? Future approaches to System Operation • As flexibility becomes more widespread, effective price signals could mitigate conflicts with balancing objectives & deliver efficient decisions. • If this is not sufficient, parties contracting with flexibility will need to co-ordinate with the balancing mechanism. (New) Network Constraint Market DSO options for balancing and network constraint management. Key Network Locational costs reflected Disconnectio Traditional options n reinforcement in wholesale prices? Contracted Unremunerated flexible Curtailment via Newer options alternatives to flexible connections reinforcement Trading of Future Options D&T constraints resolved in national curtailment (some discrete choices) obligations BM? ? D constraints solved below Grid Supply Network Constraint Market? Point? With standardised products traded on an exchange 14

Regulation and Open Networks An Ofgem perspective Louise van Rensburg Interim Deputy Director, SO and Whole System 1 February2019

Changes in the system means changes in regulation Whe How Network Markets n? much? Charges RIIO price control and Where How? incentives ? 16

How Open Networks fits into the regulatory changes. Yes, assisting in future facing work is extremely helpful. But also crucial is: 1. Delivering improvements. Now. 2. Delivering enablers. Now. 17