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20 | 7TH - 13TH APRIL 2017 | UTILITY WEEK Operations & Assets Event Future Networks Conference Birmingham, 15 March 2017 Networks head into uncharted territory Delegates at the Future Networks Conference heard that standardisation, innovation and vulnerable customers are just three of the challenges networks face in the future, says Tom Grimwood. A s Britain seeks to decarbonise its energy system, networks face t0ugh challenges. They will need to absorb a growing volume of intermittent renewa- bles, replace petrol pumps in the age of electric vehicles as consumers start charging their cars at home, and facilitate the decar- bonisation of heating in whatever form that eventually takes. This means networks must become smarter, more flexible and more closely integrated. At the Future Networks Conference in Bir- mingham, speakers set out a list of obstacles that networks must overcome to achieve this. Towards the top was standardisation. The smart technologies that network opera- tors are developing and testing will have to be able to work alongside each other when they are deployed in the real world. This means industry-wide technical standards are essential. Speakers largely agreed that the industry should set common standards by itself to avoid the imposition of restrictive rules and regulations by government. Daniel Westerman, head of network man- agement at National Grid Electricity Trans- mission, said: "An industry that talks to itself properly and really makes sure it under- stands one another's needs can make it a whole lot simpler." However, there was less agreement about how quickly the process should move for- ward. Westerman said it was too early to begin setting standards, because to do so now would "stifle innovation and limit our ability to change". Colin Taylor, director of engineering ser- vices at SP Energy Networks, thought oth- erwise: "I do fundamentally believe that there are a number of technologies, in active network management for example, which are at the stage where we do need some standardisation. "One of my frustrations is how to roll things out at scale when there's a number of bespoke products – bespoke IT products, sensors – that wouldn't necessarily work with each other." Another hot topic was how to encourage the development of innovative technologies in the first place – particularly given the under-utilisation of the funding available through the Network Innovation Allowance and the Network Innovation Competition. Geoff Randall, associate partner for RIIO gas networks, Ofgem, said the regulator is considering cutting back the processes that operators have to go through to access fund- ing, making them "less burdensome and eas- ier to manage". Over the longer term, he said it is also looking at ways to incentivise inno- vation in the next RIIO period so it becomes part of networks' business as usual. Beth Chaudhary, head of smart energy policy at the Department for Business, Energy and Industrial Strategy (BEIS), said government is working to reform an "out- dated" regulatory system that can sometimes act as a barrier to innovative for technolo- gies, for example by ending the double charging of storage. She said government had an essential role to play helping companies to bridge the "valley of death" between an initial idea and commercial rollout. There was also discussion about the impact of network transformation on cus- tomers, especially those who are vulnerable and disengaged – and less likely to see the benefits of load-shiing. "We do have to recognise that there will be people who either can't engage or are unwilling to engage," said Colin Taylor of SP Energy Networks. He told delegates there will be a "real difficulty" in finding a balance between encouraging flexibility and achiev- ing equitable outcomes. Chaudhary said evidence showed that working in partnership with specialist organ- isations, was the "best way". However, on the broader issue, she conceded: "We don't have an answer yet." This refrain was repeated by speakers on a range of different issues – from innova- tion and standardisation to electric vehicles and the future of heat. Networks face a dif- ficult journey; not only are there numerous obstacles to overcome but much of the route remains uncharted.