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Smarter Network Storage Low Carbon Network Fund Progress Report June 2014
Smarter Network Storage Progress Report June 2014
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Contents
1 Executive Summary ......................................................................................................... 3 1.1 Project Background ............................................................................................... 3 1.2 Summary of Progress ........................................................................................... 3 1.3 Risks and Issues Summary .................................................................................. 4 1.4 Learning and Dissemination Summary ................................................................. 5
2 Project Manager’s Report ................................................................................................ 7 2.1 Progress in the reporting period ............................................................................ 7 2.2 Project outlook into the next reporting period ..................................................... 21
3 Business Case Update ................................................................................................... 22 4 Progress against budget ................................................................................................ 24 5 Bank Account ................................................................................................................. 24 6 Successful Delivery Reward Criteria (SDRC) ................................................................ 25 7 Learning outcomes ......................................................................................................... 30
7.1 Main Learning Outcomes from the Reporting Period ......................................... 30 7.2 Learning, Communications and Dissemination Activities in this Period ............. 33 7.3 Learning and dissemination activities over the next reporting period ................. 36
8 Intellectual Property Rights (IPR) ................................................................................... 38 9 Risk Management .......................................................................................................... 39 10 Consistency with Full Submission .................................................................................. 41 11 Accuracy Assurance Statement ..................................................................................... 42 List of Appendices ................................................................................................................... 43
Appendix A: Progress against budget (CONFIDENTIAL) .............................................. 43 Appendix B: Bank account (CONFIDENTIAL) ............................................................... 43 Appendix C: Bid Risks Update ....................................................................................... 44 Appendix D: List of trials to be conducted within the SNS Project ................................. 52
Table of Figures
Figure 1: Leighton Buzzard site ....................................................................................................................................... 3 Figure 2: Smarter Network Storage organisation chart ................................................................................................... 7 Figure 3: Overview of SNS 2014 activities and deliverables ........................................................................................... 9 Figure 4: Photo montage of images from the site construction works at Leighton Buzzard. ........................................ 10 Figure 5: Photos showing the erection of the steel frame and the process of cladding the building ............................ 11 Figure 6: Photos showing the completion of the building cladding and work to construct the internal walls ................ 12 Figure 7: Photos showing the excavation for the duct route .......................................................................................... 12 Figure 8: Photo montage showing elements of the battery systems ............................................................................. 14 Figure 9: High Level Deliverables of WS 3 during the Project Lifecycle ....................................................................... 17 Figure 10: NPV Breakdown of Reinforcement Route incorporating SNS ...................................................................... 22 Figure 11: Dissection of Installed Cost of Storage from SNS ........................................................................................ 31 Figure 12: SNS Learning Event Feedback .................................................................................................................... 35 Figure 13: Information board on the hoarding at the trial site ........................................................................................ 36
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1 Executive Summary
1.1 Project Background
Energy storage is a key source of flexibility that can help address some of the challenges associated with the transition to a low-carbon electricity sector. Storage, as identified by the Smart Grid Forum, is one of the key smart interventions likely to be required in the future smart grid. However, challenges in leveraging the full potential of storage on distribution networks to benefit other industry segments, and a lack of scale demonstrations are currently hampering the efficient and economic uptake of storage by the electricity sector. The Smarter Network Storage (SNS) project is carrying out a range of technical and commercial innovation to tackle these challenges and facilitate more efficient and economic adoption of storage. It is differentiated from other LCNF storage projects through the demonstration of storage applications across multiple parts of the electricity system, including the distribution network but also outside the boundaries of the distribution network. By demonstrating this multi-purpose application of 6MW/10MWh of energy storage at Leighton Buzzard primary substation, the project is exploring the capabilities and value in alternative revenue streams for storage, whilst deferring traditional network reinforcement. The project aims to provide the industry with a greater understanding and a detailed assessment of the business case with the full economics of energy storage, helping to accommodate increasing levels of intermittent and inflexible low carbon generation. The project was awarded funding of £13.2 million by Ofgem, under the Low Carbon Network Fund (LCNF) scheme in December 2012 and will last four years, from January 2013 to December 2016.
1.2 Summary of Progress In this reporting period the project has made significant progress in preparing the Leighton Buzzard trial site and constructing the building that will house the storage technology and initiated the development of the Smart Optimisation and Control System that will schedule services for the storage.
Figure 1: The site in November 2013 (left) and 6 months later in May 2014 (right)
Across workstream 1 (WS 1), which is delivering the technical storage solution, the construction of the SNS facility has continued to be delivered according to schedule by Morrison Utility Services, managed by UK Power Networks ’ Capital Programme team. Within this reporting period, the building to house the battery has been completed and focus has moved on to the installation of the core storage technology inside the facility. Factory-acceptance tests have been completed satisfactorily for the inverter units from S&C Electric, and the lithium ion cells from Samsung SDI which has meant the equipment can be shipped to site, ready for installation and commissioning throughout the next reporting period by S&C Electric. Workstream 2 (WS 2), which is delivering the Smart Optimisation & Control IT System (SOCS), has been focussed on producing a number of functional specifications to allow the design to be successfully implemented. Development of various modules within the solution is underway by AMT-SYBEX in Belfast and by Younicos in Berlin. Newcastle University is also continuing to refine the parameters of the forecasting algorithm for final implementation. In the next reporting period, the first ‘drop’ of the full software solution is expected, which will mark the beginning of the testing phase.
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Workstream 3 (WS 3) is continuing preparation for the trial phase once the storage is operational, when the bulk of activities and learning will fall under this workstream. The range of individual trials to demonstrate the storage capabilities and various value streams has been identified, and the drafting of a comprehensive suite of detailed Trial Design documents is now underway for each trial which describes the hypotheses, technical requirements, processes, risks and expected outcomes. The initial trials to be carried out will be network-related, which are being designed by Imperial College London, and support the work assessing the contribution to security-of-supply of shared-use storage. Workstream 4 (WS 4), which is responsible for the regulatory and commercial aspects, has been developing the smart commercial arrangements with operational partners National Grid, KiwiPower and SmartestEnergy according to the designed services approach in readiness for SDRC 9.3 – Commercial Arrangements for Integrated Use of Flexibility. These contracts underpin the range of additional, non-network, services that the storage will carry out and are on track to be completed by October 2014. In addition, Poyry Management Consulting has produced deliverable SNS4.13, an Interim Report on Regulatory and Legal Frameworks for storage, ahead of time to help inform the work of Ofgem’s Smart Grid Forum.
1.3 Risks and Issues Summary
Procurement Risks and Issues
During this reporting period, procurement of a number of IT and communications aspects has been initiated by UK
Power Networks IT in readiness for site acceptance and testing. This includes:
The setup of a dedicated ‘Future Networks’ Virtual Routing and Forwarding communications network;
Superfast Broadband connection and Switch to Leighton Buzzard;
10Mb Ethernet Connection and Switch;
Remote Terminal Unit (RTU); and
Forecasting, Optimisation & Scheduling System (FOSS) Application and Database Servers x 2.
Although currently on track, these items are critical for the end-to-end testing required in the next reporting period, and therefore there is a risk that delays to these aspects could impact the integration and commissioning of the technical solution.
Installation and Other Risks and Issues The main risks to the project during this reporting period were issues that could have arisen during the construction, such as very poor weather, significant resident complaints or unexpected site issues. Fortunately, the weather has been favourable and combined with our ongoing stakeholder engagement has allowed construction to progress without material issue, which has significantly reduced the risks in this area. There have however been some minor issues which have arisen due to some elements of the civil and electrical designs which have not been anticipated during the initial design phase. This has led to the need for some additional equipment cost, for example an upgrade to the Automatic Voltage Control system. Some modifications to the air-conditioning requirements by S&C Electric has also resulted in some additional civil costs but all of this spend is currently within budget and offset by underspend against other budgeted aspects. Into the next reporting period, there is a significant amount of complex installation and commissioning work to be done by S&C Electric, so there is an elevated risk that unexpected issues arise that could cause delays to the programme. This has been mitigated as far as possible by ensuring close collaboration between S&C Electric and Morrison Utility Services, and through robust design. There has been a delay in the delivery of the Power Conversion System (PCS) units from S&C Electric, which are having to be re-tested to ensure that modifications to the product meet Electromagnetic Compatibility (EMC) requirements. A revised installation programme has been developed which, with the reordering of some tasks and additional engineering labour, maintains the existing commissioning dates.
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Related to the IT system, a risk was raised that it may not be possible to meet some of the original solution requirements with the originally planned implementation approach to optimising, or choosing between, different services which the battery can provide. This led to a review and revision of the implementation approach for the optimisation module, and a change to a two stage approach to the delivery of the SOCS solution by AMT-SYBEX. This mitigates the impact of delays to the commissioning and trials and has no financial or SDRC delivery impact. While negotiating the smart commercial arrangements with SmartestEnergy, an issue arose relating to the expectation for standing monthly fees for access to the wholesale trading desk which were not previously highlighted to the project team. These were considered to be incompatible with the trial nature of the SNS facility, which may have significant periods of non-commercial operation or down-time that could make a standing monthly fee quickly uneconomical. The issue was mitigated by agreeing an alternative pricing structure linked to energy exchange, and a decision made to forego access to the spot market trading desk. This does not impact the range of value streams or scale of benefits available to SNS. During this reporting period, the area around the Leighton Buzzard substation has seen considerable connections interest, primarily from solar (photovoltaic) generators. At the time of the original bid, UK Power Networks contributed the funds from the conventional reinforcement scheme and committed to offer the storage device as firm capacity on the network. Although solar generation in the immediate locale does not support security of supply, as the project proceeds, there is a risk that it becomes necessary to offer the capacity to a new connection, with appropriate measures to cover any technical risk.
1.4 Learning and Dissemination Summary The SNS project continues to generate and capture key learning, with much of the outcomes during this period
relating to the construction of large-scale energy storage and related regulatory and legal frameworks.
The key learning outcomes from this period are summarised below:
Peak shaving requirements could potentially constrain opportunities for operators to provide some
additional ancillary services due to their structure, meaning reduced synergies between network
services and these commercial services;
Energy arbitrage revenues are the component of a business case that is affected most by the
efficiency of a storage system. A 10% reduction in efficiency could reduce arbitrage revenue opportunities
by over 40%;
Capital costs of grid scale storage can account for only around 70% of the total installed lifetime
cost. Analysis shows that civil costs account for around a third of the total design and construction costs and
the operational costs of the storage facility are estimated around 9%;
A Generation licence exemption route does allow distribution connected storage projects of
appropriate size in a manner consistent with unbundling requirements. A class exemption for ‘small
generators’ allows storage projects with either output below 10MW or output below 50MW and the declared
net capacity of the power station is less than 100MW to be exempted from the need to hold a generation
licence;
De minimis business restrictions for DNOs place a limit on deployment of storage, but it is unlikely to
be a constraining factor in the short to medium term;
Certain applications and operation of storage assets is affected by the need to ensure that
competition in generation and supply is not distorted. DNO operation of a storage asset could have an
impact on the traded market which could be considered to distort the market, and necessitates the
involvement of an additional player in the business case for DNO owned storage;
Metering of storage assets on the distribution networks challenges traditional assumptions about the
boundary of distribution network and customer equipment. Traditionally, electrically connected
equipment ‘behind’ a settlement meter is considered to not be part of the distribution network;
Calibration of SoC of battery cells can involve a relatively frequent full cycle of charge in all racks,
which impacts on the availability for network and commercial services. However it may be possible and
beneficial to undertake calibration coincidentally while delivering specific services, such as peak shaving;
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Consideration needs to be given to account for the differing international standards such as ANSI (American National
Standards Institute) and IEC (International Electrotechnical Commission), and additional time planned for mapping of
equivalent standards.
To ensure that the project is continually capturing learning resulting from the project, regular workshops involving the
project team have been scheduled, outside of other governance and project meetings, which provides a forum for
specifically discussing and capturing learning. In addition, the quarterly partner forum, which has been held on 27
March, provided an opportunity to discuss and capture any additional learning with external project partners.
As part of WS 5, which is dedicated to learning capture, dissemination and stakeholder engagement, a
comprehensive Knowledge Dissemination Roadmap has been developed in order to outline the strategy for learning
capture and dissemination and is available on request.
The following internal dissemination activities, project–related events, communications and engagement have
been carried out during this period:
Construction site meetings at the working level and management level;
Meetings with local operational cluster staff, and a separate tour of the site facility;
Dissemination Event for the ESOF’s Storage Good Practice Guide;
Partners Forum – to update and discuss progress with our senior partner stakeholders;
A first SNS Learning Event, covering learning from SDRC 9.1 and SDRC 9.2, was successfully held for both
external and internal stakeholders at the Royal Academy of Engineering in London on 26 March;
Electricity Storage Network: Open Symposium – the project was presented at the annual event of the
Electricity Storage Network, alongside other storage activities across the UK (29 January);
Interview for the Centre for Low Carbon Futures – the project took part in research being undertaken by the
Centre for Low Carbon Futures to identify opportunities for UK-South Korea collaboration in energy storage
research and business (19 February);
Engagement with Ofgem and Smart Grid Forum WS6;
Energy Storage World Forum – the project, and its key learning from the design and planning stages was
presented at the Energy Storage World Forum (3 April);
PRASEG Parliamentary Reception – a presentation of the SNS project at an All-Party Parliamentary
Renewable and Sustainable Energy Group reception in association with the Electricity Storage Network (13
May);
Utility Energy Storage Europe – the project was presented at the Utility Energy Storage Europe conference in
London, and covered the key learning from the design, planning and construction phases of the project (18
June);
S&C Electric Joint Opinion Press Piece – a joint article by UK Power Networks and S&C Electric has been
produced that is due to be released to press later during this reporting period.
The following local communications and engagement activities have been carried out during this period:
Christmas Cards to Local Residents – residents in the immediate local area were sent handwritten Christmas Cards, in support of local charity Willen Hospice, to thank them for their patience and understanding throughout the construction phase (December 2013);
Engagement with the Local Schools – UK Power Networks’ Educational Advisor provided safety talks, about the dangers of substations and an introduction to the project, to both Clipstone Brook and Brooklands Middle School in Leighton Buzzard (14 January);
Leighton Buzzard residents communications – ongoing joint communications with Morrison Utility Services,
in the form of residents’ letters;
Key Messages on site hoarding are now displayed;
Engagement with Local Businesses – the project was presented, on request, to two local businesses operating in the renewables industry (Arnold White Estates & LHW Partnership) (21 February).
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2 Project Manager’s Report
This section describes the progress made on the SNS project in the reporting period January 2014 through to June 2014, including the key milestones and deliverables met, any issues encountered, and provides an outlook into the next reporting period through to December 2014.
2.1 Progress in the reporting period
2.1.1 Project resourcing and governance
2.1.1.1 Project Resourcing The project team remains unchanged since the last reporting period, with the exception of the workstream 5 (WS 5) Lead. Support for this WS is now being provided by a more centralised team implemented and led from within the Future Networks department of UK Power Networks. This team draws on contractor resource as well as our existing public affairs and engagement teams across the business allowing for a more standardised approach to learning and dissemination, and synergies to be more easily realised. As described in the previous reporting period’s progress report, the responsibility for the design and construction aspects of the project remain with our Capital Programme directorate in order to leverage expertise in the delivery of civil and electrical construction projects through our contractor Morrison Utility Services. In addition to close collaboration at the working level through WS 1, the team remain engaged through monthly site meetings as well as monthly meetings at the senior management level to review progress and any arising risks and issues from the delivery of the work by Morrison Utility Services and S&C Electric. The following organisation chart, in Figure 2, shows all the allocated resources within the SNS project structure as of June 2014.
Figure 2: Smarter Network Storage organisation chart
Technical LeadIan Cooper
Design Authority
SME’s: UKPN Capital Programme, Asset Management, Network Ops, HSS & IT
Project DirectorNick Heyward
Senior Responsible UserPaul Habbin, Area Manager,
EPN
Project SponsorMartin Wilcox
Programme Management Office
Project Steering Group
Senior Responsible Owner
Ben Wilson
Reg & Legal SupportAndrew Chester &
Paul Measday
Financial SupportShahbaz Hussain
Procurement SupportCaroline Pallister /
Helen Wain
Project Office ManagerJordi Ros
Comms Manager[FN central team]
UKPN Internal
UKPN Contractor
Supplier & Contractor
Operational Partner
FN Project AdminSefera Sidhu
Swanbarton Ltd.
WS4 LeadJohn Hayling
WS5 LeadPolly Whyte’s Team
WS2 LeadParesh Mehta
WS3 LeadPanos Papadopoulos
Newcastle University& AMTSybex
Imperial College London
Pöyry Management Consulting
Newcastle University
WS 1 LeadIan Cooper
KiWi Power, National Grid, Smartest EnergyMorrisons Utility
Services &S&C Electric
Commercial LeadAnthony Price,
Swanbarton
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Engagement continues with the core project partners both through ongoing work, and at a more senior level through the Partner Forums. The last Partner Forum meeting was held in Imperial College London on 27 March and provided a recap of the project progress against objectives, a look ahead to upcoming activities, and the upcoming commercial deliverable, SDRC 9.3 was discussed. An opportunity was also provided for partners to feedback any learning and feedback from the SNS learning event on the 26 March, share their own storage-related updates, and a discussion held to generate ideas for learning and dissemination.
2.1.1.2 Project Governance The governance model, as described in the previous six month progress report, is unchanged and continues to be operated by the Programme Management Office. The model identifies two distinct streams: Solution Governance and Project Governance and helps to ensure a focus on developing effective technical and commercial solutions to meet learning outcomes, as well as an effective structure for ensuring the overall solution is delivered on time, to budget and to the appropriate quality. Further information on this governance model, including supporting project control and reporting mechanisms, is documented in the SNS Project Handbook (SNS5.4). Key Issues Encountered No significant issues have been encountered in this area during the reporting period. Key Deliverables No new deliverables have been developed in this area during the reporting period.
2.1.2 Project Planning A strategic planning session was held with the project team on the 28 January 2014. This provided an opportunity to look again at the detailed plans and review the planned activities and milestones, identify any additional dependencies and risks and re-baseline an effective delivery plan for the year. The planning session highlighted the criticality of the periods during June-July and September-October where a large number of activities are taking place and concluding before the project moves into trial phase. Figure 3 below, shows the high-level deliverable view agreed during the planning session.
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Figure 3: Overview of the high level SNS activities and deliverables identified for 2014
Key Issues Encountered No significant issues have been encountered in this area. Key Deliverables
SNS Master Project Plan – The detailed project plan detailing all key activities and milestone dates for the SNS project which has been re-baselined following a strategic planning meeting on 28 January 2014.
2.1.3 Workstream 1 – Energy Storage Hardware
WS 1 covers the design and development of the storage system; hence many of the activities in the current stage of
the project are encapsulated within this WS. The focus within this reporting period has been the construction of the
building to house the storage system at Leighton Buzzard and the manufacture and testing of some of the equipment
to be installed. Detailed preparation went in to planning the construction work and ensuring that all the contractors
working on site are co-ordinated so as to work efficiently and safely.
Issue Drawings 28/02
SS Test Approach 01/03
FAT Test PCS 04/04
Steel work / cladding 21/05
Local Transformers 24/06
Primary to SNS Conn. 02/07
Delivery Accept. Storage
01/08
Compound Roadway 04/08
Installation Approval Complete 06/08
SNS1.10 – 05/09
Completion works 25/09
Testing Completion 10/10
Training Done 03/10
S&C Starts on site 15/05Commission.
Acceptance 10/10
Revised procedures
approved 31/10
Facility Tour
05/12
SOCS Test Strategy 28/02
SOCS Test Plan 22/03 IT Env. Validation 31/07
SOCS Test Environments 13/06
FOSS + ESS +
ENMAC Develop. 09/06
FOSS + Ess +
ENMAC Acceptance 27/06
RTU test (End June)
UAT testing 01/09
SIT Testing 15/09
Cutover Process 30/10
SOCS Training 26/09
Interim Rep. On Reg. & Legal
Framework 31/03
Legal Rev. Buss Mod. 25/02
NFR + OAT Testing 13/10
SDRC 9.3Energy Suppl. & Tolling Agreement 30/06
Contract Skeleton Template 31/08
Aggregator Services 30/06
Trial List 22/03 Service Trial Detail Approach 15/07
Storage Optimised Service Des. Agreement 31/12
DNO Service Demonst. Trial 15/07
Trial Start 10/10
Stakeholder Review of Service Plans 19/08
SNS 3.6 DNO Service Trial Report start
3. 2014 Key Deliverables by WS
WS1
WS4
WS3
WS2
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Figure 4: Photo montage of images from the site construction works at Leighton Buzzard.
2.1.3.1 Design and planning
It has taken more time than originally intended to finalise the detailed design for the complete storage system,
particularly when relating to the ancillary and support systems, however these are critical to the safe and efficient
operation of the system.
With multiple suppliers and subcontractors involved, bringing together all the connections and ensuring that multicore
number coding matched and that there were no clashes in 3D space between cable and pipe systems was
underestimated. As the build phase progressed these were resolved, but it has resulted in a delay to finalised
detailed design drawings in some cases.
It was also identified during this detailed design phase that the Automatic Voltage Control (AVC) scheme on the
existing 33/11kV transformers would need to be replaced. Although the system at Leighton Buzzard is fairly new, it is
unlikely to function correctly with the significant amounts of reactive power that the SNS facility will export. To replace
this existing scheme with a new SuperTapp N+ scheme which can support this will cost (approximately) an additional
£50k. This covers materials purchase, design and installation works required, and as above, is possible to cover from
underspend in other WS 1 areas.
Although completed at the end of the previous reporting period it is worth noting that all of the pre-commencement
planning conditions imposed as part of the planning approval for the building have been completed and approved.
This includes the request to change the number and position of louvers from the original approved design. Further
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engagement with Central Bedfordshire Council has been sought on some aspects relating to the site completion.
This has specifically related to the design and appearance of some fencing proposed within the land being leased to
the council for the use of the local residents.
2.1.3.2 Construction
Following the mobilisation to site late in the last reporting period and the completion of the preparatory works, the
foundation piles were installed before the Christmas break. Work recommenced 6 January 2014 to excavate between
the piles to lay the ground beams that would form the rest of the foundation structure. This was cast in three sections,
with the shuttering timbers being re-used each time, with the last pour being carried out on 30 January.
As the foundations were complete the steel superstructure of the building was brought to site and erected. From this
time until the exterior of the building was complete there was a lot of visible progress on the building as its full size is
apparent for the first time. As sections of the frame were complete the pre-cast, pre-tensioned reinforced concrete
slabs were lifted into place that form a key part of the load bearing floor. This was completed on 20 February.
Figure 5: Photos showing the erection of the steel frame (13 February 2014) and the process of cladding the building (7 March 2014)
The frame was clad with Kingspan insulated panels with similar panels being used for the roof and the walls. These
are insulated metal clad panels that have established their place in the UK construction industry. With an A+ energy
rating they enable energy efficient buildings to be built quickly and efficiently, reducing construction costs1. These
panels were then painted to form the colour patterns required as part of the approved planning documents.
Once the building was watertight the internal floor slab was constructed. The reinforcement was set out and tied into
the building structure and the concrete was cast in a single pour on 31 March 2014. This enabled a smooth finish to
be obtained throughout the whole building. Any small holes through the floor for cables, earth tape or similar were
then drilled. These will be sealed and a bund lip constructed around the edge of the floor slab to ensure that in the
unlikely event of any spillage of fluid or leakage from the transformers within the building this does not escape into
the ground or the adjacent watercourse Clipstone Brook.
1 Green Guide A+ rating as per the BRE Global "Green Guide to Specification", Green Guide 2008 ratings
http://www.kingspanpanels.co.uk/panels/products/insulated-wall-panels/architectural-wall-panels/micro-rib/
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Figure 6: Photos showing the completion of the building cladding (9 April 2014) and work to construct the internal
walls (16 April 2014)
The internal walls were erected and small power wiring, heating and lighting were installed to enable the building to
be handed over to S&C Electric and their sub-contractors for the installation of the ventilation and fire suppression
systems. This took place on 15 May 2014. In parallel S&C Electric will manage the delivery and installation of the
batteries and power conversion systems. This continues into the next reporting period.
In parallel with the work on the building to house the storage system some construction work is required in the
existing substation at Leighton Buzzard. In order to supply a secure 415V supply to the storage system to power the
ancillary systems, two new distribution substations are required. Construction on the foundations for these is in
progress at time of writing and continues into the start of the next reporting period. Positioning these was a
complicated task, avoiding 11kV cables, a main sewer and the possibility of undermining the street outside the
substation, so trial holes were dug to confirm the cable records prior to construction.
Figure 7: Photos showing the excavation for the duct route taken on 16 April 2014
A ducted cable route was established between the existing substation and the SNS building during May to provide for
the 11kV, 415V, communications and protection cables. These will be installed during the next reporting period.
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Drainage to the SNS building has also been constructed including attenuation tanks to delay the flow of water from the roof of the building into Clipstone Brook. This was a requirement from the Environment Agency as a means of reducing the risk of flooding of the brook.
2.1.3.3 Health & safety considerations
As the time neared for S&C Electric’s arrival on site regular co-ordination meetings were held between them and
Morrison Utility Services (MUS), the Principal Contractor for the site works. As has been identified by the UK Health
& Safety Executive, the thorough design, planning and management of construction work is key to ensuring that it is
carried out without harm to anyone involved.
It was identified that there would be some overlap in works between teams during May 2014 and as such the SNS
building fit-out (internal walls, small wiring, heat, light and LV power installations) was brought forward to be
completed before the agreed date for S&C Electric to begin works. This was carried out successfully to allow for S&C
Electric to start work as planned. MUS could then focus work in other areas of the site to ensure progress is made
while minimising any risks arising from site congestion.
Site management, working hours and the thorough and appropriate review of contractor health and safety documents
were among the topics regularly discussed. This ensured that it was clear who would need to review any risk
assessments and method statements submitted in advance as part of the safe system of work employed at the site
and what standards would be acceptable.
One issue discussed and resolved was the question of how to bring the batteries and racks into the SNS building in a
safe and efficient manner. There are logistical and working-at-height issues around moving material from the back of
a lorry to the higher loading bay, possibly via the ground. There were many safe options discussed including forklift
accessible scaffold platforms with swing gates but the final solution selected for use was a working platform at the
level of the lorry with a lift mechanism to raise materials to the loading bay.
2.1.3.4 Equipment Testing
During this period detailed plans have been developed for the testing of the new equipment to be installed as part of
the SNS project. Some of the testing has been carried out and more is in progress at time of writing.
On 31 March 2014 the Factory Assessment Testing (FAT) for the S&C Electric power conversion system took place
in Franklin, Wisconsin. Ian Cooper (WS 1 Lead) and Ian Marshall (UK Power Networks Asset Management) attended
in conjunction with several S&C Electric staff. The FAT included a visual inspection of the PCS and review of safety,
operability and labelling which went well. The performance tests were successful with the PCS meeting UK Power
Networks’ requirements.
There was a similar FAT on 14 and 15 May for the batteries at Samsung SDI’s Ulsan Plant in South Korea which was
attended by Chris Bevan from S&C Electric on behalf of UK Power Networks. This was completed successfully with
no issues identified. UK Power Networks had already visually inspected and commented on Samsung’s design of the
battery trays and racks at a technical visit with Younicos during the previous reporting period.
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Figure 8: Photos of S&C Electric’s PCS during Factory Assessment Testing (1 April 2014) and Samsung’s battery
rack installed at Younicos’ facility in Berlin reviewed during a technical visit (10 December 2013)
Key Issues Encountered The early part of 2014 was notable across the UK for its weather, with quite exceptional wind and rain. According to MET Office data both January and February had around 200% of the average rainfall
2. Oxford University, 32 miles
away, recorded January as the wettest for 250 years3. Despite this, the site at Leighton Buzzard fortunately did not
flood and, while wet, the weather was also unusually warm with minimum and mean temperatures above average. Although working conditions were often difficult the warmer weather was beneficial for concreting work with no delays caused due to sub-zero temperatures. During the planning for the detailed works around the battery installation S&C Electric requested the extending of the site working hours for the duration of their works. This allows them and their subcontractors to work more efficiently as they are staying locally during the work. This has been agreed, but results in some additional site management and supervision costs which will be split between S&C Electric and UK Power Networks. The UK Power Networks costs are not expected to exceed £9k, which can be covered within budget due to savings made in other areas of WS 1. There has been a delay in the delivery of the Power Conversion System (PCS) units from S&C Electric, which are having to be re-tested to ensure that modifications to the product meet Electromagnetic Compatibility (EMC) requirements. A revised installation programme has been developed which, with the reordering of some tasks and additional engineering labour, maintains the existing commissioning dates. Key Deliverables
SNS 1.3 – Storage System Testing Approach – This deliverable, which details the full set of testing stages for the SNS system, has been produced, and continues to be updated with detailed plans for the commissioning and site testing phases.
SNS 1.4 – Factory Acceptance Test Report
2.1.4 WS 2 – Smart Optimisation & Control Systems (SOCS) WS 2 is responsible for managing the design, development, testing, integration and deployment of the end to end IT solution; Smart Optimisation and Control System (SOCS). This platform will manage the shared-use of the storage across multiple applications, whilst ensuring network security is maintained. The SOCS solution comprises two distinct sub-systems, the software hosted within UK Power ’Networks’ corporate IT environment, called the
2 http://www.metoffice.gov.uk/climate/uk/summaries/2014
3 http://www.ox.ac.uk/media/news_stories/2014/140203.html
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Forecasting, Optimisation and Scheduling System (FOSS), delivered by AMT-SYBEX and the control software co-located with the storage at site, called the Energy Storage System (ESS), delivered by Younicos on behalf of S&C Electric. During this reporting period, the WS has transitioned from the design stage into the development phase, which is on track to deliver a first version of the software platform during the next reporting period. SNS 2.15 – Logical Architecture Design Document and suite of technical appendices to meet SDRC 9.2 ‘SNS 2.4 – Confirmation of the Smart Optimisation and Control System design’ were published on the project website at the end of the last reporting period in December 2013
4. This covered the design of the SOCS platform, covering the
architecture, communications and messaging to be used. The focus during this reporting period has been the finalisation of a suite of functional specifications that align to the published design, to enable development teams to begin to build the SOCS product. The range of specifications developed cover the detailed implementations of the following aspects:
Demand Forecasting – the module of the FOSS system which generates load demand forecasts;
Service Management – the module of the FOSS system which defines how services are configured and set up for use in the optimisation routine;
Optimisation – the module within FOSS that carries out the optimisation and selects optimal combinations of services to undertake;
FOSS to ESS Interface;
IBM Messaging – the messaging structure, methods and communications between FOSS, ESS and the ancillary service provider control system (KOMP);
BESSM Interface – the interface with the controller of the ESS system, and how messages and modes are
interpreted;
BESSM to SCADA Interface – the implementation of the interface between the ESS and the SCADA network, via the Remote Terminal Unit (RTU);
Monitoring, and Remote Terminal Unit (RTU) I/O Requirements – defining the analogue and digital data points to be exchanged between the sub-systems.
During regular reviews of the detailed Optimisation specification, it became clear that there was a risk it would not be possible to meet some of the original solution requirements with the planned implementation approach. This has led to a review and revision of the implementation approach for the Optimisation module. To ensure this does not impact on delivery timescales, a revised approach to release has also been agreed by AMT-SYBEX and UK Power Networks which means the software product will be released in two stages. This is described further below in the Key Issues section. Despite the challenge above, development of FOSS has been able to commence on schedule by AMT-SYBEX in Belfast, with an initial focus on the forecasting and service management aspects. Additional development resource is also planned to be deployed during the next reporting period to reduce the risk of delivery delays. Development of ESS also has commenced by Younicos in Berlin, and factory-acceptance tests for both ESS and FOSS are due to be carried out within the next reporting period. Also during this reporting period, the necessary IT Server and Communication Infrastructure has been ordered, to ensure it is in place ready for the software to be installed for site integration and user testing. This includes:
The setup of a dedicated ‘Future Networks’ Virtual Routing and Forwarding communications network;
Superfast Broadband connection and Switch to Leighton Buzzard;
10Mb Ethernet Connection and Switch;
4http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-
Documents/SNS2.15-Logical-Architecture-Design-Dec+2013.pdf
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Remote Terminal Unit (RTU);
FOSS Application and Database Servers x 2. Work has also been initiated by Newcastle University to develop suitable models for the long term electricity demand forecast models at the trial site, which will ultimately be configured within the SOCS platform. A data driven approach has been used to create Multiple Linear Regression (MLR) models of the seasonal trends within electricity demand. The models rely on explanatory variables such as time of day, day of week and month of year, to predict the electricity demand in a given half hour period months, or even years, in advance. Model parameters were derived through analysis of historical demand data at Leighton Buzzard, with different combinations of explanatory variables being trailed. This work will be published by Newcastle University once completed as it covers a relatively unique analysis of load forecasting at the distribution-level, including comparing the three best performing models using error statistics: a standard MLR model, an MLR model which forecasts only peak demand on each day, and a new approach using vectors of indexed terms. Key Issues Encountered As highlighted in the December 2013 progress report, it has been challenging to implement a trade-off between the complexity and flexibility of Optimisation considering the structure of many of today’s ancillary services. During regular reviews of the detailed Optimisation functional specification, it became clear that there was a risk it would not be possible to meet some of the original solution requirements with the planned implementation approach to optimisation. This has led to a review and revision of the implementation approach for the Optimisation module which has now been agreed amongst the WS 2 partners. The revised implementation approach promotes more of a parameter driven (business rules to define each service) solution enabling services to be added, removed and amended easily within the given set of battery modes. In particular, this has improved how services with recurring availability windows are carried out and the addition of manual services into a schedule, which ultimately allows for a more flexible solution. To ensure this does not impact on delivery timescales, a revised approach to releases has also been agreed which means the software product will now be released in two stages. This has been possible whilst not impacting planned timescales because the initial trial stages have been planned to focus on network-related services, so do not require full optimisation functionality. The first stage will therefore contain the bulk of the core functionality to ensure the first set of trials can be carried out as originally planned. The second stage release will then pick up any additional development required to meet future trials which use the optimisation functionality. This has the advantage of ensuring initial feedback or required changes from initial user testing and trial phases can be incorporated into a second iteration of the solution by AMT-SYBEX, which is relatively likely for ‘first-of-a-kind’ IT solutions such as SOCS. The learning realised here is that it is not always appropriate to plan the design, development and delivery of novel IT solutions in a linear and sequential way, and assume that the first version will exactly meet requirements. Key Deliverables
SNS 2.15 – Logical Architecture Design Document – This technical deliverable was published on the project
website at the end of the last reporting period (after the time of writing of the December 2013 progress report),
and forms part of SDRC 9.2 – Confirmation of the Smart Optimisation & Control System design4;
SNS 2.12 – Long Term Electricity Demand Forecast for Energy Storage Scheduling – Expected to be finalised during the next reporting period, this paper by Newcastle University describes the modelling and error statistics resulting from the analysis of long term demand forecast models.
2.1.5 WS 3 – Storage Value Streams, Services and Modelling
WS 3 predominantly covers the activities relating to the operational phase of the project, including the design and
execution of the range of trials to demonstrate the storage capability across a range of distribution network, ancillary
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and wholesale services. The bulk of activity and learning from this WS is therefore not expected until later in the
project, once the storage system is commissioned and available to trial the various applications.
In this reporting period, the detailed trial designs have been initiated as illustrated in Figure 9.
Figure 9: High Level Deliverables of WS 3 during the Project Lifecycle
SNS3.5 – Service Trial Detail Approach, which is due for completion during the next reporting period, will be a
compilation of individual trial designs, each corresponding to a single trial or service. In this reporting period, the
focus has been on:
Finalising the list of trials that the SNS project aims to conduct. A number of additional trials have been
added to further evaluate the operation of storage and provide valuable learning to other DNOs and the wider
industry. More precisely, the trials have been broken down to pre-trial testing, core trials and long-term trials.
a) Pre-trial tests – these trials will be conducted to validate that the SNS software and hardware solution
is able and ready to deliver the core and long-term trials. It should be noted that numerous tests will
have been conducted previously under WS 1 and WS 2 testing processes; however these WS 3 pre-trial
tests will be part of the whole SNS System Integration Testing, firstly because they require a number of
SOCS subsystems and ESS hardware to be integrated and secondly, because they aim to verify that
the anticipated functions of the end to end SNS solution comply with the requirements to deliver the core
trials.
b) Core trials – these trials are the core SNS trials as outlined in the original bid submission and the
previous reporting period. However this list has been expanded to include post-fault response, fast
reserve and Triad service trials.
c) Long-term trials – these trials are those conducted over a longer period to gather long-term operational
data.
A list of these trials is provided in Appendix D.
Identifying the technical requirements for all trials and ensuring that these will be met prior to the trial period.
These include monitoring and metering requirements, and pre-qualification requirements for each ancillary
service;
Defining a trial design template to be used for each trial design. In particular, the template has been designed
to present each trial’s context, hypothesis, key participants and their specific roles. The template will record
the proposed timings and equipment required to capture the specified data needed to conduct analysis and
examine the hypothesis. The key benefits, beneficiaries, impacts, trial deliverables and trial success criteria
will be explicitly captured for each trial to be conducted within SNS; and
Configuring the services that will be initially implemented within the Optimisation routine of the SOCS
platform. For example, specific delivery windows and parameters for frequency response (incl. static high,
static low, static high and low FFR, dynamic FFR.
2013 2014 2015 2016
- Services Approach
- Services Use Cases
- Conflicts, Synergies
and Commercial
Strategies for Storage
- Detailed Trial
Designs
- DNO Trials
- Wholesale Market Trials
- TSO Trials
- Optimised /Integrated
Trials
- Trial Data Analysis
- Storage contribution to
Security of Supply
- SDRC 9.6 Analysis of
Integrated Storage
Contribution to Security of
Supply
- SDRC 9.7: Successful
Demonstrations of Storage
Value Streams
- Value, Carbon Benefit and
Cost Targets of Storage and
SDRC 9.6 and 9.7 Reports
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In addition to the above, WS 3 has been monitoring connections activity in the Leighton Buzzard area to ensure any
impacts from renewables or other developers are identified and assessed. During the reporting period we have
identified the following developments that have sought a connection to the immediate local network in the trial area:
23MW PV: Photovoltaic farm connection conditionally offered from UK Power Networks on 20 March 2014.
There are a number of outstanding items to be progressed, including payment of costs for equipment and its
housing, and feasibility assessments of the current proposed cable route and necessary outages.
6MW PV: Photovoltaic farm connection offered to developer, but planning has yet to be provided.
In each case, their point of connection is upstream from the constraint which the storage is seeking to relieve. As
such, analysis has suggested that these connections would not provide any contribution to the security of supply or
impact the constraints at site. They therefore do not impact the overall business case of the installation. It may
however be possible to explore additional trials and use cases with the storage, such as the management of reverse
power flow, if these renewables connected during the trial period.
Key Issues Encountered
During the development of the commercial arrangements in WS 4, it became apparent that the fee structure for accessing the real-time energy trading desk of the energy supplier of the project, Smartest Energy, was not going to be appropriate for the project’s trial period due to the static monthly fees involved independent of whether energy was exchanged. This is further described in Section 2.1.6.3.
The short-term market optimisation trial has therefore been re-evaluated, and will mean that the wholesale
optimisation and arbitrage trials are now achieved by leveraging the block wholesale pricing generally available from
SmartestEnergy. While this reduces the ability to take advantage of very short term energy arbitrage contracts, it
should be noted however that the impact on revenue potential is expected to be small, and the functionality of the IT
system and the processes required to deliver this service will still be in place and tested to future-proof the SNS
solution for other operators.
Key Deliverables
No key deliverables have been completed in this area during this reporting period, but work has commenced on the
deliverable SNS3.5 – Service Trial Detail Approach.
2.1.6 WS 4 – Commercial & Regulatory Frameworks
This work-stream is responsible for the commercial and regulatory aspects of the project, including assessment and
validation of specific business models for storage, and identification of key regulatory barriers.
2.1.6.1 Storage Business Model Structure Consultation Responses
At the start of this period the project published a summary report on the project website detailing the responses
received to the Business Model consultation that had been published earlier in 2013. The consultation described the
range of possible business models for storage, assessed their merits and disadvantages and discussed the
regulatory compatibility. The project continues to concentrate on gathering real construction, operational, and
financial data to inform two core business models amongst all of those consulted on: ‘DNO contracted’ and
‘Contracted Services’. In the first case, the DNO builds, owns and operates the asset; prior to construction, long term
contracts (e.g. 10 years) for the commercial control of the asset outside of specified windows are agreed. In the
second case, the DNO offers a long term contract (e.g. 10 years) for services at a specific location with commercial
control in certain periods and a third party builds, owns and operates the asset.
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2.1.6.2 Regulatory and Legal Arrangements
One of the key aspects of the project and of this work-stream is to assess the relevant regulatory and legal
frameworks for the electricity sector, in order to identify barriers to the use of and wider introduction of storage
facilities on DNO networks. This includes assessing the use of storage as a provider of services to the distribution or
transmission systems. Then based on this assessment provide recommendations for options to mitigate the
regulatory constraints which might otherwise affect the future deployment and use of storage connected to a DNO
network.
This work was originally planned for completion in 2015 as part of SDRC 9.5, however in order to help inform work of
the Smart Grid Forum, following interest identified at a meeting held with Ofgem on 22 October 2013, the first part of
this work (to identify the barriers) has been brought forward to this period. SNS 4.13 – Interim Report on Regulatory
and Legal Frameworks which identifies the barriers to the introduction of storage connected to a DNO network has
now been published on the project website.
This report has been compiled by project partner, Poyry Management Consulting, in conjunction with input from
Swanbarton and other partners and provides a comprehensive assessment and analysis of the various issues which
it evaluates against the range of business models work published last year. The feasibility of these business models
is influenced by the regulatory framework. However, there are several issues within the legal and regulatory
framework which currently affect the deployment and utilisation of distribution connected electricity storage within the
GB market. These result from a combination of EU-wide and GB-specific rules.
The key learning points from this report are shared in Section 7.1 for clarity, however it is concluded that DNO-led
development of smaller scale storage projects is feasible within the regulatory framework, albeit with some additional
constraints compared to non-DNO led storage. It is important to be able to demonstrate that distribution licence
holders are not distorting competition in generation and supply. This creates the need for a contractual interface with
a third party (potentially an operationally separate entity under the same organisation umbrella as the DNO business)
to conduct market interactions.
Also under regulation, a Climate Change Levy is charged on energy consumed by industrial and commercial users
based upon the source of their energy purchases. Energy generated from renewable sources is exempt from CCL
and eligible generators may claim a Levy Exempt Certificate (LEC). As the default treatment of storage export could
in some cases be considered to be generation, it is currently unclear how CCL and LECs will apply to this project’s
storage device and future storage devices. Investigation of how the HMRC tax treatment of this should be applied is
underway.
2.1.6.3 Smart Commercial Arrangements
A further key focus of this work-stream during the period has been the identification and negotiation of the necessary
commercial arrangements required to enable trialling of the full range of services to take place, and which also meet
SDRC 9.3 – Commercial Arrangements for Integrated Use of Flexibility.
In order to access the ancillary services market provided by the Transmission Services Operator (TSO) a client
services agreement is under development with our project partner KiwiPower. This agreement will facilitate access to
a range of ancillary service opportunities, including STOR (Short Term Operating Reserve) and frequency control by
demand management (FCDM), by aggregating the output from the storage device with other suitable clients of the
aggregator using their existing contractual arrangements with the TSO. Access to other ancillary service
opportunities, including the static and dynamic Firm Frequency Response (FFR) services procured by the TSO will
also be provided for in this agreement and KiwiPower are developing suitable back-to-back arrangements with
National Grid in order to provide the pass through of these services. The agreement terms will provide complete
transparency of value obtained for each of these services in order to enable the project to fully evaluate each of these
income streams.
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In order to be able to charge and discharge the storage device without distorting the wholesale market, reconciliation
of exchanged energy is required. Project Partner Smartest Energy will provide this facility through an energy supply
and tolling arrangement. This enables wholesale market energy to be traded by Smartest Energy for general
operation, in addition to an option for the storage to participate in a tolling service, which provides Smartest Energy
with the opportunity to minimise imbalance and optimise their internal portfolio. An additional aspect of this contract
will be benefits from triad avoidance, helping reduce Smartest Energy’s demand during a system peak period if the
device is exporting during any of the triad half hours.
All energy suppliers have entered into arrangements5 with the DNOs to collect use of system charges on their behalf
and to then pass back these fees collected. Whilst in the case of this storage device, the payments will be somewhat
circular, in order to fully evaluate these charges this arrangement will be fully explored and complied with as far as
possible. Key Issues Encountered During negotiation to put in place the energy supply and tolling agreement, Smartest Energy’s preference was to charge a monthly fixed fee to enable the storage device access to the real-time wholesale market trading facility. Such a charge, although appropriate for a typical larger generator that would normally enter into such arrangements, would have been less appropriate for SNS due to the size and trial nature of operations which may involve longer periods of time where it is not operating on a solely ‘commercial’ basis. In the SNS case it is likely that these charges would be in excess of the likely benefits available from the very short-term wholesale markets. As a consequence, a more direct proportional percentage fee of traded volume was agreed that is more suitable for SNS operation. This means four-hour block pricing will be available, but without access to the shorter-term spot market via Smartest Energy’s trading desk. This is not expected to have any impact on the trials or level of benefits available as it is unlikely that this facility would have provided significant additional benefit. Under existing practice, assets on the non-network side of a commercial metering point are currently considered to be beyond the distribution network. This raises the issue over whether such a device should be considered to be a network asset device or not. As such, if it is not, then the storage device would require a connection and a corresponding connection agreement, with the EPN distribution network. As the legal owner of the storage device will be EPN, the same DNO, this theoretically results in the need to enter into such an agreement with itself (the same legal entity). However, to overcome this, a technical document reflecting the same information as standard connection agreements will be produced to record details of the assets being connected and any restriction that may apply in its use. Key Deliverables
SNS4.12 – Business Model Consultation Responses – This document presents a summary of the responses
received following the Business Models Consultation and records UK Power Networks’ reply to these comments
and is available on the project website.
SNS4.13 – Interim Report on Regulatory and Legal Framework – A review of the relevant aspects of the
regulatory and legal arrangements for the electricity sector which identifies possible barriers to the wider
introduction of electricity storage facilities on DNO networks. This interim report is available on the project
website.
2.1.7 WS 5 – Learning & Dissemination & Stakeholder Engagement WS 5 was specifically created to ensure the effective identification, capture and dissemination of learning from the SNS project. Activities relating to the learning and dissemination carried out during this reporting period are provided in Section 7 of this report for clarity.
5 The Distribution Connection and Use of System Agreement (DCUSA)
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Key Issues Encountered No significant issues have been encountered in this area.
2.2 Project outlook into the next reporting period
During this reporting period, the project has made significant progress in constructing the storage facility at the trial site and initiated development of the novel SOCS IT platform. The commercial arrangements with our operational partners are being developed, and are on track to be published as part of the SDRC in October 2014. The next reporting period is expected to be a critical time in the project, with a significant number of aspects coming together to provide a fully integrated storage system. This will include for example the testing and commissioning of the storage facility and first release of the SOCS platform. The focus of the next reporting period will therefore be across the following areas:
Completion of the main civil works at Leighton Buzzard;
Continued development and completion of the novel commercial arrangements with the operational partners to enable the shared operation of the storage across multiple services and markets. This will feed into the completion of SDRC 9.4 in October 2014;
Installation of the storage equipment and electrical works to make the connection to the 11kV network;
Testing and Commissioning of the storage equipment, and training of relevant UK Power Networks staff including development of the operational procedures and engineering documentation;
Completion of the development, Factory Testing and delivery of the SOCS platform, followed by integration and testing to allow the first phase of trials to be carried out; and
Further detailed planning of the set of trials being carried out to allow the project to begin service trials and generate learning within a short-period following commissioning.
Activities expected within the next reporting period relating to learning and dissemination are described in Section 7 of this report for clarity.
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3 Business Case Update
One of the key purposes of the SNS project is to identify the general business case for the economic use of grid scale storage on the distribution network, when leveraged for additional benefit across the full electricity system. Work associated with developing this business case will come from the specific learning that is gained throughout the life of the SNS project. This generic business case will be dependent upon the form of business model which is chosen and the assumptions that are made regarding all of the current unknowns. This project is looking to identify and quantify many of these unknowns and apply them to the various different business model structures to help drive forward the adoption of storage for the benefit of customers and industry. These business model structures were consulted upon in 2013 (SNS4.1 – Storage Business Model Structures Consultation). For the particular project installation, we are tracking changes to the main drivers of the business case and it is the project’s intention to use this section to provide an ongoing update to economics of the installation as these drivers evolve and as further learning emerges. During this period, analysis of the revenues and system cost savings have been repeated, reflecting a number of changes in the markets and updates to the pricing expected in the project. A number of other improvements to the methodology have also been made, as below:
Current and forecast service pricing for commercial services amended to reflect the current pricing available from KiwiPower and moderated future forecasts, to reflect anticipated effects of EMR policies;
Mix of commercial services revised to include Fast Reserve, FCDM and STOR, reflecting those where accurate pricing is available (FFR pricing for the SNS trials is currently under development with National Grid, so has been excluded for this analysis);
System cost savings reassessed by Poyry Management Consulting using updated carbon floor price and impacts of EMR policies;
‘Ahead of need’ adjustment incorporated for storage solution – reflecting the difference in in prices (expressed as a Net Present Value) between doing the installation in 2014, versus carrying out the installation in BaU at the latest point in time when intervention would be needed; and
Discounted cash flows rebased to 2013, to reflect more accurate project duration and cost timings.
This revised discounted cash flow incorporating all of these changes is shown below. This was explained in full at the public event on 26 March 2014.
Figure 10: NPV Breakdown of Reinforcement Route incorporating SNS
5.14.0
16.8
2.5
2.0
3.0
5.3
11.5
0.0
4.0
8.0
12.0
16.0
ConventionalReinforcement
SNSProject
Cost
1st of a kindcosts
InstalledCost
TechCost
Reduction /Ahead of Need
FutureIncomeStreams
SystemCost
Savings
Future NetMethod Cost
£mConventional Once Proven Successful
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The revenue estimates of £2.0 million, over the 10 year period, are slightly lower than previously estimated, due to the revised pricing estimates and more conservative apportionment of the mix of services; however this is believed to represent more of a lower bound than previous analyses. This is because it is assumed in this analysis that for the periods where network support is not required, Fast Reserve, STOR and FCDM services are provided across the remaining annual period in equal measure. This tends to reduce the revenue estimate as the split across three services reduces the time dedicated to the higher value services of Fast Reserve and, previously, FFR. In practice optimisation towards higher value services would increase the range of potential revenues from a storage installation. Nonetheless there remains an overall net benefit when compared to the conventional reinforcement option, and the project will continue to monitor the detailed economic analysis. A basic sensitivity analysis has been used to indicate an approximate upper bound of expected revenues, by assuming the storage provides just the highest value service, Fast Reserve, for the periods where network support is not required. The table below shows these results.
Scenario Future Income Estimate
(10 yr NPV) Future Net Method Cost
(10 yr NPV)
Even mix of Fast Reserve, STOR, FCDM (as above)
£2.0m £4.0m
Fast Reserve Only £3.6m £2.5m
As shown in the table above, if just the higher value service of Fast Reserve is provided, revenues of circa £3.6m may be possible which would reduce the future net method cost to £2.5m, making the storage solution cost competitive with the conventional reinforcement (even without the system cost saving aspects included). This highlights the importance of optimisation in maximising the benefits for storage, and is due to be explored further within the project using the SOCS platform currently under development.
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4 Progress against budget
This section will be provided in Appendix A
5 Bank Account
This section will be provided in Appendix B
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6 Successful Delivery Reward Criteria (SDRC)
SDRC Criteria Evidence Progress Date
9.1 Design & Planning Considerations for large-
scale energy storage.
Successful early capture and dissemination of
learning related to the practical issues and
consideration in the design and planning of large-
scale distribution-connected storage by 1 October
2013.
Minutes and notes captured from meetings with local planning authorities and environment agency.
Planning approval granted at either Leighton Buzzard Primary or an alternative contingency site.
The final design of the storage facility will be signed off by UK Power Networks Design Review Board.
A summary report of the key learning and considerations in securing planning at the trial site, and how this impacted designs, will be produced and shared through the project website.
This SDRC has been completed on
schedule. The summary learning report is
available on UK Power Networks innovation
website.
1 October
2013
9.2 Confirmation of the Smart Optimisation &
Control System design.
Successful completion and sign off of the overall
design of the Smart Optimisation & Control System
by 30 December 2013. The functional design will be
developed with operational partners and Durham
University, and incorporate the description of
business processes to be implemented across
participants to facilitate the SNS Solution.
Regular meetings held between UK Power Networks, operational partners, Durham University and AMT-SYBEX to further develop the full requirements and design, with minutes and notes captured.
The final design will be signed off by UK Power Networks, including approval by UK Power networks IT Design Authority Board.
A report describing the final design, optimisation and forecasting algorithms and business processes required will be produced and shared through the project website.
This SDRC has been completed on
schedule. The technical report is available on
UK Power Networks innovation website.
30
December
2013
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SDRC Criteria Evidence Progress Date
9.3 Commercial arrangements for integrated use of
flexibility.
The commercial arrangements for the independent
service trials and optimised period of operation will
be developed and translated into skeleton contract
templates by 31 October 2014. These will provide
the basis of commercial arrangements that could be
tailored for other forms of flexibility and leveraged
system wide by other DNOs.
Practical and ongoing experience of the
arrangements during the operational periods will be
captured and reflected in the project final report
(SDRC 9.8), with any recommended changes to
these arrangements.
Meetings will be held between UK Power Networks and the operational partners to discuss and design the necessary arrangements for the service trial demonstrations, with minutes and notes captured.
Completed commercial arrangements will be signed off by UK Power Networks legal counsel for the provision of reserve, response and wholesale market services using the storage.
Reviews of the commercial arrangements underpinning the service trials will be carried out by UK Power Networks and will be developed into contractual templates for reuse by DNOs and other industry participants and subsequently shared.
Good progress has been made in negotiating
a Storage Energy Supply and Tolling
Agreement with Smartest Energy, which
provides access to the wholesale market.
Progress has also been made in placing a
Client Services Agreement (Aggregator
Services) with KiwiPower to provide access
to the ancillary services products from
National Grid. Both agreements are expected
to be completed by July. The general terms
from these agreements will be converted to
skeleton agreements and published in a
report to deliver this SDRC. This work is
currently on track to complete on target by
the end of October.
31 October
2014
9.4 Energy Storage as an Asset.
Successfully commissioned energy storage device,
with knowledge developed, captured and
disseminated relating to the commissioning and
operation.
The knowledge generated through the early
operational experience and training materials will be
incorporated, along with methodologies for the
asset management and maintenance of storage. A
visit to the storage facility will be organised and
hosted for interested DNOs and other stakeholders
to provide an additional opportunity for
dissemination.
Sign off of documentation of the installation, commissioning and test of energy storage device.
Training will be undertaken with operational field staff relating to safety and operational procedures of the energy storage device and training materials will be shared.
Meetings will be held with asset management to establish and design appropriate asset management methodologies for storage. Minutes and notes will be captured and the methodologies and considerations for large-scale storage will be shared.
At least one visit to the storage facility for DNOs and other stakeholders will be organised and hosted by UK Power Networks.
Activities contributing towards this SDRC include:
Ongoing construction and final construction drawings and engineering documentation for the SNS facility
Test and Commissioning plans under development for the SNS solution
This SDRC remains on schedule to be delivered as planned.
29 May
2015
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SDRC Criteria Evidence Progress Date
9.5 Evolution of Regulatory and Legal
Arrangements for energy storage.
This criterion relates to the assessment of
regulatory, market and legal considerations in the
wider deployment of distribution-connected storage
and development of recommendations to facilitate
the optimum use of storage and other forms of
flexibility. This assessment, incorporating learning
captured during the development and operation of
trials will be completed by 30 September 2015.
Regular meetings will be held with project partners and other stakeholders to discuss ongoing reviews and amendments to the regulatory frameworks and the impact on energy storage, incorporating EMR, Electricity Balancing SCR and other on-going developments. Minutes and notes will be captured and stored.
Interim reports and or briefing notes may be published to facilitate these meetings.
Assuming that the issues identified have not been solved in regulation in the interim period, issue a report detailing the market and regulatory issues affecting storage, the way future developments may impact storage flexibility and possible changes required to regulatory and commercial frameworks will be produced and shared through the project website.
At the request of Ofgem, work on the first part of this activity was pulled forward a year. An interim report on Regulatory and Legal frameworks identifying barriers to the introduction of storage has been published. Further activities contributing towards this SDRC include:
Ongoing monitoring and analysis of regulatory and market arrangements
A report detailing the market and regulatory issues affecting storage, the way future developments may impact storage flexibility and possible changes required to regulatory and commercial frameworks.
This remainder of this SDRC remains on schedule to be delivered as planned.
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September
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SDRC Criteria Evidence Progress Date
9.6 Analysis of integrated energy storage
contribution to security of supply.
This criterion relates to the studies undertaken on
the contribution of energy storage to security of
supply over various time scales. An emphasis will
be placed on quantifying the risks to supply when
the network is supported by energy storage with a
limited amount of energy, taking also into account
that storage may be used to provide other services.
Scenario tests will be designed to demonstrate and assess the storage contribution to network security by Imperial University.
Operational data and performance relating to the trials will be captured and analysed.
Assuming that storage has not been incorporated into the security of supply standards within the Distribution Code in the interim period, a summary report will be produced by Imperial College London describing the methodology applied, key assumptions and results of the analysis of the benefits of energy storage to distribution networks and contribution to security of supply, including recommendations for amendments to network design standards.
Activities contributing towards this SDRC include:
The development of trial designs that will deliver the operational learning required to assess contribution to security of supply.
Bi-weekly meetings/conference calls are being held with Imperial College London to monitor and track progress.
Development of requirements for ancillary services testing and delivery with National Grid, KiwiPower, S&C Electric and Younicos.
This SDRC remains on schedule to be delivered as planned.
29 January
2016
9.7 Successful demonstrations of storage value
streams.
The end to end learning from the planning to the
operational performance in performing a range of
services with the storage facility will be captured
and shared.
Both technical data, relating to the impact of the use
of the storage on the distribution network, and
commercial data, relating to the way in which the
service was provided and any economic return for
the service will be identified and shared.
The detailed trial plans for each storage service, including key requirements and processes required, will be captured through meetings with UK Power Networks and operational partners and shared through the project website.
The operational data relating to the impact on the distribution network will be collected and stored by Durham University. Any financial performance data will be captured and reported by UK Power Networks.
A report assessing the capabilities of the storage device in providing the range of services will be produced and shared, incorporating an assessment of the relative value of services provided.
Activities contributing towards this SDRC include:
The development of commercial arrangements underpinning these value streams and the development of invoicing and reconciliation processes between UK Power Networks and the energy Supplier and the Aggregator
Development of trial plans for value streams
This SDRC remains on schedule to be delivered as planned.
30 March
2016
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SDRC Criteria Evidence Progress Date
9.8 Full Evaluation of the SNS Solution.
A detailed final project report describing the project
findings, knowledge generated and
recommendations on the wider roll out of the SNS
Solution will be produced.
The report will be designed to provide sufficient
information to:
Validate and assess which future business models for storage are viable
Inform stakeholders on the commercial arrangements and software platforms necessary to enable these business models.
Inform the ways in which storage can be most economically incorporated into future DNO business plans.
Assessment of the impact on different future market scenarios on the business cases, including varying carbon prices, high versus low wind penetration and demand side response.
Compare the performance and value of storage flexibility to other forms of flexibility
Inform the design and structure of future product or services that storage may provide to DNOs and TSOs.
Lessons learned throughout the project have been captured and recorded and shared.
Analysis has been carried out on the business models for storage, and validated with commercial results from operational trials.
Comprehensive end of project report developed, incorporating the information above, and shared through the project website and other dissemination channels.
Activities contributing towards this SDRC
include:
Completion of the business models consultation and collation of responses
Ongoing construction for the SNS facility
Ongoing development of trial designs and plans
Ongoing assessment and capture of the lessons learned
30
December
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7 Learning outcomes
7.1 Main Learning Outcomes from the Reporting Period
During the second reporting period, SNS has continued to capture specialised learning relating to the design, construction and regulatory aspects of distribution-scale energy storage. The key learning outcomes from this reporting period are explained below: A number of key findings have been identified through the work from Imperial College London on Conflicts Synergies and Commercial strategies delivered towards the end of the previous reporting period and have been considered in the design of the SOCS and the configuration of the services within it. These include:
1. Peak shaving requirements could potentially constrain opportunities for operators to provide some
additional ancillary services due to their structure, meaning reduced synergies between network
services and these commercial services.
For some ancillary services, in particular where a commitment of available power must be made across a long
period of time, it may be challenging to maximise benefits to customers by providing a combination of these
ancillary services and other network services, such as peak shaving.
This is because plant may be unable to provide the full level of contracted service across the entire period, due
to a very small number of extreme network events. This would tend to lead to an inefficient use of flexible
capacity, without the possibility of more flexible provision of storage capacity availability by operators, on
shorter timescales, for example.
2. Energy arbitrage revenues are the component of a business case that is affected most by the efficiency
of a storage system. A 10% reduction in efficiency could reduce arbitrage revenue opportunities by
over 40%.
The overall efficiency of a storage system impacts upon the general business case through the general
operating costs, but also impacts upon revenues available on ancillary services.
It is however arbitrage opportunities that are most sensitive to storage system efficiencies, because of the
direct reliance on energy exchanged at the point of coupling. Other ancillary services, such as frequency
regulation, are less reliant on energy exchanged and are priced to reflect power response provided. Currently,
the magnitude of revenues associated with these services is also higher than those available from arbitrage
and so reductions in efficiency for these services have a smaller impact on overall value.
Consequently, higher commitments to balancing services may provide a hedge against uncertainty in energy
prices and corresponding revenues associated with energy arbitrage for storage operators. The ongoing construction of the SNS facility has provided important learning regarding the economics of storage developments:
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3. Capital costs of grid scale storage can account for only around 70% of the total installed lifetime cost
Figure 11: Dissection of Installed Cost of Storage from SNS
Figure 11 reflects the breakdown of installed cost that has been captured and disseminated relating to the storage deployment at Leighton Buzzard. This information was presented at the recent SNS Learning event in March, and shows the apportionment of installed costs, including the breakdown of the design, civil and electrical works. The civil and electrical costs have been separated between those that are relatively specific to the Leighton Buzzard site (‘Civils Specific’ and ‘Electrical Specific’ – for example additional steelwork required to raise the building two metres off the ground for flood environmental and planning reasons), and those that can be reasonably expected to be incurred for other similar deployments (‘Civils Typical’ and ‘Electrical Typical’ – for example cost of foundations work). The analysis reveals that civil costs account for around a third of the total design and construction costs, and core storage technology costs account for just under 70% of the total installed lifetime cost. Ongoing operational costs of the storage facility are estimated to comprise around 9% of the total lifetime cost, and will be refined and validated during the trial phase of the project.
A number of key learning points have also been identified from the interim report on Regulatory and Legal Frameworks
by Poyry Management Consulting, which identifies the barriers to the ownership and operation of storage connected to
a DNO network:
4. A Generation licence exemption route does allow distribution connected storage projects of
appropriate size in a manner consistent with unbundling requirements
As part of the electricity market liberalisation process, ‘unbundling’ has become enshrined in the regulatory
frameworks at EU and GB levels. This seeks to separate network and non-network activities, restricting the
ability for operators of network assets to be active in generation or supply sectors. For DSOs, the requirement
is for legal, functional and accounting unbundling to ensure operational independence of the distribution
business from other activities within the vertically integrated business. Therefore, in GB, distribution licence
holders are prohibited from also holding generation or supply licences.
This appears to block DNO involvement in storage ownership and operation. However, a class exemption
exists for ‘small generators’, meaning that storage projects with either output below 10MW or output below
50MW with declared net capacity below 100MW are exempted from the need to hold a generation licence. This
exemption is applied on a per site basis. Therefore, smaller-scale, distribution connected storage facilities
qualify for this exemption. The exemption route does, consequently, provide an avenue for potential
deployment of smaller scale energy storage assets by DNOs, with operational separation to a third party to
handle energy flows, in a manner that is consistent with unbundling requirements.
7%
34%
11%26%
6%
14%
3% Design
Civils Typical
Civils Specific
Electrical Typical
Electrical Specific
Overheads
Landscaping
22%
9%
69%
Design, Civils andElectricals
Storage Opex (10yr est.)
Storage Capex
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This is the model being employed in the SNS demonstration, with interaction of the storage asset with the
balancing and wholesale markets being handled via third parties, independent from the DNO business.
5. De minimis business restrictions for DNOs place a limit on deployment of storage, but is unlikely to be
a constraining factor in the short to medium term
Non-distribution business activities for licensed network operators, such as purely commercial operation of
storage projects, are limited by de minimis restrictions specified in the distribution licence. These restrictions
mean that turnover from and investment in non-distribution activities must not exceed 2.5% of DNO business
revenue or licensee’s share capital respectively.
Analysis has shown however that for the typical size and nature of distribution-connected storage, this limit is
not likely to be a constraining factor, and allows a relatively generous amount of storage to be connected by
DNOs.
6. Certain applications and operation of storage assets is affected by the need to ensure that competition
in generation and supply is not distorted.
The distribution licence imposes restrictions upon activities of the distribution business in order to avoid
distortion of competition in generation or supply activities. Direct DNO operation of a storage asset in
commercial markets could have an impact on the traded market, which could be considered to distort the
market.
This could therefore be interpreted as a block on direct commercial operation of a storage asset by a DNO for
balancing or arbitrage purposes, which has implications for the ‘DNO Merchant’ business model identified in
SNS 4.1 Business Models Consultation6. However, the extent of unbundling requirements on distribution
licence holders means that a contractual interface with a third party to handle the energy flows is sufficient to
address the issue. This necessitates the involvement of an additional player in the business case for DNO
owned storage, and any associated increase in costs from additional marginal costs. Other learning points captured during this reporting period include:
7. Metering of storage assets on the distribution networks challenges traditional assumptions about the boundary of distribution network and customer equipment Traditionally, electrically connected equipment ‘behind’ a settlement meter is considered to not be part of the distribution network. This assumption is typically robust as more often than not, equipment downstream of the meter would be owned and operated by customers. However if a storage asset is installed for network purposes, to support security of supply or provide fault or constraint management, for example, then this is highly likely to be under the ownership and control of the distribution network operator – just as if this were a transformer, or other solution supporting the network. If the storage is metered, so that energy can be transparently reconciled in the market, rather than being undeclared and treated as losses, then part of the electrical infrastructure for the solution will be ‘behind’ a meter. However, the simple act of metering it does not change the underlying purpose or ownership of the asset; challenging this traditional assumption.
6 http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-Documents/Smarter-
Network-Storage-Business-model-consultation.pdf
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8. Calibration of SoC of battery cells can involve a relatively frequent full cycle of charge in all racks, which impacts on the availability for network and commercial services. The manufacturer recommendations for calibrating SoC of battery cells are somewhat more onerous than originally considered. This requirement to maintain an accurate SoC measurement means that a reasonable proportion of time needs to be allocated for calibration; potentially reducing the time available for commercial and network services. However it may be possible and beneficial to undertake calibration coincidentally while delivering specific services, such as peak shaving. This will be explored further in the project trial phase.
9. Consideration needs to be given to account for the differing international standards, and additional
time planned for mapping of equivalent standards. As described in previous learning points, storage systems involve a large number of integrated components and sub-systems, often from different suppliers and organisations. This raises the likelihood of suppliers working to different international standards. Agreeing testing strategies and methodologies on the S&C Electric inverter components took longer than expected due to the differences between UK (IEC / BS-EN) and US (ANSI) standards. Additional time was necessary in order to map equivalent test standards and agree testing on this US-manufactured equipment.
7.2 Learning, Communications and Dissemination Activities in this Period
As described previously, a comprehensive Knowledge Dissemination Roadmap has been developed in order to capture all the key learning activities and events. This has continued to evolve and be updated with the project and is available on request. There are four core elements to the Knowledge and Dissemination Roadmap, covering the following areas:
Internal Communications;
External Communications;
Local Engagement; and
Knowledge Dissemination. The following provides an update on the progress on each of the above elements:
7.2.1 Update on Internal Communications
Outage Planning & Control Briefings – Meetings have been carried out with our control engineers and Outage Planning teams to ensure they are integrated into processes for operating the storage;
Local maintenance staff briefings – The local maintenance engineers and fitters were given a briefing on the project and a tour of the site while under construction as preparation for training sessions on the operation and maintenance of the system planned for the next reporting period (25 April);
WS 1 Workshop – A meeting with all the WS 1 stakeholders, including civil and electrical designers, was carried out to ensure the final design was reviewed and understood by all stakeholders and outstanding actions were concluded (6 February);
Construction Site Meetings and Tours – Monthly meetings have been held by Morrison Utility Services at the Leighton Buzzard construction site to review progress, discuss any risks and issues and engage with third parties involved in the programme, for example communications providers. Tours have also been arranged for local operational staff to ensure early engagement with the design and technology;
SCADA Design Workshop – A workshop and ongoing meetings have been held with the design team that will provide the Remote Terminal Unit (RTU) & interface to ENMAC which is critical to ensure the facility can be remotely visible and controllable by the control room;
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WS 2 Workshops – In this period eight workshops have been carried out involving the WS 2 partners and design team to review progress in implementing the design and to address additional design decisions that arise throughout the development process;
Operational H&S Briefing – A meeting was held with the Operational Health & Safety representative to discuss the approach to documentation, training and implementation of safe systems of work for the storage facility. Further sessions are planned throughout the next reporting period (10 March);
A Good Practice Guide on Electrical Energy Storage: Dissemination Event – The ESOF held a dissemination event to launch the first version of the Good Practice Guide, which has been developed using the learning and experiences from the range of LCNF projects incorporating storage, including significant contributions from SNS. Several colleagues from the wider business were invited, with three attending from outside of the project team, covering Operational Standards, Asset Management and Control Room. This has helped to ensure that the wider business benefits from the knowledge and learning within the guide (20 March);
Capital Programme Management Meetings – Monthly meetings have been held with Capital Programme at the senior management level, to review progress and spend, and discuss any risks or issues during the construction;
SNS Learning Event – A dedicated SNS learning event was held for both internal and external stakeholders at the Royal Academy of Engineering in London. This is described in further detail below. (26 March).
7.2.2 Update on External Communications, Knowledge Dissemination and Local Engagement
Christmas Cards to Local Residents – At the end of the last reporting period (after publication of the progress report), residents in the immediate local area were sent handwritten Christmas Cards, in support of local charity Willen Hospice, to thank them for their patience and understanding throughout the construction phase (December 2013);
Engagement with the Local Schools – UK Power Networks’\ Educational Advisor provided safety talks, about the dangers of substations and an introduction to the project, to both Clipstone Brook and Brooklands Middle School in Leighton Buzzard (14 January);
Electricity Storage Network: Open Symposium – The project was presented at the annual event of the Electricity Storage Network, alongside other storage activities of UK Power Networks (29 January);
ESOF Meeting – The 6th meeting of the Energy Storage Operators Forum (ESOF) was held in Chester and
attended by members of the project team. The meeting included discussions of the Good Practice Guide for Energy Storage and the Dissemination Event on 20 March which SNS has heavily contributed towards. The Health & Safety Executive and University of Manchester also provided presentations regarding the work of and engagement with the HSE and Grid Scale Energy Storage R&D (5 February);
Interview for the Centre for Low Carbon Futures – The project took part in some research being undertaken by the Centre for Low Carbon Futures, funded by the Foreign and Commonwealth Office, to identify current opportunities and barriers relating to energy storage opportunities. The research is part of a program to identify opportunities for UK-Korea collaboration in energy storage research and business (19 February);
Engagement with Local Businesses – The project was presented, on request, to Arnold White Estates & LHW Partnership and covered detail about the project, how storage works and how it may be beneficial for renewables developments in the local area (21 February);
Engagement with Ofgem and Smart Grid Forum workstream 6 (WS 6) – A presentation of the current findings from the WS 4 package of work relating to the regulatory and legal barriers of storage was presented to Ofgem and part of the Smart Grid Forum WS 6 team (7 March);
SNS Learning Event – The first learning event for SNS was successfully held for both external and internal stakeholders at the Royal Academy of Engineering in London. DNOs, industry, local community stakeholders and colleagues from around the business were invited to attend including DECC, Ofgem, operational field staff, control engineers and infrastructure planning. This event was designed to provide an opportunity for key stakeholders, and UK Power Networks staff not directly involved in the day-to-day delivery of the project to
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understand the aims and technical details of the project and the presentation materials are now available on the project website
7. (26 March).
Three ‘learning zone’ stand areas were set up which worked well in allowing delegates to seek further detailed or technical knowledge in specific areas across:
The storage hardware and construction, which included technical drawings, a sample of the storage cell technology and an interim time-lapse video of the construction;
IT platform and architecture, which included technical drawings of the architecture and design documents; and
Storage commercials and economics, which included breakdowns of the storage economics and business case.
Below is a chart of the summary of delegate feedback received from the event, and a follow up comment from one of the community stakeholders that attended the event:
Figure 12: SNS Learning Event Feedback, 26 March 2014
Partners Forum – in this reporting period we held a partner forum, on 27 March. The forums provide a useful update and facility to discuss progress for our partners who do not work day to day on the project (27 March);
S&C Electric Joint Opinion Press Piece – A joint article by UK Power Networks and S&C Electric has been produced that is due to be released to press later during this reporting period;
Energy Storage World Forum – The project, and its key learning from the design and planning stages was presented at the Energy Storage World Forum event in London by the project sponsor, Martin Wilcox (3 April);
PRASEG Parliamentary Reception – A presentation of the SNS project at an All-Party Parliamentary Renewable and Sustainable Energy Group reception in association with the Electricity Storage Network.
7 http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/
0%
10%
20%
30%
40%
50%
Poor NeedsImprovement
Satisfactory Good Excellent
Technicalcontent
Industry insight
Innovative ideas
Networking
Overallexperience
Congratulations all round for yesterday's event & thanks to whoever was responsible in UK Power
Networks for initially inviting myself to attend &, in so doing, represent The Leighton Buzzard Society John F Sharp ACGI CEng MIMechE BSc(Eng), The Leighton Buzzard Society
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PRASEG is the cross party group for UK politicians and senior industry stakeholders that exists to promote sustainable energy issues in Parliament and the wider political community
8 (13 May);
Leighton Buzzard residents communications – In addition to the above, joint communications with Morrison
Utility Services, in the form of residents’ letters, continue to be sent to local residents on a monthly basis to
inform them of building progress at the Leighton Buzzard site;
Key Messages on Site Hoarding – Key messages of the project are now displayed at the site on the construction hoarding. An example of one of the hoarding information boards is shown below.
Figure 13: An information board on the hoarding at the trial site
Smart Grids & Clean Power 2014 – The project was presented at the Smart grids & CleanPower conference in Cambridge, alongside UK Power Network’s first Tier-2 LCNF project Low-Carbon London (4 June);
Utility Energy Storage Europe – The project was presented at the Utility Energy Storage Europe conference in London, and covered the key learning from the design, planning and construction phases of the project (18 June).
7.3 Learning and dissemination activities over the next reporting period
In the next period, the focus will be on ensuring the electrical works and integration and testing complete successfully so that the storage can begin to be used for trial purposes. Therefore, the dissemination activities will be more heavily targeted towards internal stakeholders and ensuring the correct documentation and procedures are in place to ensure that the system can be operated safely and effectively by well trained staff. Confirmed activities are summarised below:
Workshops and Training sessions for key business areas including Control and Network Operations;
Interim time-lapse of build – Further interim videos of the time-lapse construction video will be used as part of dissemination activities;
Images and videos from the installation process inside the building will be used to capture the process of installing and connection the storage equipment;
8 http://www.praseg.org.uk/praseg-reception-in-association-with-the-electricity-storage-network-electricity-storage-in-the-future-vision-for-a-lower-
cost-sustainable-electricity-system/
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Continue to engage with local community – residents letters will continue to be circulated to keep local residents informed of the construction and any expected disruption;
Continued meetings with key stakeholders (internal and external) – for work streams 1, 2 and 3;
Presentation of the project at the IMechE’s 2014 Energy Storage Seminar in Birmingham, September 2014; and
Presentations at the Low Carbon Network Fund Conference in Aberdeen on 21 and 22 October 2014.
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8 Intellectual Property Rights (IPR)
During the current period, the following key IP has been generated:
WS ID PRODUCT OWNER
WS 1 SNS1.4 Factory Acceptance Test Report UK Power Networks
WS 4 SNS4.12 Business Model Consultation Responses UK Power Networks
WS 4 SNS4.13 Interim Report on Regulatory and Legal
Framework UK Power Networks
The following IP is expected to be generated during the next reporting period:
WS ID PRODUCT OWNER
WS 1 SNS1.3 Storage System Testing Approach UK Power Networks
WS 1 SNS1.9 Storage Training UK Power Networks
WS 1 SNS1.10 Inspection and Maintenance Procedures for
Storage UK Power Networks
WS 2 SNS2.5
SOCS Testing Approach – This was originally
scheduled to be delivered in this reporting
period, but has been rescheduled to align with
the revised delivery approach
UK Power Networks
WS 2 SNS2.9 SOCS Testing Report UK Power Networks
WS 2 SNS2.10 SOCS Training UK Power Networks
WS 2 SNS2.12 Long Term electricity demand forecast for
energy storage scheduling UK Power Networks
WS 3 SNS3.5 Service Trial Detailed Approach UK Power Networks
WS 4 SNS4.2 Client Services Agreement (Aggregator
Services) UK Power Networks
WS 4 SNS4.3 Storage Energy Supply & Tolling Agreement UK Power Networks
WS 4 SNS4.5 Contract Skeleton Templates UK Power Networks
WS 4 SNS4.6 SDRC 9.3 - Commercial Arrangements for
Integrated Use of Flexibility UK Power Networks
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9 Risk Management
The SNS project has established a rigorous and proactive risk management process, as described in the SNS Project
Handbook. It allows for the communication and escalation of key risks and issues within the project, it also defines
where decisions will be made and how this will be communicated back to the WS level where the risk or issue has
arisen. Risks are reviewed weekly at WS level and fortnightly at project level by the Project Board. Key project risks are
then escalated to the Project Steering Committee for review and approval of the mitigation on a monthly basis.
9.1 Full Submission (BID Risks) – update
This section is provided in Appendix C.
9.2 Risks raised in the current reporting period
REF
NO. RAG Status
WS RISK & IMPACT DESCRIPTION MITIGATING ACTIONS
R0094 - WS 1
Meter supplier is not accepting current
terms and conditions.
Delay to metering commissioning and
delay to project.
Risk closed. Revised T&C and meter
operating contract agreed.
R0095 G WS 3
The main contact for SNS left
KiWiPower, and has not yet been
replaced.
The impact could be delay on WS 4
contracts, testing and trials.
07/04/14: meeting held with KiWiPower
Director (Yoav Zingher) to discuss way
forward. Need to continue to ensure
engagement is appropriate.
R0096 - WS 3
Carbon content of the electricity and
outdoor temperature data needs to be
captured for the whole trial period. The
data will be required for trial analysis.
However, there has not been a
confirmed solution yet.
Lack of data for analysis for SDRC.
Risk closed. Carbon content data will be
captured by UK Power Networks. Imperial
College London has been informed
regarding the lack of outdoor temperature
data and will pursue data capture internally
if required.
R0097 - WS 2
Changes to approach for SOCS
Design development required.
The impact could be delays to SOCS
development milestones.
Risk closed. The impact assessment of
CR006 resulted in no delays to the
programme plan.
R0098 - WS 3
Test dates for ancillary services do not
get booked well in advance
Impact would be delay to response
trials.
Risk closed. Dates with ancillary services
testing team provisionally booked on week
commencing 13 October 2014.
R0099 G WS 4
Income Management team have
advised that the storage device will
require a connection agreement and
site specific use of system charges.
Potential breach in our non-
discrimination obligations if we were to
treat our storage device differently
from such operated by a third party.
Work with Income Management to put a
connection agreement or technical
document containing the same information
in place.
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REF
NO. RAG Status
WS RISK & IMPACT DESCRIPTION MITIGATING ACTIONS
R0100 A WS 2
Post go-live there will be a lack of a
SOCS UAT architecture for testing
new/updated functionality.
Some components of the new releases
will have to be “tested” on the
production service. This could
potentially compromise the production
service if “tests” are poorly managed.
1) Stand-up test environments to fully
mitigate the risk;
2) Accept the risk and recognise the fact
that the main production service may be
compromised when new releases are
tested on production.
R0101 A WS 3
Post go-live there will be a lack of a
SOCS UAT architecture for regression
and deployment testing for new
releases.
New releases are not correctly tested
before they are deployed into
production. This could result in lengthy
outages in the production service if
problems are found in releases post
deployment.
1) Stand-up test environments to fully
mitigate the risk;
2) Accept the risk and recognise the fact
that extended outages may occur after a
new software deployment. The risk can be
partially mitigated by adopting a
deployment strategy where a system can
easily be regressed to a previous version to
reduce the length of any potential outage.
This has been partially included in the
design of BESSM where the alternate
system can be switched from providing an
on-line standby role and can be upgraded
whilst the production service is carried out
on the other server. Whilst the two servers
remain at different software versions and
not linked, the service can always fall-back
to the previous version if required. The
current FOSS architecture does not support
the concept of an alternate environment
(regression to a previous version would be
via a system backup).
R0102 A WS 2
AMT-SYBEX has been acquired by
Capita plc.
Impact for the short term is limited, but
there is a longer term risk of more
limited support or strategic changes.
Arranged to meet Account Manager to
understand if any impact to SNS project.
R0103 A WS 2
Delays to the communications or IT
hardware could impact on the
completion of integration testing and
commissioning.
Regular monitoring of progress on IT and
communications hardware aspects with UK
Power Networks IT.
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10 Consistency with Full Submission
The SNS project is on track to deliver the learning consistent with the full submission.
The following details are noted to have changed since full submission:
S&C Electric Europe replaced A123 Systems as the supplier of the storage system in early 2013;
Newcastle University is now carrying out the scope of work originally to be undertaken by Durham University,
representing a change of organisation as Project Partner, but no change to the cost, scope or quality of work to be
delivered. This change request was approved on 4 July 2013; and
The future expandability of the SNS facility is currently restricted to approximately 18MWh, based on currently
available storage cell technologies. This is down from 24MWh as originally envisaged as a result of a change in
battery-cell supplier which requires the use of a lower DC busbar voltage.
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List of Appendices
Appendix A: Progress against budget (CONFIDENTIAL)
(See separate document)
Appendix B: Bank account (CONFIDENTIAL)
(See separate document)
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Appendix C: Bid Risks Update
REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0001 G
The building is not delivered on time. Regular progress meetings/reports to track
progress and highlight/remove potential issues.
Use standard Networks design policies and
procedures, where possible.
The construction activities have commenced
on schedule and are nearing completion,
reducing the likelihood of this risk.
R0002 G
The building is not delivered to
specification resulting in rework and
cause delays.
Regular design meetings/reports to ensure strict
change control. Key stakeholder engagement to
ensure compliance with UK Power Networks
design policies and procedures. Rework to be
completed at the contractors expense.
Regular design meetings/reports to ensure
strict change control. Key stakeholder
engagement to ensure compliance with UK
Power Networks design policies and
procedures. Rework to be completed at the
contractors expense.
R0005 G
The installed storage technology fails and
needs to be disconnected from the
network whilst being repaired/replaced.
Close collaboration with the storage device
manufacture to ensure the design meets UK
Power Networks specification and standards
through robust testing (maintenance & training
delivered by the storage device manufacture).
Replacement parts are to be made easily
available. With a regular maintenance cycle.
Design approved at Design Review to attempt
to mitigate risk.
Detailed test specification to be developed
prior to commissioning.
R0006 G
Operational and Health and Safety
procedures are not approved for use of
the Storage device, so UK Power
Networks staff are unable to operate the
equipment.
Engage with UK Power Networks’ Health, Safety
Sustainability and Technical Training (HSS&TT)
team to design suitable and approved policies and
procedures.
HSS&TT management team briefing provided.
CDMC appointed and overseen design and
site works.
R0007 G
The installed storage technology has a
catastrophic failure, which adversely
affects customers’ supplies and needs to
be disconnected from the network
resulting in project delays.
Close collaboration with storage device
manufacture to ensure the design meets UK
Power Networks specification and standards
through robust testing (maintenance & training
delivered by storage device manufacture). Carry
out a full set of test to minimise the possibility
failure and affect upon customers.
SWIFT assessment carried out to highlight
areas needing particular focus during design
process.
Fire Testing completed and demonstrated
thermal runaway does not occur.
Detailed test specification to be developed
prior to commissioning.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0008 G
A storage battery fails with severe
consequences before the device has
been commissioned. Results in limited
confidence in the equipment and delays
whilst further testing takes place.
Monitor defects and issue reports supplied by the
storage device manufacture for existing installs.
Samsung SDI, who have been appointed as
the new battery cell supplier, have a record of
zero safety recalls in the last 10 years and
have provided information on their quality
management processes.
Fire Testing completed and demonstrated that
thermal runaway does not occur.
R0009 G
Storage device manufacture reliance on
single factory source, resulting in delays
in delivering of the storage device.
Through the tendering and contractual
negotiations, ensure storage device manufacture
is able to meet the project delivery timelines.
Include penalty clauses within their contact.
Samsung SDI has been selected as the
storage cell supplier to S&C Electric. Their
primary manufacturing facility is in South
Korea, however a second plant is under
construction in Germany, providing for some
contingency in the event of issues.
Liquidated damages have also been included
in contract with S&C Electric.
R0011 G
The storage device manufacture goes out
of business after payment has been made
for the storage device, but has it not been
delivered, leading to project delays and
lost expenditure.
Carry out full financial diligence checks in line with
approved standards of practice and the UK Power
Networks procurement procedure(s). Negotiate
the transfer title of the device.
Parent guarantees included in contract.
This risk has been reduced due to the
selection of alternative suppliers.
R0012 G
The storage device manufacture goes out
of business after the storage device has
been paid for and delivered; resulting in
lack of continuity and covers should the
unit fail.
Carry out full financial diligence checks in line with
approved standards of practice and the UK Power
Networks procurement procedure(s). Arrange a
software ESCROW and novation of liabilities to
OEMS.
Parent guarantees included in contract.
This risk has been reduced due to the
selection of alternative suppliers.
R0013 G
A storage battery fails with severe
consequences after the UK Power
Networks device has been commissioned,
resulting in limited confidence in the
device, so it is disconnected until all test
have been completed.
A full set of quality tests to be completed before
installation, with the design and operation meeting
the UK Power Networks requirements. Ensuring
full confidence in the equipment installed. Monitor
defects and issue reports supplied by storage
device manufacture for existing installs.
Performance bond and design indemnity
included in contract.
Fire Testing completed and demonstrated
thermal runaway is not likely.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0014 G
The installed storage technology causes
damages to UK Power Networks asset(s),
so needs to be disconnected from the
network whilst issues are resolved
causing delays to the project.
Carry out a full set of tests to minimise the
possibility of failure. Close collaboration with
storage device manufacture to ensure the design
meets UK Power Networks specification and
standards through robust testing (maintenance &
training delivered by storage device manufacture).
Replacement parts are to be made easily
available. With a regular maintenance cycle.
SWIFT assessment carried out to highlight
areas needing particular focus during design
process.
Detailed test specification to be developed
prior to commissioning.
Fire Testing completed and demonstrated
thermal runaway is not likely.
R0015 A
Equipment is stolen or vandalised whilst
on site, but not commissioned.
MUS providing temporary CCTV cameras to
monitor site; possibility for manned presence out
of hours if deemed necessary. To be re-assessed
nearer the time.
Security assessment carried out at trial site by
UK Power Networks security team. Hoarding
now erected with secure access implemented.
Morrisons Utility Services (MUS) have CCTV
installed during construction phase.
R0016 G
Equipment is stolen or vandalised after
commissioning, requires repairs, so
reduces the time to realise benefits.
Improve security at the site with a manned
presence.
Security assessment carried out at trial site by
UK Power Networks security team.
R0017 G
The storage device is not commissioned
on time causing project delays.
Regular progress meetings/reports to track
progress against the plan.
Regular progress meetings/reports to track
progress against the plan.
Construction is progressing well, according to
schedule.
R0018 G
The storage device does not perform to
specification, so not all benefits are
realised.
Regular design meetings/reports. Key stakeholder
engagement to ensure specification can comply
with UK Power Networks design policies and
procedures.
Performance KPIs included in contract.
R0019 G
When shipping the storage device from
storage device manufacture to site the
device is damaged beyond causing
delays to the project.
Use proven safe methods of shipping the device
from America and consult with UK Power
Networks Insurance Manager to ensure
appropriate/adequate levels of insurance are in
place.
N/A
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0019.1 G
Import duty or handling issues cause
delays to delivery on site.
Ensure supplier is clear on responsibilities for all
shipping duties and customs clearance.
Clear responsibilities are included in the
agreement with S&C Electric.
R0020 A
Site load growth exceeds expectations,
pushing peak demands beyond the spare
capacity range of the battery.
Detailed load studies to understand maximum
demand and future increases.
Estimates of availability to be refreshed on a
regular basis. Ensure ongoing tracking of
demand.
Additional storage provision has been included
within the design to allow for capacity to be
increased to 18MWh. We are aware of 23MW
and 6MW solar farms exploring connections at
Leighton Buzzard. Initial studies suggest
impact only on future site expansion,
forecasting/control model and potential
additional benefit stream. No impact to
business case; but additional synergies to be
explored. Future connection requests are
being monitored.
R0022 -
The optimisation platform cannot be
delivered in time, causing delays.
Regular progress meetings/reports to track
progress against the plan.
Risk closed. Statement of requirements has
been completed.
SDRC9.2 completed, which finalises design
aspects of SOCS.
R0026 G
The lack of available technical,
commercial and project resources result
in delays in project delivery.
Resourcing plan completed during resources
within UK Power Networks/Future Networks.
Project team mobilised, including appointment
of two external contractors to ensure
deliverables remain on track.
Ongoing resourcing meetings being held to
ensure regular reviews and monitoring of
resource.
R0027 G
Connection offers in the area; decline of
load growth or extremely mild winters
mean network constraint limits are
affected, meaning full capabilities of the
storage are not utilised.
Monitor and track connections activity and
materialisation of load growth
Trials cover a range of demonstrations based on
artificial or future scenarios.
Generation connection activity likely to replace
any shortfall in demand connections.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0028 -
The optimisation platform cannot be
developed to specification and cost,
causing delays to the optimised trials.
Continued dialogue with the IT partner and UK
Power Networks IT to ensure scope and
requirements are fully understood and achievable
in advance of project start.
Risk closed. Statement of requirements has
been completed. Additional interface identified
as necessary which could raise likelihood of
cost increase.
SDRC9.2 completed, which finalises design
aspects of SOCS.
R0029 G
Unfavourable changes in legislation or
market arrangements that restricts on the
usage and reduces the identified benefits.
The project has been scoped to look at multiple
ownership / operational structures, so should be
robust to legislative changes.
The project has been scoped to look at
multiple ownership / operational structures, so
should be robust to legislative changes.
Trial demonstrations still possible in
conjunction with National Grid on a
demonstration basis only.
R0030 G
Resource availability during the life cycle
of the project resulting in delays.
Early resourcing / recruitment
Provide adequate notice when planning meetings,
workshops and events. Resource pooling within
Future Networks.
Ongoing resourcing meetings being held to
ensure regular reviews and monitoring of
resource.
R0032 G
Local opposition to building the storage
facility causes both delivery timescales
being extended and reputational damage.
External stakeholder engagements to be
conducted prior and throughout the project to
ensure concerns are managed appropriately.
Continue to monitor LB Substation mailbox, and
respond with input from the Care team.
Public consultation exercise was carried out to
gauge concerns and reflected in changes to
the planning application where these were
possible.
Newsletters and communications have been
distributed as part of early construction
activities.
Continued monitoring of customer enquiries
regarding the site. Of the few to date, none
have required significant remedial action.
R0033 -
The site is not fit for purpose, requires
additional work i.e. higher stilts causing
project delivery delays.
Complete full suite of environmental surveys i.e.
flood risk, archaeological, contaminated land etc.
Risk Closed. A wide range of site surveys and
studies have been carried out which
significantly reduces the likelihood of this risk.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0035 G
There is significant flooding at the site
whilst building works are taking place
causing damage and delays.
Put temporary protection place to stop significant
flooding of the site.
No flooding has yet been recorded, despite
wettest winter in 200 years.
R0038
G
During the project delivery stage the
appropriate UK Power Networks staff do
not engage adequately or in a timely
manner with the Project. Resulting in poor
engagement and delays.
Design and implement a robust internal and
external stakeholder road map to identify all the
key stakeholders.
Step up engagement with Control team and
Operational teams as we approach
commissioning.
Internal communications activities have
continued, as described in Section 7 of this
report.
Tour of site given to local operational team in
April 2014.
R0039 G
Commercial arrangements with Smartest,
National Grid and KiwiPower are not
acceptable to all parties resulting in
delays.
Strong engagement and collaborative working
with partners. Put in place strong commercial
agreements.
Ensure clear scopes of services and deliverables
from partners defined.
Initial heads of terms for the storage
commercial arrangements have been
developed and incorporated into the early
project agreements with partners.
The development of the novel commercial
arrangements is well underway.
R0041 A
Delay in delivery of hardware or software
from partners and contractors cause
delays.
Full continual engagement with partners, with
penalties clauses included for late delivery.
Contingency has been built into well designed
plans.
As a mitigating action additional resource can
be added and works re-programmed where
necessary to make up time.
R0042 G
Key Project partner(s) withdraw their
participation in the SNS project during the
project has started, leading to delays.
Tender process was carried out for several
projects aspects and provides alternatives
therefore reduces this risk.
Fourth partner forum held in March 2014.
R0043 G
Partner resources not available to
complete work, attend meeting etc.
Resulting in project delays and issue with
quality of work.
All partners are to provide multiple names as
contacts, with deputies of the same standing. Also
partners are to provide an escalation path should
any issues be identified.
All partners have provided multiple names as
contacts, with deputies of the same standing.
Also partners have provided an escalation path
should any issues be identified.
Acquisition of AMT-SYBEX by Capita and
change of resource at KiwiPower raised as
separate risks.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0044 G
Lack of clear scope/requirements for
Partners result in scope creep and delays.
During scoping / design phase ensure all
elements of work are captured through
engagement & 'sign off' from key internal
stakeholders.
During scoping / design phase ensure all
elements of work are captured through
engagement & 'sign off' from key internal
stakeholders.
R0045 G
Partners do not have a clear delivery plan,
which will result in delivery delays and
missing milestones.
Partners are involved in producing a project plan
and monthly reports to track progress. Payment
for any works will be linked to its completion on
time to cost and quality.
Partners are involved in producing a project
plan and monthly reports to track progress.
Payment for any works will be linked to its
completion on time to cost and quality.
R0046 G
Building redesigns mean overspend on
WS 1.
Ensure close collaboration between storage
supplier and Capital Programme directorate to
ensure planning app reflects requirements.
Some additional equipment and rework has
been required but is expected to be covered
within budget.
R0051 G
Partner spend is higher than anticipated. Overspend on project studies or services. Partner open book accounting mandated;
robust change management employed within
the Project PMO
6-weekly financial reporting implemented.
R0053 G
Partners may have concerns about the
level of resource they need to dedicate to
the project. The risk is that partners
withdraw involvement, leading to delays
or additional costs to mitigate.
Make contingency available for additional partner
costs.
Provide update to partners in Forums on expected
upcoming resource needs.
Remain sensitive to time draw on partners
where there is no funding
Resource forecasts have been provided to
project partners for improved forward visibility.
R0055 -
Internal resource cannot be found for WS
3 to replace contractors – this may mean
higher rates need to continue to be paid
which will lead to overspend.
Ongoing resourcing meetings established to
monitor and review resourcing.
Maintain possible candidates on radar to replace
contractor resource throughout project.
Risk closed. Options discussed during the last
monthly resourcing meeting held with Future
Networks team Project Directors: a)
assumption that WS 3 contractor will remain
on the post. b) seek for internal candidate.
R0056 -
Planning Conditions are not fully
discharged leading to delays in starting
construction on site.
Ensure conditions are well understood and
specific plan and activities to cover conditions are
documented to allow effective management.
Weekly update meetings scheduled to monitor
WS 1 progress.
Risk closed. All pre-commencement
conditions now discharged.
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REF
NO. RAG Status
RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE
R0057 G
Budget restrictions mean that the design
process is not as comprehensive or
exhaustive as it could be, leading to
issues or delays later in the lifecycle.
Ensure good engagement with subject-matter
experts, keep well documented design
discussions and conclusions, attempt best-
practice within the constraints of our budget.
Design Assurance sign off achieved 30
September 2013 as part of SDRC 9.1. Subject
matter experts will continue to assist through
commissioning.
R0059 G
There is a risk that political/civil disruption
in South Korea prevents manufacturing of
the battery cells by Samsung. This could
cause delays to the installation and
commissioning.
Samsung’s primary manufacturing facility is in
South Korea, however a second plant is under
construction in Germany, providing for some
contingency in the event of issues.
Samsung’s primary manufacturing facility is in
South Korea, however a second plant is under
construction in Germany, providing for some
contingency in the event of issues.
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Appendix D: List of trials to be conducted within the SNS Project
Trial Title Trial High Level Aims
Pre-Trial Tests
Peak Shaving Control with Active Power Test Verify the local ESS ability to deliver peak shaving using active power
Peak Shaving Control with Reactive Power Verify the local ESS ability to deliver peak shaving using reactive power
Peak Shaving Control with both Active/ Reactive Power Verify the local ESS ability to deliver peak shaving using active/reactive power control
Static and Dynamic Frequency Response and FCDM Verify the local ESS ability to deliver frequency response
Reserve (STOR and Fast Reserve) Verify the end to end KiwiPower-SOCS-ESS ability or deliver reserve
Set-point Accuracy and Stability Tests Verify the accuracy of set points and their stability during various network conditions
Core Trials
Peak Shaving with Active Power Evaluate the ability of SNS to deliver peak shaving using active power control, when the need for network support is correctly forecasted
Peak Shaving with Reactive Power Evaluate the ability of SNS to deliver peak shaving using reactive power control, when the need for network support is correctly forecasted
Peak Shaving with both Active and Reactive Power Evaluate the ability of SNS to deliver peak shaving using active/reactive power control, when the need for network support is correctly forecasted
Reactive Power Support for Losses Minimisation Evaluate the ability of SNS to minimise electrical losses using reactive power control
Primary Voltage Control with Active Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers
Primary Voltage Control with Reactive Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers
Primary Voltage Control with Active and Reactive Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers
Secondary Voltage Control with Active Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers
Secondary Voltage Control with Reactive Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers
Secondary Voltage Control with Active/ Reactive Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers
Fault-Ride Through Capability and Post-Fault Response Evaluate the ability of SNS to assist in restoration after a network fault
Dynamic Frequency Response Evaluate the ability and benefits of SNS to deliver Dynamic Frequency Response
Static Frequency Response Evaluate the ability and benefits of SNS to deliver Static Frequency Response
Frequency Control by Demand Management Evaluate the ability and benefits of SNS to deliver FCDM
Fast Reserve Evaluate the ability and benefits of SNS to deliver Fast Reserve
Short Term Operating Reserve/Committed Evaluate the ability and benefits of SNS to deliver committed STOR
Short Term Operating Reserve/Flexible Evaluate the ability and benefits of SNS to deliver flexible STOR
Long Term Market Optimisation/Tolling Evaluate the ability and benefits of SNS to deliver tolling
Triad Evaluate the ability and benefits of SNS to respond to triad warnings
DFFR and Reactive Power Evaluate the ability and benefits of SNS to deliver both DFFR and reactive power
SFFR and Reactive Power Evaluate the ability and benefits of SNS to deliver both SFFR and reactive power
FCDM and Reactive Power Evaluate the ability and benefits of SNS to deliver both FCDM and reactive power
Fast Reserve and Reactive Power Evaluate the ability and benefits of SNS to deliver both Fast Reserve and reactive power
Long Term Market Optimisation and Reactive Power Evaluate the ability and benefits of SNS to deliver both tolling and reactive power
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STOR and Reactive Power Evaluate the ability and benefits of SNS to deliver both STOR and reactive power
Triad and Reactive power Evaluate the ability and benefits of SNS to deliver reactive power while responding to triads warnings
Long-Term Trials
Noise Assess the noise from the operation of SNS during various operating conditions, weather
Battery Degradation Assess the degradation of the battery during various operating conditions
Power Quality/Harmonics Assess the effect on power quality from SNS
TSO Support Quantify the contribution of SNS to the TSO (ancillary services and loading as seen at GSP)
Total Carbon Emissions, Storage Utilisation, Energy Use Quantify the carbon savings, energy use and storage utilisation
Contribution to Security of Supply Assess the contribution of storage to security of supply
Distribution Network and Storage Efficiency Assess the effect of SNS use on distribution network efficiency and quantify SNS efficiency