Energy Networks Association Open Networks Project Advisory Group - - PowerPoint PPT Presentation

Energy Networks Association Open Networks Project Advisory Group

5th September 2019

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.
• There is a scheduled fire alarm test at 2:00pm.
• 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.

Attendance

• Please remember to mark your attendance on our attendance list.

Feedback

• We will provide feedback forms to capture comments from the session.

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
• pennetworks@energynetworks.org.

2

General Housekeeping

The Advisory Group is essential to our project to:

• Ensure stakeholders are aware and taking the Project into account;
• Request input from stakeholders to improve the quality of our products;
• Increase awareness about project risks & issues, ask for views on risks & issues and collaboratively

resolve where appropriate. We will provide input to:

• Steering Group on project scope, progress, risks & issues;
• Workstreams with deliverable comments/feedback.

We will seek to send information in advance of meetings to ensure that views can be sought by trade associations in advance. Our objective is to encourage open feedback from you all across all of our work. Thank you for the continued input.

3

Advisory Group ToR Reminder

4

Running Order of the Day

Item Leader Welcome & Introduction NT General Project Updates JB Workstream 2 Product 1: System Wide Resource Register JW Workstream 3 Product 7: Conflicts of Interest and Unintended Consequences RB Breakout session: Workstream 1A Product 6, Facilitation of new markets Workstream Representatives Breakout session: Workstream 4 Product 2, Day ahead real time operations Workstream Representatives Breakout session: Workstream 4 Product 4, Investment planning Workstream Representatives Wrap-up NT

5

Publications and Progress to Date

Work has now commenced on all Workstream products outlined in our 2019 plan. We have taken your feedback to help us identify priorities and shape the scope and direction of travel for this year.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Overall Project Future Workplan & Prioritisation Workstream 3 Product 1 Impact Assessment Workstream 1A Various products Workstream 2 Queue Management; Interactivity Workstream 4 Dependent on scoping work

Flexibility Services consultation: 35 responses received Interactivity and Queue Management consultation:

• Webinar 28th August; SSEN webinar 5/9 2pm; close date 25/9

6

Consultation updates

Consultants, 5 Consumer Protection Party, 3 Cross Industry Representative, 3 Distributed Energy Resource, 2 DNO/DSO, 1 Electricity TO, 1 Generator/DER, 4 iDN O, 1 Large Energy Company, 6 Local Energy System, 5 Settlement Agent, 1 Supply Chain, 3

• Recently, BEIS and Ofgem sent an open letter to ENA on their view of the work of the

Open Networks Project.

• We welcome BEIS and Ofgem’s continued support of the Open Networks Project, and are

pleased to be working closely with them to deliver the smart grid. The clarity in highlighting priorities will be taken forward in our future work, as we continue to work with all stakeholders to deliver the smart grid.

• The full letter from BEIS & Ofgem is available here, and the initial response from our CEO,

David Smith, is available here.

• We are developing a more complete response that we will publish as an open letter in

response this month.

• ENA will also be responding to the Distribution System Operation ED2 consultation

7

BEIS / Ofgem Open Networks Letter

8

Flexibility Development: Stakeholder Participation

 The development work of Workstream 1a: Flexibility Services has been opened up to wider stakeholder participation, to help develop products beyond the existing Advisory Group input.  Workstream 1a is currently developing the following products, and the project team would encourage further stakeholder participation in its development work:

• P1: Flexibility Market Principles
• P2: DSO Services – Procurement Processes
• P3: DSO Services – Dispatch and Settlement Processes
• P4: DSO Services – Commercial Arrangements
• P5: DSO Services – Conflict Management & Co-optimisation
• P6: Facilitation of New Markets

 The Open Networks Workstream Working Groups have responsibility for the definition, review and approval (or recommendation of submission to the Steering Group for approval) of all Workstream outputs.  Reporting to the Workstream Working Group, we have convened a number of Subject Matter Experts (SMEs) into product development teams to develop products and submit content for review and guidance from the Working Group. This enables us to develop content in between the Working Group meetings (typically every 3 weeks) and to maintain pace in delivery in the project.  Typically, this will require between half and one day’s work a week to provide the necessary input into product development.  The Terms of Reference for participating in Workstream 1A development work can be found here. To find out more about participating in Workstream 1a, please email us at opennetworks@energynetworks.org.

9

2020 Workplan: Stakeholder Participation

 We intend to ask stakeholders for their views on our open letter response:  Whilst we are not formally consulting on this letter response, we would welcome any input from stakeholders

• n how we have responded to the challenges set by Ofgem and BEIS in their letter and particularly what we

will set as our priorities and development work for 2020 and beyond. We are beginning to plan our work for 2020 and draft our annual Project Initiation Document, therefore there is an opportunity to provide stakeholder input to our panning in whilst it is still in development. We would encourage any stakeholders to provide feedback to us at the following email address: opennetworks@energynetworks.org  We plan to give 4 weeks to respond (any longer and we won’t be able to take feedback into account)  This gives stakeholders the opportunity to shape our priorities up-front.  We have also planned to consult on our full Workplan and PID in Q1 2020, but we are conscious of the draw on industry resources and the need to for us to focus our consultations on key areas.  Questions for you today:  Would you welcome the opportunity to provide feedback on our Open Letter response?  Would you still like to be given the opportunity to provide feedback on our PID in Q1 by formal consultation?

Energy Networks Association Workstream 2 Product 1: System Wide Resource Register

John West (ENA)

11

ON Steering Group Agreement to Establish Registers

Following detailed proposals in July, the ON Steering Group approved: I. Separate resource registers for each network company area. These will have a consistent format across DNOs and will cover connected and contracted resources >1MW, network reinforcements and information on services.

• II. Initial registers will be published by January 2020. As the publication of network

reinforcements will require new internal DNO processes, this part of the data will be in place by July 2020.

• III. The work will be taken forward alongside DCUSA modification DCP 350. If licence
• bligations are not established to allow the publication of customer names &

sites, the registers will be delivered with some information anonymised.

12

Recap & Update The SWRR and interactions with other initiatives

SWRR

SWRR

(Options include central database, portal and

• ther solutions)

ENWL NPg SPEN SSEN UKPN WPD LTDS Heat Maps Contract Registers New Information DNO’s update registers on a regular basis Project Developers Network Companies Govt & Agencies Service Providers Other Parties

Ofgem work to update form of LTDS’s may revise data EDTF work provides additional context for SWRR

RecorDER project may provide future implementation

• ption

With flexibility service platforms (e.g. Piclo) there may be value in a register

• f flexible resources capturing

capability, pre-qualification etc.

Users access registers for complete, accurate info which is consistent across DNOs

DCUSA proposal DCP350 to establish DER registers was reviewed at the 17th July DCUSA panel

• meeting. It was agreed to set up a working group

and seek further advice on confidentiality aspects.

TEC Registers etc TOs, ESO

13

Recap & Update The Benefits of a SWRR

SWRR SWRR

Connection

• pportunities?

Opportunities to trade rights? Better forecasts

• f energy

requirements Where is it best to site local infrastructure? Opportunities to provide flexibility Policy review &

• pportunities.

Savings through flexibility services?

Wider support for SWRR:

• The Advisory Group & the DER Connections

Steering Group previously supported data registers but raised concerns about costs and data requirements falling on industry parties.

• On 23rd July, webinar participants strongly

supported implementation of the SWRR.

• The DCUSA modification indicates wider

support for DNO level capacity registers.

• The agreed approach recognises earlier
• concerns. Much of the commitment is for

DNO resources to prepare and maintain data.

14

Data Structure, Implementation and Further Steps

Implementation Steps

Aug 19 Sep 19 Oct 19 Nov 19 Jan 20 Dec 19 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20

Publish Initial Registers Refine Registers Legal Advice on Confidentiality Aspects Support DCUSA Modification DCP 350 Establish Internal Processes to Deliver Network Reinforcement Information Update & Maintain Registers Include Network Reinforcements

Further work will be undertaken including:

• Alignment with EDTF impacts.
• Review impacts on other published data.

Further work could also include:

• Extending the registers for assets <1MW.
• Registers for IDNO networks.

General Data

• customer name,

connection point, plant type etc

Already Connected

• resource capacity

Commercial Services

• type of service,

duration

Accepted to Connect

• resource capacity

Network Reinforcement

• description, type,

completion date

Data Structure

15

Alignment with EDTF Report and Actions

The SWRR aligns with the EDTF recommendations and the direction of travel on data access. For example, the SWRR could be one of the Energy System datasets that is accessed via the EDTF’s proposed Data Catalogue (Recommendation 3).

Data Catalogue

Network Codes Settlement Data Energy System Database Energy System Database SWRR

SWRR data has been triaged against EDTF data types (Open, Public, Shared & Closed). Customer names, sites and locational data that might allow specific customers to be identified are likely to be “Closed” data unless licence or code changes are made. Data on commercial services provided by customers is likely to be “Shared” data

General Data

Field Tag Data Category Mitigation

Customer Name Closed Anonymise Customer Site Closed Anonymise Grid Supply Point (GSP) Might be Closed or Open Aggregate Bulk Supply Point Might be Closed or Open Aggregate Primary Might be Closed or Open Aggregate Licence Area Open Plant Type Open Type of Connection Open Connection Status Open

Energy Networks Association Workstream 3 Product 4: Conflicts of Interest and Unintended Consequences

Randolph Brazier (ENA)

17

Introduction to the product

Conflicts of interest Unintended consequences Risks to the DSO business model

• r operations
• Explore conflicts of interest and unintended consequences further and…
• …identify appropriate mitigation measures…
• … by building on Baringa’s work and working with stakeholders

Objective Scope

18

Key outputs

• A spreadsheet to act as a log and tracker
• An end of year summary and recommendations for work in 2020

Outcome

• Transparency and trust
• Well-informed decision on the design of DSO
• Better design of the DSO system

Introduction to the product

19

Progress update

CONTENT

• Thank-you for your feedback
• It has now been processed as shown in the Change Log
• Additional feedback from:
• ON workstreams
• BEIS and Ofgem

PROCESS

• Ofgem and BEIS acknowledge that some items will identify them as owner and

accept to interact with the product

• It makes sense to complement the product with the Implementation log

Version shared today Future version (september)

20

Next steps

• Up until now, we were setting up the product….
• …..in October, the product team will kick start the effort to progress the issues by:
• meeting with the owners and hold them to account
• identifying gaps of ownership and work to address it
• Publish the latest version (incl BEIS/Ofgem feedback) online by end of September
• Ongoing interaction with Advisory group

Energy Networks Association Breakout Session: Workstream 1A Product 6 Facilitation of new markets

Steve Atkins - SSEN

Facilitation of New Markets 22

2019 PID – WS1A P6

Facilitation of new markets In addition to directly procured DSO services, we need to consider how we can facilitate

• ther markets that the DSO might be able to enable or support in the future (e.g. peer-to-

peer trading platforms, capacity management, trading flexibility to take on or avoid constraints). Development work should include considering:

• what data needs to be provided to facilitate new markets
• what data needs to be sent to network operators after any action/trade
• trial scenarios that can help develop and understand these markets and the required DSO

actions to facilitate these

Facilitation of New Markets 23

Scope - Inclusions

• Peer to peer trading – definition?
• Trading capacity
• Trading flexibility – reducing ANM curtailment
• Local supply
• Links to other markets – balancing mechanism?
• Mechanism for keeping this fresh – formal process for disruption!

Facilitation of New Markets 24

Scope - Exclusions

• Active and reactive power services for DSO
• Flexibility for new connections

Facilitation of New Markets 25

Key Activities

1. What don’t we know about? i. Review of recent consultations – Future Worlds, Impact Analysis, Flexibility Market ii. Review of BEIS Flex/Innovate UK applications 2. What’s covered? i. Review of ON Products ii. WS3 Product 5 Outputs iii. Review of TEF Projects/DNO Trials 3. Data Requirements i. pre-trade - for facilitation ii. post-trade - for resilience 4. Trial scenarios

Facilitation of New Markets 26

Timeline

 Telephone Interviews – 13/8/19 to 30/9/19

• BEIS Flex Applicants
• Innovation Applicants

 Desktop Survey – 13/8/19 to 30/9/19

• Current Consultations
• WS3 P5

 Cross-check against our categories of new markets – September 2019  New stakeholders - 13/8/19 to 30/10/19

• Investigate ‘sandbox approach’
• Consistent route in to market

 Stakeholder event – October 2019

• Iterative
• Rational

 Utilise Flexibility in GB webpage – 1/10/19 to 30/11/19  Produce Report – December 2019

Facilitation of New Markets 27

Telephone Interview

 Project Name  What they applied for  Scale  Funded/Unfunded  Is it new?  What service are they trying to develop?  Is it a refinement of an existing market?  What essential data do you require for the market to function?  What data would be good to have in addition?  What are the regulatory barriers?

Facilitation of New Markets 28

Outcomes

• Demonstrate a clear understanding of the potential flexibility market beyond contracted

services for system operators – define peer to peer

• Define the data requirements and data format that system operators should provide to

add value for stakeholders pre-trade to facilitate the range of activities

• Understand potential impact on the network and stipulate appropriate post-trade data

requirements for market participants

• Establish clear route for disruptors to notify system operators of new markets

Facilitation of New Markets 29

Stakeholder Engagement

Engage with:

• BEIS Flex Projects
• TEF Project partners
• Disruptors
• Advisory Group
• BEIS/Ofgem

Facilitation of New Markets 30

Dependencies

• Workstream 3 Product 5 – PNDC Mapping
• Flexibility Markets Consultation Outputs
• BEIS Flex Projects
• TEF Projects
• Non SCR Products 1 & 2 – Capacity Trading & Constraint Trading

Facilitation of New Markets 31

Questions for Advisory Group

• Do you agree with our approach?
• How else could we engage with relevant stakeholders?
• Are there any obvious markets that we have missed?
• What key datasets do you think are required to facilitate these markets?
• What are the regulatory barriers to these markets?

Energy Networks Association Open Networks WS4 – Whole System P2

Mark Herring – National Grid

33

WS4 Overview

• P3. Season / year ahead forecasting – Not started
• P1. Customer connection process – Not started
• P4. Investment planning – In progress
• P2. Real-Time/Day Ahead Operations – In progress

Data Processes & Principles Customer Segmentation Early Development Further Process Development Finalise & Approve Outcomes

34

WS4 Timeline

35

WS4 Product 2 – Real time / day ahead

Problem statement(s) / hypotheses

• There is a need to Review operational processes at real time and day ahead to (i) improve data provision for customers, (ii) explore
• pportunities for sharing existing best practice between networks, and (iii) identifying opportunities for more data sharing across
• networks. Focus on next 3-5 years to prioritise quick wins and futureproof where possible.

Activity Sub-deliverable A: Identify activities that impact / support cross-vector operation and

• ptimisation e.g.

Site nominations (sites inform control centres as to planned hours of operation) Major outages (look at circumstances where we should share information) System Operation forecasts (data transactions) Test value i.e. potential benefits vs additional workload Review existing terminology and aim to create common dictionary to terms of agree common language Sub-deliverable B: Target processes for implementation across network operator, which are likely to result in consequential business change (this is likely to be different across different network operators depending on what processes they have in place now) Suggested / identified Code Changes, System Changes, Process Changes Recommendations for further work Identification of barriers [regulatory etc.] Output Sub-deliverable A: Report findings and options/ recommendations for improvement Case study for appropriate customer type(s) (Date: September 2019) Sub-deliverable B: Implementation plan (Date: November 2019) Interactions Close linkages with other products in workstream 4 Link to the Energy Data Taskforce group Legal restrictions around data sharing and transparency WS1b – real time data exchange

36

Product 2 – Examples of case studies

• Case studies to focus on the interfaces of gas and

electricity networks:

• CHP
• Gas Fired Generation
• H2 injection from constrained renewable

generation

• Proposal to start with Power Generation being the

most immediate issue with most to gain in the short term

• Learning from Power Generation examples would

inform the approach for CHP and H2 injection at a later date following similar principles

37

Product 2 – Opportunities

Gas Network Electricity Network

Short term opportunities focus on Flexible Generation:

• Improved data sharing between relevant control centres
• Combined forecasting processes
• Minimised customer disruption as a result of better harmonization
• Supports reliable supplies

Longer term opportunities (outside current scope):

• Facilitating new markets data for e.g. arbitrage for hybrids
• Harmonising processes for power to gas

How can real-time / day ahead coordination of data & operations:

• Minimise whole system network costs to gas and electricity networks (versus storage /

local production )

• Improve customer service by maximising flexibility, less disruption, increased reliability,

improved efficiency, lower costs, less CO2 from compressors

38

Product 2 – Proposal for discussion

Capacities connected Markets signed up to Capacity agreements / svcs (gas) Capacity agreements / svcs (elec) Real time network constraints Electricity demands (local and national) Real time generation services required Weather patterns Availability of renewable / intermittent Requirement for flexible generation Electricity supply prices ESO dispatch instruction

Our proposal is that relevant data to support the efficient operation of networks should be open for sharing between control centres The table to the right provides information

• n data we consider relevant:

39

Product 2 – Proposal for discussion

Capacities connected Markets signed up to Capacity agreements / svcs (gas) Capacity agreements / svcs (elec) Real time network constraints Electricity demands (local and national) Real time generation services required Weather patterns Availability of renewable / intermittent Requirement for flexible generation Electricity supply prices ESO dispatch instruction

For this discussion:

• The value, and risks, in different approaches to sharing

data eg. shared procurement of 3rd party forecasts vs a single network forecast vs shared forecasts between networks vs shared inputs to forecast models?

• Potential approaches to delivery of this data sharing and

value / risk comparisons?

• Other opportunities or concerns with this proposal?
• Is there other information or data which you think would

be useful, and for what purpose?

• Is there any other use cases we should be considering

within our 5 year horizon?

• Consideration of reliability / Security of supply?
• Should non-network players (eg. aggregators) be
• bligated to provide dispatch plans?

Energy Networks Association Open Networks WS4 – Whole System P4

Stuart Easterbrook - Cadent

41

WS4 Overview

• P3. Season / year ahead forecasting – Not started
• P1. Customer connection process – Not started
• P4. Investment planning – In progress
• P2. Real-Time/Day Ahead Operations – In progress

Data Processes & Principles Customer Segmentation Early Development Further Process Development Finalise & Approve Outcomes

42

WS4 Timeline

43

Product Team Approach

The aim of the product is to identify and realise benefits to customers and stakeholders by applying a whole system approach within the investment planning processes.

Identify

• pportunities

Prioritise based on hypotheses Test Hypotheses Confirm deliverables Confirm delivery plan

Opportunity Area Hypotheses

Information Flow A single entity undertaking the information gathering activity from local bodies will reduce costs for all parties, remove the potential for inconsistencies, create a consistent trusted data set, and provide a basis for networks to feedback related issues on their networks. There is data that a network could provide that would help customers and stakeholders from another network e.g. gas network capacity info for gas power generation. Delivering Solutions Applying a whole energy system approach can generate a better and more valuable range of

• ptions to meet customers and stakeholders longer term development needs.

WS4 Product 4 – Investment planning

Discussion point:

Do you agree with the hypotheses?

44

WS4 Product 4 – Investment planning

Information In and Out Delivering Solutions (3 years +) Deliverable:

A single entity will procure, update, and share the requirements for medium and long term incremental network capacity from regional bodies.

Deliverable:

Accessed from a central hub, the networks produce “heat maps” showing their networks and areas of spare/scarce entry and exit capacity

• verlaid on regional plans.

Deliverable:

A whole system optioneering service, providing Local Authorities with options to meet their future requirements, to enable the establishment of regional energy infrastructure

• plans. The service would be triggered by

application from the Local Authority/Regional body. Anticipated outcomes:

• Higher quality robust data
• Lower stakeholder and network costs
• Higher value solutions for customers and stakeholders
• Optimised network utilisation
• Delivering timely capacity
• Improved more efficient relationships
• More efficient decision making

Product Deliverables

Discussion points:

Do you think these deliverables can add significant value to customers and stakeholders? What are the risks that might need to be mitigated? Potential approaches to delivery of these proposals, and the value / risks of each?

Energy Networks Association Wrap Up

Nigel Turvey (WPD, Open Networks Project Chair)

46

Wrap Up

There are some challenges ahead if we want to meet our carbon targets while providing a safe and secure energy grid at an affordable price. However, by enabling flexible networks we can address these; open up new markets for customers for low carbon and innovative technologies; and deliver efficient network costs for consumers. We are working together and dedicated to making this work with input from stakeholders in an open and transparent way. Please remember to complete the feedback poll on your desks. 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.