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UTILITY Week 7th July 2017

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UTILITY WEEK | 7TH - 13TH JULY 2017 | 17 Policy & Regulation Now across the sector, including information about customers. This will introduce risks around commercial sensitivity, security and anonymity, "particularly if sharing of data between multiple parties is required… Data accessibility may be particularly challenging in instances where non-regulated parties could benefit". Commercial arrangements The existing commercial arrangements have "unintended consequences that sometimes act counter to core policy objectives". The capacity market has awarded contracts to diesel generators to meet one objective – security of supply – but in doing so has compromised another – decarbonisation. Contractual arrangements may be difficult to reverse, "resulting in a commercial inertia that acts as a barrier to reforms". Market participants oen struggle to achieve the market access needed to realise whole-system benefits, particularly those that are highly regulated. The procure- ment of balancing services is mostly le to National Grid in its system operator role, because licensing arrangements largely pro- hibit the involvement of DNOs. This could lead to sub-optimal outcomes through "con- flicts and loss of synergies". Entirely new commercial models will need to be developed, and oen this will only require regulatory obstacles to be removed. However, some will be "complex to design and implement", especially where they require co-ordination between different parties. Technical challenges "Future networks will be associated with THE FPSA JOURNEY ASSEMBLY PROCESS FOR ENABLING FRAMEWORK EXAMPLE G3 – BLACK START CAPABILITY Source: Final Report - WP4: Enabling Framework Identification Source: FPSA2 MAIN Synthesis Report increasing complexity, stakeholders and interaction with other vectors," the report states. "However, there is currently a lack of a whole-system modelling approach in suffi- cient granularity to support cost-effective co- ordination of planning and operation." There is a "capability gap" for real-time forecasting between the system operator and other parties such as DNOs. Some will strug- gle to close the gap because of limited access to historical data. Monitoring, control and communications systems lack the sturdiness and sophisti- cation required for many future functions, particularly at lower voltage levels on dis- tribution networks. Control strategies are not robust enough for future complex power flows and balancing actions, and there is limited integration of controllable distrib- uted energy into network management soware. To ensure interoperability, standardi- sation is needed at both the network and customer level for control, protection and automation solutions. Overcoming the barriers To overcome these barriers, another report produced for the programme calls for the creation of a ra of "enabling frameworks" to deliver the 35 functions, either individu- ally or in groups. These enabling frameworks would be overseen and co-ordinated by an "enable- ment" organisation but delivered by compre- hensive networks of stakeholders. "Common enabling frameworks" would be set up to deal with broad issues that affect multiple enabling frameworks, such as legislation or regulation. The formation of an enablement frame- work would begin with the enablement organisation "briefly assessing the func- tion and undertaking pre-structuring activities". Following on from this work, a corresponding stakeholder network would be established. "A comprehensive grouping of all the nec- essary stakeholders is important, along with the linkages and interactions between these stakeholders," according to the document. With the help of the enablement organi- sation, the stakeholder network would then "activate" the enabling framework before specifying its requirements for any com- mon enabling frameworks and setting up links with other enabling frameworks and functions. The third stage of the FPSA programme will now seek to validate this model by developing prototype enabling frameworks for one or more of the 35 functions. Research Development Validation Demonstration Business as usual Government Government with stakeholders Government with sector Sector Delivered through strong sector co-ordination Future Power System Architecture Programme Power Network Joint Vision Problem definition 2012-2015 FPSA1 Technical gap analysis Reported in July 2016 FPSA2 In-depth analysis and development Reporting June 2017 FPSA3 Specification and validation FPSA5 Demonstration FPSA4 Innovation FPSA6 Transition to business as usual Enablement Assembly Need a plan based on evolving generation mix System functional limitation Integration points and processes defined and co-ordinated by EO Enablement organisation Enabling tools and mechanisms Processes, plans/blueprints Stakeholder network Common EF support Function G3 EF G3 v1 Outputs and activities Enabling framework assembly line Function G3 Needs Barriers 1 1 1 1 SO DNO/DSOs Suppliers Generator manufacturers Customers Communities Smart cities

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