1. LV Network Templates for a Low- carbon Future Tuesday 19 th October 2010

2. The Project – LV Network Templates for a Low-carbon Future To identify the impact of green technology on the LV Network by monitoring of 1,000 distribution substations and 7,000 feeder-end points 1 LV substation

3. External wall insulation- 2198 CESP grants Solar Water Heating-688 The Renewable Heat Incentive (RHI) is a government backed scheme which is planned to be introduced in the UK in April 2011. Scheme will pay up to 18p/Kwh for the heat generated. Air Source Heat Pump- 62 CERT/CESP initiatives Photovoltaic- 912 The Feed-in Tariff scheme provides homeowners with a payment for every unit of electricity produced from through solar panels for the next 25 years. Solid Wall Insulation- 64 CERT initiative-to install solid wall insulation to 40,000 homes over 3 years to 2011. Additional installations from npower via CERT/CESP Assist National Grid to reduce the need for high-carbon spinning reserve generation Integrated into a wider UK energy system 2

4. City/Town Semi-Urban Rural Project cost of c.£9m, plus an additional c.£7.5m of funding via WAG & npower CERT/CESP initiatives The project will deliver visibility of the impacts of renewable energy on the Low Voltage network enabling DNOs and National Grid to manage their networks effectively Benefits delivered by the project 3 UK wide applicability-Provides a model for other DNOs to use for future planning to: assess the impacts of green technology on their network Identify ‘headroom’ (kVA and volts) available to accommodate the demands of low-carbon stresses provide visibility of network losses to reduce customer bills Impact on network of sustainable housing Data available to academia at no cost Limited policy changes required Opens markets for new generation technologies Low-carbon deployment of project technology Encompasses 10% of South Wales population

5. " Western Power Distribution began promoting such a project before the low carbon networks fund was conceived. I have personally been in discussion and given presentations to key personnel in Ofgem and to DECC, including the then Energy Minister, Lord Hunt. None of the Senior Management of Ofgem should be in any doubt over my commitment to the pursuit and success of this project” Robert Symons-CEO Western Power Distribution 4

6. APPENDICES 5

7. Appendix Contents Reference table of Appendix documents submitted as part of the proposal Project Success Criteria: Accelerates the development of a low carbon energy sector Has the potential to deliver net benefits to existing and/or future customers Direct Impact on the operation of the Distribution System Generates new knowledge that can be shared amongst all DNOs Relevance and timing Demonstration of a robust methodology and that the project is ready to implement Project Milestones 6

8. Appendix Documents submitted 8 Appendix AFull Submission Spreadsheet Appendix BMaps and network diagrams Appendix COrganogram Appendix DProject plan Appendix EInformation sources referenced in Box 15 Summary If DNOs include further information attached to this Pro-forma than that required by Ofgem then they must provide an executive summary of that information in less than 1000 words which should be attached to this pro-forma after Appendix D, and before the numbered appendices. All further details in the numbered appendices must be clearly referenced in the text in the pro-forma. Appendix 1 University of Bath letter of engagement and support, and their data analysis methodology Appendix 2Memorandum of Understanding between WPD and npower Appendix 3Customer communications pack Appendix 4Installing monitoring in LV substations Appendix 5Support letters – University of Bristol / WAG Appendix 6Sample extract of Arbed data (anonymised) Appendix 7 RFQ issued to monitor installers re the installation of voltage sensors at end of feeders / Provisional design of end-of-feeder voltage monitors Appendix 8An overview on the concept of network templates

9. 8 Accelerates the development of a low carbon energy sector Project Success Criteria Excellent foundation for assessing network requirements for LV-connected demands and stresses Establishes capacity and voltage ‘headroom visibility’ through network monitoring Measures low-carbon stresses through templates, aiding design and planning of UK networks Low-carbon generation information to National Grid Dynamic voltage control, demand response, smart metering, network pricing, load management and integrated generation scheduling Accurate voltage readings to provide an understanding of the potential to reduce LV average and maximum voltages in the UK

10. Has the potential to deliver net benefits to existing and/or future customers Project Success Criteria GB wide benefits have been estimated conservatively Reduction in customer bills by having greater visibility of network losses The net UK benefits are: Incorporating microgeneration scheduling into National Grid scheduling and dispatch Template re-use – DNOs need not monitor a proportion of their networks Reduction in transformer failure due to reduced overloading Loss reduction benefit through substation sensing of transformer loads Energy saving benefit, as a result of better utilisation of voltage tolerance Network deferral benefits, by establishing whether further demand and DG on the network can be accommodated 9

11. Direct Impact on the operation of the Distribution System Project Success Criteria Future low voltage network developments by obtaining LV network power quality characteristics Utilises existing technologies (sensors, comms), offering lower risk and thus greater likelihood of success and therefore exhibit a greater positive impact on the Distribution System No complex customer risk Utilises existing programmes – CESP/CERT and Arbed – increasing the replicability of the generated network templates 10

12. Generates new knowledge that can be shared amongst all DNOs Project Success Criteria Robust data on data quality in the LV network in South Wales as a variety of low-carbon stresses are applied Will provide National Grid with near real-time generation data from microgeneration Learnings will allow DNOs to: a) categorise areas of their networks by applying the ‘template test’, which will then suggest what template the area most resembles b) understand how the area will react to low-carbon stresses and benefits c) determine whether sensors are likely to be required in their network areas Information dissemination will take place through the official channels as requested by Ofgem, as well as academic and, where appropriate, public and industry disseminations 11

13. Relevance and timing of project Project Success Criteria Specific need in the Government’s Smart Metering Implementation Programme, around the invisibility of the LV network to network operators Greater visibility of the LV network, critical to introducing renewable and low-carbon generation and storage Project is timely for a number of reasons: a number of Government initiatives and targets are in flow: the 2050 Pathways document, the Low Carbon Transition Plan, and various numbers around the estimated quantity of low-carbon generation and EV rollouts, all point to the requirement to have access to high-quality data about the LV network Will drive through results in time to impact business plan submissions for DCPR6 Supports the movement towards retail-led smart metering and helps the network be ready for the increase in low-carbon microgeneration 12

14. Demonstration of a robust methodology and that the project is ready to implement Project Success Criteria Memorandum of Understanding with npower (MOU-see Appendix 2 for a copy of this) Logistics around procurement and deployment have already been put in place (see Appendix 7 for evidence of establishing installation costs of monitors) WPD board has approved the hiring of LCN Fund project managers to oversee the project Templates that will be used to assess network characteristics already exist Project cost savings, reduced complexity and risk -The partners involved (primarily through WAG) are operating independently of the LCN Fund Solution is relatively straightforward – the technology exists and the monitoring and integration with existing WPD hardware and software has been done previously Reaches a wide spectrum of microgeneration sites and substations Customer communications pack has already been put together with consultation from Consumer Focus and the supplier community for appropriateness 13

15. Project Milestones 14