dno challenges

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DNO Challenges Change is the only constant

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DNO Challenges. Change is the only constant. Agenda. Distribution Network Operators Electricity supply chain UK Power Networks Regulation – Ofgem How to manage a network Changes bringing challenges. Distribution Network Operators. Manage the distribution networks from 132 kV to 400 V - PowerPoint PPT Presentation

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Page 1: DNO Challenges

DNO ChallengesChange is the only constant

Page 2: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Agenda

• Distribution Network Operators• Electricity supply chain• UK Power Networks• Regulation – Ofgem• How to manage a network• Changes bringing challenges

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Page 3: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Distribution Network Operators

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• Manage the distribution networks from 132 kV to 400 V

• Monitor these networks• Restore supplies following a fault• Enable distributed generation• Provide new connections• Provide a level of security

Page 4: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

System voltages132kV 132kV

132kV

NationalGrid

400/275kV

132kV

66/33/22kV

11kV

25kVtractionsupplies

400/230V

400/230V

Dom estic & sm allcom m ercial

11kV Industrial & largecom m ercial

Page 5: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013 Emergency Resource

Centres

Tactical Centres

Operations Centre

About UK Power Networks

• Since 1 November 2010 UK Power Networks has been owned by the Cheung Kong Group (CKG).

• UK Power Networks plans, constructs, operates and maintains three distribution networks in our regulated business.

• Altogether, there are 170,000 km of underground cables and overhead lines and more than 130,000 substations.

• We also carry out these services for customers who have their own Private Distribution networks in our unregulated business.

• We have 5,500 employees.

Page 6: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

What we do

• Our regulated business is responsible for distributing electricity to a quarter of the UK’s population, providing power to eight million homes and businesses across London, the South East and East of England.

• We own and operate the network of underground cables and overhead power lines that bring electricity to the customer.

• We are one of the largest developers of electricity networks in the UK.

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Page 7: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

The Regulator - Ofgem

• The Office of the Gas and Electricity Markets. • Protecting consumers is their first priority. • They do this by promoting competition and regulating the monopoly

companies• The interests of consumers are taken as a whole, including their

interests in the reduction of greenhouse gases and in the security of the supply.

• Price Control Mechanisms are changing– From 2015 RIIO ED1 comes into force– Revenue = Incentives + Innovation + Outputs

• Emphasis on incentives to drive the innovation needed to deliver a sustainable energy network at value for money to existing and future consumers.

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Page 8: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Networks around Cambridge

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Page 9: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Schematic diagrams

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Page 10: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

A Typical 11 kV Distribution Network

Page 11: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

A Typical LV Distribution Network

Page 12: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Typical Primary Substation Demand Curve

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How much demand is masked by generation?DG with CB postcodes numbers 2600 and 8.5 MW mostly PV.

Page 13: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Distributed Generation

• Small scale Generation connected to the low voltage and 11kV networks.

• Connected to domestic and commercial premises• What impact do they have?

• Clusters• Reverse power flow• Triggers network investment

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Page 14: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Increased Levels of Distribution Monitoring

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Page 15: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

The Next Twenty Years

• What could the network look like?

• Work of Supergen 1 scenarios

• DECC Foresight workshops• How much of the network

will change?• Targets of 20% by 2020 and

beyond• Will the network be flexible

enough?

Page 16: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

What are we doing about it?

• Currently we model the worse case scenario• Does PV assist the network during peak demand

periods?• Could we do something different?

• Ofgem Introduced Low Carbon Network Fund• UK Power Networks has three tier 2 projects

– Low Carbon London– Flexible Plug and Play– Smarter Network Storage

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Page 17: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013 17

Low Carbon London - A learning journeyLearning how to create a smart low carbon city

Low Carbon London

A pioneering demonstration project, trialling new technologies, commercial innovation and strategies…

Distributed generation Electric vehicles and heat pumps Smart meters Demand Side Management Wind Twinning Learning Lab Video Conclusions

Page 18: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Cheaper and faster connection of renewable generation to the network by trialling smart technologies and smart commercial agreements

Flexible Plug and Play

Existing renewable generation projects: 100 MW

Proposed renewable generation projects: 200 MW

Trial Location Characteristics:

Thermal/Voltage Constraints

Reverse Power Flows

Legacy protection arrangements

Page 19: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Smarter Network Storage

Storage Hardware• Storage Technology assessments and procurement• Installation and commissioning of storage unit at Leighton Buzzard

primary (6MW / 10MWh expand to 8MW / 24 MWh)

Storage Commercial Models

• Investigation of the value in a range of different ownership and operating models, leveraging benefits from:

• Peak-lopping for network support – avoiding UKPN reinforcement

• Transmission system stability and reserve – STOR and Frequency Response

• Energy arbitrage and market trading opportunities

Smart Control & Operating Systems

• Investigation and development of smart control and operating system to maximise the value from storage, and facilitate shared utilisation, network visibility and management

Page 20: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Smart Meters by 2019

• Every domestic and SME will have a smart meter.• Energy suppliers will have accurate kWh profiles• Small scale generation will no longer be assumed use

• Will this produce value for the DNO?• Will customers wish to participate in ToU tariffs?

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Page 21: DNO Challenges

2011. UK Power Networks. All rights reserved24 April 2013

Challenges facing us

• Tsunami of data approaching• Storage of necessary data• Facilitate DG connections• Understand the impact of Demand Response• How can we increase our network awareness with

limited monitoring?

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