Electricity network evolution
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- Bernard Powell
- 5 years ago
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2 2 Electricity network evolution Less flexible and more variable generation Reduced system inertia Diverse and distributed generation Two way power flows Increased demand for electricity Smart meters DSR Energy storage 2
3 RIIO: a new outcome-driven regulatory regime 3 Revenue = Incentives + Innovation + Outcomes The overriding objectives of the RIIO framework for energy network companies are to encourage them to: play a full role in the delivery of a sustainable energy sector; and deliver network service with long-term value for money for existing and future consumers. The RIIO model moves to setting delivery outputs e.g. customer satisfaction; reliability and availability; safe network services; environmental impact Innovation support mechanisms 3
4 4 Network Operator Business Plans: proposed expenditure Each Network Operator submits a plan to Ofgem for review Transmission RIIO-T1: Distribution RIIO-ED1: Capex forecasts: Transmission ~ 20bn Distribution ~ 14bn Does NOT include smart meter programme Smart capex on Distribution Network RIIO-ED1 ~ 1 bn RIIO-ED2 forecast ~ 10-15bn 4
5 Energy Storage in the UK 5 5
6 Energy Storage in the UK: commercial Commercial drivers: Constraint management Ancillary services Energy cost reduction (behind the meter) Key commercial opportunities in: Ancillary Services (e.g. Enhanced Frequency Response) Capacity Behind the meter/private wire National Grid (as TSO) developing new portfolio of simplified products to make it simpler for new technologies to be utilised 6 6
7 Commercial Timeline 2015 EFR consultation 2016 Capacity Market 550 MW 2018 Capacity Market 158 MW 2016 EFR Tender 201 MW 2017 Retrofit to ROC schemes 2018 Capacity Market? MW 7 7
8 Regulatory Position To edit click View>Header and Footer 8 Upgrading our Energy System Smart Systems and Flexibility Plan Key proposals New asset class for energy storage Network charging regime Planning H&S framework Contract simplification (Power Responsive Campaign) Connection process Co-location with existing renewables whilst maintaining access to incentives DEFRA support 8
9 Faraday Challenge 246 million to develop EV-focused battery capability and capacity 4 year programme 3 elements Faraday Institution virtual academic research centre UK Battery Industrialisation Centre 80 million to build a facility Industrial support for innovation first wave 40 million (Feasibility Studies and Collaborative R&D) second wave 25 million third wave 25 million (open now) EV-focused, but recognise other applications are important 9 9
10 The Northern Powerhouse: leading in energy decarbonisation A history of providing energy security, a future leading in affordable low carbon energy Markets, capability, heritage Energy as an Industry Energy Projects Interfaces 10
11 Energy in the Northern Powerhouse (NPH) >27% of UK electricity is generated in the NPH >30% of UK renewable electricity is generated in NPH 3 of 6 Distribution Network Operators are in the NPH 2 of 4 Gas Distribution Networks are in NPH The NPH is the home of UK civil nuclear Shale gas World leader in Offshore Wind Existing Private Wire networks Local markets Leading Innovation Resource/asset coordination 11
12 Leader in smart energy research and development, e.g. National Centre for Energy Systems Integration (CESI) at University of Newcastle Intelligent Energy Systems Demonstrator at University of Chester Doctoral Training Centre in Energy Storage at University of Sheffield InTEGReL Integrated Renewable Energy Research Laboratory (Newcastle) University of Newcastle a founding member of the Faraday Institution Location for the only large scale battery manufacturing plant in UK (Nissan) Multiple clusters of chemicals manufacturing Number of large sites with private wire (low energy cost) manufacturing facilities Skilled and capable workforce NPH is the location for energy storage projects by: Northern Power Grid, EON, Centrica amongst others To edit click View>Header and Footer 12 Northern Powerhouse & Energy Storage 12
13 Summary UK s energy networks undergoing change Regulatory support in place Significant investment in electricity transmission and distribution Smarter technology deployment driven by commercial requirements Energy Storage World-class research capability and capacity Significant demonstrations on real networks Commercial models The Northern Powerhouse A place for battery technology, deployment and manufacturing 13 13
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