Welcome to the Distributed Generation ForumCardiff – 23 September 2015

The Voice of the Networks

Welcome and Introductions

Prof. Graham AultDevelopment DirectorSmarter Grid Solutions

DG Forum Cardiff 2015

The Voice of the Networks

Agenda - AM

DG Forum Cardiff 2015

The Voice of the Networks

10.00 Welcome and IntroductionProf. Graham Ault – Development Director, Smarter Grid Solutions LtdDistribution Network Operators (DNO): Overview Brian Hoy – Head of Market Regulation, Electricity North WestDECC PerspectiveRobert Kinnaird - Future Electricity Networks, DECCOfgem PerspectiveJames Veaney – Head of Distribution Policy, Ofgem

11.00 Coffee Break11.20 DNO Progress Update

Charl Oosthuizen – Finance Director, Western Power DistributionStephen Stewart – Director, SP ManwebDG Customer PerspectivesDr Graham Pannell – Energy Networks, Renewable Energy SystemsNicola Waters - Chief Operations Officer, Primrose SolarPanel Discussion and Audience Q & A

13.00 Lunch and Networking

Agenda - PM

DG Forum Cardiff 2015

The Voice of the Networks

14.00 Statement of Works ProcessRoom – David Morgan RoomFlexible Connection Offers Room – Preseli Room Competition in ConnectionsRoom – Sony RoomDNO Roundtable Room – Japan Room

14.45 Repeat of breakout sessions15.30 Round up16.00 Close

EnergyNetworksAssociationOverview of progress

Name Brian HoyPosition Chair DG-DNO Steering GroupDate 23 September 2015

The Voice of the Networks

6 The Voice of the Networks

What can you expect from today?

Improving service for customers

Explanations of what DNOs

have done

Opportunities to give us feedback

Opportunities for discussion

What best practice looks like

7 The Voice of the Networks

How the approach has developed

DG Fora

Refinement of the

approach

Building on progress and

learning

First ENA led ForaDNOs

reported back on progress

First series of Fora held

by Ofgem

2011

2014

2013

2012

2015

8 The Voice of the Networks

DG-DNO Steering Group

Membership

6 DNOs 9 TAs2 CinC

Best Practice

Compare approaches

Identification of issues

“To discuss and address distributed generation connection issues, share best practice, develop agreed solutions, and communicate progress to all

stakeholders, notably at the annual DG Forum”

9 The Voice of the Networks

Customers

Blueprint for ‘ICE’

Incentive on Connections Engagement

Builds on DG approach

Trial – 2014Incentive - 2015

‘Looking Forward’ ReportEngagement, work plan & key performance

outputs for the forthcoming year

‘Looking Back’ ReportPerformance against ‘Looking Forward’ plan

that the DNO set itself

10 The Voice of the Networks

Areas of focus over the last year

C

Saturated Networks & ‘flexible’ connection offersTransmission interfaces and dependencies

Emergingissues

Contracted Capacity Registers

Slow moving projects

Competition in Connections

Incentive on Connections EngagementDG Fora planning

11 The Voice of the Networks

Despite all those challenges....

Increasing amounts of DG Connected

50% increase last year

Significant increase in EHV connections

Increasing solar installed

0

1,000

2,000

3,000

4,000

2011 2012 2013 2014 2015

MW Connected

TOTAL LV TOTAL HV TOTAL EHV TOTAL 132

12 The Voice of the Networks

Final thoughts

Use the opportunity to engage

&AnswersQuestions

Share learning, challenges and outcomes

Give us feedback to make next year even better

Robert KinnairdFuture Electricity Networks, DECC

DG Forum

Wednesday 23rd September 2015

Responding to the growth of DGThe network challenge

James VeaneyHead of Distribution Policy

23/09/2015

15

Introduction

• We’re seeing a transformation in how energy is generated and used

• This has profound implications for the distribution and transmission networks and how the overall system operates

• Exciting time – new entrants emerging on the energy market can deliver great benefits to consumers

• Uncertainty is fact of life but DNOs have to be active in addressing these issues

16

• 5 years ago, generators had a lengthy list of complaints

• Application process was long winded

• Little information available up front to inform connection choice

• Customer service was patchy

• Hard to know what you were paying for

• Different arrangements in different DNO regions

• No innovation or desire to find ways around a problem

• At times, far too expensive

• At times, far too long to connect

• DG Forum and new Incentive on Connections Engagement introduced to focus DNOs on customer needs – or face penalties

• General sense that progress has been made - DNOs are now more customer focused

Service quality has improved

17

Innovation has enabled smarter approaches

• We’ve invested over £71.3m of customer money funding innovative projects to release capacity/improve connections for DG

Flexible Plug and Play (UKPN)

Low carbon hub (WPD)

Active Network Management (SSE)

Real time thermal ratings (NPG)

Kent Area System Management (UKPN)

Accelerating Renewable Connections (ARC) (SP)

FlexDGrid (WPD)

Capacity to Customers (ENWL)

Low Voltage Network Templates (WPD)

Network Equilibrium (WPD)

• These need to be business as usual. Customers should have a choice between firm and a viable non-firm offer – or an explanation why not.

18

ICE Plans published on our website describing how service will improve

NPG: Assess alternative connection options to reduce connection costs and timescales.Develop and implement a design tool that runs connections network assessments.

ENWL: HV & LV schemes have a detailed study on acceptance rather than quotation stage ‘Connect and manage’ policy on bulk PV schemes

SSE: Active Network Management as Business as Usual Connection surgeries

WPD: Rolling out flexible connection offers across the network

SP: Development of Power Networks Demonstration Collation and Centre - trialling new technologies Development of Flexible Networks Project to provide 20% increase in network capacity ARC Project to trial a new connections process in East Lothian and the Borders of Scotland

UKPN: Review design toolsMaximise Flexible Plug and Play opportunities

Up to you to tell the DNO and us what you think

Improvement must be ongoing

19

The growth of DG

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2010/11 2011/12 2012/13 2013/14 2014/15

Other generation CHPPhotovoltaic Waste incineration (not CHP)Landfill gas, sewage gas, biogas (not CHP) Biomass & energy crops (not CHP)Offshore wind Onshore wind

• 11.5 GW connected since 2010

• 45 MW of PV connected in 2010. By 2015 over 5 GW had connected

20

Dis

trib

ute

d G

ener

atio

n c

apac

ity

(MW

)

Increasing irradiance

Mix of technologies varies by region

21

UK installed the most solar capacity in Europe in 2014. Total installed solar capacity of 5.71 GW at the end of March 2015 - 41% increase

687,000 solar installations in the UK compared to just over 7,000 five years ago

Forecasting is challenging

22

With growth comes issues

• Fundamental changes to the flows of energy across the system – regions built to handle demand now net export

• Headroom for growth being exhausted - Grid constraints are becoming more severe

Connections to Distribution network in SW

Total MW -

connected,

accepted and

offered

Biomass and energy crops (not CHP) 111,050

CHP 68,648

Offshore wind 181,351

Onshore wind 202,433

Photovoltaic 2,593,920

Waste incineration 115,765

Other generation 649,522

Total 3,922,689

Winter Maximum Demand 2,530,000

Summer Minimum Demand 980,000

23

• NGET use DNO forecasts of DG and for individual larger schemes the Statement of Works (SoW) process to identify impact DG may have on the network

• Rapid (unforecasted) growth in DG in some regions and its ability to deploy in 3 to 6 months is creating significant challenges.

• Cumulative impact of lots of ‘small’ generation (not covered by SoW) and intermittent nature of when DG exports compounds the challenge

• Embedded generation can reduce demand on the network (ie.excess generation at times of low demand - sunny day at 5AM). Challenging for NGET to keep voltages within limits - may result in restrictions on transmission-connected generation and/or what the DNO can connect

Impacts on the wider system

24

Being done• Sharing of all FiTS data – so everyone knows how much is connected

• DNO/Transmission workshop to consider whole-system impacts and solutions

• Review of Engineering Recommendations that may allow DNOs more flexibility in planning connection requirements

Further work required• Needs to be more consistency in approach to queue management – some may lose out

but overall there must be benefits from a more efficient approach

• Want customers to know what smart/alternative connection solutions are available

• Want transparency on flexible terms offered by DNOs

So what’s being done/ needs to be done

25

• Price signals are important - most of the connections in last 5 years didn’t require reinforcement. This is a real success story.

• But not sustainable indefinitely. DNOs have a duty to connect customers. Only offering prohibitively expensive connections across a region is not acceptable.

• Either new capacity is required or smarter solutions have to be deployed (or both)

• Uncertainty is fact of life. So DNOs have to review and update plans on ongoing basis and consider how to enable growth and minimise risk

- Scenarios for growth- Phased expenditure- User commitment- Smart solutions

• Quicker, More Efficient Connections consultation to explore alternative approaches to investment, including alternate commercial arrangements (consortium)

Strategically - DNOs can’t constrain growth

26

• These are our expectations – we believe DNOs should manage and develop their networks to accommodate growth and customers should be presented with choice on the type of connection they are offered

• ICE should drive this behaviour – you need to use this ensure DNOs are responding to your needs

• Alongside DNO-led engagement we plan to issue our own consultation in October to hear directly from you how well DNOs are rising to these expectations.

Is this happening?

DISTRIBUTED GENERATION FORUMCharl Oosthuizen – WPD Finance Director

Wednesday 23rd September 2015

Cardiff

Agenda

29

• Fulfilling our commitments from last year

• The challenge we face: Network constraints

- Statement of works- Queue management

• What we are doing to address these challenges

• How are we doing – WPD’s DG survey

• Top 3 priorities for 2016

Fulfilling our commitments from last year’s forum

We have:

• Engaged with over 2,400 connections stakeholders in the last 12 months – Including for example, a large scale solar event (300 stakeholders) and 4 further Community

Energy scheme workshops (120 stakeholders)

• Amended our annual DG survey – segmenting by LV, HV and EHV

• Introduced alternative connection offers as appropriate

• Met with our Connections Customer Steering Group (CCSG) 3 times per year and developed 66 improvement actions in our ICE workplan. With key focus on:

- Availability of network information including available capacity- Consistency of process and communication across WPD- Improving the post acceptance process

30

Network Constraints - background

Demand for DG connections has increased ten-fold over the last four years despite:

– DECC intervention on subsidy rates– Available capacity being utilised

(where little or no reinforcement required)

Take up in the South West– Network designed for MD of 2.6 GW– 1.3 GW renewable connections

already made– Quotes accepted on a further 1.8

GW of renewables– 23% of all energy from renewables

31

The driver of DG volumes is an economic one i.e. the level of subsidy

Network constraints across WPD

32

• There are now many constraints across WPD – maps published on our website

Network constraints South West – customer impact

• A delay of 3-6 years will apply to all generator connections in the South West requiring works at HV (i.e. 6.6kV or 11kV) or above

• In addition, there are likely to be other reinforcement works included in the connection offers (for more localised issues), plus a requirement to obtain a Statement of Works from National Grid transmission

• We are currently exempting restrictions from:- Individual SSEGs - DG where only LV works are involved- Generation on predominantly demand connections as long as the load offsets the generation

requirements at all times

• These restrictions are subject to constant review

33

DG forecast using 2011/12 data

DG Connected and Accepted (MW) – South West cumulative 2009-2012

NGT 400kv line - planned

completion

DG forecast using 2012/2013 data

DG Connected and Accepted (MW) – South West cumulative 2009-2013

NGT 400kv line - planned

completion

WPD’s response – facing up to the issues

• Rather than avoid these difficult issues, we have taken a number of steps to engage with stakeholders, communicate the challenges and review our plans to address them. E.g:

36

- Ofgem and DECC briefed in March

- Briefing note advising DG community published on WPD website in March

- Cornwall Energy Island event 20th March (100 attendees - Councils, developers, community energy)

- WPD Exeter DG event 14th April (60 DG developers)

- Regen SW annual conference 21st April (400 attendees – DG, Councils, community energy)

- Additional DG developer meetings as requested

“It is very welcome that WPD are not afraid to put their heads above the parapet to talk about these difficult issues” – DG developer

What are we doing to address the issue?

• What more can we get out of F route? – LiDAR

• WPD promoting ‘alternative’ connection schemes - Active monitoring of constraint limits and curtailment as necessary (active, timed, intertrip). Since 1st April 2015 we have:- 127 schemes already accepted (a further 112 offered)- 342MW of additional connections facilitated

• Rolling out zones that are fully automated (‘Active Network Management’ zones)

• Demand Side Response - discussions with major utilities and other large I&C customers “Project Sync”

• Export Capping schemes - DG developers required to keep export levels to zero where capping scheme employed

• Innovative “sunshine tariff” trial with Tempus energy

37

Effective utilisation of existing capacity

WPD’s response - forecasting

• Consider various strategic options and costs of facilitating higher levels of DG in the South West

• Hosted a stakeholder event (15th Sept) to review our approach

• We will:- Assess the potential growth in DG by type, location and year, against potential demand changes- Identify thermal, voltage and fault level constraints that result- Assess options for reinforcement

• This will enable us to:- Provide recommendations for ‘low regret’ investment- Develop background energy scenarios and resulting generation and demand scenarios- Identify future network solutions (including required NGET upgrades)- Estimate capacity provided by these solutions and costs/timescales- Reveal the potential for demand response or generation constraint take up vs network solutions

38

Scoping out a more detailed study and scenarios

WPD’s response - mitigation

• LiDAR

• Trialling reduction of the 132kV network voltage to reduce transmission system impact

• Assessing the potential for reactive compensation through transformer tap operation or the installation of further reactive compensation equipment

• Examining options for switching our capacitor banks based on network conditions

• Working with NGET to look at options for our Active Network Management schemes responding to NG boundary flows

39

WPD’s response - Statement of Works

• To date WPD has been encouraged by NGET to make ‘bulk applications’ i.e. a number of applications have been grouped together as part of a SoW application

• Any conditions from NGET are then applied to connectees in the bulk application

• Problems nationally have led to a national working party to review the process

• We have set up a new team to make individual SoW applications above 1MW, but NGET may require higher or lower limits at some GSPs

40

Move to individual SoW process

WPD’s response - queue management

For example:• DG Developers are required to demonstrate that their scheme is progressing by meeting

milestones

• When a DG developer does not install their full offered capacity, the unutilised capacity will be recovered unless they can demonstrate the capacity will be utilised within 18 months

• Relinquished capacity will be made available to other applicants in strict order

41

Several changes following consultation (April 2014) and workshop (Aug 2015)

• WPD have conducted a bespoke DG survey for the 4th consecutive year• We have seen a decline in most areas, but overall satisfaction remains above 8.5/10:

• We have improved the consistency of the process – 88% customers with previous service experience said the most recent was the same or better

How are we doing?

42

• Following feedback we have disaggregated the surveys by voltage:

• Despite the challenges faced, satisfaction remains high in some areas:

• But we are getting a clear message for improvement in other areas

How are we doing?

43

NOTE: Sample size too small on EHV completed connections (5 customers) to be statistically robust

Ease of initial contact (to get a quotation) 8.92

Understanding the customer’s requirements (during quotation process) 9.06

Clarity of explanation of the connections process 8.74

Clarity of explanation of the likely charge 8.98

2014: 2015:

Time taken to provide a quotation 8.53 7.88

Amount of communication throughout the process 9.03 8.57

Promptness of contact to agree dates for work 9.08 8.00

Arrangements made before work started 9.30 8.46

Priorities for 2016

44

1. Scope out a more detailed study and scenarios for DG volumes and potential network investment- Using our experience & learning over the last 2yrs to improve our techniques and forecasting to

facilitate more DG

2. Move to an individual Statement of Works process- Provide quicker response to DG customers and increased certainty on their project risks

3. Implement the ICE plan and publishing associated KPIs- Actions identified by stakeholders will drive improvements, measured by clear KPIs

2015 DG Forum

Millennium Centre, Cardiff

23rd September 2015

Agenda

• Who are SP EnergyNetworks?

• Our contribution to the Renewables sector

• The highlights from the past year

• Our focus over the next year

• Summary

SP EnergyNetworks

We deliver electricity to;

• 2m customers in Scotland

• 1.5m customers in England and North Wales

Our network serves;

• 14% of UK demand customers

• 29% of all connected DG

Our network contains;

• 30,000 substations

• 40,000km of OHL

• 65,000km of cable

We employ;

• 2,600 internal staff

• Supported by 2,500 contractors

SP Distribution

SP Manweb

We cover;

• 3 different countries and Governments

• Multi-lingual

An aerial view of QASP. - Photo courtesy Quaid-e-Azam Solar Power (Pvt) Ltd

Pilot phase of World’s largest solar park:

Pilot

100MW

400,000 PV cells

Proposed

1000MW

5.2 million PV cells

Scale is relative…

Contracted 1.3GW

Connected 0.91GW

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2010/11 2011/12 2012/13 2013/14 2014/15

SP Manweb

Solar is the main driver of DG Growth in SP Manweb

Offers Issued

SP Manweb could be a net exporter of power…

Mainly PV generation, spread across the whole SP Manweb area except for Snowdonia National Park and Areas of Outstanding Natural Beauty

Constraints are not just a South West Issue…

First to provide heat maps….

• Geographical picture of the capacity availability of our network for generation

• Can be used for initial viability of a project

First to provide ‘Quote +’…. Most DNOs now

provide a variant thereof

Preferred option for Formal Connection Offer

Option 3

Option 2

Option 1

FeasibilityAssessment

Initial enquiry date secures queue position

Highlights from the past year…

5 Districts

We listened and implemented a new geographical model

You told us you wanted to …

• Be able to contact staff with local knowledge

• Build relationships with local staff

• Get decisions made quickly

We will provide…

• Greater autonomy and responsibility for our local operations

• Greater emphasis on stakeholders and communities

We are already seeing the improvement in Customer Service

Stakeholder Geographic Model

Industry Portal

Project Details

ICPsIDNOs

We are launching a working group to include representation from ICPs, IDNOs, Utility Consultants and Customers to establish:

Feasibility

Scope

Demand

Using “Best Practice” from outside the industry – we want to develop a “Portal” for customers to advertise for alternative connection providers to

undertake the contestable works on their projects

Encouraging Competition

Existing Demand and Generation profile

70 MVA Demand

170MW Connected & Contracted generation

160MW tidal generation

100MW other generation in the pipeline

Innovation Solution

Insertion of a flexible DC link between Anglesey and the mainland

Conversion of an existing AC circuit to DC operation

Control of power flows – solution can be used in other locations across UK

20% to 25% increase on capacity

The Anglesey Energy Challenge

Innovation – Angle DC Project

SPEN are at the forefront of plans to replace ‘Statement of Works’ process

Connection application

Connection Offer

Acceptance & payment of SoW fee

SoWRequest

SoW Issue

SoWNotification

Mod App Request and

paymentMod App Request

Mod Offer Issue

Variation Issue

Decision

Customer NGETDNO

Connection application

Connection Offer

Decision

GSP Headroom DefinedT Works Identified

BCA Schedules Agreed

Customer NGETDNO

Up

to

12

mo

nth

s A WIN - WIN for all!

• Increased certainty and control• Reduced timescales and costs • Removal of invoicing issues• Increased visibility to NGET

• SPD will trial pre-CUSC change

Current ProposedM

in. 6

mo

nth

s

Revised Statement of Works Process…

Summary

We’ve connected 4GW of Renewables & 3.3GW contracted in SPD & SPM

We have managed constraints for a number of years, they are not new

We listened and implemented a Geographical District Model

We will continue to innovate and respond to your needs

Dr Graham PannellRenewable Energy Systems

Vice-ChairENA DG-DNO Steering Group

Develop

Design

EngineerConstruct

Operate

Agenda

1 Context

2 Last Year we asked for action on… what has happened?

• Workplans

• Flex Conn & Reinforcement Signal, A&D Fees, Capacity Hoarding, Transmission

2 DNO Experience

3 Key Asks 2015/16

• Queue and Capacity Management – Do it.

• Transmission interaction – better info, better process.

• Reinforcement and optimal charging – Quicker and More Efficient, please

Context

• respect contracts

(subject to Q mgmt)

• some will make it work

(fair grace periods needed)

interim!

uncertainty

RES operates across 6 continents

5 GWOFFSHORE

DEVELOPMENTEXPERTISE

1300 MWSOLAR

inDEVELOPMENT

DEVELOP,CONSTRUCT &

OPERATE one of the LARGEST

WIND FARMSin

EUROPE

>5000 TURBINES

COMMISSIONED

>10 GWPROJECT

PORTFOLIO

>1000 kmTRANSMISSION

POWERLINES BUILT

75 MWENERGY

STORAGE

• more renewables facilitated

RES’ low carbon UK headquarters

Beaufort Court

Last Year Asks

ICE Workplans – Service improvements in train

Last Year Asks

Flex Conn = patchy (good WG progress)

Reinforcement Signal = NoneQMEDCSGF

A&D Fees = Nothing

Capacity Hoard = Q Mgmt = difficult

Transmission info =

Last Year Asks

WPD:

Mostly positive.

Connections made. Escalation path clear

SoW – history catching up still

Some contract difficulties. T&Cs out-dated.

Plan - good choices, good ambition, poor KPIs.SPEN:

Hands on proj mgmt.

- programming tough.

Contract management sound (not quick).

££££ especially Transmission.

flexibility .

quote+ & heat maps .

Plan promising. “You said we did”.

Customer Experience & Workplans

both DNOs: capacity reg

Priorities for 2015/16

Queue and Capacity Management – Do it.

Transmission interaction – better info, better process.

Reinforcement and optimal charging – Quicker and More Efficient, please

Priorities for 2015/2016

Priorities for 2015/16

Queue & Capacity Managementoperational capacity & old contracts

trip/export management costs must be reasonable

no trading

Transmission System Interactionbetter, earlier info

Interim Restrictions options without BEGA

replace Statm’t of Works; D-Offer to include Transmission detail!

Reinforcement and Charging“Quicker and More Efficient Distribution Connections”

Least regrets grid capacity investment built on needs case, as per NG

…with signal from flex connections.

NOW, not 2017+.

charges post connection, rationalise £200/kW cap.

Priorities for 2015/2016

Dr Graham PannellRenewable Energy Systems

Workplans – DG: give feedback

Queue and Capacity Management – DNOs: Do it.

Transmission interaction – DNOs & TSO: better info, better process, quickly.

Reinf’ts & optimal charging – Ofgem & DNOs: Quicker and More Efficient, now.

DG Customer Perspective

Nicola WatersSeptember 2015

Overview

• Introduction to Primrose Solar

• DG industry

• Progress last year

• Ongoing challenges

Primrose Solar as a customer

• Buy, build, own/operate, and sell projects

• Active industry participants

• 183MW built, up to 100MW planned for before April ‘16

DG industry

• Changes to the subsidies mean that the way DG is developed and connected will significantly alter from 2016 onwards. Likely to include:

• Bigger connections

• More challenging locations

• Company consolidation- more sophisticated industry

• Less foreign investment

• Different project motives

• The outlook for community schemes are uncertain

• Storage is on its way

Progress last year

• More connections than ever before

• Mostly positive improvements

• Working relationships with DNOs

• Increased visibility across the board

• Queue management

• Transmission implications

• Curtailment explanations

Ongoing challenges

• Grace period management

• Subsidy free projects

• Queue and capacity management

• More transparency

• Transmission info

• Curtailment is more complex, DG need support

• Making flexible connections work

Thanks for listeningNicola Waters, COO

Nicola@primrosesolar.com

07557 902 132