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NETWORK / 28 / NOVEMBER 2018 NET WORK ASSET PERFORMANCE CONFERENCE A s we move into a world of smarter networks, distrib- uted generation, electric vehicles and transport decarbonisation, understand - ing the condition of our existing asset infrastructure and its ability to cope with these new demands is going to play a vital role in asset management plans in the build up to RIIO2. Data, collaboration and in - novation are going to be key in this process and help the soon- to-be DSOs pinpoint areas for concentrated investment. The 2018 Network Asset Performance Conference once again brought together leaders from gas and power to tackle these challenges head on. Ofgem's Min Zhu kicked off proceedings with a presentation entitled 'Asset management – incentivising performance in RIIO2.' The deputy director, systems Assets matter This year's Network Asset Performance Conference addressed how networks can mitigate risk and better monitor assets; adopt innovative strategies in the supply chain; prepare for transport decarbonisation; and optimise data to transform asset management. Alec Peachey reports. and networks, told attendees: "Asset management is a signifi- cant part of the price control." Zhu pointed out that failure of network assets could have a significant impact, including disruption to supply, damage to environment, and danger to public safety. In order to prevent or reduce the impact of asset failure, net - work companies incur signifi- cant costs to monitor, maintain, refurbish and replace network assets. In RIIO1, £22 billion or a third of overall totex allowances are made for asset management. Under RIIO2, Zhu explained that Ofgem expect network companies' investment plans, as well as the regulator's regula - tory arrangements, to be driven more explicitly by the balance between cost of asset interven- tion and the developed output measures that reflect long-term consumer value. During her closing remarks, Zhu said: "A lot of progress has Usage and Storage (CCUS) project. The goal of HyNet is to reduce carbon emissions from industry, homes and transport and support economic growth in the North West of England. Fairman pointed out that the HyNet North West Cluster addresses power, industry, transport and heat. He told at - tendees that the project could be deliverable in the early 2020s. He said: "We need in in the UK clear pathways around carbon capture utilisation of storage and we need to do these things at scale, quickly, or we risk becoming a lagging country rather than a leading country in this. There is a key role for us to work with both the regulator (Ofgem), but also with govern - ment and BEIS to make sure those bits line up and that there is an exciting future across all energy." On the electricity side, Barry Hatton from UK Power Networks discussed 'Driving efficient de - been made in industry practice and regulatory arrangements. There's a long journey ahead and we're looking forward to making more progress and achieving greater value for consumers in RIIO2." Simon Fairman, director, safety and network strategy at Cadent, delivered a presentation entitled 'Maximising the value of gas network assets'. Fairman told attendees that Cadent believe multiple low carbon technologies will allow it to decarbonise the gas network. He pointed out that the best technology will depend on vari - ous factors - location, urban vs rural, customer density to name a few. Cadent have developed a portfolio of low carbon projects and technologies which will enable the gas grid to deliver the UK's carbon reduction targets in the near term. HyNet North West is a hydro - gen energy and Carbon Capture, Attendees at this year's Network Asset Performance Conference. Cadent's Simon Fairman addresses the audience.