The Electricity Grid Scottish Power Energy Networks Overview

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1 The Electricity Grid Scottish Power Networks Overview Technology Partnership Conference Dundee, April 2014 Presented by Kevin Smith, Scottish Power - Future Networks Lead Engineer

2 Where did SP Networks originate from? 14 x Electricity Boards Who provided a full range of electricity services:- Distribution Networks Electricity connections Electricity sales Metering Shops for appliances and payments Wiring and domestic appliance repair Income from electricity bill

3 The Distribution Network Operators scene today 7 x Network Operators 180+ ICP s 18+ Suppliers* 23+ Meter Operators* 00 s appliance retailers 000 s Meter card outlets 0000 s Electrical contractors Who repairs appliances these days? Income from DUoS Innovation Allowances Distribution Licenses Incentives Mechanisms Customer Standards Price Controls * Some are separate divisions within DNO parent company Group

4 What do SP Networks do? Look after the distribution network for South of Scotland, Merseyside and North Wales 3.5million customers (2m in SPD and 1.5m in SPM) Network value > 10billion 40,000km of overhead lines 70,000km of underground cables 30,000 electricity substations 4,000km of Transmission OHL and 320kM of cable connecting 129 Grid or SuperGrid Substations

5 What are the present challenges for SPEN? Ageing Assets Changing Markets Extreme Weather Events Bi- Directional Networks Aging Workforce/ Skills Gap Integration of New Technology Increased Embedded Economic Growth Smart Metering/ Demand Control Fuel Poverty/ Affordability Efficiency Competition Intermittent Political Uncertainty Community Owned Systems Sustainability Accessibility Equity Transparency Balance of Risk Reliability

6 Present challenges for SPEN Ageing Assets Changing Markets Extreme Weather Events Bi- Directional Networks Aging Workforce/ Skills Gap Integration of New Technology Increased Embedded Economic Growth Smart Metering/ Demand Control Fuel Poverty/ Affordability Efficiency Competition Intermittent Political Uncertainty Community Owned Systems Sustainability Accessibility Equity Transparency Balance of Risk Reliability

7 Ageing Assets Over the period we are allocating 2.62bn to managing our ageing network, such as: 180,000 network faults. Inspecting and maintaining 30,000 substations, 70,000km cables and 40,000km of overhead lines 3.5million asset inspections. Clearing trees away from 5000km of overhead lines (storm resilience). Maintaining around 900,000 items of network equipment. Replacing 30 Grid substations Replacing 84 Primary substations Extending the life of 84 Primary substations Replacing more than 2,500 Secondary substations Replacing more than 250,000 services inside customers homes & buildings. Making 25% of our HV network and 32% of our LV network resilient to storms SPD Equipment SPM Equipment Number / Length Customers supplied by each % Older than 40 years % Older than 50 years Number / Length Customers supplied by each % Older than 40 years Grid Substations 83 Around 23, Between 16, , Primary Substations 500 Between 2,000 and 11, Between 2,000-11, Secondary Substations 17,500 Between 50 and ,800 Between 50 and In addition to these assets, we have approx. 20,000km of overhead lines, components of which 50% are older than 40 years. % Older than 50 years

8 Present challenges for SPEN Ageing Assets Changing Markets Extreme Weather Events Bi- Directional Networks Aging Workforce/ Skills Gap Integration of New Technology Increased Embedded Economic Growth Smart Metering/ Demand Control Fuel Poverty/ Affordability Efficiency Competition Intermittent Political Uncertainty Community Owned Systems Sustainability Accessibility Equity Transparency Balance of Risk Reliability

9 Extreme weather events When the once in every 100 years event occurs just a few years after the last one! Automated protection and supply restoration systems Remote control of network switching and reconfiguration Reducing numbers of customers affected for a fault Managing trees near overhead lines Substation flood risk analysis and mitigation Emergency plans in place Daily Post North Wales weather: 45,000 homes without power after storm force winds batter region

10 Present challenges for SPEN Ageing Assets Changing Markets Extreme Weather Events Bi- Directional Networks Aging Workforce/ Skills Gap Integration of New Technology Increased Embedded Economic Growth Smart Metering/ Demand Control Fuel Poverty/ Affordability Efficiency Competition Intermittent Political Uncertainty Community Owned Systems Sustainability Accessibility Equity Transparency Balance of Risk Reliability

11 Increased Embedded The distribution network was designed for power flowing from the power station to the customer Substantial rise in renewables take up Embedded generation can cause local voltage rises Embedded generation is often intermittent/unreliable Distribution network has to cope with power flows in the reverse direction = protection, asset capability and fault situation issues (DECC 2013)

12 Present challenges for SPEN Ageing Assets Changing Markets Extreme Weather Events Bi- Directional Networks Aging Workforce/ Skills Gap Integration of New Technology Increased Embedded Economic Growth Smart Metering/ Demand Control Fuel Poverty/ Affordability Efficiency Competition Intermittent Political Uncertainty Community Owned Systems Sustainability Accessibility Equity Transparency Balance of Risk Reliability

13 Competition Two main areas where competition has been introduced; Connections and Distribution Network ownership 180+ Independent Connection Providers (ICP s) providing customer connections 6 licensed Independent Distribution Network Operators (IDNO s) owning and operating embedded networks Obligation on DNO s of Guaranteed Service standards

14 What about the future network challenges? Increasing demand on electricity networks through; Consumer thirst for gadgets and appliances Up take of electric vehicles Up take of low carbon heating, e.g. heat pumps More renewable generation power to transfer Increasing expectation of electricity availability More complex networks (Smart grids) and integration of technology with high volumes of network data Cost pressures against rising energy prices (on DUoS) Smart-Metering (DECC 2013)

15 Reliable grids alternative designs Industry Typical 33/11kV 12/24MVA SP Manweb Typical 33/11kV 7.5MVA 33/11kV 7.5MVA 33/11kV 7.5MVA Open Point GB Industry average 65 interruptions per 100 customers p.a. SPM Urban network 13 interruptions per 100 customers p.a.

16 Network Innovation Major boost from Low Carbon Network Funding (LCNF) Maximising the utilisation of existing network assets Using technology developments to manage the network better Some areas of SPEN innovation development; Real Time Thermal Rating of apparatus (OHL s and Transformers) Intelligent Network Automation Active Load and Voltage Network Management Voltage optimisation LV automatic fault restoration

17 End of the presentation But the start of a new era?

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