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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


  1. Heat Decarbonisation Webinar UK Power Networks UK Power Networks Our heat readiness strategy 4 th June 2020

  2. Introductions & Agenda Introduction to Heat Strategy 14:00 – 14:15 Zain Habib Innovation Programme Manager UK Power Networks 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 Joint Q&A 15:00 – 15:25 Zain, Carol, Rona, Jack + Daniel Saker, Distribution Policy Manager Close 15:25 – 15:30

  3. Can also ‘Raise hand’ in Zoom possible; functionality not is being recorded Please note this webinar supported in browser Final session dedicated to Q&A Use the ‘Q&A function’ in Zoom to ask questions Housekeeping during the final session Questions for our audience in all sessions Please use the Zoom app if 3 UK Power Networks Questions Polling Recording

  4. 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

  5. 88 % 18k The Challenge 22 m 37 % of total UK CO2 emissions come from heat UK Power Networks Britons using natural Buildings gas as primary method supplied by Gas for heating in GB Up to 540,000 heat pumps by 2030 & up to Heat pumps in operation across UKPN in 2019 7.6m by 2050 in our regions in DFES high electrification scenario

  6. Our Heat Strategy Objective 2 Objective 3 Objective 1 First DNO to release a standalone Heat Strategy • Live and open consultation for all customers & stakeholders • UK Power Networks Deliver a great Undertake least Inform heat experience to customers regret actions to decarbonisation policy through wishing to connect low ensure network carbon heating solutions readiness provision of data and evidence Enabling the decarbonisation of heat for all our customers wishing to transition

  7. Objective 1 Inform heat decarbonisation policy through provision of data and evidence UK Power Networks 1. Inform the policy discussion 2. Refine our forecasts

  8. Market Intelligence Leading the conversation Housing segmentation UK Power Networks Renewable heat installations Future Support for Low Carbon Heat consultation DER forums • • Future Homes Standard consultation Engaging with local authorities • •

  9. LV visibility & monitoring Refining our Forecasts – Distribution Future Energy Scenarios Heat Pumps by 2030 UK Power Networks 410,000 540,000 430,000 Investing in

  10. 69% D Objective 1 – Customer Segments C&I gas Off 4% 16% 38% 29% 12% <1% EPC Rating F E C 9% B A Commercial & Industrial Existing electric heating Residential – District heating Residential – Fossil fuel Residential – Gas connected Residential – 10% 2% 10% UK Power Networks

  11. Rural Suburban Changing Energy Profiles UK Power Networks 8 250 7 6 200 5 150 kW 4 kVA 100 3 50 2 1 0 00:00 06:00 12:00 18:00 00:00 0 00:00 04:00 08:00 12:00 16:00 20:00 Household energy profile with EV and heat pump (kW) Profile of a substation supplying heat storage (kVA)

  12. Objective 1 UK Power Networks Polls

  13. 69% D Objective 1 – Customer Segments C&I gas Off 4% 16% 38% 29% 12% <1% EPC Rating F E C 9% B A Commercial & Industrial Existing electric heating Residential – District heating Residential – Fossil fuel Residential – Gas connected Residential – 10% 2% 10% UK Power Networks

  14. Objective 2 Deliver a great service experience to customers wishing to connect low carbon heating solutions UK Power Networks 1. Engage with stakeholders & review today’s customer journey 2. Learn and educate

  15. Who are our key stakeholders? C&I gas Off • Customers Domestic, industrial, commercial UK Power Networks • Supply chain Manufacturers, installers • Property stakeholders Developers, land owners, social housing, landlords • Trade associations • Consumer groups • Local authorities • Academia • Ofgem and BEIS

  16. 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 Review the customer journey UK Power Networks Before Connection During After

  17. Sharing information in the right way for networks to play education is a key role developers said Surveyed housing Learning from our EV journey • UK Power Networks 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

  18. What do we know about our stakeholders? 64 % Developers likely or very likely to consider low UK Power Networks carbon heating in their next development 38% are considering Fuel poverty rate is heat pumps higher in homes 38% have no idea heated by electricity what option is suitable

  19. 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 Barriers UK Power Networks Other barriers mentioned: • cost of new equipment • lack of policy • cost of infrastructure • lack of knowledge upgrade • public opinion or • capital provision for perception onsite/offsite • co-efficient of heat arrangements

  20. Objective 2 UK Power Networks Polls

  21. Objective 3 Undertake least regret actions to ensure network readiness UK Power Networks 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

  22. Heat Customer Segments One size fits all approach will not work for the decarbonisation of heat UK Power Networks 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 options for intervention to facilitate the decarbonisation of heat

  23. Heat Technologies Review existing and emergent low carbon heat technologies • What technologies are most suitable for different building types? UK Power Networks • 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?

  24. Identify the required standards • Must meet our connection policies UK Power Networks • 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

  25. Develop a smart toolbox and robust plan for the next price control period Identify the smart and flexible solutions through targeted research and innovation UK Power Networks Current ratings Potential ratings Definite peaks in the morning and evening • EPC potential for Kenardington Primary Substation What opportunities are there for flexibility to shift these • from Firefly project peaks?

  26. Prepare for RIIO-ED2 Develop a smart toolbox and robust plan for the next price control period Forecast • Assess where and when overloads are likely to occur UK Power Networks • Fit monitoring onto the low voltage network Invest Monitor Strategically • Deploy smart solutions and procure flexibility • Plan timely investment in alignment with our DFES Deploy Smart

  27. Objective 3 UK Power Networks Polls

  28. All informed by stakeholder and customer engagement Key near-term outputs of our Heat Strategy Deeper knowledge and understanding of the implication of electrifying heat for our customers UK Power Networks 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

  29. 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

  30. Thank you UK Power Networks Innovation.ukpowernetworks.co.uk innovation@ukpowernetworks.co.uk

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