Issue link: https://fhpublishing.uberflip.com/i/936447
NETWORK / 28 / FEBRUARY 2018 INNOVATION T he award of regulatory funding for projects that will accelerate delivery of SP Energy Networks smart and flexible energy system for customers sends a signal to the market that there's a strong interest in new technology. That's the view of Taylor, who was speaking to Network on the back of the news that the com - pany has secured £12.6 million worth of NIC funding. With the significant cost of upgrading the electricity network ultimately borne by customers, the networks company is de - veloping new technologies and innovations to optimise existing infrastructure instead. According to the company, this will ensure a smart electricity grid which will be capable of coping with rising demand for power to charge elec - tric cars and other low carbon technologies. Ofgem, the UK's national en- ergy regulator, is backing the SP Energy Networks projects with funding to demonstrate how both commercial and technical innovation can deliver a flexible electricity system focused on lo - cal customers, communities and businesses. The firm's LV Engine project, which has been awarded £7.3m, will demonstrate the deployment of a new type of sophisticated network power transformer. This technology has the capability to closely control network voltage and power flow and can provide a DC power supply – essential for electric vehicle charging. This has the potential to significantly In this month's issue, Network continues its look at projects awarded funding from Ofgem's Network Innovation Competition (NIC) and the Network Innovation Allowance (NIA). Alec Peachey speaks to Colin Taylor, director of processes and technology at SP Energy Networks, about their recent awards. Transforming the network increase flexibility in the electric- ity system and make fast electric vehicle charging a reality. Taylor believes that it's this type of technology that really attracts interest from the sector: "I think one of the really positive things about NIC is it sends a sig - nal to manufacturers and to the marketplace that there's a strong interest in this kind of technol- ogy. Ofgem granting funding for something like this sends a message out and gets interest. People who can manufacture this technology will say there's a potential market there. "There's always people inter - ested in these technologies, but there's a lot of competition out there so it's good for manufac- turers to be able to demonstrate that there's an industry interest. While we've had positive discus- sions with manufacturers prior to the award, the award coming out and being publicised gives the whole thing a kick. "We'll be looking to deploy a couple of different technolo - gies and then the strength of it is that by being able to show that it works, it adds as a further stimulus." Collaboration matters LV Engine will be delivered in collaboration with fellow electricity network operator UK Power Networks. "Collaboration is really important amongst the DNOs," remarked Taylor. "We're always very conscious that the innova - tion money is customers' money. It comes from my bill and every- one else's. We're enablers of gov- ernment policy and it becomes more critical as we move forward that we are effective in how we deploy innovation. "On a number of our trans - mission NIC projects over the years we've been able to have formal partnerships with other transmission licensees. With previous distribution NIC fits in the past we've tried to get formal partnerships, but it hasn't really worked out, so we're delighted to be partnering with UK Power Networks." Ian Cameron, head of in - novation at UK Power Networks, added: "We are delighted to partner with SP Energy Networks on this great innovative project which we forecast will deliver considerable benefits to optimise existing network use and add value to our electricity consum - ers across the UK, the partner- ship is a clear demonstration of distribution network operator collaboration." SP Energy Networks will also lead a separate research scheme to be trialled in the East Fife area called FUSION, which will create the UK's first intelligent local energy marketplace where energy flexibility can be bought and sold by consumers in an open and competitive market. Colin Taylor: "The NIC process is quite a challenging process. The panel were very direct with all of us in terms of their expectations on collaboration."