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IDNOs Elaine Knutt investigates the progress and challenges faced by Independent Distribution Network Operator (IDNO), Vattenfall Networks, in the UK market S tewart Dawson, managing director of Vattenfall Networks, an Independent Distribution Network Operator licensed by Ofgem since November 2017, emphasises that the wider Vat - tenfall Group's core purpose and mission is to enable "fossil free living within one generation". With this in mind, the idea of Vattenfall Networks being a multi-utility company handling both gas and electric - ity networks was not an option the group wanted to pursue – it was electricity net- works only. "A lot of people thought we were making a mistake in setting up the business as an electric only utility, now with the increase of "all electric" developments, we see our initial vision was right all along," says Dawson. According to Vattenfall, the scale of the independent distribution network sector has grown considerably since energy regula - tor Ofgem opened the market for connec- tion and operations more than ten years ago. In 2019, the IDNO connections market grew by 26%, from 631,281 to over 780,000 NETWORK / 20 / MARCH 2020 Going it alone KEY POINTS l The IDNO connections market grew by 26% in 2019 l Vattenfall plans to bring low carbon solutions for shipping to the UK in 2020 l Ofgem has indicated it could allow DNOs to have affiliate IDNOs connections. The need for skilled independ- ent operators is likely to grow as the UK economy goes fossil free and strives for net zero greenhouse gas emissions by 2050. Entering the marketplace The size of that market, and the oversight of a progressive and future focused regula- tor, convinced the Swedish state-owned company to explore further opportunities in the UK. In June 2016, around the time of the Brexit referendum, it took the decision to add to its UK operations in wind, solar, batteries, heat and electric mobility, with Vattenfall Networks becoming one of 14 licenced IDNOs in the UK. However, not everything has been plain sailing. Vattenfall Networks' first contract win, announced in May 2019, was to operate the network at a new plant for Helvellyn Group, which manufactures waste derived fuel pellets for use in power stations, a project in line with Vattenfall's core vision. However, that particular project has not yet progressed, although the client has identi - fied a number of other sites across the UK where Vattenfall is working to ensure the electricity network meets its needs. Its first energised network, for a client in Daventry identified only as a "major investor", went live in December 2019. "It's an 11kV network for commercial properties. The project was brought to Vattenfall by the ICP, Freedom, which was appointed by the client. The network design was already agreed between the client and the ICP, it's a standard 11kV to LV network." By "standard", Dawson means that the advanced stage of the design leŸ no opportunity to incorporate the smart technology, automation, remote control and monitoring where Vattenfall Networks sees most opportunity to add value. "This we will look to add to the network at a later time," he adds. Dawson emphasises that Vattenfall Networks wants to be a flag-bearer for low carbon networks, modernisation and digitisation. "We want to be able to capture all our network data, to be able to deliver a more secure and robust network for the end customer," he says. "We want to look at how we influence the design with the developers and bring in smarter technologies to make the network secure and reduce customer interruptions – 'self-healing' networks is the term they use in Sweden." According to Andrew Enzor, senior consultant at management consultancy, Cornwall Insight, developing networks that incorporate generation and flexibility can be an uphill battle for both DNOs and IDNOs with today's network charging arrangements. For IDNOs, these issues can be exacerbated further because revenues are fixed as a proportion of what the DNO would have charged. This arrangement works well for demand; however, for network-level renewable (and some non- renewable) generation, the DNOs would be offering credits, rather than charging for usage – so any proportion of what the DNO would have charged is negative. Meanwhile, on battery storage, the