Smarter Community Energy Innovation Nottingham 11 October 2017

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1 Smarter Community Energy Innovation Nottingham 11 October 2017

2 Agenda 12:30 Registration, lunch and networking 13:30 Welcome and introductions from chair 14:00 Community energy progress and possibilities Emma Bridge, chief executive, Community Energy England 14:30 Energy network innovation for communities Yiango Mavrocostanti, innovation and low carbon networks engineer, Western Power Distribution Questions and answers 15:15 Refreshment break and networking 15:45 Local supply and storage Jodie Giles, senior project manager, Regen

3 Agenda 16:15 Stories from the front line community energy groups will share stories about innovative project they are doing, lessons learned and tips for others Ben Aylott, Carbon Coop Alan Simpson, MOZES board member and the Shadow Chancellor's advisor on sustainable economics Questions and answers 17:00 Networking tea and coffee 17:30 Close

Future events WPD Smarter Community Energy Innovation - Examine the rapid transition to a smart, flexible energy

Cardiff 18 October Plymouth 15 November Electricity Network Innovation Focus on getting community groups up to

the market opportunities in energy storage and smarter energy markets as we move towards a more decentralised

4 Future events WPD Smarter Community Energy Innovation - Examine the rapid transition to a smart, flexible energy system and how community energy groups can play a leading role in the change. Cardiff 18 October Plymouth 15 November Electricity Network Innovation Focus on getting community groups up to speed and actively engaged in energy network innovation, which can help communities tackle social and environmental challenges. London 1 November Newcastle 7 November EWiRE A smart, decentralised system Provide an opportunity to understand the market opportunities in energy storage and smarter energy markets as we move towards a more decentralised system. London 16 November Renewable Futures and Green Energy Awards Examine the strategies to adapt and create value in a rapidly changing market, ahead of a glittering awards ceremony, recognising and celebrating the achievements of the industry. Bath 28 November

6 Local supply and storage Jodie Giles, 11 Oct 2017

7 Who are Regen?

8 Energy system changes A centralised system More decentralised system Transmission Network Distribution Network

9 Accessing sources of value

10 Value Flexibility of flexibility The saving could be as large as 8 billion a year by Lord Andrew Adonis, Chair, The National Infrastructure Commission

11 Benefits of local supply Enabling people to feel more connected to local generation when potential to link through a local tariff Negotiate tariff that meet local objectives e.g. reducing fuel poverty Trusted local supplier: Enable engagement with harder to reach groups Demand reduction through information Can help secure finance for community owned generation when can guarantee long-term PPA

12 Centralised markets

13 Development of a local supply model A model that is replicable, scalable, sustainable and has communities at its heart Accessible model for community energy groups Makes use of local electricity generation Benefits for local residents Accommodates technology and market changes Retains value Has potential to overcome any regulatory or commercial barriers Is financially viable and sustainable Is replicable across the UK Is attractive and protects consumers

14 Shortlist of models Local energy clubs Generation tariff/local time of use tariff Automated matching Aggregator ESCO Microgeneration loan e.g. BHESCO Licence exempt private network (microgrid) Network leasing (virtual private network) Trading platform/sleeving e.g. Piclo Peer to peer

15 Energy Local Club

16 The Sunshine Tariff

17 Easton Energy and CEPRO simtricity Physical v virtual A look at costs A design statement for microgrids in new builds

18 Energy Local Club score Criteria Assessment comments Score Accessible model for community Can form the club, set tariffs, sell generation energy groups 5 Makes use of local electricity Buy power from generation on same LV network. generation Can potentially enable new generation 4 Benefits for local residents Estimated bill reduction of between 10-30% Encourages behaviour change 5 Accommodates technology and Use of advanced HH meters market changes Potential to access DSO markets in future 3 Retains value Price time shifting Flexibility 4 Supplier margin and customer recruitment Has potential to overcome any Already being rolled out regulatory or commercial barriers But reliant on a friendly supplier and meter operator 4 Is financially viable and sustainable Still being tested 2 Is replicable The model may work better with some generation technologies than others. Need right balance of generation and demand below a primary 2 Is attractive and protects Tariff is attractive, but more so for those with consumers flexible load 4 Please note the scoring is provisional and should not be circulated to a wider group

19 Licence exempt private network (microgrid)

20 Licence exempt private network (microgrid) score Criteria Assessment comments Score Accessible model for community Community energy groups could either become, energy groups or partner with, the exempt supplier 4 Makes use of local electricity Better price for generation and potential to generation connect new 4 Benefits for local residents Limited to new developments, but has potential to considerably lower bills for residents 4 connected to network Accommodates technology and Local balancing through: ToUT, storage, market changes automated control 3 Retains value Price time shifting Reduced use of the network Avoided reinforcement 5 Supplier margin Has potential to overcome any Licence exemption provides a lot of freedom regulatory or commercial barriers A number of microgrids across the UK 5 Is financially viable and sustainable Risk of customers switching away, but examples of successful exempt suppliers 3 Is replicable Only viable for new build 1 Is attractive and protects consumers Should provide better price and customers can switch away 3

21 Peer to Peer trading Watch this space

Discharge time at rated power Seconds Minutes Hours Storage 2.

management High-energy supercapacitors Flow batteries: Zn-Cl Zn-Alr Zn-Br VRB PSB New

battery Multi-modular batteries Pumped hydro CAES Reserve & time/price shift NiCd NiMH

22 Discharge time at rated power Seconds Minutes Hours Storage 2. Energy storage technologies Power quality Ancillary services and load shifting Bulk power management High-energy supercapacitors Flow batteries: Zn-Cl Zn-Alr Zn-Br VRB PSB New chemistries Li-ion battery NaS battery Advanced lead-acid battery NaNiCl 2 battery lead-acid battery Multi-modular batteries Pumped hydro CAES Reserve & time/price shift NiCd NiMH High-power fly wheels Response High-power super capacitators SMES 1 kw 10kW 100kW 1 MW 10MW 100MW 1GW System power ratings, Typical module size

23 Credit: Anesco Operational storage legacy & trials Highview Power Pilsworth LAES 5MW Source: US DOE Global Energy Storage Database Operational Projects, UK AES Kilroot Battery System 10MW Credit: Highview Power Credit: AES UKPN SNS Battery System 6MW Dinorwig Pumped Hydro 1.7GW Credit: Electric Mountain Credit: UKPN Anesco Slepe Farm Battery System 0.5MW

24 The role of energy storage

Potential waves of deployment Wave 1 Response

high energy users Plus domestic early adopters Wave

especially for new PV Some standalone sites Domestic

marketplace models RE co-location Domestic and

25 Potential waves of deployment Wave 1 Response Services (EFR, FFR & DSR) First behind the meter high energy users Plus domestic early adopters Wave 2 Behind the meter industrial - DSR RE co-location - especially for new PV Some standalone sites Domestic and community storage with PV Wave 3 Aggregation and marketplace models RE co-location Domestic and community storage becomes standard Today Tomorrow The day after!

26 Potential scale of the storage market GB market scenario growth scenario by 2030* Business model High Growth Scenario Slower and no growth Scenario Response service 2 GW GW Possible upside very high growth scenario 2-3 GW 2 GWh GWh 4-5 GWh Reserve Services* 3-4 GW 2-3 GW 4 GW C&I high energy user & GW GW 5 GW behind the meter GWh GWh 20 GWh Domestic and community GW GW 3 GW own use with PV*** 6-8 GWh GWh 12 GWh Generation co-location 2 GW 0.5-1GW 4 GW Total GB market 6-8 GWh GW GWh * includes existing 2.7 GW of storage mainly pumped hydro reserve services 2-4 GWh 4-5 GW 6-13 GWh 16 GWh 15 GW** 50 GWh ** A very high growth scenario for all business models would probably imply some degree of revenue cannibalisation between business models and is therefore less likely by *** Would include EV vehicle-to-house storage discharge although this has not been modelled separately

27 But it could all change! Launched 10 Nov 2016 Expired 12 Jan 2017 BEIS have responded Significant changes to benefits for embedded generation c.90% cuts to Triad credits A much wider, holistic look into network charging, incl. double charging for storage Consultation closed 5 th May

28 Assessing storage for your sites

29 Storage puzzle There is significant interest in storage across the energy sector Progress is happening, but there are still a lot of moving parts

30 Energy Storage - Towards a Commercial Model

31 ENA storage guide Introduction to area of energy storage and ways to connect to the network For community energy groups and smaller independent developers

WPD consultation paper In undertaking this consultation, WPD wanted to understand: scale of growth type of energy storage assets/projects operating behaviour of storage

32 WPD consultation paper In undertaking this consultation, WPD wanted to understand: scale of growth type of energy storage assets/projects operating behaviour of storage assets Contact: Ray Arrell Senior project manager

How to get involved in energy innovation

involve DNOs and licensed suppliers, smart

Most electricity network innovation trials

33 How to get involved in energy innovation Network and develop partnerships, trials involve DNOs and licensed suppliers, smart tech businesses, developers, and communities. Most electricity network innovation trials funded by the Network Innovation Allowance (NIA) or Network Innovation Competition (NIC), Innovate UK, The Energy Systems Catapult, or universities.

34 Join an existing trial

35 Open LV

36 Opportunities

Communities in Energy Network Innovation Guide to connecting

37 Further information from Regen Report on the future of distribution networks Local Supply Rough Guide to Engaging Communities in Energy Network Innovation Guide to connecting storage for communities Energy Storage - Towards a Commercial Model 2nd edition

38 Jodie Giles

What is a DSO? A plain English guide

What is a DSO? A plain English guide Jodie Giles Senior Project Manager 25 September 2018 Edinburgh Regen s work on DSO & flexibility Feb May 2018 November 2017 Sep 2017-Aug 2018 June-Sept 2018 What I