Utility Week

UTILITY WEEK | APRIL 2021 | 33 Operational Excellence oned by Microso and Accenture focuses on ve key pillars they believe should be imple- mented within the next three to ve years to lay the groundwork for the longer-term net zero target. Key pillars The rst three pillars are the most critical and cover measures to boost the national energy supply to meet increased demand and ensure that a 70 per cent-plus pen- etration of renewable distributed energy resources (DER) is both economically and operationally viable. The rst pillar, Decarbonising Supply, sets a target for the sector to deliver a 25 per cent reduction in the levellised cost per megawatt-hour of grid-scale renewables, as well as maximise renewable revenue streams and optimise the system value of nuclear, by…2025. "The UK has already done an amazing job cutting the per megawatt-hour levellised cost of large-scale wind. It is a similar story with solar PV; we just need to continue that tra- jectory," says Rob Hopkin, a utilities industry specialist at Accenture. Building low-carbon generation is one thing, cost-e" ectively integrating it into the system is another. National Grid ESO is committed to operating a zero-carbon elec- tricity system by 2025, which will require big changes to balancing markets, opera- tional approaches and the way the network is planned and designed. The second pillar, Balance the System, aims to support this move and identify solutions needed to e™ - ciently accommodate the growth in renew- able generation, the costs to connect and balance them and the growth in load that will consume the energy generated. This approach considers innovation at a system level and on the network, whether transmission or distribution. Microso and Accenture have set a target for the industry to realise a 20 per cent reduction in the cost of connecting generation, storage and load within t hree to ve years through innovative approaches to network design, construction and operation. Open data Pillar 3, Electrify Demand, calls for new com- mercial models and operational approaches to be tested and scaled over the next ve years, to ensure that at least half of new load growth over the coming decades provides some degree of › exibility to support the sys- tem and/or the local network. The high level of coordination required to optimise generation and supply and create a grid where assets both big and small can contribute to system balancing will be possi- ble only if a fully integrated digital approach is adopted across the energy value chain. That means taking the data embedded within organisations, and within silos in organisa- tions, and making it available to drive more integrated approaches across both planning and operational time horizons. Microso and Accenture want to encour- age the sector to accelerate access to open, secure, consistent, accessible and usa- ble data, under Pillar 4 of the integrated approach, which will underpin the delivery net zero. Big strides have already been made in that direction. Ofgem's nal determina- tion on RIIO-T2, due to take e" ect in April, includes the principle of "presumed open", whereby all energy company data is treated as available by default unless there is a valid reason not to. "The real challenge when you're trying to connect a new energy project is to under- stand where it will be most useful," explains Dr Richard Dobson, practice manager at the Energy Systems Catapult, who led content development for the Energy Data Taskforce. "For example, storage typically needs to be where there is a really high penetration of intermittent renewables generation, because it will help balance peaks and troughs more e" ectively." Open data can help answer practical questions around where to physically con- nect to the system, whether the connection is large enough for the project and identify con- straints that might curtail generation, etc. Mission-driven utilities have a long his- tory of working together to solve big engi- neering problems and the net zero challenge is a natural evolution of that, but the focus now is on digital ecosystems, and the power of the cloud. The low-carbon agenda pro- vides an ideal opportunity to retool and upskill the workforce to deliver networks augmented by communications and data infrastructure, analytics and data science. This is the nal pillar of the integrated approach. Aligned with this is the need for cultural transformation so that utilities become more accepting of risk and are not afraid to fail and fail fast when piloting technologies and innovations. The sheer pace and scale of system changes needed to reach net zero is daunting. Strategic partnership-based rela- tionships with organisations experienced in digital and sustainability can ensure that the best solutions are implemented within this tight timescale. Stephen Cousins, freelance journalist in association with In association with 1. Decarbonise supply Deliver a 25% reduc on in offshore wind £/MWh levelized cost, maximise renewable revenue streams and op mise the system value of nuclear 2. Balance the system Be able to operate a zero carbon electricity system by 2025 and realise a 20% reduc on in the cost of connec ng genera on (& storage) 4. Open data Make industry data open, secure, consistent, accessible and usable to drive efficiency and innova on 5. Enable the digital/elastic workforce (field, office, programmes) A technology-powered workforce which is diverse, inclusive and effec ve 3. Electrify demand Enable 50% of new electrifica on load (transporta on & hea ng) to contribute to system balancing (inc. hydrogen) Provide DER that makes 70% plus renewables economically & operationally viable Provide the supply to meet the increased demand An integrated approach to decarbonisation In association with The low carbon transition is rightly at the very top of today's economic and social agenda and with the UK committed to hitting net zero by 2050, all eyes are on the energy sector which can make the most significant impact on decarbonisation. It is easy to underestimate the scale of this commitment, the technical challenges are enormous and not yet costed, there remains no clear route map on how to reach net zero. Factor in Boris Johnson's interim target to cut emissions by at least 68 percent by 2030 (compared to 1990 levels) the fastest rate of any major economy so far, and it's clear the time for action is now. I N S I G H T R E P O R T Harnessing innova on to accelerate the transi on to net zero Net zero is a once in a genera on opportunity to transform the energy system. This high-level report, in associa on with Microso and Accenture, explores how digital technology and partnership working can help the sector accelerate and scale up to deliver the transi on affordably. Key points: Partnership working and open data can drastically accelerate innovation and develop solutions that are both scalable and repeatable within three to five years. The sector to realise a 20 percent reduction in the cost of connecting generation, storage and load within three to five years through innovative approaches to network design, construction and operation. The sector to deliver a 25 percent reduction in the levellised cost per megawatt hour of grid-scale renewables by 2025. New skills set and culture change key. Great Britain has already made good progress in cleaning up its energy system, for example the price of renewables has reduced dramatically in recent years and around 20 percent of electricity demand is now being served by wind, which on peak days can rise to 50 percent. But levelling up to reach net zero will require radical new approaches, solutions and skill sets. The decades-old system must be flipped on its head so that power is no longer just centrally generated and distributed, but incorporates multi-stakeholders and two- way power flows through a digitally managed distributed system. Taken from the report Harnessing Innovation to Accelerate the Transition to Net Zero Download the report This article is an extract of the report Harnessing Innovation to Accelerate the Transition to Net Zero, which can be downloaded free at Utility Week's website. Visit: https://utilityweek.co.uk/harnessing-innovation-to- accelerate-the-transition-to-net-zero-2/.

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