Network

Network June 2019

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of how many innovation solutions you take forward and deliver into the business. We sit at 22 (at the time of the interview), which is probably double any other network now. It's about the pace of transition, taking a good idea and turning it into something in the business that delivers benefits as fast as you can." Before being called the innovation team the team were known as Future Networks. It is something that Cameron wanted to change. He said: "It bugs me because everyone talks as if we're only preparing for the future, but we're there already. Ultimately, I took the team over and the mandate was innovation, value today and staying ready for the future. Future Networks had been around since 2010 and it needed a refresh because it was focused on what's called white coat, research and development (R&D), and had too much future focus. Basil likes a balance. He wants value for customers, and he'd like us to be ready for the future - to be leading the way and demonstrating what that looks like. There's a balance and the way we deliver that in our business is through our innovation strategy. Innovation is a key support function." Highlighting innovation During our time together Cameron refers to several innovation projects that the operator has been working on. Earlier this year the company put on an innovation showcase at the Institution of Engineering and Technology in London to highlight a range of cost-saving projects. Funding from Ofgem's Network Innova - tion Allowance (NIA) and Network Innova- tion Competition (NIC) plays a central role in many of the projects, with almost £149m saved through the deployment of cost-sav- ing technology since 2015. Whether or not these funding mecha- nisms remain during RIIO2 in their current form is a question that's still up for debate. "Under NIA, if you have a look at the portfolios registered on the smarter NETWORK / 25 / JUNE 2019 Smart charging could cut the cost of investing in the electricity network to enable the move to zero-emission taxis in London by as much as 70 per cent, according to a Black Cab Green study. One of the first electric buses to leave Shepherds Bush Garage. networks portal, you'll see a fairly good bal- ance that says it's about bringing value to customers today," remarked Cameron. "Of the £149m, about 70 per cent is the NIA value. The key message is that the stimulus needs to continue. The way it comes is the question. What we as networks have got to do is clearly show the value that innovation has brought. There's inconsist - ency in this. That's the challenge – we need greater consistency from networks in the way we report and demonstrate the value of that fund. We spend a lot of time submitting these reports to show the true value of what this team are doing. Innovation is a busi - ness at UKPN. The input needs to be lower than the output. You need to save money out of it and then share it with customers." Cameron talks about putting a stamp on any innovation projects that benefit cus - tomers at the lowest possible cost without compromising safety, network capacity or efficiency. "It's about 'innovation delivered'," he comments. "We aim to brand these projects. If you develop a solution put a logo on it be - cause it's about innovation delivering value to customers and businesses now." One example of a project that the opera- tor is working on is Optimise Prime - a trial which will bring together leading power, technology, fleet and transport companies to test and implement the best approaches to the EV rollout for commercial enterprises. Led by global data technology solutions provider Hitachi Vantara and UKPN, the trial will see up to 3,000 electric vehicles from Centrica, Uber and a large UK depot- based parcel carrier take to the road, sup - ported by distributor Scottish and Southern Electricity Networks, Hitachi Europe and Hitachi Capital Vehicle Solutions. Cameron said: "For electric vehicle fleets it's no longer a case of the tipping point, but rather the jump point, because when large- scale commercial electric vehicle operators decide to switch from petrol or diesel to electric the impact will be instant. There's incredible potential to improve the air qual - ity of our towns and cities and we want to help that happen at the lowest possible cost to our customers." Although innovation at UK Power Net - works is continuing at pace, Cameron does offer a note of caution about the future, using a 'dumb middle' analogy to explain his thinking. He said: "We have a great brain – that's our advances in the control room, Active Network Management and Distributed En - ergy Resource Management (DERMS). "We have our running shoes on – that's the smart meters in our homes and grid edge technology like smart appliances, domestic storage and smart EV chargers. "But we have a 'dumb middle' – that's the love handles. It's the substations and transformers that need to get smart." So, what does he think the network of the future will look like? "It's going to look more like it is today than it was five years ago, but it's going to look different. It's going to be system opera - tion first and at the same time keeping the asset base strong and resilient. It's a good mix. Strategically it's going to require a bit of business and structural change, which you'll find if you talk to any network. "Systems are smart, but we've got to sort out that love handle. The passive middle has to be dealt with to help make the whole system smarter." DECARBONISATION OF TRANSPORT TRANSITION TO DSO

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