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Network May 2018

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NETWORK / 20 / MAY 2018 tics. A reliable and transpar- ent record system is seen as essential to the e cient delivery of decentralised networks. Re- cording meter, generating plant and network equipment details and associated characteristics and understanding this in the context of historic consumption information would signi• cantly assist the balancing process. Supplementing this with excess capacity available from electric vehicles when not in use could form the basis of a balanced, P2P electricity trading ecosys- tem. Is it all good news then? Blockchain undoubtedly has transformative potential. The technology has the power to disrupt the structure of retail energy markets which may or may not be desirable. Just some of the issues that would need to be addressed for its deployment include: charging method- ologies for use of system; the BLOCKCHAIN allocation of imbalance charges for mismatches between the amount of electricity sold and purchased and the amount pro- duced and consumed, rewriting of the network codes, whether such systems at national scale require a supplier of last resort, and a potential seismic industry shiƒ in consumer service deliver models required to support consumers in a decentralised marketplace. In addition, the lack of an intermediary could be seen as a key risk. Central over- sight is a key element in today's electricity trading markets as it protects customers and man- ages risk. Privacy requirements, licensing, contracting mecha- nisms and market access rules are all further potential barriers to immediate adoption. Whilst there are considerable challenges, the litmus test for the technology will be whether customers will culturally accept the technology and will want the oˆ erings it can provide. Advanced monitoring of low and medium voltage distribution networks is gaining momentum all around the globe as distribution system operators (DSOs) realise the importance of low voltage (LV) grids in their relationship with consumers and prosumers. ZIV Automation is working side by side with major distribution and transmission system operators to go deeper into the process of digitalisation that began more than two decades ago. In electricity networks, nearly 100 per cent of the primary substations are already automated, which results in a signifi cative improvement of the system operation. Presently, distribution utilities have made signifi cant investments in smart meter deployments. The combination of measurement, control and telecommunications at reasonable cost results in a technological breakthrough because of the capabilities for customer management that are unlocked. ZIV's smart meters, either PLC, radio or cellular enabled are a key component of these deployments. Now, the combination of LV monitoring with MV monitoring and control is a territory to be conquered. Some utilities have already deployed systems where information from LV and MV grids is analysed concurrently to operate the network accordingly. Results published by some utilities, in which ZIV is providing solutions for distribution automation, show that where the LV advanced monitoring systems, smart meters, MV monitoring and control and data analytics have been deployed, the performance indicators (SAIDI, SAIFI) have improved dramatically while capital (CAPEX) and operational (OPEX) expenditures have been optimised. I N D U S T RY I N S I G H T ZIV keeps innovating towards full grid intelligence References 1 Forbes "What is blockchain" 21 September 2017, https://www.forbes.com/sites/ bernardmarr/2017/09/21/14-things-everyone-should-know-about-blockchains/#3 5f237d1252a 2 Engie "Are blockchains a better way of managing electricity?"21 November 2017, https://www.engie.com/en/news/blockchain-energy/ 3 Ibid 2 4 Henry Edwardes-Evans. Platts Energy Economist, "Blockchian: utilities primed for digital challenge". 1 May 2017. 5 EY Report "Overview of blockchain for energy and commodity trading", http:// www.ey.com/Publication/vwLUAssets/ey-overview-of-blockchain-for-energy-and- commodity-trading/$FILE/ey-overview-of-blockchain-for-energy-and-commodity- trading.pdf. 6 Residents of Park Slope and the adjacent neighbourhoods of Gowanus and Boerum Hill who founded the Brooklyn Microgrid 7 Liam Stoker , Clean Energy News, "Verv claims UK fi rst with launch of blockchain- powered P2P energy trading pilot", 22 November 2017, https://www.cleanenergy- news.co.uk/news/solar/verv-claims-uk-fi rst-with-launch-of-blockchain-powered- p2p-energy-trading-p 8 Ofgem Open Letter to Energy Innovators relating to the Regulatory Sandbox, 6 February 2017, https://www.ofgem.gov.uk/system/fi les/docs/2017/02/open_let- ter_regulatory_sandbox_6_february_2017.pdf . 9 Robert Walton, Utilitydrive, "Grid complexity is increasing exponentially. Is block- chain the answer?" 4 February 2018, https://www.utilitydive.com/news/grid-com- plexity-is-increasing-exponentially-is-blockchain-the-answer/514951/ 10 Kelvin Ross, Power Energineering International, "Tech fi rm Electron gets UK fund- ing for grid blockchain project" 27 September 2018, http://www.powerengineer- ingint.com/articles/2017/09/london-tech-fi rm-electron-gets-government-funding- for-grid-blockchain-project.html. 11 Jo-Jo Hubbard "Blockchain is changing fi nance forever: It will do the same to fl awed energy markets", City A.M. 16 March 2017. 12 ibid 25. New 2TCM model (a Modular Supervision & Automation RTU with built-in directional Fault Passage Indicator) and 5CTI Low voltage feeder supervisor.

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