WWU a top performing UK Gas Distribution network Replaced 40% of - - PowerPoint PPT Presentation

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WWU – a top performing UK Gas Distribution network

• Replaced 40% of our 35,000km network - delivering the lowest planned interruptions times for customers across

the UK.

• We efficiently invest nearly £200m per annum in our network
• Consistently meet key emergency standards for the 90,000 emergency calls we get per year – something not

achieved by all in the sector

• Deliver sector leading customer performance for the 2.5m customers we serve. There is a total population of over

7.5m in our geography

• Connect 11,000 new customers each year - we have now completed over 10,000 fuel poor connections
• Sector leading Innovation - we have just completed the 16th Biomethane connection to our network
• Our total resource is just under 2,000 people
• Gained a raft of awards along the way including a “ROSPA Gold” award for “exemplar” management and delivery of

health and safety

We have a clear ambition, clear priorities and behavioural values that underpin

• ur performance

We focus on delivering outcomes

Our unique and valued vulnerable customer panel help us drive our vulnerable customer strategy to support the most vulnerable across our region. Wider collaboration with other utilities across

• ur region has been suggested as a potential benefit

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We focus on delivering outcomes

We have supported over 12,000 families through our fuel poor scheme since 2008. We are working hard with our partners and policy makers to support over 1,000 families per year. We want to do more and we are keen to hear your views on future opportunities

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• Energy mix & carbon targets– affordable and secure generation, heat and transport to support

a low carbon future

• Customer needs and engagement– population growing & ageing, social media, “prosumers”
• Investment support – regardless of the future, the role of the investor is crucial. RIIO GD2 (the

next price control review 2021) is a significant milestone we are planning for

• Smart Meter Rollout – replacing circa 50million gas and electric meters is a major challenge for

the energy sector. Still a level of uncertainty on network impacts. There will be 2.4m gas meters replaced across our network by 2020

• Political change – devolution & variable (local) energy philosophies, five year cycles
• The future structure & regulation of the energy sector – all elements under the spotlight
• Deployment/impact of innovation and new inventions – how do we ensure the customer

benefits?

Context for WWU and the UK energy sector

Gas has played a major role to date and evidence supports a continued long term role for gas

To date much of the focus has been on electricity generation. The vital role of the gas network and the significance of energy for (peak) heat is only now being understood

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Context for WWU and the UK energy sector

Gas has played a major role to date and evidence supports a continued long term role for gas

To date much of the focus has been on electricity generation. The vital role of the gas network and the significance of energy for (peak) heat is only now being understood

What does an 80% reduction mean for a customer?

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Based on detached house in Bridgend, excludes emissions from transport. Green Hydrogen blended with CH4 would significantly reduce emissions 4.79 (t/CO2/a) 1.92 (t/CO2/a) 2015 2050

Reduction (60%) 2.87 (t/CO2/a)

• Assumed gas usage: 16,500 KWH PA – generating 3.05 tonnes of Carbon per annum

16,500 (kWh/a) x 0.185 (kg/kWh]/1000 = 3.05 (t/CO2/a)

• Assumed electricity usage 3,300 KWH PA - generating 1.74 tonnes of carbon per annum

3,300 (kWh/a) x 0.527 (kg/kWh)]/1000 = 1.74 (t/CO2/a)

Two key recent WWU case studies…

• Bridgend Town:

– A unique and innovative bottom up approach looking at the energy challenges and solutions faced by consumers in Bridgend town now and into the future – “An objective and independent review of whether or not to continue to invest operationally now; and strategically into the future in UK gas networks”

• Cornwall Energy Island:

– A unique and innovative project to develop a bottom up Energy model for heat, light and power

• Collaboration is a key feature of our work and we fully engage with:

– The ETI Smart Systems and Heat work – The Energy Systems Catapult – BEIS – Welsh Government, some local authorities – Academia & focus groups

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Our unique research looking at real people and actual house types in actual towns using real demand and supply figures

Bridgend research – key findings

– Electric heat pumps currently increase emissions and cost compared to gas boilers – Real examples of UK energy switching revealed that initial capital cost is the key factor that influences consumer switching behaviour – 80% of consumers would not/could not afford to change to lower carbon heat provision such as heat networks – Very large subsidies would be needed to change consumer preferences – Renewables intermittency require unprecedented seasonal storage requiring prohibitive investment – Energy demand varies significantly seasonally and peak demand is not met via government policy – Green gases (e.g. Biomethane) require lower investment than other renewables

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Alternatives do not deliver the energy trilemma – gas is currently lowest cost, lowest emission and most secure

Project Conclusions

• Phase 1 – The 2013 DECC pathway for heat does not solve the energy trilemma
• Phase 2 – People’s ability to pay; and behaviour play a key role in future pathways
• Phase 3 – Policy options may have profound impacts on consumers. It is likely that we will

have to compromise on the energy trilemma

• Innovation and efficiency will clearly need to bridge the gaps if we are to meet the energy

trilemma, including the 2050 aims. E.g.: Hydrogen blending with methane, CNG vehicles, gas appliances??

• We cannot look at heat in isolation. We must look at the heat, power and transport
• together. Effective utilisation of the gas and electricity grid is very important
• Different communities likely to need different solutions
• Devolved regions will have a pivotal role to play in future pathways

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Overall – Not only will we have a gas network in 2050, but gas and the gas grid can play a pivotal role in moving to a low carbon energy future

The Energy Island Concept

• Peninsula of Cornwall – could it be self

sufficient?

• Cornwall is rich in natural energy

resources, including wind; solar and deep geothermal.

• Partnership created to consider low

carbon future – Burohappold Engineering; Eden Project; Local Enterprise Partnership & Cornwall County Council.

• Participants at workshops felt that these

could provide the majority of energy needs, balancing supply and demand.

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We are currently engaged with welsh contacts to develop a welsh study utilising whole systems approach modelling

What has the Cornwall Energy Island case study covered?

• Overall objective:

– A unique and innovative project to develop a bottom up Energy model for heat, light and power

• The approach:

– Gather information on heat, light and power demand and supply for Cornwall – Ensure annual and peak data points are included – Build an energy model to show the costs, security of supply and environmental impacts of different “energy mix” options – Independently test the model inputs and outputs – Share model outcomes / learning with policy makers – Apply model to UK and other regions

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Unique bottom up model using actual demand and supply information for a real region

Cornwall Energy model – key findings

– Only 6.5% of heat, light and power needs are currently being met from renewable energy generation – If the renewable generation % increases, huge additional storage is required – The cost of current non gas storage is so high it cannot be considered as viable option to support renewables – The gas network is providing secure, low cost and flexible within day and inter seasonal storage that cannot be feasibly replaced – Utilising the gas network with natural gas alternatives will save consumers significant amounts of money compared to alternatives – The wide range between Winter / Summer demand and within day ranges of energy demand require long term use of the gas network

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Alternatives do not deliver the energy trilemma – the gas network is currently lowest cost, lowest emission and most secure route to long term energy solutions

Cornwall Energy model – key findings

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Weather dependent renewable generation will need huge investment and large storage to meet peak energy needs

Justin Bowden, GMB National Secretary, said “Over the last 12 months there were 46 days when wind was supplying 10% or less of the installed and connected wind capacity to the grid and on 4th November National Grid had to invoke special measures to keep the lights on. Everyone gets that over time sensibly sourced and UK produced renewable energy sources makes sense, but in the real world of the here and now we have to keep the lights turned on, homes heated and the economy functioning. This means that on the days when the wind doesn't blow and the sun doesn't shine we need a base load electricity capacity we can rely on. "If your heating is turned off, your lights have gone

• ut and your electricity supply has “Gone with the

Wind”, the renewable energy suppliers cannot just shrug their shoulders and tell the public “frankly my dear we don't give a damn”. The public want the lights to stay on, so until there is a scientific breakthrough on carbon capture or solar storage, then nuclear and gas are the only reliable shows in town which those advocating a renewable energy

• nly policy have to accept.

What action is WWU taking

• Replacing over 400km of iron pipe per annum with plastic and thus dramatically

reducing the CO2 emissions as gas is transported through our network (circa 30,000 tonnes CO2 per annum)

• Connecting circa 11,000 homes per annum to the gas network and by switching

from oil, coal and electricity, customers are reducing their carbon footprint, costs and improving their security of Supply

• We have connected 16 biomethane producing facilities to our network which are

replacing natural gas (connected capacity of 500 GWh/yr –providing heat for 79,000 homes)

• Individually and collaboratively we are undertaking innovative research to help

customers and decision makers make informed decisions about how to effectively reduce carbon emissions whilst not adversely impacting customer bills and security of supply

• We are investing over £1m per annum on energy innovation and through our

collaborations working with over 1,600 external organisations

• We spend a significant amount of time at conferences and energy events with

the sole aim of educating government, local authorities, homes and businesses 15

We are focussed on delivering customer needs. We are also undertaking our own research and innovation to inform the energy trilemma

Next steps

• Continue to influence UK Heat policy with objective evidence and feedback on alternatives
• Collaborative approach utilising academic and external specialist expertise including the ENA, ETI,

ESC, EUA, IGEM and others

• Energy storage – understand seasonal viability
• Continue to develop evidence / case studies and demonstrators:

– Lower carbon gases such as biomethane enablers / hydrogen – Integrated heating, power & transport solutions – Demonstrators for hybrid energy appliances – Customer attitudes and behaviours – Collaborative projects at local level – E.g.: Cornwall Energy Island

• Continued focus on energy efficiency and education
• Recognition that different solutions may better suit different communities

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Engagement using robust evidence focussing on customers is influencing welsh, UK and EU heat policy – the challenge continues

The WWU vision - Energy infrastructure evolution

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There are no silver bullets and meeting future customer needs requires joined up solutions

Waterfall – Hybrid Green Heating

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100

% existing carbon

50 20 Current Gas Boiler Hybrid System Green Gases Potential for Hybrid Green

Potential 80% carbon reduction

Trilemma Solutions 18

Contact details

• Me:

– Steven.J.Edwards@wwutilities.co.uk – @stevenjwwu – 07976 727786 – 02920 278836

• Stakeholder engagement Manager

– Elizabeth.Warwick@wwutilities.co.uk

• Connections & Fuel Poor Manager:

– Nigel.Winnan@wwutilities.co.uk

• Vulnerable customer Manager:

– Elaina.cook@wwutilities.co.uk

• Our company:

– www.wwutilities.co.uk – @wwutilities.co.uk

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Engagement using robust evidence focussing on customers is influencing welsh, UK and EU heat policy – the challenge continues

WWU Putting the Customer First – Thank you

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The current gas network covers 284,000km and delivers over 750TWh of energy to customers across the UK. WWU network is covering 1/6th of the UK, delivering

• f energy to

customers in Wales and the south west of England.

Current network coverage

Our network has the potential to deliver new, environmentally friendly forms

• f energy to benefit customers across the UK long into the future

Current role of gas

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has been a source

• f energy in the UK for over
• f all energy

consumption is for heat, provided by Gas provides

• f total energy demand at

There are

gas customers across the UK. WWU has customers

Source: National Grid and WWU

The gas grid provides 80% of total energy demand at peak times

Maximising use of existing assets

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Every year

• f gas mains are replaced the

equivalent of Britain’s entire motorway network

are connected to the gas network each year

Gas 720TWH

Every year

• f gas mains are replaced in

WWU area

are connected to the WWU network each year

Source: National Grid and WWU

Our network has the potential to deliver new, environmentally friendly forms

• f energy to benefit customers across the UK long into the future

Population growth and an ageing population

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2050 2015

= 1 million UK population

Source: National Grid and WWU

The population of the UK is growing, getting older and want to use different forms of media to engage with us

Our future homes – are our current homes

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• f homes that will exist in 2050 already exist today –

so how do we deliver cost effective efficiency measures?

Tackling the energy efficiency of existing buildings is a key priority if we are to meet the energy trilemma

Keeping it simple – keeping gas as a gas

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Waste Biogas Rubbish The home – Heating & cooking

efficiency biogas to home

Efficiency biogas to electricity

Source: National Grid

The gas network and gas condensing boilers are a low cost, secure and means of providing heating, cooking and hot water

On the journey to decarbonise heat

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Source: National Grid

The key challenge is deliver and transport low carbon and large scale volumes of renewable as including biogases and hydrogen

Heat: Flexibility of gas

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Natural gas contribution to flexibility Electric heating Electric heat pump Condensing boiler Hybrid boiler Smart hybrid Micro-CHP Smart Micro-CHP Fuel cell Smart fuel cell

Assistance in reducing peak electricity consumption Assistance in reducing peak electricity consumption

Source: National Grid

To meet UK Peak energy requirements – flexibility and response times are critical. Storage remains a key challenge for the sector. Gas and the grid can provide both

Using CNG – to power HGV’s

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Source: National Grid

CNG heavy goods vehicles will be as important as electric domestic vehicles in order to decarbonise transport

CNG: Benefits case

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Lower well-to-wheel CO2 emissions HGV account for

• f the greenhouse gas

emissions

& lower noise levels

compared with diesel

Source: National Grid

CNG heavy goods vehicles will be as important as electric domestic vehicles in order to decarbonise transport

It will take time – so we need to act now

Time for change – market penetration data and s-curves for home energy efficiency related measures (in the UK)

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Source: National Grid

To meet 2050 targets, decisions will be needed prior to 2030

Looking forward: The energy mix in 2050

The networks of the future are the networks of today…

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…. but the key question is about the balance and interaction to deliver sustainable and affordable energy requirements for GB Plc

Source: National Grid and WWU

Maximising and understanding the benefits of pipes and wires integration will be a key factor in meeting the energy trilemma