IFI LCNF REPORT. April 2010 to March 2011

Transcription

1 / IFI LCNF REPORT April 2010 to March 2011 For the licensed companies: Eastern Power Networks plc London Power Networks plc South Eastern Power Networks plc

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3 Welcome to the UK Power Networks annual report describing our activities under Ofgem s Innovation Funding Incentive (IFI). This is the first report since UK Power Networks took ownership of the distribution licences of Eastern Power Networks plc, London Power Networks plc, and South Eastern Power Networks plc, which were previously owned by EDF Energy. You can see the area we serve and a high level view of our business on page 3. This report demonstrates our new shareholders strong commitment to innovation. We recognise that innovation brings about improvements in performance for our customers, continual improvement in the way that we work internally, brings our employees into contact with the latest technologies and is an essential element to making the energy sector a compelling place to work. I am proud to say that this report represents only a small portion of our innovation activities. We relished the opportunity to present both our Low Carbon London project and our Low Carbon Network Fund (Tier 1)-funded trials to our fellow Distribution Network Operators, Ofgem, and an invited audience of manufacturers and stakeholders at the recent annual Low Carbon Network Fund conference. This will be a central place for debate in the coming years about the right technologies and right commercial approaches to building the electricity network for a Low Carbon economy. Separately, you may have seen the recent press release regarding our work with the Energy Technologies Institute to develop a novel Fault Current Limiter. Currently at an early stage in their development, Fault Current Limiters have the potential to build greater flexibility into our existing networks, and the potential to allow embedded generation to connect to our network quickly and cost-effectively where otherwise an upgrade or replacement of our existing plant might have been required. The part of our innovation portfolio presented in this report therefore has two particular emphases: the first is on the early-stage, often desktop studies required to think through new and novel ideas across the full spectrum of challenges. The second emphasis is on the development of technology which can make a step change in our core commitments to provide safe, reliable and efficient electricity supplies to existing customers and timely, costeffective connections to new customers. The highlights on pages 7 12 range a span of improvements to the way in which we detect, maintain and respond to the health of assets, use more and richer information in our decisions, and to investigate further ways to build flexible capacity. We are particularly proud to have commissioned the energy storage device at Hemsby in recent months. Enjoy the report! Basil Scarsella Chief Executive Officer, UK Power Networks

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5 Contents Introduction 2 Highlights 9 Individual Reports 15 Future Networks Scenarios 17 Smart Management of Assets 33 Visible Flexible Networks 61 Full Fault Knowledge 73 Optimal Network Operation 83 1

6 Introduction UK Power Networks operates the electricity distribution network for three licence areas, London, the East of England and the South-East of England. We run an electricity distribution infrastructure supporting eight million customers and including significant business and critical infrastructure in London. Our aims are to deliver both quality and value to electricity customers by investing wisely and costeffectively in infrastructure, offering timely connections to our network, and maintaining high standards of supply. In parallel, we have a core challenge to support the transition to a low-carbon economy. The UK government s Low Carbon Transition Plan 1 outlines an intention to generate 30% of electricity from renewables, 12% of heat from renewable sources and to drive 10% of transport to renewable sources by Increasing the use of electric vehicles charged from the distribution network and an increase in electric heating supplied by the distribution network will be fundamental to achieving these targets. UK Power Networks recognises that it needs to build on its understanding now of how electricity demand will change and investigate new tools and design options to add to our armoury in order to support this increased demand. Innovation is central to these challenges. This report is our annual summary to our regulator, the Office of the Gas and Electricity Markets (Ofgem), of innovation activities which have been funded by the Innovation Funding Incentive (IFI). We are also aware that a number of other stakeholders will be reading this report in order to understand our activities. For this reason, we provide some initial context by introducing the company, our approach to innovation and the background to the IFI. Company Structure UK Power Networks owns and operates the licensed distribution networks serving the East of England, London and the South-East of England. The licensees managed by UK Power Networks are: Eastern Power Networks plc for the East of England, referred to as EPN in the rest of this report. London Power Networks plc for London, referred to as LPN in the rest of this report. South-Eastern Power Networks plc for the South-east of England, referred to as SPN in the rest of this report. These licence areas are shown in the map on page 3. 1 The UK Low Carbon Transition Plan: National Strategy for Climate and Energy, published 2009 by the Department for Energy and Climate Change. ISBN

7 EPN LPN SPN Innovation activities are conducted by UK Power Networks on behalf of EPN LPN and SPN for the benefit of our customers in these licence areas. We allocate expenditure to each licence area operator in proportion to the major asset associated with the benefits expected from each individual project; for example, our innovation projects which are focussed on overhead lines are largely funded from the IFI allowance allocated to EPN and SPN, where the majority of our overhead line network is found. Our innovation activities typically fall into a number of categories; either to understand a future issue and build a timeline for action or to inform engineering policy decisions; or to develop new solutions such as test equipment, sensors, network management controllers, network management software and desktop design tools. UK Power Networks runs a balanced portfolio of innovation projects in order to take an informed approach and projects range from early-stage research through to trials on our network. The IFI has been a significant source of funding for our innovation activities, but we seek to leverage other sources of funding where possible. In parallel with the activities reported here, UK Power Networks is strongly involved with Ofgem s Low Carbon Network Fund (LCNF). UK Power Networks was awarded funding during 2010 for its Low Carbon London project and for two Tier 1 projects, details of which can be found on the Ofgem s website and which are discussed on pages 11 and 12. 3

8 Background to the Innovation Funding Incentive The primary aim of the IFI is to encourage both distribution and transmission network operators to apply innovation in the technical development of their networks. Ofgem recognises that innovation has a different risk/reward balance compared with a network operator s core business. The incentives provided by the IFI mechanism are designed to create a risk/reward balance that is consistent with research, development, demonstration and deployment. IFI is intended to provide funding for projects primarily focused on the technical development of the networks, to deliver value (e.g. financial, quality of supply, environmental, safety) to end consumers. The IFI activities described in this report are governed by Standard Licence Condition 46 and Charge Restriction Condition 10 in the electricity distribution licence. Their requirements can be summarised as follows: A network operator is allowed to spend up to 0.5% of its combined distribution network revenue or its combined transmission network revenue, as the case maybe, on eligible IFI projects. Internal expenditure incurred by the network operator in running and implementing IFI projects can be considered as part of the total IFI expenditure accrued by the network operator. The network operator is allowed to recover 80% of its eligible project expenditure via the IFI mechanism within the network operator s licence. Ofgem will not approve IFI projects but network operators will have to openly report their IFI activities on an annual basis. This report constitutes UK Power Networks annual report on our activities from 1 April 2010 to 31 March 2011 and will be published on the Ofgem website alongside those of other network operators. Ofgem reserves the right to audit IFI activities if this is judged to be necessary in the interests of customers. Eligibility for IFI Funding s will be judged as eligible within the IFI, provided that: The project satisfies the eligibility criteria described in Engineering Recommendation G85, Issue 2, Innovation Good Practice Guide for Energy Networks, published by the Energy Networks Association (ENA). The project has been well managed. Reporting requirements have been met. This report is intended to fulfil our reporting requirements and to demonstrate that our projects are being well managed. Each individual project report presented later includes a project score which summarises how the project meets the eligibility criteria laid down in Engineering Recommendation G85. Work that has been approved within an industry recognised or national/governmental programme (such as a Technology Strategy Board programme or European Commission programme) and whose terms of reference clearly address innovation in the networks maybe considered eligible within IFI if it meets the defined criteria. Co-operation between network operators and other organisations to pursue IFI projects is encouraged. In such cases the overall project would be expected to meet the IFI eligibility criteria and it would then be acceptable for each participating network operator to use the eligibility case for the overall project. IFI projects that secure additional funding from outside agencies, such as the Technology Strategy Board or the European Commission, will not trigger any claw-back of IFI funding by Ofgem. Engagement with industry engineering committees is not considered eligible as this does not constitute a project with a specific target or deliverable. In the event that a network operator provides resources to contribute to an eligible IFI project which is led or managed by a third party, those costs incurred by the network operator, that are not recovered from the third party will be considered to be eligible IFI expenditure. Where supporting such projects with a net cost to the network operator, the network operator should demonstrate that the expected benefits to the network operator exceed the costs involved. IFI projects, by their nature, involve risk. It is understood, therefore, that not all IFI projects will meet their aims and objectives and deliver net benefits. However, it is expected that the benefits from those that do succeed will significantly exceed the overall costs of a network operator s IFI programme. 4

9 Summary of Expenditure The table and figure below show UK Power Networks usage of the innovation funding incentive since its inception: 6 IFI Expenditure 5 4 M 3 2 Total expenditure Allowance 1 0 early start Regulatory Year Regulatory year Total expenditure This regulatory year 10/11 3,339.5k Regulatory year 09/10 3,545.2k Regulatory year 08/09 3,922.6k Regulatory year 07/08 4,993.5k Regulatory year 06/07 3,575.8k Regulatory year 05/06 2,570.9k Early start report 04/ k Total 22,223.3k Details of the expenditure in the current regulatory year are shown below: EPN LPN SPN TOTAL IFI carry forward from 09/10 ( k) 180.1k 545.9k 189.4k 915.4k Combined distribution network revenue ( m) 381.4m 329.7m 247.5m 958.6m Allowance 10/11 ( k) 2,087.1k 2,194.4k 1,426.9k 5,708.4k Eligible IFI expenditure 10/11( k) 1,451.6k 1,023.8k 864.1k 3,339.5k Of which internal expenditure 10/11( k) 196.7k 97.6k 78.5k 372.8k The IFI carry forward to 2011/12 ( k) 417.1k 624.7k 373.7k 1,415.4k 5

10 Expenditure from IFI s The table below details individual project spends from April 2010 to March Spend for a project has been proportioned across UK Power Networks three licence areas according to the number of assets in each area most likely to benefit from the research outcomes. The basis of the allocation is specified in each project report. EPN LPN SPN Total Future Networks Scenarios Growth in City Centres 0 105, ,317 Bankside Heat Transfer 0 36, ,575 Feasibility of an Active Network Management Solution 19,454 5,887 12,910 38,250 International DSM Survey 15,860 10,136 10,142 36,138 High Performance Computing Technologies for Smart Distributed Network Operation 1, ,805 (HiPerDNO) Supergen 3 HiDef Highly Distributed Energy Futures 10,132 6,475 6,479 23,086 Smart Management of Assets On-Line Condition Monitoring 29, , , ,536 Advanced Management of Tap Changers 94,501 39,506 52, ,185 Intelligent Condition Monitoring and Diagnosis 50,933 17,326 39, ,920 Understanding Ageing Mechanisms in XLPE cables 19,004 8,545 10,702 38,250 Condition Monitoring of Composite Insulators 28, ,374 37,143 Grid Transformer Monitoring 10,727 4,484 5,923 21,134 Supergen V AMPerES Power Networks Research Academy 43,860 28,029 28,048 99,937 Vegetation Management 47, ,156 65,041 Tree Growth Regulator 14, ,118 19,403 GIS Data Definition 159, ,466 Transformer Oil Health Index Tool 11,058 4,623 6,106 21,786 Visible Flexible Networks AURA NMS Autonomous Regional Active Network Management System 392, , , ,678 Supergen 1 - FlexNet 9,657 6,171 6,175 22,003 Algorithmic Automation 5,188 3,316 3,318 11,821 The Zefal Generator for Active Urban Networks (ZEFAL) 0 10, ,026 Full Fault Knowledge LV Remote Control and Automation 24,276 13,884 16,003 54,163 Overhead Line Incipient Fault Detection 66, ,746 90,026 Helicopter Mounted Partial Discharge Locator 22, ,232 31,210 LV Underground Cable Fault Management 15,372 8,792 10,133 34,297 Optimal Network Operation Optimal Transformer Utilisation Strategic Technology Programme: Module 2: Overhead Networks 17, ,321 23,134 Module 3: Cable Networks 12,470 7,652 8,219 28,340 Module 4: Substations 14,156 4,333 10,400 28,889 Module 5: Networks for Distributed Energy Resources 13,273 5,254 9,125 27,653 6

11 Collaborative ENA R&D Programme 31,666 20,237 20,250 72,154 Network Risk Management 65,751 42,019 42, ,816 Active Distribution networks with full integration of Demand and distributed energy RESourseS (ADDRESS) Transformer Design for FR3 48, ,174 Vacuum Tap Changers ,965 Recycling Excavated Material Lone Worker Risk Management 113,894 32,192 56, ,801 Multiple Cable Ratings in Ventilated Tunnels 14,407 8,482 9,296 32,185 Advanced Harmonic Monitoring 25,420 8,647 19,794 53,861 Total 3,339,528 7

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13 9 Highlights

14 Online Condition Monitoring Technological breakthrough enables automated location of multiple incipient switchgear and cable defects. Switchgear Partial Discharge (PD) in air insulated switchgear induces transient voltages that propagate rapidly over the switchgear metal panels. Due to the very high frequency of these pulses, the energy travels across the panel surface by the skin effect and will easily move to panels adjacent to the one with the source of discharge activity. The problem becomes more complicated when there are multiple sources of PD as can be seen in Figure 1. Here there are two switchgear panels with PD and the activity can be seen across many channels. It is not possible to tell from magnitude alone which panels have the active sources. Figure 1: PD Criticality at Site with Two Sources of Activity In order to overcome this, Precedence detection (technology based on a Field-Programmable Gate Array or FPGA) has been developed and introduced into the PD detection system. It can determine which detecting channel was first to see a PD signal that is picked up by multiple channels. The discharges detected by channels that are not precedent, i.e. were not detected first, are then reclassified such that they do not contribute toward the criticality of that channel. In this way the panels that have the discharges are the only ones for which detected pulses are not re-classified and their criticality remains high as can be seen in Figure 2. Figure 2: Same Site with Precedence Detection The development of the precedence technology is significant as it improves the reliability of the overall system and provides high confidence that a remotely detected PD is genuine. Figure 3 below shows the trend in the partial discharge activity detected on a panel neighbouring the panel with a discharge source before and after the introduction of Precedence technology. The red line shows activity classified as PD and the orange line shows activity that would have been classified as PD had it not been re-classified as a result of the precedence information. Figure 3: Trend in PD activity on panel neighbouring the discharge source with and without precedence technology. This shows the benefit of the re-classification process and the added clarity in interpretation of the monitoring data. It allows the defective asset to be identified remotely without the need for on-site testing. 10

15 Cable Online cable PD mapping (or online incipient fault location) is a relatively new technology and has so far been conducted over short periods of time due to the complexity of the test procedure. This has resulted in a number of drawbacks: Only a small number of data points can be collected, reducing the accuracy of the testing. PD activity in cables can vary significantly in magnitude and repetition rate over time, resulting in some defects being only active for a few hours a day. Recent technical developments carried out as part of the online condition monitoring project has allowed this process to be automated, enabling the activity and for the first time, the location of incipient defects to be tracked over extended periods of time. A smart trigger unit connected to a single current transformer (figure 4) ensures that all discharging cable defects are detected. Figure 4: High Frequency Current Transformer and Smart Trigger Unit Figure 5 demonstrates the improved accuracy and more representative results that can be achieved using auto-mapping, compared to manual cable mapping. The 3D map can be built from thousands of data points captured over several days, reducing the probability of smaller PD sources not being detected. In this example, the same circuit was tested using both techniques and auto-mapping revealed two PD sources not detected whilst carrying out the manual mapping. 1 PD source detected Magnitude (pc) 3 PD sources detected Time Manual Mapping Location (m) Automated Mapping Figure 5: Same Circuit Tested Using Manual and Automated Online Mapping Conclusions As the cost of equipment decreases and the performance of PD detection systems improves, Online condition monitoring is expected to play an increasingly vital role in the management of network assets (In the short term for switchgear, and in the longer term, as the technology further matures, for the management of underground cables). The recent developments of automated mapping and precedence detection provide a robust platform for accurate and cost effective location of incipient defects. 11

16 Preparing For the Effects of Climate Change The scientific evidence base for climate change is growing and requires the UK to respond in two different ways. Our first priority must be to change the way that we generate and use energy in order to structurally change the carbon footprint of our country, and its contribution to future climate change. Secondly, we need to understand what level of climate change has already become unavoidable and what impacts a changing climate will have on our daily lives. The first of these is often referred to as Climate Change Mitigation and is one of the driving forces behind our R&D strategy. Climate Change Mitigation is the central reason we undertake work to understand Future Network Scenarios (see page 15). A future in which we generate and use energy in a very different way will require new approaches to our electricity infrastructure; it is important to widen our set of engineering and commercial solutions to providing new capacity, and to be able to apply the best possible solution to an issue, or achieve Optimal Network Design (see page 79). The second of these challenges is referred to as Climate Change Adaptation. The Department for the Environment, Food and Rural Affairs (DEFRA) is tasked with assessing the readiness of the UK to cope with climate change. In order to carry out its assessment, it placed a legal duty on major infrastructure providers, such as UK Power Networks, to carry out a risk assessment of the impact which climate change may have on our business activities. DEFRA required a full report on both the anticipated impact and the actions which we are taking to address issues identified. In common with the other Distribution Network Operators, UK Power Networks had been addressing the issue of Climate Change Adaptation since We have steadily built an R&D portfolio to investigate the issues, the early results of which were reported in our Climate Change Adaptation Report which will be available on the DEFRA website. A number of highlights of the work are shown below. In particular the R&D portfolio gave us early familiarity with working with the Met Office s climate change projections which were provided by the end of 2007 and showed an early sweep of areas in which climate change may impact our operations. It enabled us to provide firm comments on the potential for changes to extreme events such as lightning storms, snow and blizzard conditions and to understand the impact of higher ambient temperatures on current-carrying capacity of our cables and plant. Two ongoing projects are investigating the relationship between climate and vegetation growth close to our overhead lines and between climate and the effectiveness of soil to provide a good electrical earth terminal for our substations. UK Power Networks was able to confirm to DEFRA that the issue of adapting to climate change is firmly on the management agenda, and that the majority of issues can be dealt with within our existing organisational and regulatory structure. We will work with the rest of the industry to agree updated standards for a new network construction, where a marginal increase in cost can increase our resilience to climate change and where the cost is reasonable when weighed against the uncertainty in future climate predictions. Soil Typical 1m cable depths 0.5 Geology Changes in temperature and rainfall may have an impact on soil properties, and its ability to act as an effective earth terminal for our plant. The red/amber/green shading indicates the difficulty in making an earth contact in current climate and soil conditions. Changes in temperature, rainfall and soil conditions may change the habitats for vegetation, shown shaded here (see page 50) 12

17 Aura NMS UK Power Networks installed and commissioned an energy storage device at Hemsby, Norfolk as part of the Aura NMS IFI project which you can read about on page 56. Having commissioned the device, UK Power Networks is running a Low Carbon Network Fund project to gain real practical experience with the device and its possibilities. Below is one of the articles that appeared in the June 2011 edition of Transmission and Distribution World magazine. This article was first published in Transmission and Distribution World magazine June 2011 Transmission and Distribution World Vol.63 No. 6 13

18 Early Learning through IFI Leads to Large Scale Trials The Intelligent Distribution Network Monitoring IFI project carried out in 2008/2009 set out to investigate the viability of increased monitoring of the 11kV and LV networks, and to evaluate the cost-benefit case associated with the deployment of a specific monitoring technology, based on optical current sensors. Existing monitoring and control devices in the networks were taken into consideration and a high level model for the costs and benefits associated with different levels of monitoring was developed. The project concluded that by using existing systems in novel ways, and targeted additional sensor installation it would have the potential to lead to more effective planning, better investment decisions, asset management and operational decisions. It is widely acknowledged that a greater visibility of power flows on the distribution network will be required in order to manage the more complex load profiles and greater levels of distributed generation expected in future. The introduction of the LCNF and an internal programme to upgrade communications to all LPN secondary sites equipped with Remote Terminal Units (RTU) (RTUs are present at 45% of the population of secondary sites in LPN or 7,500 sites) provided an ideal opportunity to setup a large scale demonstration to highlight the business benefits of the smart collection, utilisation and visualisation of existing data (Potential visualisation shown on Figure 6). Network view Secondary substations view Detailed view Figure 6: Potential Visualisation Showing How Potential Problem Sites may be Highlighted (Red Dots) and How Information may be Displayed The project will also deliver learning on the appropriate level, frequency and type of monitoring required by DNOs. Finally, the Distribution Network Visibility project will expand the trial of optical sensors for sites with no RTUs. These will include: A novel three-phase optical sensor that can be used on three-phase HV cables. An overhead sensor which is widely used by utilities in Denmark and Australia. Figure 7: Overhead Line Optical Sensor 14

19 Individual Reports 15

20 Future Vision and Aspirations for the Network Whilst all the projects and activities reported here need to meet the criteria laid out by Ofgem, the starting points for activities going forward are our aspirations as a network. UK Power Networks are proud to have a strong and consistent strategy leading the use of innovation across the business. Aspirations We believe that it is critically important to understand the quantitative risks posed by different Future Network Scenarios. Understanding the risks to the network from national and regional development plans for low carbon initiatives may make the case for early adoption of technology, leading to optimised investment in the network. By forming an understanding of the new challenges to the network, we believe we can avoid the otherwise necessary but disproportionate network investment which would inevitably result from the various higher demands of heat pumps, electric vehicles and Distributed Generation (DG). As a distribution network operator, the Smart Management of Assets is a core part of our business. The future aspiration for UK Power Networks is for a single source of detailed, complete and predictive asset data. By capturing the data available on asset installation, environment, load, load history, degradation modes and condition in one place, models of likely life can be improved. An input and an output of these models will be calibrated degradation models for the assets. These degradation models will help to predict future risk from a number of factors. By understanding and monitoring our network in a much more detailed way, network investment can be further optimised. Visible Flexible Networks form the foundation of a smart grid, capable of handling higher and bidirectional flows. As such, this aspiration is aimed at achieving a modelled network whose state is known in real time. This would enable a network and its assets to be optimised whilst remaining within regulatory and security limits. This is a holistic vision bringing together Research and Development (R&D) outputs on asset life prediction, environment, network topology, customer loads and other factors. The flexibility and control is via more numerous remote control points, automation scripts, potentially more power factor correction, power flow management devices and complete control room visibility of the stability of the network. In the long term we expect informed control engineers to intervene more frequently or automatically flex the network to manage faults, peak loads and distributed energy resources. The initial benefits will come from dispatching the workforce more efficiently and less often. As network operators we inevitably suffer faults on our networks. This is from a combination of cable strikes, vandalism, defective and aging assets, and the operation of the network. Full Fault Knowledge is therefore an aspiration that would improve the operating costs due to faster fault finding and repair, and at the same time reducing the pressures on our workforce. The Optimal Network Operation aspiration focuses on projects that enable higher and potentially clustered new demands to be met economically, with new tools, technologies and processes. Operational best practices, improved processes, technologies, scenario information and load signals will enable our network to deliver more with less. An optimal network would in some cases turn connection requests to its advantage and use Demand Side Management (DSM) to manage constraints. Importantly, UK Power Networks environmental initiatives are a significant part of this aspiration. This is supported by the fact that improving our environmental performance often leads to business efficiencies at the same time. 16

21 Future Networks Scenarios 17

22 Future Networks Scenarios Contents Growth in City Centres...19 Bankside Heat Transfer...21 Feasibility of an Active Network Management Solution (Closed)...23 International DSM Survey (Closed)...25 High Performance Computing Technologies for Smart Distributed Network Operation (HiPerDNO)...27 Supergen 3 HiDEF Highly Distributed Energy Futures

23 Growth in City Centres Description of Expenditure for Financial Year The Growth in City Centres project is aimed at evaluating innovative ways of dealing with the increasing load demand in cities in a timely, efficient and cost effective manner. EPN LPN SPN External 0 96,917 0 Internal 0 8,400 0 Total 0 105,317 0 Costs allocated to London Power Network (LPN) as the project will have most applicability to this network. Expenditure in Previous (IFI) Financial Years External 235,802 Internal 23,357 Total 259,159 Total Costs (Collaborative + External + UK Power Networks) 382,439 ed 2011/12 costs for UK Power Networks External 15,000 Internal 2,000 Total 17,000 Technological Area and / or Issue Addressed by Power electronics. Technologies to increase power flows (DC Cables, superconducting cables, water cooling of cables in ducts, dynamic cable ratings). Type(s) of innovation involved Radical Benefits Rating Residual Risk Overall Score Expected Benefits of The primary benefits associated with this project are expected to include an improved understanding of the techniques for increasing network capacity, performance, utilisation of space and operational resilience. Expected Timescale to Adoption 2015 Duration of benefit once achieved 10 Probability of Success 25% NPV (Present Benefits Present Costs) x Probability of Success - 19

24 Potential for Achieving Expected Benefits The areas investigated within this project touch on new devices or installations at a relatively early stage of development. Whilst one new product has been delivered (compact transformer), the cable solutions require further trialling and the power electronics aspects would require both extensive product design and development and prototyping. The project has made some progress towards identifying and developing the component parts of various solutions which could be taken forward into testing and field trials. In the power electronics area, configurations and specifications have been investigated with key manufacturers for a device that could enable power flows on the 11kV system to be controlled between main substations to improve capacity and supply reliability. The different scenarios in which the device would be used have been defined and the performance of the device has been simulated to demonstrate the potential for releasing existing transformer capacity in normal and contingency situations. Progress March 2011 Substation space constraints have been identified as a key challenge and further work would be required to better understand the space and practical requirements of such a solution, including modular designs and the existence of suitable sites. In the cables area, work has concentrated on investigating the highlevel potential for increased ratings through distributed temperature sensors, DC cables, superconducting cables, water cooling of cables in ducts, and using other techniques such as installation of large diameter cables into ducts. Current superconducting cable technology was found to be underdeveloped for use in smaller ducts, although it was identified developing single-phase, warm dielectric superconducting cables for larger 4 ducts could be feasible. All of the areas identified are systematically being reviewed for their potential and next steps which would be required. Collaborative Partners PPA Energy, Schneider Electric R&D Provider Imperial College, Strathclyde University, Southampton University 20

25 Bankside Heat Transfer Description of Expenditure for Financial Year Substation transformers generate heat, particularly during peak loads. This heat is normally lost to the environment, often by energyintensive forced cooling. The re-planted substation at Bankside, adjacent to the Tate Modern, has used transformers with water cooled heat exchangers. It is proposed that the waste heat from the transformers will be used by the Tate Modern to assist with their space heating. This will benefit the Tate by providing low carbon heat. The benefits for UK Power Networks are that less energy will need to be expended within cooler fans at the substation, and lower maintenance and replacement cost will be incurred. The overall carbon footprint of the site and assets will be reduced. EPN LPN SPN External 0 30,253 0 Internal 0 6,322 0 Total 0 36,575 0 The costs have been allocated to LPN as the trial is being carried out at Bankside substation in London. Expenditure in Previous (IFI) Financial Years External 666,327 Internal 86,678 Total 753,005 Total Costs (Collaborative + External + UK Power Networks) 809,908 ed 2011/12 costs for UK Power Networks External 15,000 Internal 5,000 Total 20,000 Technological area and / or issue Addressed by The oil to water heat exchangers at this scale and for this purpose are novel, as is the specific heating arrangement. Type(s) of Innovation Involved Significant Benefits Rating Residual Risk Overall Score Expected Benefits of Benefits are expected to include: Heat used by a third party replacing a high CO 2 heat source. Fewer maintenance interventions for cooling. Less energy expended for cooling via less auxiliary electricity consumption. Lower noise level from coolers. Expected Timescale to Adoption Expected early 2012 Duration of benefit once achieved 20 Years 21

26 Probability of Success 75% NPV (Present Benefits Present Costs) x Probability of Success 200,000 Potential for Achieving Expected Benefits The water temperature is not as high as predicted, but there is potential to provide a benefit for a number of heat (or pre-heat) applications. Progress March 2011 The installation is able to provide hot water from the recovered heat. The works at the Tate are not yet complete to enable heat to be transferred. Some minor work is to be completed and some software updates are required. Collaborative Partners Tate gallery R&D Provider Wilson Transformers, Arup 22

27 Feasibility of an Active Network Management Solution (Closed) Description of Expenditure for Financial Year Active Network Management (ANM) is concerned with facilitating increased access to existing or future networks. Through the implementation of ANM, more generation or demand can be connected to the network than according to the conventional planning approach. ANM manages the consumption or injection of power to operate the network within voltage and thermal constraints, should they occur on the network in real-time. The project is concerned with assessing the feasibility of extending the generation export from an existing CCGT by actively monitoring and managing access to the capacity available on the Norfolk 33kV network in real-time. At the present time, the CCGT is restricted to maximum output levels based on the seasonal ratings of the surrounding network. EPN LPN SPN External 17,800 5,386 11,813 Internal 1, ,097 Total 19,454 5,886 12,910 The costs have been allocated in proportion to the amount of connected distributed generation. Expenditure in Previous (IFI) Financial Years External 38,780 Internal 7,594 Total 46,373 Total Costs (Collaborative + External + UK Power Networks) 84,967 ed 2011/12 costs for UK Power Networks closed Technological area and / or issue Addressed by Active Network Management solutions to increase installed generator capacity and generator export on to the existing network and avoid the need for network reinforcement. Type(s) of Innovation Involved Incremental Benefits Rating Residual Risk Overall Score Expected Benefits of Identifying the potential increase in CCGT energy production via the implementation of the ANM scheme. The ANM scheme can be considered to represent a smart grid platform that can be added to as further generation or load connects to the network and as a basis for resolving voltage constraints on the network. Proving the technical and economic aspects of ANM will permit UK Power Networks to facilitate more connections to existing networks, avoiding expensive network reinforcement, where it makes economic and carbon sense. 23

28 Expected Timescale to Adoption Year 2010 Duration of benefit once achieved 10 Years Probability of Success 75% NPV (Present Benefits Present Costs) x Probability of Success 300,000 The technical specification provided by the project outlines at a highlevel the components and architecture of the proposed ANM deployment. Potential for Achieving Expected Benefits The ANM scheme being considered in this project could be implemented elsewhere for new or existing generator connections to constrained networks. Providing a long-term or intermediate solution prior to reinforcing the network. This is particularly relevant to the connection of intermittent renewable energy sources such as wind farms. The feasibility study stage of the project was completed with the submission of the final technical specification by Smarter Grid Solutions. The project found that the deployment of ANM could enable significant additional energy production by the CCGT unit. Such an ANM scheme could be extended to include other generators in the area, including new wind farms. A follow on trial is being considered as part of a potential Low Carbon Networks Fund project. Progress March 2011 A principles of access workshop facilitated by Smarter Grid Solutions discussed the rules that govern how more than one generator is approached for curtailment, i.e. should all generation be curtailed at the same time by a proportional amount, according to last in first off (identified as the most suitable in the existing regulatory environment) or based on the carbon production associated with the generator. Many other options exist and this project raised the profile of these issues within UK Power Networks. The output of the workshop has been used to inform the way constrained connections could be offered to DG developers. It is envisaged that it will be technically and commercially feasible to facilitate the connection of additional generation to the existing network. In trials of this type the DG operator or developer must want to proceed with the demonstration. Similar ANM solutions by Smarter Grid Solutions are being deployed as part of the Low Carbon London project and form part of our flexible plug and play submission. Collaborative Partners R&D Provider n/a Smarter Grid Solutions 24

29 International DSM Survey (Closed) Description of KEMA worked with UK Power Networks to investigate the opportunities that might exist for distribution networks via active customer engagement in demand management. Sample customer trends were analysed in order to understand the extent to which on-site demand can be mitigated during peak periods. Investigated further was the mix of services (essential and otherwise) employed within each of the premises and how mitigation strategies would work with each of the services. The project has been further informed by an international investigation of demand side options, where the most prominent (and likely to be the most appropriate) options have been considered in the context of the project itself. Expenditure for Financial Year EPN LPN SPN External 14,505 9,270 9,276 Internal 1, Total 15,860 10,136 10,142 The costs have been allocated in proportion to the amount of connected customers. Expenditure in Previous (IFI) Financial Years External 28,200 Internal 7,594 Total 35,794 Total Costs (Collaborative + External + UK Power Networks) 72,256 ed 2011/12 costs for UK Power Networks closed Technological area and / or issue Addressed by Technologies considered were: Wireless interruption of air conditioning plant. Demand side use of standby generation. Incentivised turn down options. Building management innovation. Type(s) of Innovation Involved Significant Benefits Rating Residual Risk Overall Score Expected Benefits of Benefits are expected to include: Network peak demand reduction. Technology replication (elsewhere on wider network). Understanding of the potential for reduction in network reinforcement. Expected Timescale to Adoption Year 2012 Duration of benefit once achieved Years 25

30 Probability of Success 50% NPV (Present Benefits Present Costs) x Probability of Success Small within the area of investigation Potential for Achieving Expected Benefits Progress March 2011 Collaborative Partners R&D Provider There is likely to be higher potential to realise benefit outside of the area of investigation i.e. elsewhere on the network working with less complex customer configurations. The project started in January 2010 and was concluded in September A report on the value and options of DSM as a distribution networks management tool was produced by KEMA. The work was a key input to UK Power Networks scoping of the Low Carbon London project which is currently underway with funding allocated from the Low Carbon Network Fund (Tier 2) in n/a KEMA 26

31 High Performance Computing Technologies for Smart Distributed Network Operation (HiPerDNO) Description of The mass deployment of network equipment sensors and instrumentation, millions of smart meters, small-scale embedded generation, and responsive load will generate vast amounts of data which potentially could be analysed in real-time to identify trends or incipient faults. So-called cloud and grid computing could enable scalable data mining, feature extraction, and near to real-time state estimation. These and other High Performance Computing (HPC) tools and techniques have been recently developed to cost-effectively solve large scale computational challenges in areas such as genomics, biomedicine, particle physics and other major scientific and engineering fields that require similarly scalable communications, computation and data analysis. HiPerDNO is European Commission funded FP7 ICT Energy STREP (Specific Targeted Research s) project which plans to develop solutions to address future electricity distribution networks. Expenditure for Financial Year EPN LPN SPN External Internal 1, Total 1, The costs have been allocated in proportion to the number of customers connected to each licence area. Expenditure in Previous (IFI) Financial Years External 0 Internal 7,594 Total 7,594 Total Costs (Collaborative + External + UK Power Networks) 6,500,000 ed 2011/12 costs for UK Power Networks External 0 Internal 10,000 Total 10,000 Technological area and / or issue Addressed by Development and testing of novel high performance computing information and communications technology for active distribution networks. Development and test of data mining features that extract relevant information. Development and testing of a high-speed messaging layer. Calculation and utilisation of a typical measurement data set for large amount of smart meter data in future low and medium voltage networks. Customer integration in active network operation. Development and testing of a real-time distribution state estimator. Identification and analysis of new generation DMS functionalities. Development and test of a new generation network service restoration algorithm. Development of novel state estimation algorithms for distribution networks. 27

32 Type(s) of Innovation Involved Incremental Benefits Rating Residual Risk Overall Score Expected Benefits of This research project will develop a new generation of distribution network management systems that will exploit novel near to real-time HPC solutions. The solutions are expected to have inherent security and intelligent communications for smart distribution network operation and management. Cost effective scalable HPC solutions will be developed and initially demonstrated for realistic distribution network data traffic and management scenarios. The demonstrations will be via off-line field trials involving several distribution network owners and operators. Expected Timescale to Adoption Year 2015 Duration of benefit once achieved 10 Years Probability of Success 75% NPV (Present Benefits Present Costs) x Probability of Success This project is expected to deliver benefits in the order of millions of pounds. As part of the project the real value will be calculated. Potential for Achieving Expected Benefits Progress March 2011 Collaborative Partners The project is currently proceeding as planned and successfully completed the first annual external review in February At present no issues or problems are envisaged for the remainder of the project and therefore the project has very good potential to achieve the expected benefits. The outcome of the external review confirmed that good progress was being made and that the project has achieved most of its objectives and technical goals for the period with relatively minor deviations. All deliverables for year 1 have now been accepted by the reviewers and the EC project officers. HiPerDNO is an Integrated is supported by the European Commission under the 7th framework programme. R&D Provider Brunel University Electricité de France Elektro Gorenjska (Slovenia) Fraunhofer- IWES GTD Spain IBM Haifa Indra Korona Union Fenosa Group University of Oxford 28

33 Supergen 3 HiDEF Highly Distributed Energy Futures Description of Expenditure for Financial Year The HiDEF programme, funded by the EPSRC, researches the essential elements of a decentralised system that could be implemented over the period 2025 and 2050 to enable all end users to participate in system operation and real time energy markets. It has been structured to support the evidence base relating to key questions of current concern within industrialists, Ofgem and DECC. EPN LPN SPN External 9,216 5,890 5,894 Internal Total 10,132 6,475 6,479 The costs will be allocated in proportion to the number of customers in each licensed network. Expenditure in Previous (IFI) Financial Years New 2010/2011. Total Costs (Collaborative + External + UK Power Networks) 4,500,000 ed 2011/12 costs for UK Power Networks External 20,000 Internal 3,000 Total 23,000 Technological Area and / or Issue Addressed by The HiDEF programme has five workstreams which will address the issue described by its name. The workstreams are Decentralised Energy, Decentralised Control, Decentralised Network Infrastructure, Decentralised Participation and Decentralised Policy and Macro Impact Assessment. Type(s) of Innovation Involved Radical Residual Risk Residual Risk Overall Score The Decentralised Energy workstream will provide a quantified understanding of DER and their performance. This will be in the form of models of single units, cells and multiple cells to assess thermodynamic analysis, life cycle assessment and environmental cost benefit analysis. The work stream will identify the energy and carbon implications of technology options. Expected Benefits of The Decentralised Control workstream will develop control solutions for single units, cells and multiple cells. The workstream will investigate the behaviour of populations of multiple small generators. It will concentrate on security and resilience of communications and Control systems. The Decentralised Network Infrastructure workstream will develop MV/LV architectures and tools to guide investment to support future decentralised network operation. Planning tools to take into consideration DER characteristics, potential, uncertainty and optimisation. 29

34 The Decentralised Participation workstream will research the components essential to the realisation of a distributed market place. This workstream will design a market place, investigate market based response, trading contracts and products. The Decentralised Policy and Macro Impact Assessment workstream will conduct a review of current mechanisms of policy delivery in the UK, compare market structures and examine the potential for alignment with various market aggregations. The whole consortium will hold six monthly workshops to consider the results of the work streams to inform debates that are current in the industry. Expected Timescale to Adoption Year 2012 onwards Duration of benefit once achieved 20 Years Probability of Success 25% NPV (Present Benefits Present Costs) x Probability of Success 2,000,000 The HiDEF research programme has progressed and a number of valuable device and system models, analysis tools and laboratory prototypes and rigs have now been realised. These will support the quantitative appraisal of the performance of critical elements of a highly distributed energy system. HiDEF researchers are furthermore engaging in a number of impact case studies through which they are providing support and analysis to existing demonstration projects and DER deployments (including local concentrations of roof-mounted PV installations). These include community groups (e.g. Blacon), and local government (e.g. Dumfries & Galloway Council) as well as the partnering network operators. Potential for Achieving Expected Benefits The Decentralised Energy Workstream has created detailed models of characteristic dwellings (pre and post 2016 building regulations), and these have been used to generate high resolution stochastic models of energy and heat demands of significant populations. Initial studies with these have indicated that a flexibility of up to two hours in the operation of electrical heating can be adequately accommodated. Further work is currently quantifying the potential for peak shaving. A number of new cell control solutions for demand and generator management have been introduced by the Decentralised Control Workstream team, and are being tested on network studies and on real time simulation platforms. The impact of these on network performance and system stability are now being appraised. Furthermore, improved power electronic interfaces for PV systems have been rig-tested and are displaying improved power quality credentials. Work continues in the Decentralised Network Infrastructure Workstream, which now includes a network planning tool extended to include the optimal integration of electric vehicles as responsive demand and dispatchable storage. 30