Open Networks Thank you for joining the Future Worlds consultation - - PowerPoint PPT Presentation

1 Open Networks Future Worlds consultation

Open Networks

Thank you for joining the Future Worlds consultation webinar. The webinar will start at 14:03.

• For audio please dial +44-20-7108-6317
• Please ensure that your microphone is switched to ‘mute’ to avoid

background noise and your camera is not in use.

• You may ask questions via the chat function throughout the webinar, where

possible we will respond to these questions during the webinar.

• Please note that this webinar will be recorded and that the audio, chat

messages and slides will be made available on our website.

Should you want any further information regarding the Future Worlds consultation, please don’t hesitate to get in touch with us at

• pennetworks@energynetworks.org.

Energy Networks Association Open Networks Project Overview

Jason Brogden Open Networks Project Director

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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

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Collaborating Members

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Open Networks Consultations

Future Worlds Consultation (WS3 P5)

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Introduction

‘Future Worlds’ is the output of a substantial stakeholder engagement process to map and describe a number

• f 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.

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Today’s webinar

Our proposed next steps Description of the outputs of our work so far Background to the development of the future worlds and how we’ve taken your feedback into account Overview of consultation, its aims and approach

Energy Networks Association Open Networks Future Worlds consultation

Andy Wainwright Business Lead, Whole Electricity System, National Grid (ESO)

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Overall aims of the consultation

• 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

the project in 2018 such that the overall aims of 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

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Timeline for workstream

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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

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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

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Introducing the Worlds

• World A: DSO coordinates – a world where the DSO takes a central role for all distribution

connected parties acting as the neutral market facilitator for all DER and provides services on a locational basis to the ESO

• World B: Co-ordinated DSO - ESO procurement and dispatch – a world where DSO and ESO

work together to efficiently manage networks through co-ordinated procurement and dispatch of flexibility resource.

• World C: Price driven flexibility – a world where changes developed through Ofgem’s reform of

electricity network access and forward-looking charges have improved access arrangements and forward looking signals for customers. This world has been built with flexibility arrangements as described in World B, but it is recognised that charging and access developments could be similarly progressed in other worlds.

• World D: ESO coordinates – a world where the ESO takes a central role in the procurement and

dispatch of flexibility services as the neutral market facilitator for DER with DSO’s informing the ESO of their requirements

• World E: Flexibility coordinator(s) – a world where a national (or potentially regional) third party

acts as the neutral market for DER providing efficient services to the ESO and/or DSO as required

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Future Worlds’ Actors

The consultation presents outcomes through the lens of the 23 stakeholder groups (referred to as actors) developed in these Worlds.

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Future Worlds consultation

Any questions?

Please message via webex chat function

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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

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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-ordinators’
• We believe that all parties facilitating flexibility markets will need to

adopt the principle of neutral market facilitation

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The DSO Functions

System co-

• rdination

Network

• peration

Investment planning Connection & connection rights System defence & restoration Services / market facilitation Service

• ptimisation

Charging

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How stakeholders helped develop the worlds

• Through a series
• f workshops the

functions and activities in each world were discussed.

• Communication

links for functions and activities between actors were defined to be recorded in the Smart Grid Architecture Model (SGAM)

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What’s in SGAM

• Through a series of

layers, SGAM records the actors and the communication linkages between them.

• Each world is

represented in a separate model

• This facilitates;
• comparison and

assessment of the worlds

• Further development of

the structure as required

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Stakeholder Insights

• Through the workshops the key stakeholder groups (known as ‘actors’) were identified.

Following stakeholder feedback a focus area for the consultation has been describing the impact of the Future Worlds on each of these actors. We are interested in your feedback on these impacts.

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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

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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

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Next Steps

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Future Worlds consultation

Any questions?

Please message via webex chat function

Energy Networks Association Webinar closing remarks

Jason Brogden Open Networks Project Director

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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

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Impact assessment; draft criteria

The Strategic Case

Enhanced customer experience Greater environmental sustainability

The Economic Case

Financial benefits Whole system optimisation

The Commercial Case The Financial Case The Management Case

Industry structure & organisation Technical performance

• We are proposing to

take an approach consistent with the HMT Green Book

• Through the Future

Worlds consultation we are seeking your views

• n this approach and

also the data sources to be used

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How to get involved

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

Stakeholder Events

Webinar 1 - 21st August 2018 Edinburgh - 29th August 2018 London - 3rd September 2018 Webinar 2 - 13th 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

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Future Worlds consultation

Any final questions?

Please message via webex chat function

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Additional Slides

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