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NETWORK / 13 / JUNE 2017 All chAnge - AlwAys Transformative change is now business as usual for the energy sector, according to speakers at the Keynote conference. The pressure to transform, adapting business models, absorbing new approaches to regulation and adopting new technologies is not new to energy networks. As UK Power Networks chief executive Basil Scarsella pointed out to delegates at the Utility Week Live Keynote conference, distribution and transmission companies have been through the mill of disruptive change before – not least at privatisation. And despite critics who claim regulated networks are slow to adapt, Scarsella insisted that the sector should take comfort in the knowledge that "we have responded", improving reliability and lowering costs over time. That said, Scarsella did not condone complacency. The nature and pace of transformation hitting networks today is unprec- edented and should not be underestimated, he warned. Speaking alongside fellow network executive David Wright, director of transmission owner at National Grid, Scarsella rattled through the many interconnecting developments and uncertain- ties which are forcing fresh thinking about the roles, responsibili- ties, and opportunities for energy networks in the future. In addition to commonly cited challenges around electric vehi- cle uptake and charging habits, energy storage and community energy trends, the straight talking chief executive pondered the impact of other potential influences on the control that networks have over energy flows. He expressed interest in the rise of blockchain applications in the energy sector, which other commentators have variously said could marginalise traditional utility providers by empower- ing peer-to-peer markets, or enhance their understanding of customer circumstances. Nor did Scarsella shy away from the possibility that cross- sector trends for "asset light" service innovations might over- throw the infrastructure-heavy network models of today. "What will we look like in 2030?" he asked. "You look at the largest retailer, Alibaba, they don't own any shops. You look at the largest taxi company, Uber, they don't own any taxis. The largest hotel company, Airbnb, they don't own any hotels. So, I wonder, the largest network company, is it going to own any networks?" Wright backed up Scarsella's thinking, talking about the lessons that networks can learn from the turbulence other sectors have experienced when incumbent consensus has been challenged. Low cost airlines were underestimated by their more established rivals, he cautioned, while Microsoft poo-pooed Apple's proposition that consumer would pay top dollar for pre- mium smart phones. Speaking in the immediate aftermath of the Manchester ter- ror attack, Wright also highlighted security as a taboo subject in conversations about industry change. "The security threat to our infrastructure – to our networks – is one of those transforma- tional vectors that we don't talk enough about," he insisted. As networks seek to understand their role in the energy system of the future, the message from Scarsella and Wright was clear. Flexibility is paramount in the absence of reliable predic- tions about the future dynamics of the energy system. This may mean shorter regulatory cycles, but firms should not defer responsibility for their futures to Ofgem. First and foremost they must nurture organisational agility – the ability as Wright put it, to make "big, brave, tough calls" to "very much listen to customers" and, above all, not to "hold on to how the world was yesterday". Case study As decarbonisation forges ahead and opportunities to green the power sector diminish, the gas grid and the way we heat our homes are attracting scrutiny. Gas distribution networks are faced with a do-or-die challenge – get green, or get out. Facing up to this test of resilience, networks are now pouring resources into testing decarbonisation scenarios. A favoured route among some is to replace fossil-based natural gas with hydrogen. Some propose a 100% swap, but other projects are exploring the greening impact of using a hydrogen- methane blend. In the Network theatre at Utility Week Live, delegates heard about the ambitions that Northern Gas Networks and Cadent have for their HyDeploy innovation scheme, which aims to demonstrate that a hydrogen- methane blend of gas can be safely injected into the gas dis- tribution networks, significantly lowering the gas grid's contribu- tion to carbon emissions. hyDeploy in brief u Project partners propose that a blend of gas with up to 20 per cent hydrogen could deliver 29TWh of low-carbon heat a year across the UK. u It could cut carbon emissions by 120 million tonnes by 2050. u It could deliver £8 billion of savings compared with other low-carbon heat sources. u Trial network is at Keele university: a 600-acre site with 101 residential build- ings, eight multi-residential buildings, seven recreational facilities and 17 offices and laboratories. u Phase one of HyDeploy began in April. It will test 18 different methane-hydrogen blends. u Phase Two begins in 2018, comprising the installation of essential infrastructure and commissioning of the pre- injection process. u Phase three will be a full-year trial – due to start in 2019. Innovation Zone The Energy Innovation Centre's (EIC) Innovation Zone was back for 2017, showcasing innovative technologies. Delegates could meet SMEs at the stand and hear first-hand about the technologies that are helping to drive change in the gas, electricity and renewables sectors. These ten SMEs were just a small sample from the EIC's global innovation community of more than 2,000 businesses. To help develop this com- munity further, the EIC team launched the beta stage of its new digital platform, the Energy Innovation Centre Hub, which brings industry and innovators together online to network and share ideas. The hub gives SMEs a dedi- cated space to showcase their market-ready innovations. They will also be able to collaborate with other like-minded organisa- tions around the world, share company news and, most impor- tantly, receive information about the EIC's calls for innovation from its UK energy distribution network partners. The platform is free to join for SMEs. Visitors to the Innovation Zone stand were invited to try out the new platform and give feedback that will help shape the final product. The EIC's head of digital, Gavin Shone, discussed it in more detail to a audience at the Megatrends seminar, part of edie Live. Denise Massey, managing director of the EIC, said: "We've been working on the EIC Hub for a while now so it was brilliant to be able to unveil the beta site at this stage and start to get views from SMEs as well as leading figures from across the indus- try. The platform is primarily designed for the SME innovation community so their opinions are important to us. We want them to help shape it so the end product is user friendly and of value to them."