Utility Week

UTILITY WEEK | 30TH NOVEMBER - 6TH DECEMBER 2018 | 21 Operations & Assets Market view W e have seen some remarkable developments to the UK's electri- city system since National Grid first started operating in the mid-1930s, but this current era is one of the most exciting yet. Increasing amounts of decentralised, decarbonised energy resources and advanc- ing digitisation are changing the way elec- tricity is delivered to homes and businesses, and providing new benefits to the public. As this new era takes shape, the tradi- tional distinctions between transmission and distribution networks and processes are blur- ring. New technologies are becoming central to the way we generate, consume and manage electricity – what you might call the "Internet of Energy". We need to take a whole system view to ensure electricity markets and sys- tems evolve to maxim- ise customer value. National Grid, in its role as electri- city system operator (ESO), shared its ini- tial views on these changes earlier this year in our Facilitating Whole Electricity Sys- tem Outcomes paper, and intends to build on this thinking later this year. As we evolve to become a stand-alone ESO, we play a pivotal part in this changing energy landscape. Generating customer value Ofgem is looking to us to facilitate whole electricity system outcomes that generate customer value – from the point of genera- tion to the sockets in households and busi- nesses, and all points in between. But we cannot do this alone – it requires strategic, industry-wide collaboration. We are proud to be part of the Energy Net- works Association's Open Networks Project, which brings together the electricity net- works with more than 45 energy experts and industry representatives to lay the founda- tions for the UK's smart grid. Through this, we are working closely with the distribution network operators (DNOs) – as they transition to distribution system operators (DSOs) – to share learnings and initiatives across the industry. We have already identified new system efficiencies, developed tools to help manage system con- straints and are promoting greater competi- tion in the market. As a sign of how rapidly this transfor- mation is taking place, more than 30GW of installed generation capacity, including around half from renewable sources such as solar photovoltaic (PV) and wind energy, has already been connected to distribution net- works. This figure doesn't even include the smaller projects connected to homes around the UK. In October, Ofgem and the government provided a progress update on the Smart Systems and Flexibility Plan, again high- lighting Open Networks as being key to delivering a smarter, more flexible and more decentralised energy system. Partnerships for innovation Beyond the project, National Grid is partner- ing with DNOs to drive innovation across the UK. Our first Regional Development Pro- gramme (RDP), with UK Power Networks, is increasing capacity for new generation con- nections in the densely populated area of the southeast of England. Through a combina- tion of innovative commercial arrangements and modern technologies, there is now more than 100MW of new connection projects in the pipeline. We are building on the success of this RDP by expanding it into new areas in the southwest of England and Scotland, by working with Western Power Distribution and Scottish Power Energy Networks. Similar initiatives could deliver £17-40 billion of ben- efits across the whole energy system by 2050, according to research by Imperial College London and the Carbon Trust. Future Worlds findings At the time of going to print, Open Networks will be releasing the findings of a recent, major consultation on five models – Future Worlds – for the future electricity system. More than 200 stakeholders were involved in events and webi- nars during the con- sultation period and there were around 50 responses submitted. The consultation was key to ensuring that the industry considers the best options and to ensure all stakeholders have their say in shaping the future of the electricity networks. In all five worlds, traditional forms of infrastructure such as pylons and substations will work alongside smart energy flexibility services to manage the electricity grid, which uses new consumer technologies such as electric vehicles, smart meters, battery storage and solar panels. We are also using the Future Worlds con- sultation responses to shape our work on the Whole Electricity System and to inform our business planning for the RIIO2 regulatory period, which begins in April 2021. So, while we may be facing a new era, the future is bright for homes and businesses across the UK. Andy Wainwright, electricity system operator business lead, Open Networks Project, and National Grid The Grid's future is bright Andy Wainwright says that by taking a whole system view and collaborating across the industry to drive innovation, electricity markets and systems can evolve to maximise customer value. "The traditional distinctions between transmission and distribution networks and processes are blurring. New technologies are becoming central to the way we generate, consume and manage electricity"

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