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Network February 2019

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NETWORK / 17 / FEBRUARY 2019 higher percentage of renewable resources contributing energy to its network (circa 30% vs 15%, respectively), thanks largely to its global leadership in develop- ing offshore wind energy. The US utilities however are facing different disruptive forces to their UK counterparts. Utilities in the US serve enor- mous geographic regions, with extreme and diverse weather patterns from hurricanes to droughts. These challenges are forcing utilities to make system investments in reliability and resiliency. Against this backdrop, a growing number of US states aren't waiting for federal energy policy to lead the way. Like the UK, they are using regulation to introduce competitive market dynamics and encourage devel - opment of renewable resources. California was the first US state to set challenging renew- able targets and today obtains about one-third of its retail power from renewable sources. CA has aggressive requirements for utility investment and state incentives for energy storage technologies. It was also the first state to require all new homes to be built with solar power. As the US's EV 'home', CA alone has 2.5 times more on its streets than the UK. Texas is similar to the UK and has a deregulated energy sector giving 85% of consumers the option of choosing their power provider. Deregulation and state incentives have boosted renew - able wind energy on the Texas network to over 30 per cent at peak. As an "energy island" not linked to other states – elec - tricity prices can even trade at negative spot prices during low demand. New York has adopted a green energy strategy - Reform - ing the Energy Vision - with ambitious targets to reduce greenhouse gas emissions, in- crease renewables and improve building energy efficiency. Ini- tiatives such as the distribution service platform (DSP) provider concept enable the proliferation of distributed energy resources throughout the network by incentivising proper market behaviour to solve traditional network challenges. Rather than explicit renew- able targets, Massachusetts is focusing on grid modernisation to reduce GHG emissions. This has centered around invest- ments in new distribution system controls and communi- cations technologies that can accommodate multi-directional power flows from roožop solar, battery storage and even electric vehicles contributing energy back into the network. US and UK utilities have his- torically been among the most heavily regulated in the world. Regulatory mandates of service in both require affordable prices and near-perfect reliability. In the US, utilities earn reason - able returns on their "rate base" determined by prudent capital investments, plus recovery of operating costs. This model tends to drive a capital invest - ment bias, which some states like New York are redefining. In the UK, utilities earn revenue based on an eight-year price control that allows reason - able returns based on "total expenditure," (TOTEX). Under this performance framework, returns are based on the total lifecycle costs, which considers capital and operating cost of the asset over its expected life cycle. This drives a behaviour focused on the life and longevity of an asset. The pressing need to address several similar challenges will create electricity networks in both countries that will evolve to "energy platforms" with third party arbiters of distributed energy - enabling greater com - petition among producers and choice for consumers. Burns & McDonnell has the depth of experience in plan - ning, designing and building the investments in infrastruc- ture and system to enable our clean energy future. It will be an interesting decarbonisation journey for both countries as we each look forward to solving the energy trilemma. Dr Jacqueline Hall, associate director of the Energy & Utilities Independent Assessment Service (EUIAS), discusses the importance of assessing apprentices working in the sector. End-point assessment is a vital part of the apprenticeship journey. Ensuring your apprentices can do the job they have trained for is critically important in the power and gas sector. The Energy & Utilities Independent Assessment Service is a Government approved, employer-led, apprenticeship assessment organisation. Our goal is simple: we're committed to delivering a rigorous and robust apprenticeship end- point service in safety sensitive work areas. By collaborating with leading utility employers, we have designed 10 robust, quality standards that meet the needs of the sector and enable apprentices to work successfully across industries. Our service was the first end-point assessment provider to have achievers on the new English apprenticeship standards. Since then we have had over 750 graduate apprentices and continue to raise the bar of workforce competence and resilience. The Energy & Utilities Independent Assessment Service works with power and gas employers, training providers and apprentices. Our team of experts are on hand to help your company and your apprentices aim high and raise individual aspiration. To find out how the Energy & Utilities Independent Assessment Service can support end- point assessment of your apprentices, contact us on enquiries@euias.co.uk. You can also call us on 0845 077 99 22. I N D U S T R Y I N S I G H T Quality apprenticeships for networks From left to right: Nick Ellins, CEO of Energy & Utility Skills; Jack Steel, apprentice, Cadent Gas; Lord Aberdare, vice chair of the All Party Parliamentary Group for Apprenticeships; Jacqueline Hall, associate director of the Energy & Utilities Independent Assessment Service.

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