Energy Networks Association Open Networks Future Worlds - - PowerPoint PPT Presentation

Energy Networks Association Open Networks Future Worlds Stakeholder Event

Edinburgh 29th August 2018

Welcome & Introduction

Nigel Turvey

ENA Open Networks Project Chair

3

Housekeeping

Wifi: -Radisson_Guest Password: N/A – tick the box to accept the term & conditions and click on Connect. Fire Alarms: There are no fire alarms scheduled for today. Emergency Procedure: Leave via nearest emergency exit and meet at the assembly point (Crown Square on Niddry Street) First Aid: Please dial 5555 or alert nearest member of the hotel team. Bathrooms: Public toilets are located on the ground floor. Coffee breaks/Lunch: Tea/Coffee and lunch will be provided during the scheduled breaks If you require any further information, wish to take part in the consultation or are interested in hearing more about the ENA Open Networks Project, please email us at

• pennetworks@energynetworks.org.

4

Slido

Slido

Slido is an interactive platform we are using for our Q&A segments and general feedback. You are able to ask questions via Slido at any point throughout the presentation and we will address as many of them as possible at the end of each session. If you wish to ask a question verbally, please wait until the allotted Q&A segment.

• Link

– Website: www.slido.com – App/Google Play store – search and download: ‘Sli.do’

• Event code – #ENAFutureWorlds (non-case sensitive)
• Login – Full name
• Password – ENA (case sensitive)

Introduction | Open Networks Project

Jason Brogden

ENA Open Networks Project Director

6

Open Networks

• Open Networks (ON) is pan industry initiative that is laying the

foundations of a smart, flexible energy system in the UK.

• Taking a whole system approach, ON looks at the transition to DSO

that will create new markets and enable flexibility.

• ON is a key forum for addressing the challenges around evolving

roles and responsibilities in the short, medium and long term.

• ON is a key initiative to deliver Government policy set out in the

Ofgem and BEIS Smart Systems and Flexibility Plan, the Government’s Industrial Strategy and the Clean Growth Plan

• We are working in collaboration with Ofgem, BEIS, 10 of UK and

Ireland’s electricity network operators and other key stakeholders from the industry

7

Collaborating Members

8

Objectives & Timeline

The objectives of the Open Networks Project are to: 1. Develop improved T-D processes around connections, planning, shared TSO/DSO services and

• peration

2. Assess the gaps between the experience our customers currently receive and what they would like and identify any further changes to close the gaps within the context of ‘level playing field’ and common T & D approach 3. Develop a more detailed view of the required transition from DNO to DSO including the impacts on existing organisation capability 4. Consider the charging requirements of enduring electricity transmission/distribution systems

9

Stakeholder Engagement

8 5

Undertaken 4 consultations & planned another 2

4 webinars and 2 focus groups completed with stakeholders Published our material on ENA website

40

Workstream 1 | T-D Process

Jason Brogden

ENA Open Networks Project Director

11

T – D Process (WS1)

WS1 Products 1 Investment Processes 2 DER Services Procurement 3 Industry Framework Interactions 4 Reliability Standards & Emergency Requirements 5 Whole System FES 6 Regional Service Requirements 7 ANM Information 8 System Wide Resource Register 9 TSO-DSO Transmission Impacts 10 Facilitating Connections – Current Practice for Flexible Resources 11 Facilitating Connections – Action Plan and Report 12 TSO/DSO & DER Data Requirements 13 Operational Data & Control Architectures

Focussing on whole system approaches across T and D to put in place improved investment and

• perational planning processes.

Building on Phase 1 work e.g. DER Services. Benefits:

• DER service opportunities
• Input to Whole System Investment
• Better information for stakeholders
• Ongoing network reliability

Workstream 2 | Customer Experience

Jim Cardwell

Northern Powergrid

13

Customer Experience

WS2 Products 1 Good Practice ahead of Connection Applications 2 Management of Capacity 3 Explanation of ‘Terms’ & ‘Definitions’ 4 Information on Flexibility Services 5 Good Practice Following Connection Applications 6 Guidance on Post Connection Changes 7 Provision of Constraint Information 8 2017 Product Updates

Improve information for customers to support network connection and service provision Benefits:

• Enhanced information on

connections & services

• More consistent customer

experience

• Better practice across Network

Operators

• Improved use of capacity

Workstream 3 | DSO Transition

Stewart Reid

Scottish & Southern Electricity Networks

15

DSO Transition

WS3 Products 1 SGAM Modelling of DSOs and DER Procurement 2 Further SGAM Modelling of DSO Functionality 3 Market Agnostic DSO Elements 4 Independent Impact Assessment of Models 5 DSO Model Validation & Review Including Public Consultation 6 Key Enablers for DSO 7 Further Trials to Address Gaps in DSO Functionality 8 Preferred DSO Models & Proposed Implementation Plan

Develop and model DSO functionality Proposed implementation plan and “no regrets” DSO actions Impact Assessment of different DSO models

• Independently reviewed
• Build evidence base to provide to

policy-makers

Benefits:

• Articulation of DSO value
• Early implementation of key areas
• f DSO functionality to benefit

customers

• More consistent DNO practice

Workstream 4 | Network Charging

Paul McGimpsey

SP Energy Networks

17

Network Charging

• Support Ofgem’s CFF (Charging Futures Forum) and related Task Forces.
• Support Ofgem’s CDB (Charging Delivery Body) in translating the results

from the CFF into manageable actions and ensuring their delivery.

• Provide support on charging to the wider Open Networks project.
• Develop recommendations to remove inefficient signals in charging and

remuneration of TSO/DSO services.

• WS4 have contributed significantly to the delivery of the Electricity

Network Access & Forward Looking Charges: Final Report and Conclusions report delivered under the CFF Task Forces.

• http://www.chargingfutures.com/media/1203/access-and-flc-final-report-

and-conclusions.pdf

Coffee Break

Stakeholder Insights

Simon Gill | Scottish Government

Why the DSO transition is important for Scotland

2030 Whole System targets Principle for the energy strategy Our 2050 vision

The Scottish Energy Strategy ….

… and policy across Scottish Government

Programme for Government “phase out the need for new petrol and diesel cars and vans by 2032” Scottish Climate Change Plan “an emissions reduction of 66% compared to baseline levels by 2032” Energy Efficient Scotland “by 2040 our homes and buildings are warmer, greener and more efficient”

Why the current System needs to change…

Around 60% of our distribution networks are constrained for new generation connections

Why the current System needs to change…

In the next few years we may see a need to control domestic EV charging to managed constraints in the ‘last mile’ of the distribution network

Why the current System needs to change…

Energy Wholesale Costs Transaction costs Risk Costs Environ- mental Costs Network Costs Supplier Profits VAT

Network costs represented 28% of the average GB electricity bill in 20171

Projects which engage consumers and develop ‘smart’ local energy can help reduce costs in several areas of the bill The electricity Bill We will need new providers of flexibly to manage and minimise new network costs and act as providers of reserve When local generation is constrained linking with local demand can reduce energy costs

DNOs vs DSO and the future world’s consultation

The DNO plans, owns and operates the network itself but has little influence over how customers of the networks behave. With a DSO model that changes – but who should run the local markets and coordinate the actions on consumers?

Why your input is important …

Scotland has experience that should inform the DSO debate:

Those with existing experience of ANM or other flexible connections Energy Intensive Industry with specific demand patterns and

• ptions for

flexibly Network based Innovation Projects Community Groups Local Authorities trialling LHEES

Do Respond to Future Worlds….

• Respond to this consultation to help build the

evidence base.

• Answer the questions where you have meaningful input
• Provide context about how and why you need flexibly

and what flexibility you could provide to the network

• Provide feedback on any other areas of work you

feel the project should be considering and any potential blockers to the evolving energy landscape.

• Highlight where you need to help engage in this

debate in the future

simon.gill@gov.scot

Consultation Overview & How to get Involved

Andy Wainwright

National Grid ESO

29

Future Worlds Introduction

‘Future Worlds’ is the output of a substantial stakeholder engagement process to map and describe a number of potential future electricity networks (“Future Worlds”) capable of supporting the smart decentralised energy industry that the UK is transitioning towards. At this stage we do not seek to recommend any particular Future World but instead to understand them, creating a common view of how each works allowing informed debate and decisions to follow.

30

Overall aims

• The Future Worlds consultation builds on the

2017 Commercial Principles paper, but considers all the functions of DSO rather than simply market models.

• In brings together many of the key products for

workstream 3 in 2018 such that the overall aims

• f the consultation are;
• Obtain feedback on the ‘future worlds’

developed and their associated SGAM models including whether we have reflected stakeholder interactions appropriately

• Review draft criteria and proposed

structure for the Impact Assessment

• Obtain feedback on both key enablers and

market agnostic DSO elements to inform these products.

Product 5: Future Worlds Consultation

Products 1&2: SGAM modelling Product 3: Market agnostic DSO elements Product 4: Assessment

• f Future

Worlds Product 6: Key enablers for Future Worlds

31

Consultation approach

The Future Worlds consultation document

• High level document summarising the worlds from a stakeholder perspective
• Intended audience; Stakeholders who want a high level view of our work
• Feedback via consultation responses

The EATL modelling summary

• Detailed document produced by EA Technology giving further detail of the worlds

developed and their outputs

• Intended audience; Stakeholders who want to understand the future worlds in detail

The Models

• Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
• Intended audience; Stakeholders who value being able to explore and critique the SGAM

models

• World A

World B World C World D World E

32

Consultation areas

• A description of the five Future Worlds

The Future Worlds

• A high level summary of the methodology employed to build the Smart Grid

Architecture Models

The Smart Grid Architecture Model

• An overview of why the principle of neutral market facilitation is important

The principle of neutral market facilitation

• Key stakeholder insights for each of the 23 actors described in the models

Stakeholder insights

• Our intended approach to impact assessment modelling of the worlds inviting

your views

Assessing the Worlds

• A description of the key enablers needed to deliver the future worlds

Key enablers for the Future

• A summary of our proposed next steps including our work on least regrets analysis

Proposed next steps

33

How to get involved

We using a variety of means to reach out to stakeholders during the consultation period, which will run between 31st July 2018 and 25th September 2018 inclusive.

Stakeholder Events

Webinar 1 - 21st August 2018 Edinburgh - 29th August 2018 Webinar 2 - 13th September 2018 London - 3rd September 2018 Please visit the ENA Open Networks Future Worlds page for further

• information. You can respond to the consultation via email;
• pennetworks@energynetworks.org

Introduction to SGAM Modelling The 5 Future Worlds Principles of Neutral Market Facilitation Actors in the Future Worlds

Steve Atkins

Scottish & Southern Electricity Networks

35

Introduction to SGAM Modelling

The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex electricity system and break it down into is individual parts. It is three dimensional which allows complex aspects of the electrical network to be considered from a variety of perspectives Commercial Principles Paper (2017) Consulted industry on commercial principles to promote flexibility markets and potential market models. Smart Grid Architecture Modelling Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO. Future Worlds Consultation

36

Developing the Worlds

The Future Worlds

Commercial Principles paper DSO Functions Principle of neutral market facilitation Stakeholder feedback

The Future Worlds have been developed from other Open Networks products;

• The market models described in the

2017 Commercial Principles paper

• The DSO functions and activities
• The principle of neutral market

facilitation

We have also used stakeholder feedback from;

• The Commercial Principles paper
• The 2018 Open Networks work

programme

• A series of industry workshops

37

Five Future Worlds

38

The Future Worlds - Consultation Questions

39

The Principle of Neutral Market Facilitation

• The Future Worlds consider a range of parties who may

facilitate flexibility markets in the future;

– Distribution System Operators (DSOs) – National Grid in its role as Electricity System Operator (ESO) – Third party organisations taking on the role of ‘Flexibility Co-

• rdinators
• We believe that all parties facilitating flexibility markets

will need to adopt the principle of neutral market facilitation

40

Principles of Neutral market Facilitation- Consultation Questions

41

Stakeholder Insights

• Following stakeholder feedback a significant part of this consultation is devoted to

describing the impact of each of the future worlds on each identified stakeholder group. We are interested in your thoughts on the material presented and the approach we have taken.

42

Stakeholder Insights - Consultation Questions

Stakeholder Insights

Barbara Vest | Energy UK

Q&A

www.slido.com

Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive)

44

Lunch

The Smart Grid Architecture Model & Demo (SGAM)

Manuel Castro & Dave Roberts

EA Technology

47

Why we used SGAM methodology

The purpose of the SGAM modelling is twofold: firstly, to compare and contrast the five future worlds, and secondly to act as a base model for DNOs to build their required architectures, interfaces and business processes around for the DSO

• transition. To enable detailed comparison
• f the future worlds, the interactions

between actors are captured and categorised as part of the SGAM work.

Not all the layers have been populated at this point. There are more inputs required from trials and as the modelling becomes more detailed, it is more appropriate that each network

• rganisation models their particular system specifically to account for regional differences.

48

How the SGAM Model was built

The model was built using a top down approach through a series of industry workshops, starting with the main functions of a DSO as a neutral market facilitator DSO Functions

System Coordination Network Operation Investment Planning Connections & Connections Rights System Defence and Restoration Service Optimisation Charging Service/Market Facilitation

49

How the SGAM Models are presented

• Full models available
• nline as interactive

webpages

• Can navigate by

function or by actor

• Understand data flows

and interactions between different actors in different worlds

50

Demonstration of Models

The Models

• Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
• Intended audience; Stakeholders who value being able to explore and critique the

SGAM models

• World A

World B World C World D World E

51

The Smart Grid Architecture Model- Consultation Questions

Least Regrets Elements

Steve Atkins

Scottish & Southern Electricity Networks

53

Least Regrets Analysis

• Assessment of the five

future worlds has identified areas of common functionality between the worlds

• These areas could present
• pportunities to implement

aspects of smart grid now

• We are interested in your

thoughts on this work to inform our next steps

54

Areas of no regrets by function

Areas of no regrets tend to be aligned with achieving whole-system objectives through long-term planning establishing regulatory frameworks

55

Areas of no regrets by function

55

Function Key areas of no regrets

System Coordination

• Coordinated outage planning
• Regulatory framework for flexibility service provision
• Flexibility compliance to activation/dispatch signals

Network Operation

• Development of network stability mechanism
• Outage requests
• Real-time network monitoring for thermal and voltage excursions
• Activation of flexibilities and smart grid solutions

Investment Planning

• Traditional investment planning
• Quality of supply planning standards

Connections and Connection Rights

• Regulatory development of standard connection agreements for

flexibility

• Recovery of unused connection capacity

System Defence and Restoration

• Black Start
• Islanding
• Voltage reduction

Services and Market Facilitation

• Assess requirements for flexibility services
• Procure and activate flexibility
• Conflict mitigation and resolution

Service Optimisation

• Regulatory framework for market failure and last resort measures
• Arrangements for activation of last resort measures
• Development of smart grid solutions

Charging

• Exchange of information to determine market charges
• Access charges for flexibility resources

56

Least Regrets Analysis- Consultation Questions

Q&A

www.slido.com

Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive)

57

Coffee Break

Assessing the Worlds

Ross Thompson

UK Power Networks

60

Assessing the worlds

Purpose The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy/ regulatory thinking. Approach Employing independent, external resources to assist with assessing each world against the agreed criteria. Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate, evidence for conclusions will be documented. Engagement

• f all stakeholders will be an integral part of this process to ensure the

analysis is informed by the broadest set of evidence possible.

61

Assessing the worlds – draft assessment criteria

• 1. Strategic case - How well does each model address the “case for

change”?

Enhanced Customer experience Choice, Fairness, Affordability, Confidence and Trust Greater environmental sustainability Facilitating greater energy efficiency, decarbonisation of electricity generation and heat/transport and more electricity consumed closer to point of generation i.e. lower losses

• 2. Economic case - How efficiently does each model address the

“case for change”?

Financial benefits Cost of implementation vs benefits, Cost of operation vs benefits and Expected benefits Whole system optimisation Supports whole system optimisation, Optimises locally, Brings more flexibility into the system, Manages conflicts, Avoids duplication and Exploits synergies

62

Assessing the worlds – draft assessment criteria

• 3. Commercial case - How deliverable is each model – are the markets

viable and regulation appropriate?

Market viability and Appropriate regulation

• 4. Financial case - How viable are the funding arrangements for each

model?

Regulatory funding and Market facilitation

• 5. Management case - How viable/achievable is each model in terms
• f complexity and alignment of responsibilities/actions with roles?

Industry structure and organisation Rules and regulation, Facilitates neutral, Complexity, Implementation and Future proof Technical performance Safety risk, Service reliability and availability, Security, Resilience and recoverability and Clear dischargeable accountability for technical performance

63

Impact Assessment; proposed timeline

• The Impact Assessment

will be undertaken by independent consultants

• Mindful of timescales

we are already progressing the consultant selection

• We have developed a

timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach

64

Assessing the Worlds - Consultation Questions

Key Enablers for the Future

Alan Collinson

SP Energy Networks

66

Key Enablers for the Future

• We have identified a number
• f key enablers required to

be developed to facilitate the Future Worlds. These enablers are required regardless of the world developed.

• We are interested in your

views on this list and short term priorities for ensuring enablers are in place.

• Regulatory changes
• Organisational changes

Changes to industry structure:

• Market engagement
• Contract requirements
• Funding

Developing a market-based approach:

• Communications infrastructure
• IT systems
• Network visibility and control

Facilitating information and data exchange

67

Changes to Industry Structure

• Regulatory changes (guiding principles)

– Promotion of effective markets & competition

• Customer choice, customer control
• Cost-reflective, realising value, level playing field

– Smart Grids & Flexibility

• Smart technologies, technical & commercial innovation

– Secure, affordable, sustainable energy system

• Organisational changes

– Closer internal interactions – Closer DSO-ESO interactions – Closer interactions with customers

68

Developing a Market-based Approach

• Market Engagement

– Raise awareness – Increase participation – Increase market liquidity – Increase competition

• Contract Requirements

– Technical requirements & specifications – Open access for all potential providers – Payment mechanisms – Quantification of service delivery – Settlement arrangements

• Funding

69

Facilitating Information and Data Exchange

• Communications & IT Systems

– More data, faster, reliable, quality – Internal, External, Public – Integrated solution (IT & OT) – Cyber security – Data analytics, forecasting

• Network Visibility & Control

– Monitoring of the secondary (LV) network – Smart meter data – Network automation, remote control

70

Key Enablers- Consultation Questions

Proposed Next Steps

Andy Wainwright

National Grid ESO

72

Next Steps

• DSO definition &

functions

• DSO functions
• Commercial Principles

paper

2017 work programme

• SGAM modelling
• Key Enablers
• Future Worlds

consultation

Development phase

• Refining SGAM & key

enablers

• Impact assessment
• Least regrets analysis

Review phase

• Evidence pack for BEIS

and Ofgem

• Impact assessment

consultation

Final conclusions

Q&A

www.slido.com

Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive)

73

Final Comments and Conclusions

Nigel Turvey

ENA Open Networks Project Chair

75 ENA Open Networks | Advisory Group | 2 August 2018

• The opportunities and implications of these Future Worlds are significant

societally, commercially and technically, and we recognise it is important that to get responses from a wide variety of interested parties, to inform the further development of these Future Worlds.

• We welcome all feedback on our work. In the main consultation document we

ask a number of questions and would value your thoughts. Responses to the consultation can be emailed to opennetworks@energynetworks.org. All responses must be submitted to ENA by 18:00 on 25th September 2018.

We welcome feedback from all our stakeholders. If you have any comments that you would like to share, please feel free to submit them to opennetworks@energynetworks.org.

Wrap Up

Feedback

www.slido.com Event Code: #ENAFutureWorlds Passcode: ENA (case sensitive)

76

Additional Slides

77

78

79

80

81

82

83