System Operator Updates David Louise Adam Capper van Rensburg - - PowerPoint PPT Presentation

Agenda

Session 1:

Policy, Regulation & Electricity System Operator Updates

David Capper Louise van Rensburg Adam Sims

Vision and Objectives

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

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/

Energy Data Taskforce

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• 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

October 2018

Louise van Rensburg Interim Deputy Director, SO and Whole System

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Overview

• Smart Systems &

Flexibility Plan Update: some Ofgem specific actions

• Next steps: What to look
• ut for in the coming

months

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Smart Systems & Flexibility Plan Update

Published the Statutory Consultation to make Distribution network licence changes to prevent generation

• peration.

Approved derogation supporting DSR in BMUs – enabling Limejump to provide DSR to BM Approval of local implementation of Project TERRE, which also facilitates access to the BM for DSR providers On track to effect legal separation of the Electricity System Operator from National Grid plc. Consulted on scope and form

• f Access and Forward looking

Charges review Published the Framework Decision for the next set of network price controls Future Supply Market Arrangements - Response

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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

Statutory consultation on changes generation licences to clarify storage as generation

• Stat Con expected to be published before

Christmas

• Storage operators can already apply for

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

Q4 2018 Q1 2019 Q2 2019

Charging consultation:

• Consultation on recommended approach for targeted charging review
• Decision on access reform

Ongoing:

ESO Incentives 2018/19

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• We're holding our first ever Mid-Year Review (MYR) of the

ESO’s performance on Tuesday 20th 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

Adam Sims Flexibility Manager

National Grid Electricity System Operator (ESO) Update

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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

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Actions since the Power Responsive Summer Reception

Roadmap deliveries Reactive Power Roadmap Restoration Roadmap Wider Access to BM Roadmap ESO Rebranding

May 2018

Reserve & Response Roadmap

August 2018 Sept 2018 Dec 2018

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Frequency Response & Reserve Roadmap

Roadmap For Reserve and Response Platform for Ancillary Services (PAS)

Successful test of the new web- based Ancillary Services Dispatch Platform by dispatching for Fast Reserve using battery storage for the first time.

Provider on-boarding

New units in FR and FFR Markets, including First Battery unit in Fast Reserve and domestic DSR into FFR

Simplified contract terms

Decision on STOR simplified contract terms is due following the review of stakeholder feedback.

Exclusivity clauses

Consultation to improve our ability to stack products and revenue streams for market participants

FFR testing and compliance policy

Published a new FFR testing and compliance policy to streamline the process and make it more accessible – end of September.

FFR auction platform

Trial will help to address barriers to entry for providers.

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FFR Auction Trial

Facilitating Intermittent Generation:

• Difficult to predict/forecast availability
• Closer to real-time procurement helps facilitate more wind and solar generation

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

Auction

• Pay as Clear
• ‘Buy order’ published prior to auction
• Algorithm seeks to minimise cleared price
• Curtailment – fully of partially – only curtailed if straddling buy order.

FFR Auction Trial

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Reactive Power Roadmap

New Reactive Power Service

• Location-specific – South

Wales and Mersey

• Open to both BM and Non-

BM providers

• Can provide other balancing

services in conjunction

• Minimum Reactive Range is

50MVAr if a provider is capable of absorbing and generating reactive, or 25MVAr in one direction if a provider can only do one of these.

South Wales

• Reactive Capability Requirement

exists:

• 31st March 2019 to 27th October 2019
• 29th March 2020 to 25th October 2020
• Requirement between 23:00 –

07:00

• Reactive Lag Requirement:

300MVAr

• Reactive Lead Requirement: -

400MVAr

Mersey

• Reactive Capability Requirement

exists:

• 1st April 2019 to 31st March 2020
• 1st April 2020 to 31st March 2021
• Requirement 24/7 during some

times of the year

• Reactive Lag Requirement:

170MVAr

• Reactive Lead Requirement: -

125MVAr Interested Reactive providers are requested to submit information with an outline

• f their capability to provide a reactive power service by 5th November 2018.

The Reactive Requirement is measured from the transmission system, and volumes depend on the exact location of the reactive capability required.

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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

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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.

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Further ESO Deliverables

Further ESO Deliverables Improving Forecasting Confidence

• Improving monthly BSUoS forecast

accuracy and report

• New energy forecasting tools –

machine learning and cloud based

Facilitating Code Changes

• Publishing Improvement Plan – Oct 2018
• Delivering Charging Futures Forum and adapting contact and

format in line with requirements

Information Accessibility

• Trial of Control Room ‘visit days’ and

customer roadshows

• Publish ‘investor, customer, and

stakeholder roadmap’

• Rationalisation of communication

channels

Increasing Transparency of ESO Decisions

• Published a schedule of Ancillary Services

events and results

• Review granularity and scope of data

provided in Monthly Balancing Services Statement (MBSS)

Unlocking DER Connections

New commercial contracts to allow distributed energy resources to participate in transmission constraint management services

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Legal Separation

Through legal separation, we’re creating a trusted, impartial ESO that will make it easier for a wider range and variety of customers to connect to the network. We will be led by what our stakeholders and customers tell us and be upfront in our decision-making, showing that everything we do promotes innovation and competition, in the best interests of consumers.

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