Update and Annual Review 10 September 2018
What is Pixie Energy? • Pixie Energy: established in 2016 to develop and implement local energy market ideas and innovations. The project Focus has been on East Anglia takes national − Official launch July 2017 knowledge and − Now building on knowledge and relationships by relationships scoping and establishing innovation projects with local partners to yield “learning by doing” and will apply them for the ▪ Now focussing more broadly: benefit of the − Build regional maps, highlighting opportunities East Anglian and challenges, to be made available through region and local LEPs beyond − Support local thinking, solutions and players − Demonstrate business case for new commercial mechanisms and models 2
First session • Tomorrow’s smart grid - Alex Jakeman, UKPN • Norwich Virtual Energy Community – Nigel Cornwall, Pixie • ECO Switch – Tom Andrews, Pixie • Ipswich draft flexibility feasibility report – Dan Starman, Pixie 3
Second session • Local Energy East and the local energy hub and strategy – Paul Bourgeois • Mapping East Anglia and beyond – Neil Mearns, Pixie • Innovation in supply and the local energy scene – Anna Moss, Pixie • Decarbonisation and innovation – Panel discussion chaired by Gareth Miller, Cornwall Insight 4
Tomorrow’s Smart Grid Alex Jakeman, UK Power Networks - Innovation Project Lead 10 September 2018
Purpose The changing energy landscape Innovation at UK Power Networks Active Response project 6
About UK Power Networks 7
The Changing Energy Landscape What is driving change? • Transition to low carbon economy • Changing regulatory environment • Technology revolution • Societal changes Pace and scale of change continues to increase 8
The distributed energy world in 2030 ~1.2-1.9m Electric Vehicles ~13 GW of solar ~4 GW of storage 9
Our Innovation Strategy Efficient Low Future And Carbon Ready Effective Ready 10
The Innovation Portfolio Electrification Connecting more of transport renewable energy Air quality Optimise Improve asset lifecycle network capacity management 11
Active Response 12
How will we achieve this? NETWORK OPTIMISE: PRIMARY CONNECT: Optimisation and Automatic Reconfiguration of HV Controlled transfers between primary substations & LV networks in combination, using remote using a SPB to share loads and optimise capacity . control switches and SOPs Normal open point 13
• The world of energy is changing fast, and we recognise that our role has to evolve • Our transition to Distribution System Operator (DSO) has already started to enable a smart and flexible system • Listening to our customers and stakeholders will continue to be a priority • We are committed to learning through doing to shape this exciting future http://futuresmart.ukpowernetworks.co.uk/ 14
Norwich Virtual Energy Community Nigel Cornwall
Basic idea • A local community based supply model allowing − Deployment of solar and storage at below market prices − Multi-supplier service provision and work around under Elexon sandbox process − Optimisation of consumer flexibility, trading of imbalances − Use of innovative time of use tariffs and elective half hourly settlement • Learning by doing but using good industry practice, managed by Pixie Energy • All this enabled under a recently approved Elexon innovation sandbox • Supported by development of a crowd funding platform (CFP) with local accountancy firm Aston Shaw • Develop tool kit that be replicated and scaled based on project learnings 16
Domestic supply, multiple suppliers • New Anglia Energy will install PV and battery assets, and provide on-site energy • Green Star Energy to provide a time-of- use balancing tariff • A partner will provide energy to EV charging points • e-POWER will make billing and settlement whole through establishment of a new customer notification agent role • Aim is to fund a community battery once CFP is in place • Keen to incorporate social housing group in this or parallel solution 17
Business supply • Replicate locally on SME site, ideally our new HQ • Similar arrangement between licensed and exempt supplier • More scope to incorporate EV charge points • Sharing model for in front of meter battery • Exploring with Norwich Diocese extension to local school • Scaling based around incorporation of existing local generation 18
Phasing • Initial, start-up phase from 1 October (phase 0) with >50kW of domestic battery storage capacity and 100kW of solar PV over 15 or so households • Prior to April 2019, participants will be asked to switch to Green Star Energy for at least a year • The aim then will be to at least double the size of the scheme by start of phase 1, at 1 April 2019 − Adding existing Green Star Energy customers, other behind the meter suppliers − Potentially a community battery and EV charge points − Potentially adding church, school and commercial buildings • First full year will be done under sandbox conditions • Intention to support growth through crowd funding platform − Aim to go live 1 April 2019 19
Commercial parameters • New Anglia Energy provides panels and batteries • Pay as you save − Contracts being drawn up by Lux Nova − Tariff set at 20% discount to reference local green tariff − Payments repay loan − FiTs and battery availability payments rest with ownership • Green Star Energy provides smart meter and offers competitive balancing tariff • e-POWER will be testing multi-party billing and settlement though a single bill from Green Star Energy 20
Behind the meter Analysing different supplier roles and routes for crystallising and sharing flexibility values . 21 21
Norwich generation landscape Considerable scope to supplement with existing local generation. Actively discussing introducing these into the scheme . 22
“Sandbox” new relationships We have our application prepared and are good to go. Scope to develop other pilots . 23
Next steps • Finalise contract with start up householders • Surveys underway • Commit funding for panels and batteries • Establish MoU with lead supplier/s and other partners • Continue engagement with local stakeholders − NCC and other LAs − SHAs − Others • Submit sandbox application • Continue work on CFP, with aim to complete by 1 April 2019 • Develop dissemination portal 24
ECO Switch Tom Andrews
What is ECO? • The Energy Company Obligation • Latest in a series of government-mandated energy efficiency schemes • Energy suppliers are required to support and deliver “affordable warmth” • Obligation based on supplier’s domestic market share • ECO3, beginning in October 2018, will support fuel poor customers only, and will run through to end March 2022 26
What is ECO Switch? • A new route to market for delivering ECO measures regionally − A trading platform to allow local authorities and social housing groups initially in East Anglia to pull through measures funded by suppliers and delivered by installers/ solution providers − Targeting fuel poor and vulnerable customers − Meet extended market for flexible eligibility and increased regulatory expectations of domestic energy efficiency markets − Tri-lateral trading and reconciliation between the three parties 27
0 200 400 600 800 1000 1200 11/03/2014 08/04/2014 Why a new platform? 06/05/2014 03/06/2014 01/07/2014 29/07/2014 26/08/2014 23/09/2014 21/10/2014 18/11/2014 16/12/2014 28/01/2015 24/02/2015 • The BEIS brokerage has not delivered 24/03/2015 05/05/2015 02/06/2015 30/06/2015 − Illiquid, few lots posted and very few sold 28/07/2015 25/08/2015 22/09/2015 − Non-locational, inflexible 20/10/2015 18/11/2015 15/12/2015 • But there is appetite for a trading 26/01/2016 24/02/2016 22/03/2016 platform among independent suppliers 19/04/2016 17/05/2016 14/06/2016 − Green Star, Coop, Utilita have all 12/07/2016 09/08/2016 06/09/2016 expressed interest 04/10/2016 01/11/2016 − Will grow as more suppliers are 29/11/2016 10/01/2017 07/02/2017 obligated, with the cap dropping 07/03/2017 04/04/2017 02/05/2017 • Why should suppliers pay over the 30/05/2017 27/06/2017 odds for others to deliver obligations? 25/07/2017 22/08/2017 19/09/2017 17/10/2017 − Many suppliers developing local interests 14/11/2017 09/01/2018 06/02/2018 − Increasing pressures to compete on 06/03/2018 03/04/2018 01/05/2018 costs 29/05/2018 26/06/2018 24/07/2018 21/08/2018 28 ECO brokerage lots, sold and unsold Lots unsold Lots sold
Benefits to participants • Guaranteed, credible route to market Suppliers • Lower cost of providing ECO, especially search costs • No cross-flow of capital to other suppliers • Reputational benefits from publicity Local • Extra funding to tackle fuel poverty • More suppliers to work with will enable more LAs to secure support Authorities • Opportunities to trial innovative solutions Solution • Easier to get involved in the market without becoming tied to supplier • Achieve local critical mass providers • Allows innovation parties to attract funding 29
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