What is a DSO? A plain English guide

Transcription

1 What is a DSO? A plain English guide Jodie Giles Senior Project Manager 25 September 2018 Edinburgh

2 Regen s work on DSO & flexibility Feb May 2018 November 2017 Sep 2017-Aug 2018 June-Sept 2018

3 What I ll cover Jargon Buster Our energy system is changing what does that mean? Why are DNOs becoming DSOs? The need for flexibility at a local level What does DSO mean for communities?

4 Jodie s Jargon Buster SO/TSO/ESO/NETSO: UK System Operator (National Grid), look after the electricity transmission network and system in the UK, working with DNOs DNOs: Distribution Network Operators, the 6 regional companies licenced to distribute electricity within 14 defined licence areas across GB DSOs: Distribution System Operators, the evolving role of regional DNOs to operate and develop an active distribution system comprising networks, demand, generation and other DERs DERs: Distributed Energy Resources, assets connected to the distribution network that could be called upon to provide flexibility services. Flexibility services: Modifying generation and/or consumption patterns in reaction to an external signal for a financial reward (revenue). Revenue stacking: Using assets to access multiple incentive programmes, paid for services or contracts i.e. national balancing & local flex services Aggregation: Bundling smaller loads into a portfolio, which can participate in programmes with entry thresholds that are too high (i.e. 1MW)

5 Our electricity system is changing

6 but what does that mean? Shift change in supply & demand: 15GW of fossil fuel generation has come off the system since 2011 First ever coal free day on 21 April GW of wind power has come on to the system since GW of solar has come on to the system since 2009 (mostly on the distribution network) Demand for EVs rose by 42% in 2016

7 Why are DNOs becoming DSOs? Key themes: Enabling cheaper, quicker connections Level playing field for customers/neutral markets Increase use of Active Network Management Enable local flexibility services Deferring network upgrades by turning to flexibility instead. Saving customers money.

8 The need for flexibility local Enable more low carbon electricity generation to connect Manage demand on the network to avoid peaks Customers will be asked to: reduce their demand for electricity (a bit like Economy 7 but more dynamic) turn up their energy generation discharge power they have stored

9 Local flexibility markets

10 Things to think about Demand is the driver: These services are about managing demand (i.e. gen turn-up, demand-down, storage discharge) Entry thresholds: notably lower than that of national balancing services potentially 100kW - aggregation is also permitted Contract length: likely to be 2-4 years Non-response: unlikely to pay a penalty, reduction or removal of payments for reduced or non performance Technology: Agnostic on approach, but if you are given a 15min notice, need to sustain for 2 hours and at any time - some technologies will be better placed than others

11 Who could easily participate? Generation Turn-Up Dispatchable (thermal?) generation variable generation with storage Quick response standalone storage (various techs) Storage discharge Commercial & industrial equipment switch off or process ramp down Tangible domestic flexible loads Demand reduction

12 What does DSO mean for communities? More opportunities to engage and shape our energy system A smarter system using new technology New income streams Access to other markets New local energy market platforms and a step towards peerto-peer trading Faster and cheaper connections enabling more renewable energy to connect More information clearly presented

13 How to get involved? Come to events like this talk to your DNO Respond to consultations/expressions of interest (deadline 25 September) Submit an idea on the Energy Networks Association s Call for Ideas for the Network Innovation Competition (NIC). Network Innovation Collaboration Portal (deadline 26 Oct), 90m of investment is up for grabs!

14 What is a DSO? A plain English guide Jodie Giles Senior Project Manager 25 September 2018 Edinburgh

15 Regen s work on DSO & flexibility Feb May 2018 November 2017 Sep 2017-Aug 2018 June-Sept 2018

16 What I ll cover Jargon Buster Our energy system is changing what does that mean? Why are DNOs becoming DSOs? The need for flexibility at a local level What does DSO mean for communities?

17 Jodie s Jargon Buster SO/TSO/ESO/NETSO: UK System Operator (National Grid), look after the electricity transmission network and system in the UK, working with DNOs DNOs: Distribution Network Operators, the 6 regional companies licenced to distribute electricity within 14 defined licence areas across GB DSOs: Distribution System Operators, the evolving role of regional DNOs to operate and develop an active distribution system comprising networks, demand, generation and other DERs DERs: Distributed Energy Resources, assets connected to the distribution network that could be called upon to provide flexibility services. Flexibility services: Modifying generation and/or consumption patterns in reaction to an external signal for a financial reward (revenue). Revenue stacking: Using assets to access multiple incentive programmes, paid for services or contracts i.e. national balancing & local flex services Aggregation: Bundling smaller loads into a portfolio, which can participate in programmes with entry thresholds that are too high (i.e. 1MW)

18 Our electricity system is changing

19 but what does that mean? Shift change in supply & demand: 15GW of fossil fuel generation has come off the system since 2011 First ever coal free day on 21 April GW of wind power has come on to the system since GW of solar has come on to the system since 2009 (mostly on the distribution network) Demand for EVs rose by 42% in 2016

20 Why are DNOs becoming DSOs? Key themes: Enabling cheaper, quicker connections Level playing field for customers/neutral markets Increase use of Active Network Management Enable local flexibility services Deferring network upgrades by turning to flexibility instead. Saving customers money.

21 The need for flexibility local Enable more low carbon electricity generation to connect Manage demand on the network to avoid peaks Customers will be asked to: reduce their demand for electricity (a bit like Economy 7 but more dynamic) turn up their energy generation discharge power they have stored

22 Local flexibility markets

23 Things to think about Demand is the driver: These services are about managing demand (i.e. gen turn-up, demand-down, storage discharge) Entry thresholds: notably lower than that of national balancing services potentially 100kW - aggregation is also permitted Contract length: likely to be 2-4 years Non-response: unlikely to pay a penalty, reduction or removal of payments for reduced or non performance Technology: Agnostic on approach, but if you are given a 15min notice, need to sustain for 2 hours and at any time - some technologies will be better placed than others

24 Who could easily participate? Generation Turn-Up Dispatchable (thermal?) generation variable generation with storage Quick response standalone storage (various techs) Storage discharge Commercial & industrial equipment switch off or process ramp down Tangible domestic flexible loads Demand reduction

25 What does DSO mean for communities? More opportunities to engage and shape our energy system A smarter system using new technology New income streams Access to other markets New local energy market platforms and a step towards peerto-peer trading Faster and cheaper connections enabling more renewable energy to connect More information clearly presented

26 How to get involved? Come to events like this talk to your DNO Respond to consultations/expressions of interest (deadline 25 September) Submit an idea on the Energy Networks Association s Call for Ideas for the Network Innovation Competition (NIC). Network Innovation Collaboration Portal (deadline 26 Oct), 90m of investment is up for grabs!