Smart Grid Projects – UK Policy and Experience Kelly Butler Deputy CEO BEAMA Limited 17 th March 2016 (Theme C): Smart Grid Project Outcomes
About BEAMA • BEAMA is the leading trade association representing manufacturers of electrical infrastructure products and systems from transmission through distribution to the environmental systems and services in the built environment. • We work with our members to ensure their interests are fully represented in the relevant political, regulatory and standardisation arenas at UK, European & international levels. Our Vision • BEAMA member products providing a sustainable, safe, efficient and secure UK electrical system. Our Mission • To support our members in ensuring that the UK has a strong electrotechnical industry which is recognised as an essential part of modern society and brings invaluable economic, social and environmental benefits.
BEAMA UK & India Relationships • UK Government • UK DECC Ofgem Smart Grid Forum • UK Regulator - Ofgem • UK Trade and Investment • Standards Institutes • European Commission • UK and European Trade Bodies • Research Institutes • Smart Energy & Smart Cities (September 2015) • UK supported visit to European Utility Week, Vienna (November 2015) • Elecrama (February 2016)
Smart Energy Policy Platform (UK) • Key driver for smart grids : This is where we are seeing considerable change in the UK – driven by CO2 reduction targets, the growth in distributed generation (PV and wind), growth in demand and overall energy security needs. • Key steps include: 1. GB Smart Meter Rollout 2. A new regulatory framework - RIIO 3. Funding innovation - Low Carbon network Fund Learning, Network Innovation Competition and Allowance 4. Government Policy - tariffs for renewables (FIT), support for domestic energy efficiency measurement, national programmes (smart metering) EU drivers - 3 rd Energy Package and New Energy Market Design 4
UK Smart Meter Roll-out • 53 million electricity and gas smart meters • Supplier led/mandated completion by end 2020 • Consumer driven - In-Home Display bundle • Regulatory, commercial and technical platform is now largely complete • Large scale roll-out from 2016 Data and Communications Company (DCC) Q3 2016 5
Smart meters as a smart grid enabler • Smart meters are a critical part of the platform for the development of a smart grid and demand side response • The GB programme is providing this platform in two ways: 1. The metering and associated equipment installed in premises provides the required functionality 2. Communications services provide appropriate message types and are scalable given uncertainty relating to the development of smart grids • Customer access to their own data and the value this has in enabling more efficient energy management is essential to drive the wider smart grid market and this is a key element of a smart city and harnessing the power of connected devices 6
RIIO and the Low Carbon Network Fund (LCNF) • RIIO is Ofgem’s framework for setting price controls for network companies. Over the next decade these companies face an unprecedented challenge of securing significant investment to maintain a reliable and secure network, and dealing with the changes in demand and generation that will occur in a low carbon future • Introducing a new innovation stimulus in RIIO ED1 Network innovation competition -- £90m per year Network innovation allowance – value defaults to 0.5% of allowed revenues – max 1% • The Innovation Roll-out Mechanism 7
LCNF - Project exemplars • Customer Led Network Revolution 2011-14 (c.£53m) Deploying battery technology across various size ranges to promote voltage control in rural and urban areas. Maximising Photovoltaic growth clusters and utilising Demand Side Response (DSR). Deployment of smart grid ready technology (white goods, heat pumps etc) to reduce or shift load for network benefit. Customers reduced peak consumption by 10% and overall 3%. Approach is a mix of network technology and customer flexibility. • Thames Valley Vision 2012-17 (c. £27m) A mix of energy storage and demand response with 30 industrial and commercial customers using Automatic Demand Response via a cloud based server. Each customer has load shifting strategies based on an audit of controllable load. Deployment of sensors and communication technologies to identify network disruption. Data collection to find where and when faults occur in the system. • Customer Load Active System Services CLASS 2013 – ongoing (c.£9m) A programme utilising DSR and voltage control which aims for peak demand reduction and the absorption of local generation potential. Results of research demonstrated that a voltage drop of 2% equals an 8 second increase in boiling time. The conclusion was that voltage control to the end user has little or no impact to service delivery. The project also focused on the mathematical relationship between voltage and demand for every half hour of the year and provided load control incentives to 5,000 customers (highly over-subscribed). • Smarter Network Storage 2013-16 (c.£19m) A project aiming to maximise the value of energy storage across multiple applications but its main ethos was to understand that Batteries, Wind Turbines and Customers are not discrete elements of the supply chain; they are part of an energy ‘value system’. The project aimed to stabilise the system frequency at 50hz by absorbing and injecting power at times of constraint. www.smarternetworks.org 8
EU Mandate 490 • The Smart Grid Architecture Model The electricity grid has been operating under a stable set of requirements for many years (SGAM) - a tool to enable common and now these requirements are changing. understanding This creates a significant challenge for stakeholders currently rooted in existing silos to understand how to overcome the complexity that changing requirements creates. Therefore, fulfilling new energy system requirements at the lowest cost whilst enabling supply chain innovations will demand a tool that can enable a common understanding of requirements across supply and value chains to be rapidly achieved. 9
Standardisation update The UK Department of Business Innovation and Skills (BIS) has commissioned BSI to develop a standards strategy for smart cities in the UK. The strategy identifies the role of standards in accelerating the implementation of smart cities and providing assurance to citizens that the risks are being managed appropriately. The smart cities advisory group in BSI have recommended the following standards 1. Smart City Terminology PAS180 2. A Smart City Framework standard (PAS181) 3. The development of a data concept model for smart cities (PAS182) 4. A Smart city overview document (PD 8100) 5. A Smart City planning guidelines doc http://www.bsigroup.com/en-GB/smart-cities/Smart-Cities-Standards-and-Publication/ 10
Conclusion • Investment drivers differ in India due to energy costs but supply chain benefits are the same: - Load control - Active network management - Theft reduction (metering) • Regulatory environment is important to underpin the value of investment • Information sharing about standards and smart metering roll-out is an important collaborative aim • We will continue to work with UKTI in London and India to facilitate outreach programmes and export support • Visit: www.beama.org.uk www.uksmartgrid.org (information on technology, funding, international, R&D etc) 11
“THANK YOU”
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