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Network April 2017

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NETWORK / 17 / APRIL 2017 Colin Taylor, director of engineering services, SP Energy Networks "There are a number of technologies 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 are bespoke products that wouldn't necessarily work with each other." Geoff Randall, associate partner for RIIO gas networks, Ofgem "When we started RIIO we always said that [the NIA and NIC] would be a time-limited stimulus. We didn't want it to become business as usual… So we are going to be asking ourselves: 'Are there ways to do the trials without a direct funding source?'" Daniel Westerman, head of network management, National Grid Electricity Transmission "I think one of my biggest fears is what happens at the tipping point for the total cost of ownership for consumers using electric vehicles versus internal combustion engines, and whether we have insuffi cient infrastructure for that transition." Stewart Reid, head of asset management and innovation, SSE "Don't become an innovation funding addict… It's really easy to just sit there in your comfort zone. It's amazing what you learn when you stop using innovation funding and actually do something for real." Paul Bircham, networks strategy and technical services director, Electricity North West "Liquidity is a real challenge [for local energy markets] because a lot of the constraints we will be looking to manage will be very localised… A series of local markets looking at managing a number of dual network constraints in certain areas may be needed to get that liquidity." Bart Dubbelboer, manager, industrial information management, Schneider Electric "With respect to the environmental aspects, quality and safety regulations - it is getting more complex. It needs to be addressed and defi nitely it's the number one priority for each and every operation that we see." 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." Western Power Distribution future networks manager Roger Hey conceded that standardisation is tricky: "You could do a whole thesis on when is the right time." But he said discussions were rightly beginning on some "no regrets"ƒoptions. Another hot topic was how to encourage the development of innovative technologies in the … rst place – particularly given the underutilisation of the funding available through the Network Innovation Allowance and the Network Innovation Competition. Randall said Ofgem is considering cutting back the processes that operators have to go through to access funding, making them "less burdensome and easier to manage". Over the longer term, he said it also is looking at ways to incentivise innovation in the next RIIO period without direct funding 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 "outdated" regulatory system that can sometimes act as a barrier to innovative for technologies, 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. SSE head of asset management and innovation Stewart Reid said innovative ideas don't just face one valley of death but a whole series. He told networks to be bold and to TALKING POINTS press ahead when faced with obstacles. "Don't wait for all barriers to be broken down. You don't have to have every answer at every point." He urged them to … nd workarounds, build up organisational momentum and avoid sitting in their comfort zones. "Don't become an innovation funding addict," he added. "It's amazing what you learn when you stop using innovation funding and actually do something for real." There was also discussion about the impact of network transformation on customers, especially those who are vulnerable and disengaged – and less likely to see the bene… ts of load-shi' ing. "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 di" culty" in … nding a balance between encouraging " exibility and achieving equitable outcomes. Chaudhary said evidence showed that working in partnership with specialist organisations, for example those in the charity sector, is the "best way" to get through to vulnerable customers. However, on the broader issue, she conceded: "We don't have an answer yet." This refrain was repeated by conference speakers on a range of di– erent issues – from innovation and standardisation to electric vehicles and the future of heat. Networks face a di" cult journey; not only are there numerous obstacles to overcome but much of the route remains uncharted. N CONFERENCE SPONSORED BY

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