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Network March 2018

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NETWORK / 26 / MARCH 2018 I ts been a turbulent time for the en- ergy networks over recent months. The RIIO2 process for network regulation opened in July with a stern warning from Ofgem of tougher price controls and lower returns. Consumer costs - particularly for those in vulnerable situations – have been • rmly in the sights of the regulator, politicians and the media. And the Government's much anticipated Clean Growth Strategy, while making some welcome announcements on heat decarbon- isation, has not yet provided us with a clear, long-term direction on heat. Underpinning all this, of course, are the unprecedented changes our gas and elec- tricity systems are undergoing as we move towards a greener, smarter, more decentral- ised energy landscape. But within this dynamic environment there is a golden opportunity for the energy networks to come together and oƒ er in- novative solutions to the di„ cult questions facing policy-makers. While the Government has yet to commit to a speci• c heat decarbonisation pathway there is an acknowledgement in the Clean Growth Strategy that low and zero carbon gases, including hydrogen, biomethane and bio synthetic natural gas, have a role to play COLLABORATION Collaboration in action In the fi rst of a new quarterly series of articles from Cadent, chief executive Chris Train talks about the importance of gas and electricity network operators working together. There's also a look at the Priority Services Register – a cross-industry initiative designed to help vulnerable customers. in tackling climate change. This is a welcome shiˆ in attitude because if we are to deliver decarbonisa- tion that is aƒ ordable, secure and publicly acceptable, we need a whole system ap- proach, one that capitalises on the strengths of both the gas and electricity networks. Electri• cation of heat would come with a high price tag – studies have put costs at around £300 billion – with a question mark hanging over electricity's ability to deal with peak load without massive expansion. Such necessary expansion of the grid to accommodate heat and electric vehicles is also likely to trigger public acceptability is- sues, as we regularly see with new power- line projects. The answer lies in leveraging the smart grid technology being developed and imple- mented by the electricity networks together with the ' exibility of a gas grid, repurposed for low and zero carbon gases, and its ca- pacity to absorb huge shiˆ s in demand. So how are we to bring this about? Well there are already a number of initiatives in train. The ENA's Open Networks Project, bringing together the UK's electricity network operators and other key players, is laying the ground- work for a smart electricity grid. "Our energy system is in transition and we operate against a background of uncertainty." acceptable, we need a whole system ap- proach, one that capitalises on the strengths of both the gas and electricity networks. Electri• cation of heat would come with a high price tag – studies have put costs at around £300 billion – with a question mark hanging over electricity's ability to deal with peak load without massive expansion. Such necessary expansion of the grid to accommodate heat and electric vehicles is also likely to trigger public acceptability is- sues, as we regularly see with new power- The answer lies in leveraging the smart grid technology being developed and imple- mented by the electricity networks together with the ' exibility of a gas grid, repurposed for low and zero carbon gases, and its ca- pacity to absorb huge shiˆ s in demand. So how are we to bring this about? Networks Project, bringing together the UK's electricity network operators and other key players, is laying the ground- uncertainty." Cadent is working with others to develop the world's cleanest, commer- cial-scale BioSNG plant in Swindon.

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