Utility Week

18 | 26TH JANUARY - 1ST FEBRUARY 2018 | UTILITY WEEK Operations & Assets Analysis A smarter, more flexible power grid will be essential to transforming the energy system at the lowest cost to consumers. The potential benefits amount to between £17 billion and £40 billion by 2050, according to the smart systems and flex- ibility plan unveiled by the government and Ofgem in June. Key to securing these benefits will be the Energy Networks Association's Open Networks project, which published its first end of year report in December. With the industry-wide initiative now entering its sec- ond year, Utility Week looks at the project's plans for 2018. Open Networks is separated into four main workstreams: 1. interactions across distribution and transmission 2. the customer journey 3. the evolution of distribution network operators (DNOs) into distribution system operators (DSOs) 4. network charging. 1. Working together Sotiris Georgiopoulos, head of smart grid development at UK Power Networks, is in charge of the first of these workstreams, which in 2017 focused on reforms to connec- tion arrangements at the distribution level. Before offering connections to customers, DNOs previously had to establish the impact on the transmission network by requesting a statement of works from the transmission system operator (TSO) at National Grid. The process oen led to delays and the imposi- tion of conditions. A simpler process has now been devel- oped to improve the experience for custom- ers. By working with the system operator to work out in advance where constraints on the transmission network will limit connec- tions to distribution networks, DNOs are now able to offer connections without having to request a statement of works. "The ability of distribution companies to give that kind of clarity and visibility at the point of application relies on a continuous loop of data between transmission and dis- tribution companies that didn't exist in the past," says Georgiopoulos The new process underpinned UK Power Networks' launch of an active network man- agement scheme in June, which enabled customers to access flexible connec- tions and avoid paying and waiting for costly grid reinforcements. The main task of this workstream for 2018 will be monitoring the rollout of flexible connections and taking in feedback from customers. Georgiopoulos says the questions that will need answering are: "Does this work? And if not, what areas do we need to improve?" This workstream will also examine whole- system investment planning and greater vis- ibility over the distributed energy resources connected to the power grid, which has hith- erto been lacking. 2. What customers want The second workstream, centred on the cus- tomer journey, spent the last year listening to customers to gain greater knowledge about who they are and what they want. Jim Cardwell, head of trading and innova- tion at Northern Powergrid, says that in 2018 learning will be used to establish "what good practice throughout the connection process should look like, including what data and information is available, and what kind of technical and commercial expertise needs to be provided to customers at different stages. "We will also be bringing greater clarity on aspects like standard terminology, what levels of constraint apply to unfirm connec- tions, how interactivity between connection Open Networks: what's coming up in 2018 Tom Grimwood looks at how the Energy Networks Association's Open Networks project is helping manage the UK's transition to a more flexible energy system, and where its focus will be this year. applicants is managed, and how networks manage capacity usage and availability." The transformation of the energy system will provide an opportunity for customers to get paid for providing flexibility. Cardwell says that a priority for this workstream over the next year will be learning more about the information that customers will require to be able to participate in the new markets. He continues: "This understanding will lay the foundations for develop- ment of the market today and assist with the stand- ardisation of interfaces with the different network businesses, with the aim of making it simpler for customers to engage to trade their flexibility with multiple parties." 3. The DSO transition The creation of markets for flexibility is a major pillar of the transition to a DSO model – the focus of workstream three. Its achieve- ments in 2017 included establishing a defini- tion for DSOs based on eight key functions. Using this definition as a starting point, the workstream developed and consulted on a number of potential DSO models. It settled on three: a DSO-led model, a joint procure- ment model and a market-led model. In 2018, the three models will be put out to consultation and analysed to establish their likely costs and benefits. Randolph Brazier, Energy Networks Association (ENA) head of innovation and development, says this evidence will then be presented to Ofgem, which will "ultimately make a deci- sion on what the market or the DSO will look like going forward". The elements of the DSO models that are common to all three options, and which can therefore be implemented immediately, will also be identified. "We're essentially saying, 'look, this is what we think we should be focusing on this year, but what does the industry want us to focus on?'" Randolph Brazier, ENA head of innovation and development

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