Energy Networks Association The Road to a Smarter Grid Alan Claxton Director of Energy Futures Towards The Smarter Utility Wednesday 18 th May 2011.

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Presentation transcript:

Energy Networks Association The Road to a Smarter Grid Alan Claxton Director of Energy Futures Towards The Smarter Utility Wednesday 18 th May 2011

Outline 2 Energy Networks Association 1.ENA 2.UK Energy Policy 3.Low Carbon Transition Plan 4.Transmission & Distribution networks 5.Smart Grids Smart Metering Heat Pumps Electric Vehicles Distributed Generation LCNF Pilots 6.GB Smart Demand Response 7.Smart Grid Drivers 8.Skills 9.Summary

ENA: Who We Are (Transmission) 3 Energy Networks Association Future: Offshore Transmission Operators?

ENA: Who We Are (Distribution) 4 Energy Networks Association

UK Energy Policy 5 Energy Networks Association “A strategy for managing uncertainty” “Secure, sustainable and affordable energy supplies” “The future of Nuclear Power” “UK plc requires energy to grow the economy” “What about the future of Gas?” “Reduce wasted energy” “What about carbon reduction?” “Europe?”

Low Carbon Transition Plan 6 Energy Networks Association EU 20/20/20 targets a 20% cut in emissions of greenhouse gases by 2020, compared with 1990 levels; a 20% increase in the share of renewables in the energy mix; and a 20% cut in energy consumption. The 2008 Climate Change Act made Britain the first country in the world to set legally binding ‘carbon budgets’, aiming to cut UK emissions by 34% by 2020 and at least 80% by 2050 Low Carbon Transition Plan Renewable Energy Strategy

Low Carbon Transition Plan 7 Energy Networks Association Source:

Low Carbon Transition Plan 8 Energy Networks Association Source:

Low Carbon Transition Plan 9 Energy Networks Association Scenarios to achieve UK CO 2 reduction targets DECC 2050 Pathways Ofgem’s Project Discovery ENA member company scenarios ENA Redpoint Report Electricity Demand in TWh

Low Carbon Transition Plan 10 Energy Networks Association “As we see greater use of electricity over coming years to power electric vehicles and to heat our homes, demand is going to rise – even with our massive commitments to energy efficiency, we will need almost 50 per cent more electricity in 2050 than today”. Charles Hendry (2 nd March 2011)

Low Carbon Transition Plan 11 Energy Networks Association ENA’s Position: Electricity Transmission & Distribution members are working collectively to develop a set of ‘common assumptions’ to assist in the development of their business plans for RIIO ED1 (first draft summer 2012). We understand that DECC are planning to issue a similar output at the end of 2011 as part of the Electricity Market Reform (EMR) and ENA will support DECC in this respect. ENA recognises the important role that both Gas and Electricity sectors will play in achieving the UK 2050 CO 2 reduction targets.

Low Carbon Transition Plan 12 Energy Networks Association Source:

Transmission & Distribution networks 13 Energy Networks Association Extent of current network power flow / voltage monitoring capability HV and LV distribution largely unmonitored 132,000 volts33,000 volts 11,000 volts Railway supplies 400/230 volts Domestic customers National Grid 400,000 and 275,000 volts Local substation Primary substation 25,000 volts Generation

Smart Grids 14 Energy Networks Association Smart Metering Networks Functional Requirements Access to data through the DataCommsCo Smart Metering roll-out - ENA Smart Metering Operations Group

Smart Grids 15 Energy Networks Association Energy Technologies Institute Joined-Cities Plan Areas of high road transport CO 2 emissions Network of recharging points for PHEV / EVs Access to recharging facilities in any participating major UK city Source: ETI Electric Vehicles

Smart Grids 16 Energy Networks Association Source: NERA / AEA Heat Pumps

Smart Grids 17 Energy Networks Association Up to 5MWe generation now qualifies for Feed-in Tariff incentive. Recently reviewed to encourage smaller installations. should catalyse interest in micro-generation, mini-generation and community- scale schemes Potential voltage-rise issues on LV and MV networks possible need for more granular active voltage control Need for visibility of two-way power (and reactive) flows Need for visibility of ‘latent demand’ Distributed Generation

Smart Grids 18 Energy Networks Association Low Carbon Network Fund Pilots (LCNF) – ENA Catalogue

GB Smart Demand Response 19 Energy Networks Association Source: ENA Business as usualSmart

GB Smart Demand Response 20 Energy Networks Association

Smart Grid Drivers 21 Energy Networks Association UK Government and EU Policy – not mandated unlike smart metering. - DECC/Ofgem Smart Grids Forum - Electricity Networks Strategy Group (ENSG) - EU Smart Grids Task Force Networks want to be an ‘enabler’ not a ‘barrier’ to UK Government CO 2 reduction targets. Customer service Security of Supply Supply Quality Deferring or removing the need to reinforce the network. reducing costs reducing disruption – street works etc. physically not possible to reinforce at a rate to keep up with potential demand. Increased renewable (intermittent) generation – need to avoid curtailment. Balancing services - Storage, Demand Response, Aggregators, Virtual Power Plants.

Skills 22 Energy Networks Association

Summary 23 Energy Networks Association The CO 2 reduction targets are fixed but the pace of change in energy production and usage is currently uncertain. The customer will be key to this. Both electricity and gas will be required to meet the UK 2050 targets. Networks will be an enabler to the changes required. Smart Metering will provide the foundation for smart grids. Significant roll-out workload for network companies. Network reinforcement will be inevitable but smart techniques will defer the need to reinforce. Smart techniques will be required after reinforcement. The sector will require many ‘skilled people’ to address these future challenges – we need to be ambassadors for the sector. ENA supports the requirement to have a co-ordinated approach to developing smart grids.

24 Energy Networks Association Thank you for your attention