Agenda Session 1: Policy, Regulation & Electricity System Operator Updates David Louise Adam Capper van Rensburg Sims
Removing barriers to smart technologies, inc storage Enabling smart homes & businesses Making markets work for flexibility Vision and Objectives
15 of 29 actions implemented 9 new actions identified 2 questions Vision and Objectives
Energy Data Taskforce A list of the key data or data sets that are held by industry, Ofgem, Government or other parties, their main attributes and who would benefit from accessing them, and which should be made public, under what conditions; A list of specific data or data sets that need to be improved or do not yet exist but whose existence would make the energy system work more effectively; Proposals or options for data architectures (e.g. optimising data flows or modes of transfer between energy system participants) and data formats (e.g. standardisation, interoperability, the level of granularity and frequency it is updated); Proposals or options for the roles of different parties in governing data in the energy system; Proposals or options for managing risks associated with data in the energy system. Get involved: https://es.catapult.org.uk/projects/energy-data-taskforce/ Vision and Objectives
| 5 • Brings together government, energy and automotive sectors • Producing proposals for government and industry to remove barriers to smart charging by mid 2019 • Was launched by Jesse Norman and Richard Harrington in June • Has four work packages examining the challenges • More info: secretariat@lowcvp.org.uk
Power Responsive Flexibility Forum Policy, Regulation and System Operation – Ofgem update Louise van Rensburg Interim Deputy Director, SO and Whole System October 2018
Overview • Smart Systems & Flexibility Plan Update: some Ofgem specific actions • Next steps: What to look out for in the coming months 7
Smart Systems & Flexibility Plan Update Approval of local implementation of Project TERRE, which also facilitates access to the BM for DSR providers Published the Statutory Consultation to make Distribution network licence changes to prevent generation Approved derogation operation. supporting DSR in BMUs – enabling Limejump to provide DSR to BM Published the Framework Decision for the next set of network price controls On track to effect legal separation of the Electricity System Operator from National Consulted on scope and form Grid plc. Future Supply Market of Access and Forward looking Arrangements - Response Charges review 8
Smart Systems & Flexibility Plan Update Some next steps to note on the Calendar Statutory consultation on changes to Distribution Network licences to ensure network companies cannot operate generation (including storage) • Closes 27 October. Decision publish Winter 18/19 If positive, take effect Spring 2019 Q1 2019 Q4 2018 Q2 2019 Statutory consultation on changes generation licences to clarify storage as generation • Stat Con expected to be published before Charging consultation: Christmas • Consultation on recommended approach for targeted charging review • Storage operators can already apply for • Decision on access reform generation licences Half-Hourly Settlement: Before end of 2018: • Call for Evidence on consumer impacts of settlement reform • Decision on data access for settlement purposes Ongoing: 9
ESO Incentives 2018/19 We're holding our first ever Mid-Year Review (MYR) of the • ESO’s performance on Tuesday 20 th November in central London. Our call for evidence submission closed last week. But we’re • still very much listening to stakeholder views and encourage your attendance at the morning session of the MYR. The ESO published its Mid-Year Report on Friday. We • welcome your views on how reflective this is of performance since April. This includes your views on the extent to which the ESO is • ensuring the rules and processes for balancing services maximise competition, and are simple, fair and transparent If you would like to attend the open morning session, please • email us at ESOperformance@ofgem.gov.uk 10
National Grid Electricity System Operator (ESO) Update Adam Sims Flexibility Manager
ESO Forward Plan Our vision delivered through 4 roles. 70+ deliverables across 7 principles. • Thinks across networks • Shape frameworks for markets • Transparent in our decisions • Actions to promote increased use of markets • Continue to run the electricity system safely securely, sustainably and efficiently 13
Actions since the Power Responsive Summer Reception Roadmap deliveries Reserve & Reactive ESO Restoration Wider Power Rebranding Response Roadmap Access to BM Roadmap Roadmap Roadmap Dec 2018 May 2018 August 2018 Sept 2018 14
Frequency Response & Reserve Roadmap Simplified contract terms Provider on-boarding Decision on STOR simplified contract New units in FR and FFR Markets, terms is due following the review of including First Battery unit in Fast stakeholder feedback. Reserve and domestic DSR into FFR Platform for Ancillary FFR auction platform Services (PAS) Roadmap Trial will help to address barriers Successful test of the new web- to entry for providers. For Reserve based Ancillary Services and Response Dispatch Platform by dispatching for Fast Reserve using battery storage for the first time. Exclusivity clauses Consultation to improve our ability to stack products and revenue FFR testing and compliance policy streams for market participants Published a new FFR testing and compliance policy to streamline the process and make it more accessible – end of September. 15
FFR Auction Trial Facilitating Intermittent Generation: • Difficult to predict/forecast availability • Closer to real-time procurement helps facilitate more wind and solar generation Auction • Pay as Clear • ‘Buy order’ published prior to auction FFR Auction • Algorithm seeks to minimise cleared price • Curtailment – fully of partially – only curtailed if straddling buy order. Trial Timings: • Auction held weekly (every Friday morning) • Results published same day (afternoon) • Delivery commences at 23:00 on same day as auction Procurement: • Small volume of frequency response. • Trialled over 24 months • Allows for trials of different parameters • Procuring by 4 hourly EFA blocks over 1 week of delivery 16
Reactive Power Roadmap South Wales Mersey New Reactive Power • Reactive Capability Requirement • Reactive Capability Requirement Service exists: exists: • Location-specific – South • • 31st March 2019 to 27th October 2019 1st April 2019 to 31st March 2020 Wales and Mersey • • 29th March 2020 to 25th October 2020 1st April 2020 to 31st March 2021 • Open to both BM and Non- • Requirement between 23:00 – • Requirement 24/7 during some BM providers 07:00 times of the year • Can provide other balancing • Reactive Lag Requirement: • Reactive Lag Requirement: services in conjunction 300MVAr 170MVAr • Minimum Reactive Range is • Reactive Lead Requirement: - • Reactive Lead Requirement: - 50MVAr if a provider is 400MVAr 125MVAr capable of absorbing and generating reactive, or The Reactive Requirement is measured from the transmission system, and 25MVAr in one direction if a volumes depend on the exact location of the reactive capability required. provider can only do one of these. Interested Reactive providers are requested to submit information with an outline of their capability to provide a reactive power service by 5th November 2018. 17
Restoration Roadmap The changing generation mix in Great Britain means we need to evolve our Black Start strategy to ensure we can always restore the system effectively and economically 18
Wider Access to the Balancing Mechanism (BM) 1. Improving existing routes to market to ensure their suitability for the participation of supplier aggregators in the BM. 2. Developing new routes to market through framework changes to create a new way of entering the BM for parties wishing to provide near real-time flexibility. 3. Enhancing IT systems to improve data flows between the ESO and market participants so they are more efficient and cost-effective for smaller and aggregated units. 19
Further ESO Deliverables Facilitating Code Changes • Publishing Improvement Plan – Oct 2018 • Delivering Charging Futures Forum and adapting contact and Information Accessibility format in line with requirements • Trial of Control Room ‘visit days’ and customer roadshows • Publish ‘investor, customer, and stakeholder roadmap’ • Rationalisation of communication Improving Forecasting channels Confidence • Improving monthly BSUoS forecast Further ESO accuracy and report Deliverables • New energy forecasting tools – machine learning and cloud based Unlocking DER Connections New commercial contracts to allow distributed energy resources to participate Increasing Transparency of ESO in transmission constraint management Decisions services • Published a schedule of Ancillary Services events and results • Review granularity and scope of data provided in Monthly Balancing Services 20 Statement (MBSS)
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