Utility Week

26 | 4TH - 10TH OCTOBER 2019 | UTILITY WEEK Operations & Assets Market view P ower cuts like those the UK experienced last month are a once in a decade occurrence. The managed shutdown implemented by National Grid kept people and infrastructure safe and was within its guidelines. Nevertheless, in our increasingly electrified economy, a loss of power (and therefore produc- tivity) can cost millions of pounds. Lightning strikes are a routine issue that network operators must – and mainly do – deal with, but in this case several disruptive incidents coincided to over- whelm the systems. The UK energy network is very safe and reliable, but as climate change makes weather more extreme, it is ever more important to increase our grid's resilience to adverse events. At the same time, emissions reduction goals, includ- ing the most recent 2050 net zero target, demand that we diversify the energy we gen- erate to include more renewable sources. However, the rise of distributed gen- eration means our grid supply relies on a greater number of players, and maintaining reliability becomes a more complex chal- lenge. Faced with challenges such as severe weather events, value chain disruption and fluctuating power supply and price, com- panies will need to embrace the latest tech- nologies to improve energy security and responsiveness to future-proof operations. Rethinking reliability An ageing grid infrastructure is a barrier to reliable low-carbon energy supply in many developed nations. The millions and mil- lions pumped into asset replacement by dis- tribution network operators (DNOs) over the past eight years have not increased the over- all health of the UK's distribution network, and ageing assets are still a major concern. One of the main factors for our flawed infra- structure is that we are simply "patchwork- ing" over the basic infrastructure introduced many years ago, designed to deliver energy from coal-fired power stations to power- hungry urban and industrial areas. The UK has adapted significantly since then and new and improved infrastructure must be imple- mented to suit our daily needs. The key to the reliability problem is an integrated, active approach to energy man- agement that enables resil- ience with its diversity of supply and demand. Our current grid infrastructure is siloed into many sections and relies on a reactive approach. The industry is now turning its attention towards a holis- tic view of the strategies, data and resources needed to reduce consumption, drive innovation and max- imise savings – active energy management. Rather than treating the procurement, dispensation and evolution of energy as disparate activities, the active energy man- agement approach assumes that these activi- ties are interdependent and indispensable. By addressing operational efficiency, ena- bled by digitalisation and technology, opera- tors can reduce susceptibility to outages and potential downtime. Strategically sourcing energy supply from a diverse portfolio that includes renewables reduces risk while maximising continuity. Investing in new energy opportunities and distributed energy resources (DERs) — like demand response, battery storage, smart grid technologies, fuel cells, combined heat and power, and distributed wind — can fur- ther the development of corporate assets that are responsive, agile, and reliable. The result is both cost and carbon savings. Reductions in resource consumption from efficiency projects will lower carbon emis- sions and consequently the money saved can be used to fund sustainability projects. Despite once being a huge cost to coun- tries, renewable electricity is now cheaper than conventional generation in more than 60 countries, and will be the most inexpen- sive source of power everywhere by 2020. Simultaneously, DERs will continue to drive savings by allowing organisations to store power to use during peak load times and by reducing transmission utility charges. Microgrids As more entities embark on the active energy management journey and explore the flex- ibility of DERs, it is inevitable that there will be a growth in the deployment of microgrids to achieve grid autonomy. A self-contained, localised grid that typically includes a com- bination of generation and storage assets, microgrids can both integrate with existing grids or operate independently in "island mode". This flexibility and reliance on DERs makes them the epitome of true energy resilience. Microgrids can be used as standalone generation sources – because they are in both rural or off-grid electrification, or dis- connected, remote geographies – or as back- up power stations that ensure continuity of critical systems. And new financing models, such as microgrids-as-a-service, mean that companies can invest in a system without any upfront costs. Despite the advantages of active energy management and its role in improving reli- ability and resilience, implementation is still far behind corporate intentions. Whereas many companies are exploring the possi- ble benefits of implementing programmes to improve energy efficiency, comparatively few are considering solutions to solve the resilience challenge. Recognising and adapt- ing to the revolution in energy, integrating renewable and clean sources of energy into the grid, could also be the solution to trans- forming our energy consumption habits and protecting our world as a whole. The mission In our mission to cut our national carbon footprint, embracing the digitalised and decentralised model of energy generation is essential. To do this successfully, the way we manage and secure our energy supply must keep up with innovation. Alexandre Golisano, strategy director, power systems, Schneider Electric UK & Ireland Energy is a local concern The UK's ageing grid infrastructure was built for centralised generation. It's time our distribution networks caught up with renewables and decentralised energy, says Alexandre Golisano. Distributed energy is the next big opportunity

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