UK Power Networks Our heat readiness strategy 4 th June 2020 - - PowerPoint PPT Presentation

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UK Power Networks Our heat readiness strategy 4 th June 2020 - - PowerPoint PPT Presentation

Heat Decarbonisation Webinar UK Power Networks UK Power Networks Our heat readiness strategy 4 th June 2020 Introductions & Agenda Introduction to Heat Strategy 14:00 14:15 Zain Habib Innovation Programme Manager UK Power


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Heat Decarbonisation Webinar

UK Power Networks 4th June 2020

Our heat readiness strategy

UK Power Networks

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Introductions & Agenda

14:00 – 14:15 Introduction to Heat Strategy Zain Habib Innovation Programme Manager 14:15 – 14:30 Objective 1 Carol Choi Innovation Analyst 14:30 – 14:45 Objective 2 Rona Mitchell Innovation Project Lead 14:45 – 15:00 Objective 3 Jack McKellar Innovation Project Lead 15:00 – 15:25 Joint Q&A Zain, Carol, Rona, Jack + Daniel Saker, Distribution Policy Manager 15:25 – 15:30 Close

UK Power Networks

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3

Housekeeping Questions Polling Recording

Final session dedicated to Q&A Use the ‘Q&A function’ in Zoom to ask questions Can also ‘Raise hand’ in Zoom during the final session Questions for our audience in all sessions Please use the Zoom app if possible; functionality not supported in browser Please note this webinar is being recorded

UK Power Networks

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8.3M Customers

28% of GB Total

3 Licence areas

London, South East and Eastern Power Networks

16GW Peak Demand

28% of GB Total

About UK Power Networks

UK Power Networks

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88%

Britons using natural gas as primary method for heating

37%

  • f total UK CO2

emissions come from heat

18k

Heat pumps in operation across UKPN in 2019

22m

Buildings supplied by Gas in GB Up to 540,000 heat pumps by 2030 & up to

7.6m by 2050 in our regions in DFES high

electrification scenario

The Challenge

UK Power Networks

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Inform heat decarbonisation policy through provision of data and evidence Deliver a great experience to customers wishing to connect low carbon heating solutions Undertake least regret actions to ensure network readiness

  • First DNO to release a standalone Heat Strategy
  • Live and open consultation for all customers & stakeholders

Objective 1 Objective 2 Objective 3

Enabling the decarbonisation of heat for all our customers wishing to transition

Our Heat Strategy

UK Power Networks

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Inform heat decarbonisation policy through provision of data and evidence

  • 1. Inform the policy discussion
  • 2. Refine our forecasts

Objective 1

UK Power Networks

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  • Future Support for Low Carbon Heat consultation
  • Future Homes Standard consultation

Renewable heat installations Housing segmentation

Leading the conversation

  • DER forums
  • Engaging with local authorities

Market Intelligence

UK Power Networks

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Investing in

LV visibility & monitoring

Refining our Forecasts – Distribution Future Energy Scenarios

Heat Pumps by 2030

410,000 540,000 430,000

UK Power Networks

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69% 9% 10% 2% 10%

Residential – Gas connected Residential – Fossil fuel Residential – District heating Residential – Existing electric heating Commercial & Industrial

A B C D E F EPC Rating <1% 12% 29% 38% 16% 4%

Off gas C&I

Objective 1 – Customer Segments

UK Power Networks

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Rural Suburban

50 100 150 200 250

00:00 06:00 12:00 18:00 00:00

Profile of a substation supplying heat storage (kVA) kVA Household energy profile with EV and heat pump (kW) kW

1 2 3 4 5 6 7 8 00:00 04:00 08:00 12:00 16:00 20:00

Changing Energy Profiles

UK Power Networks

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Objective 1

Polls

UK Power Networks

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69% 9% 10% 2% 10%

Residential – Gas connected Residential – Fossil fuel Residential – District heating Residential – Existing electric heating Commercial & Industrial

A B C D E F EPC Rating <1% 12% 29% 38% 16% 4%

Off gas C&I

Objective 1 – Customer Segments

UK Power Networks

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Deliver a great service experience to customers wishing to connect low carbon heating solutions

  • 1. Engage with stakeholders &

review today’s customer journey

  • 2. Learn and educate

Objective 2

UK Power Networks

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  • Customers

Domestic, industrial, commercial

  • Supply chain

Manufacturers, installers

  • Property stakeholders

Developers, land owners, social housing, landlords

  • Trade associations
  • Consumer groups
  • Local authorities
  • Academia
  • Ofgem and BEIS

Off gas C&I

Who are our key stakeholders?

UK Power Networks

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Deliver a great service experience for all customers wishing to decarbonise their heating Customers in the decision-making process Connecting new technologies Ongoing customer experience

Before Connection During After

Review the customer journey

UK Power Networks

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  • Learning from our EV journey
  • Tailor communications to customers and

stakeholders

  • Support customers to make a decision that is

right for them

  • Make information available – aligned with

Energy Data Taskforce

Surveyed housing developers said education is a key role for networks to play

Sharing information in the right way

UK Power Networks

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38% are considering heat pumps 38% have no idea what option is suitable

64%

Developers likely or very likely to consider low carbon heating in their next development Fuel poverty rate is higher in homes heated by electricity What do we know about our stakeholders?

UK Power Networks

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40% think that the capital hurdle is the biggest barrier to deliver low carbon heat, and 30% consider there not being enough electricity capacity the greatest challenge Other barriers mentioned:

  • lack of policy
  • lack of knowledge
  • public opinion or

perception

  • co-efficient of heat
  • cost of new equipment
  • cost of infrastructure

upgrade

  • capital provision for
  • nsite/offsite

arrangements

Barriers

UK Power Networks

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Objective 2

Polls

UK Power Networks

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Undertake least regret actions to ensure network readiness

  • 1. Research heat technologies and

identify required standards and policy gaps

  • 2. Develop a smart toolbox and robust

plan for the next price control period Objective 3

UK Power Networks

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One size fits all approach will not work for the decarbonisation

  • f heat

We have identified off grid gas developments, new builds and residential on grid gas as the segments where DNOs can facilitate the transition to low carbon heating We will explore least regret

  • ptions for intervention to

facilitate the decarbonisation of heat

Heat Customer Segments

UK Power Networks

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Review existing and emergent low carbon heat technologies

  • What technologies are most suitable for different building types?
  • Heat pumps
  • Electric boilers
  • Storage heaters
  • Hybrid systems
  • Underfloor heating
  • Other direct resistance heating
  • District heating with an electric source
  • Does the presence of onsite generation or storage make a

difference?

Heat Technologies

UK Power Networks

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  • Must meet our connection policies
  • Existing standards such as EDS 08-0132 0132 ‘Planning

Guidance for Disturbing Loads’ includes heat pumps

  • ENA’s connections forms and processes for heat pumps
  • Create new connection standards

Identify the required standards

UK Power Networks

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Identify the smart and flexible solutions through targeted research and innovation

  • Definite peaks in the morning and evening
  • What opportunities are there for flexibility to shift these

peaks?

EPC potential for Kenardington Primary Substation from Firefly project

Develop a smart toolbox and robust plan for the next price control period

Current ratings Potential ratings

UK Power Networks

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Prepare for RIIO-ED2

  • Assess where and when overloads are likely to occur
  • Fit monitoring onto the low voltage network
  • Deploy smart solutions and procure flexibility
  • Plan timely investment in alignment with our DFES

Develop a smart toolbox and robust plan for the next price control period Forecast Monitor Deploy Smart Invest Strategically

UK Power Networks

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Objective 3

Polls

UK Power Networks

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Deeper knowledge and understanding of the implication of electrifying heat for our customers Demonstration and research projects to prove solutions that will form our smart toolbox to enable the transition in the short term at the lowest cost to our customers A robust smart investment plan for RIIO-ED2 and beyond

Key near-term outputs of our Heat Strategy All informed by stakeholder and customer engagement

UK Power Networks

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Heat Readiness Strategy

Q&A

Zain Habib, Innovation Programme Manager Carol Choi, Innovation Analyst Rona Mitchell, Innovation Project Lead Jack McKellar, Innovation Project Lead Daniel Saker, Distribution Policy Manager

UK Power Networks

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Thank you

Innovation.ukpowernetworks.co.uk innovation@ukpowernetworks.co.uk

UK Power Networks