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The Topic: Smart systems SMART SYSTEMS THE TOPIC 12 | 10TH - 16TH MARCH 2017 | UTILITY WEEK A s Britain decarbonises, the growth of intermittent renewable generation will mean that matching supply with demand, getting power to where it is needed and maintaining the stability of the energy system will become increasingly challeng- ing. By shiing demand and supply from one time to another, aiding the efficient use of our networks and providing a range of ancillary services, demand-side response (DSR) and storage will have a key part to play in making this low-carbon transition cost-effective. The costs of integrating renewables are in general "relatively modest", a recent report by the UK Energy Research Centre con- cluded, but vary enormously depending on the flexibility of the system. Think-tank Pol- icy Exchange estimated that deploying DSR and storage to create a smarter, more flexible energy system could deliver savings of up to £8 billion by 2030. Included in these cost estimates is pro- viding backup capacity for when the sun is not shining and the wind is not blowing. DSR and storage are already part of the solu- tion, having won hundreds of megawatts of contracts in the capacity market auctions that have taken place. They are likely to perform even better in future, particularly as the price of battery storage continues its steady decline, and could eventually become a cheaper, low-carbon alternative to much of the fossil fuel generation that would other- wise be needed. On the other side of the coin, there is the cost of curtailing excess renewable genera- DSR and storage in the smart system The ability to store excesses power and turn demand on and off according to supply conditions will be a game-changer as the energy system adapts to cope with intermittent renewables, says Tom Grimwood. tion when the sun is shining bright and the wind blowing strong. Storage is able to save this excess power for later, and demand-side response to use it at the time, thereby reduc- ing demand in the future. In the past few months, National Grid launched a tender for a demand-turn-up service to enable DSR to absorb surplus wind generation. The restraints of the transmission net- work mean excess wind generation is already being curtailed – or rather wasted – in parts of the Scotland because of the limits of the electricity network. DSR and storage can not only mop up excess power supplies across the energy system but in specific parts, help to make the best use of existing assets and avoid expensive reinforcement. Western Power Distribution has indicated an interest in using containerised batteries as "interim" reinforcements – providing a stop gap meas- ure while it assesses whether it needs to invest in a permanent solution. Then are the costs of short-term balancing and other ancillary services. As the volatility of the energy system increases with more renewable generation, the need for many of these services will increase. Currently they are largely provided by dispatchable thermal generation, but again DSR and storage have the potential to provide a cheaper, low-car- bon alternative. Last year, National Grid held a tender for a new "enhanced frequency response" service to maintain the system inertia – or resistance to change in frequency – which is currently provided by the spinning machin- ery in thermal generation plants, and would otherwise decrease with the rise of renew- able generation. The competition was domi- nated by battery storage, which won 61 out of the 64 contracts. Two went to DSR and just one to thermal generation. By fulfilling a plethora of roles – balanc- ing supply with demand over the long and the short term, ensuring the smooth opera- tion of the energy system and enabling the best use of assets – DSR and storage will be indispensable tools in the transition towards a low-carbon power sector. Without them, it will be harder work and a lot more expensive. The sector is in agreement; low levels of confidence in all the phases of the rollout How would you rate your confidence that the smart meter rollout will begin and/or be delivered on time?? 30-50% – the level of balancing service capabilities the system operator aims to come from the demand side by 2020. £50m - the funding support for innovation in DSR, storage and smart technologies coming from the government, as announced in budget 2016. £3-8bn – the gross benefits a smart system could provide to consumers per year by 2030, according to the National Infrastructure Commission. KEY NUMBERS THE VALUE OF ENERGY STORAGE Source: UKPN/Imperical College London Demand (MW) Revenue (£/year) 60,000 50,000 40,000 30,000 20,000 10,000 0 Active and reactive power 250,000 200,000 150,000 100,000 50,000 0 Dw RESP Up Resp DW Rese Up Rese EA Value of energy storage with layered service provision 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Non-essential demand displaced from peak hours Evening peak reduced Demand Demand w/DSR DEMAND SIDE SOLUTIONS Source: Energy and Climate Intelligence Unit 236,656 217,282 Value of reactive power Active power